QORVO INC (QRVO) Stock Fundamental Analysis
NASDAQ:QRVO - Nasdaq - US74736K1016 - Common Stock - Currency: USD
QRVO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. QRVO has an average financial health and profitability rating. QRVO has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year QRVO was profitable.
QRVO had a positive operating cash flow in the past year.
Of the past 5 years QRVO 4 years were profitable.
Each year in the past 5 years QRVO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of QRVO (0.93%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 1.63%, QRVO is in line with its industry, outperforming 50.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.48%, QRVO is doing good in the industry, outperforming 66.36% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for QRVO is significantly below the industry average of 10.58%.
The last Return On Invested Capital (5.48%) for QRVO is above the 3 year average (4.84%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.93% | ||
| ROE | 1.63% | ||
| ROIC | 5.48% |
ROA(3y)0.47%
ROA(5y)5.07%
ROE(3y)0.77%
ROE(5y)8.17%
ROIC(3y)4.84%
ROIC(5y)8.01%
1.3 Margins
QRVO has a Profit Margin of 1.49%. This is comparable to the rest of the industry: QRVO outperforms 49.09% of its industry peers.
QRVO's Profit Margin has declined in the last couple of years.
QRVO has a Operating Margin of 9.61%. This is in the better half of the industry: QRVO outperforms 60.91% of its industry peers.
In the last couple of years the Operating Margin of QRVO has declined.
QRVO has a Gross Margin (41.62%) which is comparable to the rest of the industry.
QRVO's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.61% | ||
| PM (TTM) | 1.49% | ||
| GM | 41.62% |
OM growth 3Y-28.11%
OM growth 5Y-7.16%
PM growth 3Y-59.24%
PM growth 5Y-31.95%
GM growth 3Y-5.12%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), QRVO is destroying value.
QRVO has less shares outstanding than it did 1 year ago.
QRVO has less shares outstanding than it did 5 years ago.
QRVO has a better debt/assets ratio than last year.
2.2 Solvency
QRVO has an Altman-Z score of 3.08. This indicates that QRVO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.08, QRVO is in line with its industry, outperforming 46.36% of the companies in the same industry.
QRVO has a debt to FCF ratio of 3.20. This is a good value and a sign of high solvency as QRVO would need 3.20 years to pay back of all of its debts.
QRVO has a Debt to FCF ratio (3.20) which is in line with its industry peers.
A Debt/Equity ratio of 0.46 indicates that QRVO is not too dependend on debt financing.
QRVO has a worse Debt to Equity ratio (0.46) than 71.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.49
WACC11.09%
2.3 Liquidity
A Current Ratio of 2.77 indicates that QRVO has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.77, QRVO is in line with its industry, outperforming 48.18% of the companies in the same industry.
A Quick Ratio of 1.95 indicates that QRVO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.95, QRVO is in line with its industry, outperforming 43.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.77 | ||
| Quick Ratio | 1.95 |
3. Growth
3.1 Past
QRVO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.07%.
The Earnings Per Share has been decreasing by -1.74% on average over the past years.
The Revenue has decreased by -1.34% in the past year.
The Revenue has been growing slightly by 2.80% on average over the past years.
EPS 1Y (TTM)-7.07%
EPS 3Y-22.36%
EPS 5Y-1.74%
EPS Q2Q%2.16%
Revenue 1Y (TTM)-1.34%
Revenue growth 3Y-7.15%
Revenue growth 5Y2.8%
Sales Q2Q%-7.6%
3.2 Future
The Earnings Per Share is expected to grow by 6.43% on average over the next years.
Based on estimates for the next years, QRVO will show a small growth in Revenue. The Revenue will grow by 3.03% on average per year.
EPS Next Y-4.6%
EPS Next 2Y6.47%
EPS Next 3Y9.46%
EPS Next 5Y6.43%
Revenue Next Year-0.95%
Revenue Next 2Y2.02%
Revenue Next 3Y2.79%
Revenue Next 5Y3.03%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.26 indicates a correct valuation of QRVO.
Based on the Price/Earnings ratio, QRVO is valued cheaply inside the industry as 88.18% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of QRVO to the average of the S&P500 Index (27.30), we can say QRVO is valued slightly cheaper.
The Price/Forward Earnings ratio is 16.00, which indicates a correct valuation of QRVO.
Based on the Price/Forward Earnings ratio, QRVO is valued cheaply inside the industry as 82.73% of the companies are valued more expensively.
QRVO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.26 | ||
| Fwd PE | 16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QRVO is valued a bit cheaper than 79.09% of the companies in the same industry.
QRVO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. QRVO is cheaper than 89.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.96 | ||
| EV/EBITDA | 13.66 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.47%
EPS Next 3Y9.46%
5. Dividend
5.1 Amount
No dividends for QRVO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
88.23
-2.09 (-2.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.01%
Inst Owner Change0%
Ins Owners0.47%
Ins Owner Change11.04%
Market Cap8.21B
Analysts66.67
Price Target84.35 (-4.4%)
Short Float %5.62%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.96%
Min EPS beat(2)31.03%
Max EPS beat(2)38.89%
EPS beat(4)3
Avg EPS beat(4)22.35%
Min EPS beat(4)-0.5%
Max EPS beat(4)38.89%
EPS beat(8)7
Avg EPS beat(8)34.94%
EPS beat(12)11
Avg EPS beat(12)32.99%
EPS beat(16)15
Avg EPS beat(16)26.41%
Revenue beat(2)1
Avg Revenue beat(2)-0.06%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)0.24%
Revenue beat(4)2
Avg Revenue beat(4)0.45%
Min Revenue beat(4)-0.35%
Max Revenue beat(4)2.04%
Revenue beat(8)4
Avg Revenue beat(8)1.76%
Revenue beat(12)6
Avg Revenue beat(12)1.14%
Revenue beat(16)7
Avg Revenue beat(16)0.69%
PT rev (1m)-1.28%
PT rev (3m)-9.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.27%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)-2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.08%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.26 | ||
| Fwd PE | 16 | ||
| P/S | 2.21 | ||
| P/FCF | 16.96 | ||
| P/OCF | 13.2 | ||
| P/B | 2.42 | ||
| P/tB | 11.26 | ||
| EV/EBITDA | 13.66 |
EPS(TTM)5.78
EY6.55%
EPS(NY)5.51
Fwd EY6.25%
FCF(TTM)5.2
FCFY5.9%
OCF(TTM)6.69
OCFY7.58%
SpS39.98
BVpS36.46
TBVpS7.84
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.93% | ||
| ROE | 1.63% | ||
| ROCE | 6.94% | ||
| ROIC | 5.48% | ||
| ROICexc | 6.84% | ||
| ROICexgc | 19.26% | ||
| OM | 9.61% | ||
| PM (TTM) | 1.49% | ||
| GM | 41.62% | ||
| FCFM | 13.01% |
ROA(3y)0.47%
ROA(5y)5.07%
ROE(3y)0.77%
ROE(5y)8.17%
ROIC(3y)4.84%
ROIC(5y)8.01%
ROICexc(3y)5.94%
ROICexc(5y)9.75%
ROICexgc(3y)18.11%
ROICexgc(5y)26.71%
ROCE(3y)6.13%
ROCE(5y)10.14%
ROICexcg growth 3Y-21.21%
ROICexcg growth 5Y0.35%
ROICexc growth 3Y-24.98%
ROICexc growth 5Y0.35%
OM growth 3Y-28.11%
OM growth 5Y-7.16%
PM growth 3Y-59.24%
PM growth 5Y-31.95%
GM growth 3Y-5.12%
GM growth 5Y0.08%
F-Score8
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.2 | ||
| Debt/EBITDA | 2.37 | ||
| Cap/Depr | 46.53% | ||
| Cap/Sales | 3.71% | ||
| Interest Coverage | 4.7 | ||
| Cash Conversion | 95.12% | ||
| Profit Quality | 873.49% | ||
| Current Ratio | 2.77 | ||
| Quick Ratio | 1.95 | ||
| Altman-Z | 3.08 |
F-Score8
WACC11.09%
ROIC/WACC0.49
Cap/Depr(3y)44.37%
Cap/Depr(5y)46.64%
Cap/Sales(3y)3.85%
Cap/Sales(5y)4.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.07%
EPS 3Y-22.36%
EPS 5Y-1.74%
EPS Q2Q%2.16%
EPS Next Y-4.6%
EPS Next 2Y6.47%
EPS Next 3Y9.46%
EPS Next 5Y6.43%
Revenue 1Y (TTM)-1.34%
Revenue growth 3Y-7.15%
Revenue growth 5Y2.8%
Sales Q2Q%-7.6%
Revenue Next Year-0.95%
Revenue Next 2Y2.02%
Revenue Next 3Y2.79%
Revenue Next 5Y3.03%
EBIT growth 1Y10.27%
EBIT growth 3Y-33.25%
EBIT growth 5Y-4.56%
EBIT Next Year32.78%
EBIT Next 3Y20.83%
EBIT Next 5YN/A
FCF growth 1Y-31.44%
FCF growth 3Y-16.64%
FCF growth 5Y-9.14%
OCF growth 1Y-25.35%
OCF growth 3Y-15.99%
OCF growth 5Y-8.04%