174.81 USD
+0.04 (+0.02%)
174.5 USD
-0.31 (-0.18%)
Overall QCOM gets a fundamental rating of 7 out of 10. We evaluated QCOM against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. QCOM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. QCOM is not valued too expensively and it also shows a decent growth rate. Finally QCOM also has an excellent dividend rating. These ratings could make QCOM a good candidate for dividend and quality investing.
1. Profitability
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
QCOM has a Return On Assets of 11.05%. This is amongst the best in the industry. QCOM outperforms 81.42% of its industry peers.
The Return On Equity of QCOM (26.13%) is better than 90.27% of its industry peers.
QCOM has a Return On Invested Capital of 21.40%. This is amongst the best in the industry. QCOM outperforms 94.69% of its industry peers.
QCOM had an Average Return On Invested Capital over the past 3 years of 17.48%. This is significantly above the industry average of 10.77%.
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.
QCOM's Profit Margin has declined in the last couple of years.
The Operating Margin of QCOM (27.99%) is better than 87.61% of its industry peers.
In the last couple of years the Operating Margin of QCOM has grown nicely.
QCOM has a better Gross Margin (55.43%) than 76.11% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so QCOM is creating value.
Compared to 1 year ago, QCOM has less shares outstanding
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 6.55. This indicates that QCOM is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 6.55, QCOM is doing good in the industry, outperforming 61.06% of the companies in the same industry.
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.
The Debt to Equity ratio of QCOM (0.70) is worse than 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
A Current Ratio of 2.82 indicates that QCOM has no problem at all paying 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 has a Quick ratio (2.10) which 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.
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
Based on estimates for the next years, QCOM will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.23% on average per year.
The Revenue is expected to grow by 5.59% on average over the next years.
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
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
With a Price/Earnings ratio of 14.53, QCOM is valued correctly.
Based on the Price/Earnings ratio, QCOM is valued cheaply inside the industry as 94.69% of the companies are valued more expensively.
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.
94.69% of the companies in the same industry are more expensive than QCOM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of QCOM to the average of the S&P500 Index (24.04), we can say QCOM is valued slightly 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.
93.81% of the companies in the same industry are more expensive than QCOM, based on the Price/Free Cash Flow ratio.
| 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
QCOM has a Yearly Dividend Yield of 2.04%. Purely for dividend investing, there may be better candidates out there.
QCOM's Dividend Yield is rather good when compared to the industry average which is at 0.56. QCOM pays more dividend than 89.38% of the companies 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 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
68.67% of the earnings are spent on dividend by QCOM. 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 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%.