QUALCOMM INC (QCOM) Stock Fundamental Analysis
NASDAQ:QCOM • US7475251036
140.7 USD
+2.23 (+1.61%)
At close: Feb 13, 2026
140.55 USD
-0.15 (-0.11%)
After Hours: 2/13/2026, 8:00:00 PM
QCOM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. While QCOM has a great profitability rating, there are some minor concerns on its financial health. QCOM is valued quite cheap, while showing a decent growth score. This is a good combination! QCOM also has an excellent dividend rating. With these ratings, QCOM could be worth investigating further for value and dividend 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.
- Each year in the past 5 years QCOM has been profitable.
- In the past 5 years QCOM always reported a positive cash flow from operatings.
1.2 Ratios
- QCOM has a Return On Assets of 10.12%. This is in the better half of the industry: QCOM outperforms 79.65% of its industry peers.
- Looking at the Return On Equity, with a value of 23.25%, QCOM belongs to the top of the industry, outperforming 89.38% of the companies in the same industry.
- The Return On Invested Capital of QCOM (19.99%) is better than 93.81% 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 10.66%.
- The 3 year average ROIC (17.48%) for QCOM is below the current ROIC(19.99%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.12% | ||
| ROE | 23.25% | ||
| ROIC | 19.99% |
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
- The Profit Margin of QCOM (11.96%) is better than 67.26% of its industry peers.
- QCOM's Profit Margin has declined in the last couple of years.
- The Operating Margin of QCOM (27.20%) is better than 85.84% of its industry peers.
- In the last couple of years the Operating Margin of QCOM has grown nicely.
- The Gross Margin of QCOM (55.10%) is better than 72.57% 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 | 27.2% | ||
| PM (TTM) | 11.96% | ||
| GM | 55.1% |
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.
- QCOM has less shares outstanding than it did 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 5.54. This indicates that QCOM is financially healthy and has little risk of bankruptcy at the moment.
- QCOM's Altman-Z score of 5.54 is in line compared to the rest of the industry. QCOM outperforms 59.29% of its industry peers.
- The Debt to FCF ratio of QCOM is 1.15, which is an excellent value as it means it would take QCOM, only 1.15 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.15, QCOM is in the better half of the industry, outperforming 72.57% of the companies in the same industry.
- A Debt/Equity ratio of 0.64 indicates that QCOM is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.64, QCOM is not doing good in the industry: 72.57% of the companies in the same industry are doing better.
- 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 | 0.64 | ||
| Debt/FCF | 1.15 | ||
| Altman-Z | 5.54 |
ROIC/WACC1.89
WACC10.59%
2.3 Liquidity
- QCOM has a Current Ratio of 2.51. This indicates that QCOM is financially healthy and has no problem in meeting its short term obligations.
- QCOM has a Current ratio of 2.51. This is comparable to the rest of the industry: QCOM outperforms 42.48% of its industry peers.
- QCOM has a Quick Ratio of 1.83. This is a normal value and indicates that QCOM is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.83, QCOM is doing worse than 60.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
- QCOM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.50%, which is quite good.
- 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.
- QCOM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.25%.
- The Revenue has been growing by 15.30% on average over the past years. This is quite good.
EPS 1Y (TTM)11.5%
EPS 3Y-1.35%
EPS 5Y23.54%
EPS Q2Q%2.64%
Revenue 1Y (TTM)10.25%
Revenue growth 3Y0.06%
Revenue growth 5Y15.3%
Sales Q2Q%5%
3.2 Future
- The Earnings Per Share is expected to grow by 7.18% on average over the next years.
- Based on estimates for the next years, QCOM will show a small growth in Revenue. The Revenue will grow by 5.35% on average per year.
EPS Next Y1.63%
EPS Next 2Y1.91%
EPS Next 3Y3.11%
EPS Next 5Y7.18%
Revenue Next Year3.7%
Revenue Next 2Y2.45%
Revenue Next 3Y3.59%
Revenue Next 5Y5.35%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
- QCOM is valuated reasonably with a Price/Earnings ratio of 11.61.
- QCOM's Price/Earnings ratio is rather cheap when compared to the industry. QCOM is cheaper than 97.35% of the companies in the same industry.
- When comparing the Price/Earnings ratio of QCOM to the average of the S&P500 Index (26.68), we can say QCOM is valued rather cheaply.
- The Price/Forward Earnings ratio is 11.26, which indicates a very decent valuation of QCOM.
- Based on the Price/Forward Earnings ratio, QCOM is valued cheaply inside the industry as 95.58% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 28.06. QCOM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 11.26 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, QCOM is valued cheaper than 92.92% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, QCOM is valued cheaper than 96.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.61 | ||
| EV/EBITDA | 10.79 |
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)7.12
PEG (5Y)0.49
EPS Next 2Y1.91%
EPS Next 3Y3.11%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.57%, QCOM has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.50, QCOM pays a better dividend. On top of this QCOM pays more dividend than 95.58% of the companies listed in the same industry.
- QCOM's Dividend Yield is a higher than the S&P500 average which is at 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
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
- 71.05% of the earnings are spent on dividend by QCOM. This is not a sustainable payout ratio.
- QCOM's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP71.05%
EPS Next 2Y1.91%
EPS Next 3Y3.11%
140.7
+2.23 (+1.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-04 2026-02-04/amc
Earnings (Next)04-28 2026-04-28/amc
Inst Owners81.85%
Inst Owner Change-89.29%
Ins Owners0.05%
Ins Owner Change3.93%
Market Cap150.13B
Revenue(TTM)44.87B
Net Income(TTM)5.37B
Analysts72.89
Price Target190.7 (35.54%)
Short Float %2.99%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
Yearly Dividend3.48
Dividend Growth(5Y)6.56%
DP71.05%
Div Incr Years21
Div Non Decr Years21
Ex-Date03-05 2026-03-05 (0.89)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.42%
Min EPS beat(2)0.57%
Max EPS beat(2)2.27%
EPS beat(4)3
Avg EPS beat(4)0.48%
Min EPS beat(4)-0.96%
Max EPS beat(4)2.27%
EPS beat(8)7
Avg EPS beat(8)2.79%
EPS beat(12)10
Avg EPS beat(12)3.29%
EPS beat(16)12
Avg EPS beat(16)2.88%
Revenue beat(2)1
Avg Revenue beat(2)0.38%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)2.38%
Revenue beat(4)1
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)2.38%
Revenue beat(8)3
Avg Revenue beat(8)0.38%
Revenue beat(12)4
Avg Revenue beat(12)0.19%
Revenue beat(16)5
Avg Revenue beat(16)-0.05%
PT rev (1m)-2.18%
PT rev (3m)3.65%
EPS NQ rev (1m)-11.97%
EPS NQ rev (3m)-11.74%
EPS NY rev (1m)-0.92%
EPS NY rev (3m)-0.81%
Revenue NQ rev (1m)-5.23%
Revenue NQ rev (3m)-4.72%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 11.26 | ||
| P/S | 3.35 | ||
| P/FCF | 11.61 | ||
| P/OCF | 10.43 | ||
| P/B | 6.51 | ||
| P/tB | 20.67 | ||
| EV/EBITDA | 10.79 |
EPS(TTM)12.12
EY8.61%
EPS(NY)12.49
Fwd EY8.88%
FCF(TTM)12.11
FCFY8.61%
OCF(TTM)13.49
OCFY9.59%
SpS42.05
BVpS21.62
TBVpS6.81
PEG (NY)7.12
PEG (5Y)0.49
Graham Number76.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.12% | ||
| ROE | 23.25% | ||
| ROCE | 28.24% | ||
| ROIC | 19.99% | ||
| ROICexc | 27.52% | ||
| ROICexgc | 55.45% | ||
| OM | 27.2% | ||
| PM (TTM) | 11.96% | ||
| GM | 55.1% | ||
| FCFM | 28.81% |
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-Score5
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 1.15 | ||
| Debt/EBITDA | 1.08 | ||
| Cap/Depr | 93.91% | ||
| Cap/Sales | 3.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.55% | ||
| Profit Quality | 240.93% | ||
| Current Ratio | 2.51 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | 5.54 |
F-Score5
WACC10.59%
ROIC/WACC1.89
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)11.5%
EPS 3Y-1.35%
EPS 5Y23.54%
EPS Q2Q%2.64%
EPS Next Y1.63%
EPS Next 2Y1.91%
EPS Next 3Y3.11%
EPS Next 5Y7.18%
Revenue 1Y (TTM)10.25%
Revenue growth 3Y0.06%
Revenue growth 5Y15.3%
Sales Q2Q%5%
Revenue Next Year3.7%
Revenue Next 2Y2.45%
Revenue Next 3Y3.59%
Revenue Next 5Y5.35%
EBIT growth 1Y11.89%
EBIT growth 3Y-5.74%
EBIT growth 5Y22.86%
EBIT Next Year7.27%
EBIT Next 3Y4.53%
EBIT Next 5YN/A
FCF growth 1Y30.74%
FCF growth 3Y23.33%
FCF growth 5Y23.81%
OCF growth 1Y29.02%
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 for QCOM stock?
ChartMill assigns a valuation rating of 8 / 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.
Can you provide the PE and PB ratios for QCOM stock?
The Price/Earnings (PE) ratio for QUALCOMM INC (QCOM) is 11.61 and the Price/Book (PB) ratio is 6.51.
Can you provide the expected EPS growth for QCOM stock?
The Earnings per Share (EPS) of QUALCOMM INC (QCOM) is expected to grow by 1.63% in the next year.