174.81 USD
+0.04 (+0.02%)
174.5 USD
-0.31 (-0.18%)
We assign a fundamental rating of 7 out of 10 to QCOM. QCOM was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making QCOM a very profitable company, without any liquidiy or solvency issues. QCOM has a correct valuation and a medium growth rate. QCOM also has an excellent dividend rating. With these ratings, QCOM could be worth investigating further for 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.
QCOM had positive earnings in each of the past 5 years.
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 11.05%, QCOM belongs to the best of the industry, outperforming 81.42% of the companies in the same industry.
QCOM has a better Return On Equity (26.13%) than 90.27% of its industry peers.
The Return On Invested Capital of QCOM (21.40%) is better than 94.69% 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 10.77%.
The last Return On Invested Capital (21.40%) for QCOM is above the 3 year average (17.48%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.05% | ||
| ROE | 26.13% | ||
| ROIC | 21.4% |
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 better Profit Margin (12.51%) than 69.03% of its industry peers.
In the last couple of years the Profit Margin of QCOM has declined.
QCOM has a Operating Margin of 27.99%. This is amongst the best in the industry. QCOM outperforms 87.61% of its industry peers.
QCOM's Operating Margin has improved in the last couple of years.
QCOM has a Gross Margin of 55.43%. This is in the better half of the industry: QCOM outperforms 76.11% of its industry peers.
QCOM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.99% | ||
| PM (TTM) | 12.51% | ||
| GM | 55.43% |
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. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), QCOM is creating 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
An Altman-Z score of 6.55 indicates that QCOM is not in any danger for bankruptcy at the moment.
QCOM has a better Altman-Z score (6.55) than 61.06% of its industry peers.
The Debt to FCF ratio of QCOM is 1.16, which is an excellent value as it means it would take QCOM, only 1.16 years of fcf income to pay off all of its debts.
QCOM has a better Debt to FCF ratio (1.16) than 73.45% of its industry peers.
QCOM has a Debt/Equity ratio of 0.70. This is a neutral value indicating QCOM is somewhat dependend on debt financing.
QCOM has a Debt to Equity ratio of 0.70. This is in the lower half of the industry: QCOM underperforms 76.11% of its industry peers.
Although QCOM does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 6.55 |
ROIC/WACC2.04
WACC10.51%
2.3 Liquidity
QCOM has a Current Ratio of 2.82. This indicates that QCOM is financially healthy and has no problem in meeting its short term obligations.
QCOM's Current ratio of 2.82 is in line compared to the rest of the industry. QCOM outperforms 48.67% of its industry peers.
QCOM has a Quick Ratio of 2.10. This indicates that QCOM is financially healthy and has no problem in meeting its short term obligations.
QCOM's Quick ratio of 2.10 is in line compared to the rest of the industry. QCOM outperforms 49.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.82 | ||
| Quick Ratio | 2.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.83% 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
Looking at the last year, QCOM shows a quite strong growth in Revenue. The Revenue has grown by 13.66% in the last year.
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)17.83%
EPS 3Y-1.35%
EPS 5Y23.54%
EPS Q2Q%11.52%
Revenue 1Y (TTM)13.66%
Revenue growth 3Y0.06%
Revenue growth 5Y15.3%
Sales Q2Q%10.02%
3.2 Future
The Earnings Per Share is expected to grow by 8.23% on average over the next years. This is quite good.
QCOM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.59% yearly.
EPS Next Y2.82%
EPS Next 2Y2.66%
EPS Next 3Y3.48%
EPS Next 5Y8.23%
Revenue Next Year4.45%
Revenue Next 2Y2.82%
Revenue Next 3Y3.72%
Revenue Next 5Y5.59%
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. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.53, the valuation of QCOM can be described as correct.
QCOM's Price/Earnings ratio is rather cheap when compared to the industry. QCOM is cheaper than 94.69% of the companies in the same industry.
QCOM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.57.
QCOM is valuated correctly with a Price/Forward Earnings ratio of 14.13.
Based on the Price/Forward Earnings ratio, QCOM is valued cheaper than 94.69% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, QCOM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.53 | ||
| Fwd PE | 14.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QCOM is valued cheaply inside the industry as 84.96% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, QCOM is valued cheaper than 93.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.58 | ||
| EV/EBITDA | 13.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of QCOM may justify a higher PE ratio.
PEG (NY)5.16
PEG (5Y)0.62
EPS Next 2Y2.66%
EPS Next 3Y3.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.04%, QCOM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.56, QCOM pays a better dividend. On top of this QCOM pays more dividend than 89.38% of the companies listed in the same industry.
QCOM's Dividend Yield is comparable with the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
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 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
5.3 Sustainability
68.67% of the earnings are spent on dividend by QCOM. This is not a sustainable payout ratio.
The dividend of QCOM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP68.67%
EPS Next 2Y2.66%
EPS Next 3Y3.48%
174.81
+0.04 (+0.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.84%
Inst Owner Change-5.68%
Ins Owners0.05%
Ins Owner Change3.64%
Market Cap186.87B
Revenue(TTM)44.28B
Net Income(TTM)5.54B
Analysts73.62
Price Target194.95 (11.52%)
Short Float %2.44%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
Yearly Dividend3.48
Dividend Growth(5Y)6.56%
DP68.67%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.16%
Min EPS beat(2)0.05%
Max EPS beat(2)2.27%
EPS beat(4)3
Avg EPS beat(4)3.54%
Min EPS beat(4)-0.96%
Max EPS beat(4)12.79%
EPS beat(8)7
Avg EPS beat(8)4.44%
EPS beat(12)9
Avg EPS beat(12)3.18%
EPS beat(16)12
Avg EPS beat(16)3.17%
Revenue beat(2)1
Avg Revenue beat(2)0.27%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)2.38%
Revenue beat(4)2
Avg Revenue beat(4)1.22%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)4.69%
Revenue beat(8)4
Avg Revenue beat(8)0.86%
Revenue beat(12)4
Avg Revenue beat(12)0.05%
Revenue beat(16)6
Avg Revenue beat(16)0.09%
PT rev (1m)5.96%
PT rev (3m)7.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.25%
EPS NY rev (1m)0.35%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.25%
Revenue NY rev (1m)2.71%
Revenue NY rev (3m)2.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.53 | ||
| Fwd PE | 14.13 | ||
| P/S | 4.22 | ||
| P/FCF | 14.58 | ||
| P/OCF | 13.34 | ||
| P/B | 8.81 | ||
| P/tB | 21.48 | ||
| EV/EBITDA | 13.35 |
EPS(TTM)12.03
EY6.88%
EPS(NY)12.37
Fwd EY7.08%
FCF(TTM)11.99
FCFY6.86%
OCF(TTM)13.11
OCFY7.5%
SpS41.43
BVpS19.84
TBVpS8.14
PEG (NY)5.16
PEG (5Y)0.62
Graham Number73.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.05% | ||
| ROE | 26.13% | ||
| ROCE | 30.23% | ||
| ROIC | 21.4% | ||
| ROICexc | 28.44% | ||
| ROICexgc | 47.84% | ||
| OM | 27.99% | ||
| PM (TTM) | 12.51% | ||
| GM | 55.43% | ||
| FCFM | 28.95% |
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-Score6
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.16 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 74.41% | ||
| Cap/Sales | 2.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 100.11% | ||
| Profit Quality | 231.37% | ||
| Current Ratio | 2.82 | ||
| Quick Ratio | 2.1 | ||
| Altman-Z | 6.55 |
F-Score6
WACC10.51%
ROIC/WACC2.04
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)17.83%
EPS 3Y-1.35%
EPS 5Y23.54%
EPS Q2Q%11.52%
EPS Next Y2.82%
EPS Next 2Y2.66%
EPS Next 3Y3.48%
EPS Next 5Y8.23%
Revenue 1Y (TTM)13.66%
Revenue growth 3Y0.06%
Revenue growth 5Y15.3%
Sales Q2Q%10.02%
Revenue Next Year4.45%
Revenue Next 2Y2.82%
Revenue Next 3Y3.72%
Revenue Next 5Y5.59%
EBIT growth 1Y20.88%
EBIT growth 3Y-5.74%
EBIT growth 5Y22.86%
EBIT Next Year7.6%
EBIT Next 3Y4.53%
EBIT Next 5YN/A
FCF growth 1Y14.86%
FCF growth 3Y23.33%
FCF growth 5Y23.81%
OCF growth 1Y14.83%
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 of QUALCOMM INC (QCOM) stock?
ChartMill assigns a valuation rating of 6 / 10 to QUALCOMM INC (QCOM). This can be considered as Fairly Valued.
What is the profitability of QCOM stock?
QUALCOMM INC (QCOM) has a profitability rating of 8 / 10.
What is the expected EPS growth for QUALCOMM INC (QCOM) stock?
The Earnings per Share (EPS) of QUALCOMM INC (QCOM) is expected to grow by 2.82% in the next year.
Is the dividend of QUALCOMM INC sustainable?
The dividend rating of QUALCOMM INC (QCOM) is 7 / 10 and the dividend payout ratio is 68.67%.