QUALCOMM INC (QCOM) Fundamental Analysis & Valuation
NASDAQ:QCOM • US7475251036
Current stock price
129.9 USD
-1.38 (-1.05%)
At close:
130.4 USD
+0.5 (+0.38%)
After Hours:
This QCOM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. QCOM Profitability Analysis
1.1 Basic Checks
- In the past year QCOM was profitable.
- In the past year QCOM had a positive cash flow from operations.
- Each year in the past 5 years QCOM has been profitable.
- QCOM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of QCOM (10.12%) is better than 80.87% of its industry peers.
- QCOM has a better Return On Equity (23.25%) than 89.57% of its industry peers.
- QCOM's Return On Invested Capital of 19.99% is amongst the best of the industry. QCOM outperforms 93.91% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for QCOM is significantly above the industry average of 10.52%.
- The last Return On Invested Capital (19.99%) for QCOM is above the 3 year average (17.48%), which is a sign of increasing profitability.
| 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
- QCOM's Profit Margin of 11.96% is fine compared to the rest of the industry. QCOM outperforms 67.83% of its industry peers.
- QCOM's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 27.20%, QCOM belongs to the top of the industry, outperforming 85.22% of the companies in the same industry.
- 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 73.91% of its industry peers.
- In the last couple of years the Gross Margin of QCOM has remained more or less at the same level.
| 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so QCOM is still creating some value.
- Compared to 1 year ago, QCOM has less shares outstanding
- Compared to 5 years ago, QCOM has less shares outstanding
- The debt/assets ratio for QCOM is higher compared to a year ago.
2.2 Solvency
- QCOM has an Altman-Z score of 5.34. This indicates that QCOM is financially healthy and has little risk of bankruptcy at the moment.
- QCOM has a Altman-Z score (5.34) which is in line with its industry peers.
- QCOM has a debt to FCF ratio of 1.15. This is a very positive value and a sign of high solvency as it would only need 1.15 years to pay back of all of its debts.
- QCOM's Debt to FCF ratio of 1.15 is fine compared to the rest 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 73.91% of its industry peers.
- 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 | 5.34 |
ROIC/WACC1.78
WACC11.26%
2.3 Liquidity
- QCOM has a Current Ratio of 2.51. This indicates that QCOM is financially healthy and has no problem in meeting its short term obligations.
- QCOM has a Current ratio (2.51) which is in line with its industry peers.
- 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 Quick ratio of 1.83. This is in the lower half of the industry: QCOM underperforms 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.
- The Earnings Per Share has been growing by 23.54% on average over the past years. This is a very strong growth
- The Revenue has grown by 10.25% in the past year. This is quite good.
- The Revenue has been growing by 15.30% on average over the past years. This is quite good.
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.
- Based on estimates for the next years, QCOM will show a small growth in Revenue. The Revenue will grow by 5.97% on average per year.
EPS Next Y-5.47%
EPS Next 2Y-2.51%
EPS Next 3Y1.44%
EPS Next 5Y7.18%
Revenue Next Year0.5%
Revenue Next 2Y0.63%
Revenue Next 3Y2.77%
Revenue Next 5Y5.97%
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.
- 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.
4. QCOM Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 10.72, the valuation of QCOM can be described as reasonable.
- Based on the Price/Earnings ratio, QCOM is valued cheaply inside the industry as 97.39% of the companies are valued more expensively.
- QCOM is valuated cheaply when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 11.36, the valuation of QCOM can be described as reasonable.
- Based on the Price/Forward Earnings ratio, QCOM is valued cheaper than 94.78% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of QCOM to the average of the S&P500 Index (23.28), we can say QCOM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.72 | ||
| Fwd PE | 11.36 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, QCOM is valued cheaply inside the industry as 93.04% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of QCOM indicates a rather cheap valuation: QCOM is cheaper than 97.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.72 | ||
| EV/EBITDA | 10.06 |
4.3 Compensation for Growth
- The excellent profitability rating of QCOM may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-2.51%
EPS Next 3Y1.44%
5. QCOM Dividend Analysis
5.1 Amount
- QCOM has a Yearly Dividend Yield of 2.68%. Purely for dividend investing, there may be better candidates out there.
- The stock price of QCOM dropped by -25.88% 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.
- QCOM's Dividend Yield is rather good when compared to the industry average which is at 0.49. QCOM pays more dividend than 93.91% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.91, QCOM pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
5.2 History
- On average, the dividend of QCOM grows each year by 6.56%, which is quite nice.
- QCOM has paid a dividend for at least 10 years, which is 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.
- 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 Fundamentals: All Metrics, Ratios and Statistics
129.9
-1.38 (-1.05%)
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 Owners81.48%
Inst Owner Change-0.29%
Ins Owners0.05%
Ins Owner Change0.34%
Market Cap138.60B
Revenue(TTM)44.87B
Net Income(TTM)5.37B
Analysts71.3
Price Target168.85 (29.98%)
Short Float %3.53%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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)-11.46%
PT rev (3m)-13.16%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)-12.21%
EPS NY rev (1m)-6.99%
EPS NY rev (3m)-8.06%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-5.42%
Revenue NY rev (1m)-3.08%
Revenue NY rev (3m)-3.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.72 | ||
| Fwd PE | 11.36 | ||
| P/S | 3.09 | ||
| P/FCF | 10.72 | ||
| P/OCF | 9.63 | ||
| P/B | 6.01 | ||
| P/tB | 19.08 | ||
| EV/EBITDA | 10.06 |
EPS(TTM)12.12
EY9.33%
EPS(NY)11.43
Fwd EY8.8%
FCF(TTM)12.11
FCFY9.33%
OCF(TTM)13.49
OCFY10.38%
SpS42.05
BVpS21.62
TBVpS6.81
PEG (NY)N/A
PEG (5Y)0.46
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 | 5.34 |
F-Score5
WACC11.26%
ROIC/WACC1.78
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 Year0.5%
Revenue Next 2Y0.63%
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.
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 10.72 and the Price/Book (PB) ratio is 6.01.
Can you provide the expected EPS growth for QCOM stock?
The Earnings per Share (EPS) of QUALCOMM INC (QCOM) is expected to decline by -5.47% in the next year.