QUALCOMM INC (QCOM) Stock Fundamental Analysis
USA - NASDAQ:QCOM - US7475251036 - Common Stock
168.13 USD
+2.87 (+1.74%)
168.5 USD
+0.37 (+0.22%)
QCOM gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. QCOM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on QCOM. Finally QCOM also has an excellent dividend rating. These ratings could make QCOM a good candidate for value and dividend and quality investing.
1. Profitability
1.1 Basic Checks
QCOM had positive earnings in the past year.
In the past year QCOM had a positive cash flow from operations.
Each year in the past 5 years QCOM has been profitable.
Each year in the past 5 years QCOM had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 21.10%, QCOM belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
The Return On Equity of QCOM (42.55%) is better than 93.75% of its industry peers.
QCOM has a Return On Invested Capital of 20.40%. This is amongst the best in the industry. QCOM outperforms 92.86% 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 10.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.1% | ||
| ROE | 42.55% | ||
| ROIC | 20.4% |
ROA(3y)19.65%
ROA(5y)19.1%
ROE(3y)47.98%
ROE(5y)64.07%
ROIC(3y)21.9%
ROIC(5y)20.88%
1.3 Margins
The Profit Margin of QCOM (26.77%) is better than 86.61% of its industry peers.
In the last couple of years the Profit Margin of QCOM has grown nicely.
QCOM has a Operating Margin of 28.10%. This is amongst the best in the industry. QCOM outperforms 87.50% of its industry peers.
In the last couple of years the Operating Margin of QCOM has grown nicely.
With a decent Gross Margin value of 55.68%, QCOM is doing good in the industry, outperforming 77.68% of the companies in the same industry.
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 | 28.1% | ||
| PM (TTM) | 26.77% | ||
| GM | 55.68% |
OM growth 3Y-3.37%
OM growth 5Y8.78%
PM growth 3Y-1.14%
PM growth 5Y3.04%
GM growth 3Y-0.76%
GM growth 5Y0.05%
2. Health
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.
Compared to 1 year ago, QCOM has about the same amount of shares outstanding.
The number of shares outstanding for QCOM has been reduced compared to 5 years ago.
The debt/assets ratio for QCOM has been reduced compared to a year ago.
2.2 Solvency
QCOM has an Altman-Z score of 6.44. This indicates that QCOM is financially healthy and has little risk of bankruptcy at the moment.
QCOM's Altman-Z score of 6.44 is fine compared to the rest of the industry. QCOM outperforms 65.18% of its industry peers.
QCOM has a debt to FCF ratio of 1.27. This is a very positive value and a sign of high solvency as it would only need 1.27 years to pay back of all of its debts.
The Debt to FCF ratio of QCOM (1.27) is better than 72.32% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that QCOM is somewhat dependend on debt financing.
QCOM has a Debt to Equity ratio of 0.54. This is in the lower half of the industry: QCOM underperforms 72.32% 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 | 0.54 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 6.44 |
ROIC/WACC1.82
WACC11.23%
2.3 Liquidity
QCOM has a Current Ratio of 3.19. This indicates that QCOM is financially healthy and has no problem in meeting its short term obligations.
QCOM has a Current ratio (3.19) which is in line with its industry peers.
QCOM has a Quick Ratio of 2.38. This indicates that QCOM is financially healthy and has no problem in meeting its short term obligations.
With a Quick ratio value of 2.38, QCOM perfoms like the industry average, outperforming 58.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.19 | ||
| Quick Ratio | 2.38 |
3. Growth
3.1 Past
QCOM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.85%, which is quite impressive.
QCOM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.53% yearly.
Looking at the last year, QCOM shows a quite strong growth in Revenue. The Revenue has grown by 15.82% in the last year.
QCOM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.76% yearly.
EPS 1Y (TTM)22.85%
EPS 3Y6.13%
EPS 5Y23.53%
EPS Q2Q%18.88%
Revenue 1Y (TTM)15.82%
Revenue growth 3Y5.09%
Revenue growth 5Y14.76%
Sales Q2Q%10.37%
3.2 Future
QCOM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.66% yearly.
The Revenue is expected to grow by 5.11% on average over the next years.
EPS Next Y18.8%
EPS Next 2Y9.86%
EPS Next 3Y8.02%
EPS Next 5Y8.66%
Revenue Next Year12.91%
Revenue Next 2Y7.2%
Revenue Next 3Y5.96%
Revenue Next 5Y5.11%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.35, QCOM is valued correctly.
Based on the Price/Earnings ratio, QCOM is valued cheaply inside the industry as 95.54% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of QCOM to the average of the S&P500 Index (27.41), we can say QCOM is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.64, which indicates a correct valuation of QCOM.
QCOM's Price/Forward Earnings ratio is rather cheap when compared to the industry. QCOM is cheaper than 93.75% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of QCOM to the average of the S&P500 Index (22.88), we can say QCOM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.35 | ||
| Fwd PE | 13.64 |
4.2 Price Multiples
QCOM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. QCOM is cheaper than 82.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, QCOM is valued cheaper than 91.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.59 | ||
| EV/EBITDA | 12.9 |
4.3 Compensation for Growth
QCOM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
QCOM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.76
PEG (5Y)0.61
EPS Next 2Y9.86%
EPS Next 3Y8.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.20%, QCOM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.31, QCOM pays a better dividend. On top of this QCOM pays more dividend than 90.18% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, QCOM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
5.2 History
The dividend of QCOM has a limited annual growth rate of 5.69%.
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)5.69%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
32.79% of the earnings are spent on dividend by QCOM. This is a low number and sustainable payout ratio.
QCOM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP32.79%
EPS Next 2Y9.86%
EPS Next 3Y8.02%
168.13
+2.87 (+1.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.04%
Inst Owner Change5.15%
Ins Owners0.05%
Ins Owner Change0.91%
Market Cap181.21B
Analysts74.17
Price Target181.75 (8.1%)
Short Float %1.68%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Yearly Dividend3.31
Dividend Growth(5Y)5.69%
DP32.79%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.45%
Min EPS beat(2)-0.96%
Max EPS beat(2)0.05%
EPS beat(4)3
Avg EPS beat(4)3.73%
Min EPS beat(4)-0.96%
Max EPS beat(4)12.79%
EPS beat(8)7
Avg EPS beat(8)4.64%
EPS beat(12)8
Avg EPS beat(12)2.83%
EPS beat(16)12
Avg EPS beat(16)3.69%
Revenue beat(2)0
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)-0.35%
Revenue beat(4)2
Avg Revenue beat(4)0.97%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)4.69%
Revenue beat(8)3
Avg Revenue beat(8)0.54%
Revenue beat(12)3
Avg Revenue beat(12)-0.29%
Revenue beat(16)6
Avg Revenue beat(16)0.15%
PT rev (1m)1.19%
PT rev (3m)0.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.3%
EPS NY rev (1m)1.07%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.85%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.35 | ||
| Fwd PE | 13.64 | ||
| P/S | 4.19 | ||
| P/FCF | 15.59 | ||
| P/OCF | 14.31 | ||
| P/B | 6.66 | ||
| P/tB | 12.38 | ||
| EV/EBITDA | 12.9 |
EPS(TTM)11.72
EY6.97%
EPS(NY)12.32
Fwd EY7.33%
FCF(TTM)10.78
FCFY6.41%
OCF(TTM)11.75
OCFY6.99%
SpS40.13
BVpS25.24
TBVpS13.58
PEG (NY)0.76
PEG (5Y)0.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.1% | ||
| ROE | 42.55% | ||
| ROCE | 25.83% | ||
| ROIC | 20.4% | ||
| ROICexc | 25.91% | ||
| ROICexgc | 39.22% | ||
| OM | 28.1% | ||
| PM (TTM) | 26.77% | ||
| GM | 55.68% | ||
| FCFM | 26.87% |
ROA(3y)19.65%
ROA(5y)19.1%
ROE(3y)47.98%
ROE(5y)64.07%
ROIC(3y)21.9%
ROIC(5y)20.88%
ROICexc(3y)28.65%
ROICexc(5y)30.41%
ROICexgc(3y)47.26%
ROICexgc(5y)54.69%
ROCE(3y)27.9%
ROCE(5y)26.71%
ROICexcg growth 3Y-22.23%
ROICexcg growth 5Y-9.77%
ROICexc growth 3Y-16.58%
ROICexc growth 5Y3.47%
OM growth 3Y-3.37%
OM growth 5Y8.78%
PM growth 3Y-1.14%
PM growth 5Y3.04%
GM growth 3Y-0.76%
GM growth 5Y0.05%
F-Score7
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 1.27 | ||
| Debt/EBITDA | 1.07 | ||
| Cap/Depr | 62.34% | ||
| Cap/Sales | 2.41% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.6% | ||
| Profit Quality | 100.38% | ||
| Current Ratio | 3.19 | ||
| Quick Ratio | 2.38 | ||
| Altman-Z | 6.44 |
F-Score7
WACC11.23%
ROIC/WACC1.82
Cap/Depr(3y)89.85%
Cap/Depr(5y)97.98%
Cap/Sales(3y)3.95%
Cap/Sales(5y)4.79%
Profit Quality(3y)99.69%
Profit Quality(5y)95.9%
High Growth Momentum
Growth
EPS 1Y (TTM)22.85%
EPS 3Y6.13%
EPS 5Y23.53%
EPS Q2Q%18.88%
EPS Next Y18.8%
EPS Next 2Y9.86%
EPS Next 3Y8.02%
EPS Next 5Y8.66%
Revenue 1Y (TTM)15.82%
Revenue growth 3Y5.09%
Revenue growth 5Y14.76%
Sales Q2Q%10.37%
Revenue Next Year12.91%
Revenue Next 2Y7.2%
Revenue Next 3Y5.96%
Revenue Next 5Y5.11%
EBIT growth 1Y27.63%
EBIT growth 3Y1.56%
EBIT growth 5Y24.84%
EBIT Next Year28.68%
EBIT Next 3Y8.3%
EBIT Next 5Y8.2%
FCF growth 1Y69.32%
FCF growth 3Y8.88%
FCF growth 5Y11.77%
OCF growth 1Y46.31%
OCF growth 3Y5.02%
OCF growth 5Y10.86%