QUALCOMM INC (QCOM) Fundamental Analysis & Valuation
NASDAQ:QCOM • US7475251036
135.69 USD
-1.31 (-0.96%)
At close: Mar 6, 2026
135.352 USD
-0.34 (-0.25%)
After Hours: 3/6/2026, 8:00:02 PM
This QCOM fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
QCOM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 115 industry peers in the Semiconductors & Semiconductor Equipment industry. QCOM gets an excellent profitability rating and is at the same time showing great financial health properties. 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 and quality 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.
- In the past 5 years QCOM has always been profitable.
- Each year in the past 5 years QCOM had a positive operating cash flow.
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.
- With an excellent Return On Invested Capital value of 19.99%, QCOM belongs to the best of the industry, outperforming 93.91% of the companies in the same industry.
- QCOM had an Average Return On Invested Capital over the past 3 years of 17.48%. This 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
- QCOM has a Profit Margin of 11.96%. This is in the better half of the industry: QCOM outperforms 67.83% of its industry peers.
- QCOM's Profit Margin has declined in the last couple of years.
- QCOM has a better Operating Margin (27.20%) than 86.09% of its industry peers.
- QCOM's Operating Margin has improved in the last couple of years.
- The Gross Margin of QCOM (55.10%) is better than 73.04% 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 well above the Cost of Capital (WACC), so QCOM is creating 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.
- Compared to 1 year ago, QCOM has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.46 indicates that QCOM is not in any danger for bankruptcy at the moment.
- QCOM has a better Altman-Z score (5.46) than 61.74% of 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 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.
- A Debt/Equity ratio of 0.64 indicates that 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 | 5.46 |
ROIC/WACC1.83
WACC10.92%
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.
- With a Current ratio value of 2.51, QCOM perfoms like the industry average, outperforming 40.87% of the companies in the same industry.
- A Quick Ratio of 1.83 indicates that QCOM should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.83, QCOM is doing worse than 62.61% of the companies in the same industry.
| 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
- 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 5.35% 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
- 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. QCOM Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 11.20 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.
- QCOM is valuated cheaply when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 10.86, the valuation of QCOM can be described as reasonable.
- QCOM's Price/Forward Earnings ratio is rather cheap when compared to the industry. QCOM is cheaper than 94.78% of the companies in the same industry.
- QCOM is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.2 | ||
| Fwd PE | 10.86 |
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 92.17% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, QCOM is valued cheaper than 95.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.2 | ||
| EV/EBITDA | 10.5 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- QCOM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)6.86
PEG (5Y)0.48
EPS Next 2Y1.91%
EPS Next 3Y3.11%
5. QCOM Dividend Analysis
5.1 Amount
- QCOM has a Yearly Dividend Yield of 2.45%.
- The stock price of QCOM dropped by -22.38% 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.
- QCOM's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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 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
- 71.05% of the earnings are spent on dividend by QCOM. 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
135.69
-1.31 (-0.96%)
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 Cap144.78B
Revenue(TTM)44.87B
Net Income(TTM)5.37B
Analysts72.89
Price Target168.85 (24.44%)
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 | 11.2 | ||
| Fwd PE | 10.86 | ||
| P/S | 3.23 | ||
| P/FCF | 11.2 | ||
| P/OCF | 10.06 | ||
| P/B | 6.27 | ||
| P/tB | 19.93 | ||
| EV/EBITDA | 10.5 |
EPS(TTM)12.12
EY8.93%
EPS(NY)12.49
Fwd EY9.21%
FCF(TTM)12.11
FCFY8.93%
OCF(TTM)13.49
OCFY9.94%
SpS42.05
BVpS21.62
TBVpS6.81
PEG (NY)6.86
PEG (5Y)0.48
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 | 5.46 |
F-Score5
WACC10.92%
ROIC/WACC1.83
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 11.2 and the Price/Book (PB) ratio is 6.27.
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.