QUALCOMM INC (QCOM) Stock Fundamental Analysis
USA - NASDAQ:QCOM - US7475251036 - Common Stock
174.475 USD
-0.03 (-0.01%)
Taking everything into account, QCOM scores 7 out of 10 in our fundamental rating. QCOM was compared to 112 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 may be a bit undervalued, certainly considering the very reasonable score on growth QCOM also has an excellent dividend rating. These ratings would make QCOM suitable for value and dividend and quality investing!
1. Profitability
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
With an excellent Return On Assets value of 11.05%, QCOM belongs to the best of the industry, outperforming 83.04% of the companies in the same industry.
The Return On Equity of QCOM (26.13%) is better than 91.07% of its industry peers.
QCOM has a better Return On Invested Capital (21.40%) than 94.64% 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 10.93%.
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 71.43% of its industry peers.
QCOM's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 27.99%, QCOM belongs to the best of the industry, outperforming 88.39% of the companies in the same industry.
In the last couple of years the Operating Margin of QCOM has grown nicely.
The Gross Margin of QCOM (55.43%) is better than 76.79% 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 | 27.99% | ||
| 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.
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.
The debt/assets ratio for QCOM is higher compared to a year ago.
2.2 Solvency
QCOM has an Altman-Z score of 6.57. This indicates that QCOM is financially healthy and has little risk of bankruptcy at the moment.
QCOM has a Altman-Z score of 6.57. This is in the better half of the industry: QCOM outperforms 63.39% of its industry peers.
QCOM has a debt to FCF ratio of 1.16. This is a very positive value and a sign of high solvency as it would only need 1.16 years to pay back of all of its debts.
QCOM has a Debt to FCF ratio of 1.16. This is in the better half of the industry: QCOM outperforms 74.11% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that 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 75.89% 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 | 6.57 |
ROIC/WACC2.03
WACC10.54%
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 has a Current ratio (2.82) which is comparable to the rest of the industry.
A Quick Ratio of 2.10 indicates that QCOM has no problem at all paying its short term obligations.
The Quick ratio of QCOM (2.10) is comparable to the rest of the industry.
| 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.
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.
The Revenue has grown by 13.66% in the past year. This is quite good.
QCOM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.30% yearly.
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
QCOM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.23% yearly.
Based on estimates for the next years, QCOM will show a small growth in Revenue. The Revenue will grow by 5.59% on average per year.
EPS Next Y2.46%
EPS Next 2Y3.21%
EPS Next 3Y5.26%
EPS Next 5Y8.23%
Revenue Next Year1.72%
Revenue Next 2Y2.44%
Revenue Next 3Y3.01%
Revenue Next 5Y5.59%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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. Valuation
4.1 Price/Earnings Ratio
QCOM is valuated correctly with a Price/Earnings ratio of 14.50.
Based on the Price/Earnings ratio, QCOM is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.91. QCOM is valued slightly cheaper when compared to this.
QCOM is valuated correctly with a Price/Forward Earnings ratio of 14.16.
Based on the Price/Forward Earnings ratio, QCOM is valued cheaply inside the industry as 91.07% of the companies are valued more expensively.
QCOM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.5 | ||
| Fwd PE | 14.16 |
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 83.93% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, QCOM is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.67 | ||
| EV/EBITDA | 13.44 |
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)5.9
PEG (5Y)0.62
EPS Next 2Y3.21%
EPS Next 3Y5.26%
5. Dividend
5.1 Amount
QCOM has a Yearly Dividend Yield of 2.04%.
Compared to an average industry Dividend Yield of 2.16, QCOM pays a better dividend. On top of this QCOM pays more dividend than 88.39% of the companies listed in the same industry.
QCOM's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| 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 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 68.67% of its income as dividend. This is not a sustainable payout ratio.
QCOM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP68.67%
EPS Next 2Y3.21%
EPS Next 3Y5.26%
NASDAQ:QCOM (11/14/2025, 2:41:03 PM)
174.475
-0.03 (-0.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.09%
Inst Owner Change-7.1%
Ins Owners0.05%
Ins Owner Change-0.19%
Market Cap188.05B
Revenue(TTM)44.28B
Net Income(TTM)5.54B
Analysts73.62
Price Target183.98 (5.45%)
Short Float %2.21%
Short Ratio3.19
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)1.26%
PT rev (3m)2.42%
EPS NQ rev (1m)2.86%
EPS NQ rev (3m)3.99%
EPS NY rev (1m)0.05%
EPS NY rev (3m)1.12%
Revenue NQ rev (1m)4.7%
Revenue NQ rev (3m)6.05%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.5 | ||
| Fwd PE | 14.16 | ||
| P/S | 4.25 | ||
| P/FCF | 14.67 | ||
| P/OCF | 13.42 | ||
| P/B | 8.87 | ||
| P/tB | 21.61 | ||
| EV/EBITDA | 13.44 |
EPS(TTM)12.03
EY6.89%
EPS(NY)12.33
Fwd EY7.06%
FCF(TTM)11.89
FCFY6.82%
OCF(TTM)13
OCFY7.45%
SpS41.09
BVpS19.68
TBVpS8.07
PEG (NY)5.9
PEG (5Y)0.62
Graham Number72.98
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 | 6.57 |
F-Score6
WACC10.54%
ROIC/WACC2.03
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 Y2.46%
EPS Next 2Y3.21%
EPS Next 3Y5.26%
EPS Next 5Y8.23%
Revenue 1Y (TTM)13.66%
Revenue growth 3Y0.06%
Revenue growth 5Y15.3%
Sales Q2Q%10.02%
Revenue Next Year1.72%
Revenue Next 2Y2.44%
Revenue Next 3Y3.01%
Revenue Next 5Y5.59%
EBIT growth 1Y20.88%
EBIT growth 3Y-5.74%
EBIT growth 5Y22.86%
EBIT Next Year7.17%
EBIT Next 3Y3.24%
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 7 / 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.
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 2.46% 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%.