QUALCOMM INC (QCOM) Fundamental Analysis & Valuation
NASDAQ:QCOM • US7475251036
139.51 USD
+1.38 (+1%)
At close: Mar 4, 2026
138.342 USD
-1.17 (-0.84%)
Pre-Market: 3/5/2026, 8:08:50 AM
This QCOM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 7 out of 10 to QCOM. QCOM was compared to 115 industry peers in the Semiconductors & Semiconductor Equipment industry. QCOM scores excellent on profitability, but there are some minor concerns on its financial health. QCOM scores decently on growth, while it is valued quite cheap. This could make an interesting combination. QCOM also has an excellent dividend rating. These ratings would make QCOM suitable for value and dividend investing!
1. QCOM Profitability Analysis
1.1 Basic Checks
- In the past year QCOM was profitable.
- 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.
1.2 Ratios
- The Return On Assets of QCOM (10.12%) is better than 80.87% of its industry peers.
- With an excellent Return On Equity value of 23.25%, QCOM belongs to the best of the industry, outperforming 89.57% of the companies in the same industry.
- The Return On Invested Capital of QCOM (19.99%) is better than 93.91% 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 10.50%.
- The 3 year average ROIC (17.48%) for QCOM is below the current ROIC(19.99%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
- With a decent Profit Margin value of 11.96%, QCOM is doing good in the industry, outperforming 67.83% of the companies in the same industry.
- QCOM's Profit Margin has declined in the last couple of years.
- QCOM has a Operating Margin of 27.20%. This is amongst the best in the industry. QCOM outperforms 86.09% of its industry peers.
- In the last couple of years the Operating Margin of QCOM has grown nicely.
- 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 Rank | Sector 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%
2. QCOM Health Analysis
2.1 Basic Checks
- QCOM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for QCOM has been reduced compared to 1 year ago.
- Compared to 5 years ago, QCOM has less shares outstanding
- QCOM has a worse debt/assets ratio than last year.
2.2 Solvency
- QCOM has an Altman-Z score of 5.51. This indicates that QCOM is financially healthy and has little risk of bankruptcy at the moment.
- With a Altman-Z score value of 5.51, QCOM perfoms like the industry average, outperforming 60.00% of the companies in the same 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 better Debt to FCF ratio (1.15) than 71.30% of its industry peers.
- A Debt/Equity ratio of 0.64 indicates that QCOM is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.64, QCOM is doing worse than 73.91% of the companies in the same industry.
- Even though the debt/equity ratio score it not favorable for QCOM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 5.51 |
ROIC/WACC1.84
WACC10.87%
2.3 Liquidity
- A Current Ratio of 2.51 indicates that QCOM has no problem at all paying its short term obligations.
- With a Current ratio value of 2.51, QCOM perfoms like the industry average, outperforming 40.87% of the companies in the same industry.
- QCOM has a Quick Ratio of 1.83. This is a normal value and indicates that QCOM is financially healthy and should not expect problems in meeting its short term obligations.
- QCOM has a worse Quick ratio (1.83) than 62.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.83 |
3. QCOM Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 11.50% over the past year.
- 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
- Based on estimates for the next years, QCOM will show a small growth in Earnings Per Share. The EPS will grow by 7.18% on average per year.
- QCOM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.35% yearly.
EPS Next Y1.63%
EPS Next 2Y1.91%
EPS Next 3Y3.11%
EPS Next 5Y7.18%
Revenue Next Year0.38%
Revenue Next 2Y0.57%
Revenue Next 3Y2.67%
Revenue Next 5Y5.35%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. QCOM Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 11.51 indicates a reasonable valuation of QCOM.
- QCOM's Price/Earnings ratio is rather cheap when compared to the industry. QCOM is cheaper than 97.39% of the companies in the same industry.
- When comparing the Price/Earnings ratio of QCOM to the average of the S&P500 Index (27.03), we can say QCOM is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 11.17, the valuation of QCOM can be described as reasonable.
- 94.78% of the companies in the same industry are more expensive than QCOM, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of QCOM to the average of the S&P500 Index (25.11), we can say QCOM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.51 | ||
| Fwd PE | 11.17 |
4.2 Price Multiples
- 92.17% of the companies in the same industry are more expensive than QCOM, based on the Enterprise Value to EBITDA ratio.
- 96.52% of the companies in the same industry are more expensive than QCOM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.52 | ||
| EV/EBITDA | 10.7 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates QCOM does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of QCOM may justify a higher PE ratio.
PEG (NY)7.06
PEG (5Y)0.49
EPS Next 2Y1.91%
EPS Next 3Y3.11%
5. QCOM Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 2.45%, QCOM has a reasonable but not impressive dividend return.
- The stock price of QCOM dropped by -20.19% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- Compared to an average industry Dividend Yield of 0.47, QCOM pays a better dividend. On top of this QCOM pays more dividend than 94.78% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, QCOM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
5.2 History
- The dividend of QCOM is nicely growing with an annual growth rate of 6.56%!
- QCOM has been paying a dividend for at least 10 years, so it has a reliable track record.
- QCOM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.56%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
- QCOM pays out 71.05% of its income as dividend. This is not a sustainable payout ratio.
- QCOM's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP71.05%
EPS Next 2Y1.91%
EPS Next 3Y3.11%
QCOM Fundamentals: All Metrics, Ratios and Statistics
139.51
+1.38 (+1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-04 2026-02-04/amc
Earnings (Next)04-28 2026-04-28/amc
Inst Owners81.85%
Inst Owner Change-0.5%
Ins Owners0.05%
Ins Owner Change-0.31%
Market Cap148.86B
Revenue(TTM)44.87B
Net Income(TTM)5.37B
Analysts72.89
Price Target168.85 (21.03%)
Short Float %3.3%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
Yearly Dividend3.48
Dividend Growth(5Y)6.56%
DP71.05%
Div Incr Years21
Div Non Decr Years21
Ex-Date03-05 2026-03-05 (0.89)
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)-13.39%
PT rev (3m)-13.27%
EPS NQ rev (1m)-11.97%
EPS NQ rev (3m)-12.2%
EPS NY rev (1m)-0.92%
EPS NY rev (3m)-0.81%
Revenue NQ rev (1m)-5.25%
Revenue NQ rev (3m)-5.42%
Revenue NY rev (1m)-3.49%
Revenue NY rev (3m)-1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.51 | ||
| Fwd PE | 11.17 | ||
| P/S | 3.32 | ||
| P/FCF | 11.52 | ||
| P/OCF | 10.34 | ||
| P/B | 6.45 | ||
| P/tB | 20.5 | ||
| EV/EBITDA | 10.7 |
EPS(TTM)12.12
EY8.69%
EPS(NY)12.49
Fwd EY8.96%
FCF(TTM)12.11
FCFY8.68%
OCF(TTM)13.49
OCFY9.67%
SpS42.05
BVpS21.62
TBVpS6.81
PEG (NY)7.06
PEG (5Y)0.49
Graham Number76.79
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 5.51 |
F-Score5
WACC10.87%
ROIC/WACC1.84
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 Y1.63%
EPS Next 2Y1.91%
EPS Next 3Y3.11%
EPS Next 5Y7.18%
Revenue 1Y (TTM)10.25%
Revenue growth 3Y0.06%
Revenue growth 5Y15.3%
Sales Q2Q%5%
Revenue Next Year0.38%
Revenue Next 2Y0.57%
Revenue Next 3Y2.67%
Revenue Next 5Y5.35%
EBIT growth 1Y11.89%
EBIT growth 3Y-5.74%
EBIT growth 5Y22.86%
EBIT Next Year0.78%
EBIT Next 3Y0.95%
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 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.
What is the profitability of QCOM stock?
QUALCOMM INC (QCOM) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for QCOM stock?
The Price/Earnings (PE) ratio for QUALCOMM INC (QCOM) is 11.51 and the Price/Book (PB) ratio is 6.45.
Can you provide the expected EPS growth for QCOM stock?
The Earnings per Share (EPS) of QUALCOMM INC (QCOM) is expected to grow by 1.63% in the next year.