QUALCOMM INC (QCOM) Fundamental Analysis & Valuation

NASDAQ:QCOM • US7475251036

Current stock price

126.8 USD
-0.48 (-0.38%)
At close:
126.85 USD
+0.05 (+0.04%)
After Hours:

This QCOM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. QCOM Profitability Analysis

1.1 Basic Checks

  • QCOM had positive earnings in the past year.
  • QCOM had a positive operating cash flow in the past year.
  • Each year in the past 5 years QCOM has been profitable.
  • In the past 5 years QCOM always reported a positive cash flow from operatings.
QCOM Yearly Net Income VS EBIT VS OCF VS FCFQCOM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 10.12%, QCOM belongs to the top of the industry, outperforming 80.87% of the companies in the same industry.
  • The Return On Equity of QCOM (23.25%) is better than 89.57% of its industry peers.
  • QCOM has a Return On Invested Capital of 19.99%. This is amongst the best in the industry. QCOM outperforms 93.04% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for QCOM is significantly above the industry average of 10.70%.
  • The 3 year average ROIC (17.48%) for QCOM is below the current ROIC(19.99%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 10.12%
ROE 23.25%
ROIC 19.99%
ROA(3y)14.54%
ROA(5y)18.39%
ROE(3y)32.75%
ROE(5y)52.19%
ROIC(3y)17.48%
ROIC(5y)20.71%
QCOM Yearly ROA, ROE, ROICQCOM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -200 -400 -600

1.3 Margins

  • Looking at the Profit Margin, with a value of 11.96%, QCOM is in the better half of the industry, outperforming 68.70% of the companies in the same industry.
  • In the last couple of years the Profit Margin of QCOM has declined.
  • QCOM has a Operating Margin of 27.20%. This is amongst the best in the industry. QCOM outperforms 85.22% of its industry peers.
  • QCOM's Operating Margin has improved in the last couple of years.
  • QCOM's Gross Margin of 55.10% is fine compared to the rest of the industry. QCOM outperforms 73.04% of its industry peers.
  • QCOM's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 27.2%
PM (TTM) 11.96%
GM 55.1%
OM growth 3Y-5.8%
OM growth 5Y6.56%
PM growth 3Y-24.67%
PM growth 5Y-12.15%
GM growth 3Y-1.41%
GM growth 5Y-0.7%
QCOM Yearly Profit, Operating, Gross MarginsQCOM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. QCOM Health Analysis

2.1 Basic Checks

  • QCOM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • The number of shares outstanding for QCOM has been reduced compared to 1 year ago.
  • The number of shares outstanding for QCOM has been reduced compared to 5 years ago.
  • QCOM has a worse debt/assets ratio than last year.
QCOM Yearly Shares OutstandingQCOM Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B
QCOM Yearly Total Debt VS Total AssetsQCOM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.2 Solvency

  • An Altman-Z score of 5.24 indicates that QCOM is not in any danger for bankruptcy at the moment.
  • QCOM has a Altman-Z score (5.24) which is comparable to the rest of the industry.
  • The Debt to FCF ratio of QCOM is 1.15, which is an excellent value as it means it would take QCOM, only 1.15 years of fcf income to pay off all of its debts.
  • QCOM has a Debt to FCF ratio of 1.15. This is in the better half of the industry: QCOM outperforms 72.17% of its industry peers.
  • QCOM has a Debt/Equity ratio of 0.64. This is a neutral value indicating QCOM is somewhat dependend on debt financing.
  • QCOM has a worse Debt to Equity ratio (0.64) than 73.04% of its industry peers.
  • Although QCOM's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 1.15
Altman-Z 5.24
ROIC/WACC1.79
WACC11.17%
QCOM Yearly LT Debt VS Equity VS FCFQCOM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.3 Liquidity

  • A Current Ratio of 2.51 indicates that QCOM has no problem at all paying its short term obligations.
  • QCOM's Current ratio of 2.51 is on the low side compared to the rest of the industry. QCOM is outperformed by 60.00% of its industry peers.
  • A Quick Ratio of 1.83 indicates that QCOM should not have too much problems paying its short term obligations.
  • QCOM's Quick ratio of 1.83 is on the low side compared to the rest of the industry. QCOM is outperformed by 63.48% of its industry peers.
Industry RankSector Rank
Current Ratio 2.51
Quick Ratio 1.83
QCOM Yearly Current Assets VS Current LiabilitesQCOM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. QCOM Growth Analysis

3.1 Past

  • QCOM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.50%, which is quite good.
  • Measured over the past years, QCOM shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.54% on average per year.
  • QCOM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.25%.
  • Measured over the past years, QCOM shows a quite strong growth in Revenue. The Revenue has been growing by 15.30% on average per year.
EPS 1Y (TTM)11.5%
EPS 3Y-1.35%
EPS 5Y23.54%
EPS Q2Q%2.64%
Revenue 1Y (TTM)10.25%
Revenue growth 3Y0.06%
Revenue growth 5Y15.3%
Sales Q2Q%5%

3.2 Future

  • The Earnings Per Share is expected to grow by 7.18% on average over the next years.
  • QCOM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.97% yearly.
EPS Next Y-5.47%
EPS Next 2Y-2.51%
EPS Next 3Y1.44%
EPS Next 5Y7.18%
Revenue Next Year0.28%
Revenue Next 2Y0.48%
Revenue Next 3Y2.77%
Revenue Next 5Y5.97%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
QCOM Yearly Revenue VS EstimatesQCOM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B 50B
QCOM Yearly EPS VS EstimatesQCOM Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15

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Find the best growth stocksShow best growing peers

8

4. QCOM Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 10.46, the valuation of QCOM can be described as reasonable.
  • Compared to the rest of the industry, the Price/Earnings ratio of QCOM indicates a rather cheap valuation: QCOM is cheaper than 98.26% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.60, QCOM is valued rather cheaply.
  • The Price/Forward Earnings ratio is 11.09, which indicates a very decent valuation of QCOM.
  • Based on the Price/Forward Earnings ratio, QCOM is valued cheaper than 95.65% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of QCOM to the average of the S&P500 Index (22.84), we can say QCOM is valued rather cheaply.
Industry RankSector Rank
PE 10.46
Fwd PE 11.09
QCOM Price Earnings VS Forward Price EarningsQCOM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of QCOM indicates a rather cheap valuation: QCOM is cheaper than 93.91% of the companies listed in the same industry.
  • 97.39% of the companies in the same industry are more expensive than QCOM, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 10.47
EV/EBITDA 9.71
QCOM Per share dataQCOM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • QCOM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.44
EPS Next 2Y-2.51%
EPS Next 3Y1.44%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. QCOM Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.73%, QCOM has a reasonable but not impressive dividend return.
  • In the last 3 months the price of QCOM has falen by -26.70%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • QCOM's Dividend Yield is rather good when compared to the industry average which is at 0.50. QCOM pays more dividend than 93.04% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.88, QCOM pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.73%

5.2 History

  • On average, the dividend of QCOM grows each year by 6.56%, which is quite nice.
  • QCOM has been paying a dividend for at least 10 years, so it has a reliable track record.
  • QCOM has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.56%
Div Incr Years21
Div Non Decr Years21
QCOM Yearly Dividends per shareQCOM Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • 71.05% of the earnings are spent on dividend by QCOM. This is not a sustainable payout ratio.
  • The dividend of QCOM is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP71.05%
EPS Next 2Y-2.51%
EPS Next 3Y1.44%
QCOM Yearly Income VS Free CF VS DividendQCOM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B
QCOM Dividend Payout.QCOM Dividend Payout, showing the Payout Ratio.QCOM Dividend Payout.PayoutRetained Earnings

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QCOM Fundamentals: All Metrics, Ratios and Statistics

QUALCOMM INC

NASDAQ:QCOM (4/2/2026, 8:00:01 PM)

After market: 126.85 +0.05 (+0.04%)

126.8

-0.48 (-0.38%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-04
Earnings (Next)04-28
Inst Owners81.48%
Inst Owner Change-0.29%
Ins Owners0.05%
Ins Owner Change4.62%
Market Cap135.30B
Revenue(TTM)44.87B
Net Income(TTM)5.37B
Analysts71.3
Price Target165.01 (30.13%)
Short Float %3.72%
Short Ratio3.35
Dividend
Industry RankSector Rank
Dividend Yield 2.73%
Yearly Dividend3.48
Dividend Growth(5Y)6.56%
DP71.05%
Div Incr Years21
Div Non Decr Years21
Ex-Date03-05
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.42%
Min EPS beat(2)0.57%
Max EPS beat(2)2.27%
EPS beat(4)3
Avg EPS beat(4)0.48%
Min EPS beat(4)-0.96%
Max EPS beat(4)2.27%
EPS beat(8)7
Avg EPS beat(8)2.79%
EPS beat(12)10
Avg EPS beat(12)3.29%
EPS beat(16)12
Avg EPS beat(16)2.88%
Revenue beat(2)1
Avg Revenue beat(2)0.38%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)2.38%
Revenue beat(4)1
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)2.38%
Revenue beat(8)3
Avg Revenue beat(8)0.38%
Revenue beat(12)4
Avg Revenue beat(12)0.19%
Revenue beat(16)5
Avg Revenue beat(16)-0.05%
PT rev (1m)-13.47%
PT rev (3m)-15.36%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)-12.04%
EPS NY rev (1m)-6.99%
EPS NY rev (3m)-8.06%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-5.27%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-3.99%
Valuation
Industry RankSector Rank
PE 10.46
Fwd PE 11.09
P/S 3.02
P/FCF 10.47
P/OCF 9.4
P/B 5.86
P/tB 18.63
EV/EBITDA 9.71
EPS(TTM)12.12
EY9.56%
EPS(NY)11.43
Fwd EY9.02%
FCF(TTM)12.11
FCFY9.55%
OCF(TTM)13.49
OCFY10.64%
SpS42.05
BVpS21.62
TBVpS6.81
PEG (NY)N/A
PEG (5Y)0.44
Graham Number76.79
Profitability
Industry RankSector Rank
ROA 10.12%
ROE 23.25%
ROCE 28.24%
ROIC 19.99%
ROICexc 27.52%
ROICexgc 55.45%
OM 27.2%
PM (TTM) 11.96%
GM 55.1%
FCFM 28.81%
ROA(3y)14.54%
ROA(5y)18.39%
ROE(3y)32.75%
ROE(5y)52.19%
ROIC(3y)17.48%
ROIC(5y)20.71%
ROICexc(3y)23.98%
ROICexc(5y)29.07%
ROICexgc(3y)39.79%
ROICexgc(5y)50.96%
ROCE(3y)24.69%
ROCE(5y)29.47%
ROICexgc growth 3Y-4.83%
ROICexgc growth 5Y4.68%
ROICexc growth 3Y-5.32%
ROICexc growth 5Y8.03%
OM growth 3Y-5.8%
OM growth 5Y6.56%
PM growth 3Y-24.67%
PM growth 5Y-12.15%
GM growth 3Y-1.41%
GM growth 5Y-0.7%
F-Score5
Asset Turnover0.85
Health
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 1.15
Debt/EBITDA 1.08
Cap/Depr 93.91%
Cap/Sales 3.26%
Interest Coverage 250
Cash Conversion 104.55%
Profit Quality 240.93%
Current Ratio 2.51
Quick Ratio 1.83
Altman-Z 5.24
F-Score5
WACC11.17%
ROIC/WACC1.79
Cap/Depr(3y)71.86%
Cap/Depr(5y)92.66%
Cap/Sales(3y)3.14%
Cap/Sales(5y)4.03%
Profit Quality(3y)159.2%
Profit Quality(5y)125.21%
High Growth Momentum
Growth
EPS 1Y (TTM)11.5%
EPS 3Y-1.35%
EPS 5Y23.54%
EPS Q2Q%2.64%
EPS Next Y-5.47%
EPS Next 2Y-2.51%
EPS Next 3Y1.44%
EPS Next 5Y7.18%
Revenue 1Y (TTM)10.25%
Revenue growth 3Y0.06%
Revenue growth 5Y15.3%
Sales Q2Q%5%
Revenue Next Year0.28%
Revenue Next 2Y0.48%
Revenue Next 3Y2.77%
Revenue Next 5Y5.97%
EBIT growth 1Y11.89%
EBIT growth 3Y-5.74%
EBIT growth 5Y22.86%
EBIT Next Year1.11%
EBIT Next 3Y1.26%
EBIT Next 5YN/A
FCF growth 1Y30.74%
FCF growth 3Y23.33%
FCF growth 5Y23.81%
OCF growth 1Y29.02%
OCF growth 3Y15.49%
OCF growth 5Y19.24%

QUALCOMM INC / QCOM Fundamental Analysis FAQ

What is the fundamental rating for QCOM stock?

ChartMill assigns a fundamental rating of 7 / 10 to QCOM.


What is the valuation status for QCOM stock?

ChartMill assigns a valuation rating of 8 / 10 to QUALCOMM INC (QCOM). This can be considered as Undervalued.


How profitable is QUALCOMM INC (QCOM) stock?

QUALCOMM INC (QCOM) has a profitability rating of 8 / 10.


What is the valuation of QUALCOMM INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for QUALCOMM INC (QCOM) is 10.46 and the Price/Book (PB) ratio is 5.86.


How sustainable is the dividend of QUALCOMM INC (QCOM) stock?

The dividend rating of QUALCOMM INC (QCOM) is 7 / 10 and the dividend payout ratio is 71.05%.