QUALCOMM INC (QCOM) Stock Fundamental Analysis
USA - NASDAQ:QCOM - US7475251036 - Common Stock
163.3 USD
+3.71 (+2.32%)
163.3 USD
0 (0%)
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. QCOM has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. QCOM may be a bit undervalued, certainly considering the very reasonable score on growth QCOM also has an excellent dividend rating. With these ratings, QCOM could be worth investigating further 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.
QCOM had positive earnings in each of the past 5 years.
In the past 5 years QCOM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.05%, QCOM belongs to the top of the industry, outperforming 83.04% of the companies in the same industry.
With an excellent Return On Equity value of 26.13%, QCOM belongs to the best of the industry, outperforming 91.07% of the companies in the same industry.
With an excellent Return On Invested Capital value of 21.40%, QCOM belongs to the best of the industry, outperforming 94.64% 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 10.84%.
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's Profit Margin of 12.51% is fine compared to the rest of the industry. QCOM outperforms 71.43% of its industry peers.
In the last couple of years the Profit Margin of QCOM has declined.
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.
QCOM has a Gross Margin of 55.43%. This is in the better half of the industry: QCOM outperforms 76.79% 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
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.
Compared to 5 years ago, QCOM has less shares outstanding
QCOM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.24 indicates that QCOM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.24, QCOM is in the better half of the industry, outperforming 65.18% of the companies in the same industry.
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.
The Debt to FCF ratio of QCOM (1.16) is better than 74.11% of its industry peers.
A Debt/Equity ratio of 0.70 indicates that QCOM is somewhat dependend on debt financing.
QCOM's Debt to Equity ratio of 0.70 is on the low side compared to the rest of the industry. QCOM is outperformed by 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 | 6.24 |
ROIC/WACC2.05
WACC10.46%
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 50.89% of its industry peers.
A Quick Ratio of 2.10 indicates that QCOM has no problem at all paying its short term obligations.
QCOM's Quick ratio of 2.10 is in line compared to the rest of the industry. QCOM outperforms 52.68% 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.
QCOM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.54% yearly.
Looking at the last year, QCOM shows a quite strong growth in Revenue. The Revenue has grown by 13.66% in the last year.
The Revenue has been growing by 15.30% on average over the past years. This is quite good.
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 Y2.46%
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
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.
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
A Price/Earnings ratio of 13.57 indicates a correct valuation of QCOM.
QCOM's Price/Earnings ratio is rather cheap when compared to the industry. QCOM is cheaper than 93.75% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.45, QCOM is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.25, which indicates a correct valuation of QCOM.
Based on the Price/Forward Earnings ratio, QCOM is valued cheaper than 90.18% of the companies in the same industry.
QCOM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 13.25 |
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 cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.73 | ||
| EV/EBITDA | 12.29 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates QCOM does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of QCOM may justify a higher PE ratio.
PEG (NY)5.53
PEG (5Y)0.58
EPS Next 2Y3.21%
EPS Next 3Y5.26%
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.
Compared to an average industry Dividend Yield of 2.22, QCOM pays a better dividend. On top of this QCOM pays more dividend than 88.39% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, QCOM has a dividend comparable with the average S&P500 company.
| 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 2Y3.21%
EPS Next 3Y5.26%
163.3
+3.71 (+2.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners81.09%
Inst Owner Change-5.7%
Ins Owners0.05%
Ins Owner Change-1.52%
Market Cap176.00B
Revenue(TTM)44.28B
Net Income(TTM)5.54B
Analysts73.62
Price Target183.98 (12.66%)
Short Float %2.27%
Short Ratio2.38
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)2.47%
EPS NQ rev (3m)2.28%
EPS NY rev (1m)0.05%
EPS NY rev (3m)1.12%
Revenue NQ rev (1m)4.66%
Revenue NQ rev (3m)4.62%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 13.25 | ||
| P/S | 3.97 | ||
| P/FCF | 13.73 | ||
| P/OCF | 12.56 | ||
| P/B | 8.3 | ||
| P/tB | 20.23 | ||
| EV/EBITDA | 12.29 |
EPS(TTM)12.03
EY7.37%
EPS(NY)12.33
Fwd EY7.55%
FCF(TTM)11.89
FCFY7.28%
OCF(TTM)13
OCFY7.96%
SpS41.09
BVpS19.68
TBVpS8.07
PEG (NY)5.53
PEG (5Y)0.58
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 | 6.24 |
F-Score6
WACC10.46%
ROIC/WACC2.05
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%.