QUALCOMM INC (QCOM) Stock Fundamental Analysis
NASDAQ:QCOM - Nasdaq - US7475251036 - Common Stock - Currency: USD
Taking everything into account, QCOM scores 7 out of 10 in our fundamental rating. QCOM was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. QCOM scores excellent points on both the profitability and health parts. This is a solid base for a good stock. QCOM is valued quite cheap, while showing a decent growth score. This is a good combination! Finally QCOM also has an excellent dividend rating. These ratings could make QCOM a good candidate for value and dividend and quality investing.
1. Profitability
1.1 Basic Checks
QCOM had positive earnings in the past year.
QCOM had a positive operating cash flow in the past year.
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 18.99%, QCOM belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
QCOM has a Return On Equity of 39.27%. This is amongst the best in the industry. QCOM outperforms 92.59% of its industry peers.
QCOM has a Return On Invested Capital of 18.89%. This is amongst the best in the industry. QCOM outperforms 91.67% of its industry peers.
QCOM had an Average Return On Invested Capital over the past 3 years of 21.90%. This is significantly above the industry average of 11.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.99% | ||
| ROE | 39.27% | ||
| ROIC | 18.89% |
ROA(3y)19.65%
ROA(5y)19.1%
ROE(3y)47.98%
ROE(5y)64.07%
ROIC(3y)21.9%
ROIC(5y)20.88%
1.3 Margins
QCOM has a better Profit Margin (25.94%) than 86.11% of its industry peers.
In the last couple of years the Profit Margin of QCOM has grown nicely.
QCOM's Operating Margin of 26.80% is amongst the best of the industry. QCOM outperforms 86.11% of its industry peers.
In the last couple of years the Operating Margin of QCOM has grown nicely.
The Gross Margin of QCOM (55.99%) is better than 76.85% 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 | 26.8% | ||
| PM (TTM) | 25.94% | ||
| GM | 55.99% |
OM growth 3Y-3.37%
OM growth 5Y8.78%
PM growth 3Y-1.14%
PM growth 5Y3.04%
GM growth 3Y-0.76%
GM growth 5Y0.05%
2. Health
2.1 Basic Checks
QCOM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for QCOM remains at a similar level 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 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.13 indicates that QCOM is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 6.13, QCOM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
QCOM has a debt to FCF ratio of 1.14. This is a very positive value and a sign of high solvency as it would only need 1.14 years to pay back of all of its debts.
QCOM has a better Debt to FCF ratio (1.14) than 75.00% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that QCOM is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.49, QCOM is not doing good in the industry: 73.15% of the companies in the same industry are doing better.
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 | 0.49 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 6.13 |
ROIC/WACC1.66
WACC11.35%
2.3 Liquidity
A Current Ratio of 2.62 indicates that QCOM has no problem at all paying its short term obligations.
QCOM has a Current ratio (2.62) which is in line with its industry peers.
A Quick Ratio of 1.99 indicates that QCOM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.99, QCOM is in line with its industry, outperforming 46.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.66% over the past year.
The Earnings Per Share has been growing by 23.53% on average over the past years. This is a very strong growth
The Revenue has grown by 12.13% 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 14.76% yearly.
EPS 1Y (TTM)23.66%
EPS 3Y6.13%
EPS 5Y23.53%
EPS Q2Q%24%
Revenue 1Y (TTM)12.13%
Revenue growth 3Y5.09%
Revenue growth 5Y14.76%
Sales Q2Q%17.61%
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 10.61% yearly.
QCOM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.05% yearly.
EPS Next Y17.4%
EPS Next 2Y10.43%
EPS Next 3Y5.99%
EPS Next 5Y10.61%
Revenue Next Year12.38%
Revenue Next 2Y8.4%
Revenue Next 3Y6.05%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
With a Price/Earnings ratio of 14.83, QCOM is valued correctly.
Based on the Price/Earnings ratio, QCOM is valued cheaply inside the industry as 87.04% of the companies are valued more expensively.
QCOM is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.95, QCOM is valued correctly.
QCOM's Price/Forward Earnings ratio is rather cheap when compared to the industry. QCOM is cheaper than 92.59% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, QCOM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.83 | ||
| Fwd PE | 12.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QCOM is valued a bit cheaper than 77.78% of the companies in the same industry.
96.30% 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 | ||
| EV/EBITDA | 13.72 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
QCOM has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.85
PEG (5Y)0.63
EPS Next 2Y10.43%
EPS Next 3Y5.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.18%, QCOM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.35, QCOM pays a better dividend. On top of this QCOM pays more dividend than 89.81% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, QCOM has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
5.2 History
The dividend of QCOM has a limited annual growth rate of 5.69%.
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)5.69%
Div Incr Years21
Div Non Decr Years21
5.3 Sustainability
QCOM pays out 35.38% of its income as dividend. This is a sustainable payout ratio.
The dividend of QCOM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP35.38%
EPS Next 2Y10.43%
EPS Next 3Y5.99%
161.22
+5.18 (+3.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.72%
Inst Owner Change-1.1%
Ins Owners0.05%
Ins Owner Change6.66%
Market Cap178.31B
Analysts74.47
Price Target205.12 (27.23%)
Short Float %1.5%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
Yearly Dividend3.31
Dividend Growth(5Y)5.69%
DP35.38%
Div Incr Years21
Div Non Decr Years21
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.91%
Min EPS beat(2)3.04%
Max EPS beat(2)12.79%
EPS beat(4)4
Avg EPS beat(4)5.1%
Min EPS beat(4)1.54%
Max EPS beat(4)12.79%
EPS beat(8)7
Avg EPS beat(8)4.7%
EPS beat(12)9
Avg EPS beat(12)3.68%
EPS beat(16)13
Avg EPS beat(16)5.24%
Revenue beat(2)2
Avg Revenue beat(2)3.04%
Min Revenue beat(2)1.4%
Max Revenue beat(2)4.69%
Revenue beat(4)2
Avg Revenue beat(4)1.13%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)4.69%
Revenue beat(8)3
Avg Revenue beat(8)0.47%
Revenue beat(12)4
Avg Revenue beat(12)0.05%
Revenue beat(16)8
Avg Revenue beat(16)0.68%
PT rev (1m)-0.89%
PT rev (3m)-2.06%
EPS NQ rev (1m)4.25%
EPS NQ rev (3m)5.02%
EPS NY rev (1m)4.88%
EPS NY rev (3m)4.99%
Revenue NQ rev (1m)2.64%
Revenue NQ rev (3m)3.04%
Revenue NY rev (1m)2.11%
Revenue NY rev (3m)2.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.83 | ||
| Fwd PE | 12.95 | ||
| P/S | 4.38 | ||
| P/FCF | 14 | ||
| P/OCF | 12.88 | ||
| P/B | 6.63 | ||
| P/tB | 12.09 | ||
| EV/EBITDA | 13.72 |
EPS(TTM)10.87
EY6.74%
EPS(NY)12.45
Fwd EY7.72%
FCF(TTM)11.52
FCFY7.14%
OCF(TTM)12.51
OCFY7.76%
SpS36.79
BVpS24.3
TBVpS13.33
PEG (NY)0.85
PEG (5Y)0.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.99% | ||
| ROE | 39.27% | ||
| ROCE | 23.91% | ||
| ROIC | 18.89% | ||
| ROICexc | 27.52% | ||
| ROICexgc | 44.92% | ||
| OM | 26.8% | ||
| PM (TTM) | 25.94% | ||
| GM | 55.99% | ||
| FCFM | 31.3% |
ROA(3y)19.65%
ROA(5y)19.1%
ROE(3y)47.98%
ROE(5y)64.07%
ROIC(3y)21.9%
ROIC(5y)20.88%
ROICexc(3y)28.65%
ROICexc(5y)30.41%
ROICexgc(3y)47.26%
ROICexgc(5y)54.69%
ROCE(3y)27.9%
ROCE(5y)26.71%
ROICexcg growth 3Y-22.23%
ROICexcg growth 5Y-9.77%
ROICexc growth 3Y-16.58%
ROICexc growth 5Y3.47%
OM growth 3Y-3.37%
OM growth 5Y8.78%
PM growth 3Y-1.14%
PM growth 5Y3.04%
GM growth 3Y-0.76%
GM growth 5Y0.05%
F-Score9
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 1.14 | ||
| Debt/EBITDA | 1.05 | ||
| Cap/Depr | 64.75% | ||
| Cap/Sales | 2.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.73% | ||
| Profit Quality | 120.66% | ||
| Current Ratio | 2.62 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z | 6.13 |
F-Score9
WACC11.35%
ROIC/WACC1.66
Cap/Depr(3y)89.85%
Cap/Depr(5y)97.98%
Cap/Sales(3y)3.95%
Cap/Sales(5y)4.79%
Profit Quality(3y)99.69%
Profit Quality(5y)95.9%
High Growth Momentum
Growth
EPS 1Y (TTM)23.66%
EPS 3Y6.13%
EPS 5Y23.53%
EPS Q2Q%24%
EPS Next Y17.4%
EPS Next 2Y10.43%
EPS Next 3Y5.99%
EPS Next 5Y10.61%
Revenue 1Y (TTM)12.13%
Revenue growth 3Y5.09%
Revenue growth 5Y14.76%
Sales Q2Q%17.61%
Revenue Next Year12.38%
Revenue Next 2Y8.4%
Revenue Next 3Y6.05%
Revenue Next 5YN/A
EBIT growth 1Y21.13%
EBIT growth 3Y1.56%
EBIT growth 5Y24.84%
EBIT Next Year21.28%
EBIT Next 3Y8.46%
EBIT Next 5YN/A
FCF growth 1Y58.07%
FCF growth 3Y8.88%
FCF growth 5Y11.77%
OCF growth 1Y36.57%
OCF growth 3Y5.02%
OCF growth 5Y10.86%