QORVO INC (QRVO) Stock Fundamental Analysis
USA - NASDAQ:QRVO - US74736K1016 - Common Stock
87.67 USD
+0.73 (+0.84%)
87.85 USD
+0.18 (+0.21%)
Overall QRVO gets a fundamental rating of 5 out of 10. We evaluated QRVO against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. QRVO has an excellent financial health rating, but there are some minor concerns on its profitability. 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.
QRVO had positive earnings in 4 of the past 5 years.
In the past 5 years QRVO always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of QRVO (1.35%) is comparable to the rest of the industry.
QRVO's Return On Equity of 2.36% is in line compared to the rest of the industry. QRVO outperforms 56.25% of its industry peers.
QRVO has a better Return On Invested Capital (5.65%) than 67.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for QRVO is significantly below the industry average of 10.87%.
The 3 year average ROIC (4.84%) for QRVO is below the current ROIC(5.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.35% | ||
| ROE | 2.36% | ||
| ROIC | 5.65% |
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's Profit Margin of 2.22% is in line compared to the rest of the industry. QRVO outperforms 55.36% of its industry peers.
QRVO's Profit Margin has declined in the last couple of years.
QRVO has a better Operating Margin (10.18%) than 66.96% of its industry peers.
QRVO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 42.44%, QRVO is in line with its industry, outperforming 45.54% of the companies in the same industry.
In the last couple of years the Gross Margin of QRVO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.18% | ||
| PM (TTM) | 2.22% | ||
| GM | 42.44% |
OM growth 3Y-28.13%
OM growth 5Y-7.18%
PM growth 3Y-59.34%
PM growth 5Y-32.05%
GM growth 3Y-5.12%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so QRVO is destroying value.
QRVO has less shares outstanding than it did 1 year ago.
The number of shares outstanding for QRVO has been reduced compared to 5 years ago.
The debt/assets ratio for QRVO has been reduced compared to a year ago.
2.2 Solvency
QRVO has an Altman-Z score of 3.00. This indicates that QRVO is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.00, QRVO perfoms like the industry average, outperforming 47.32% of the companies in the same industry.
QRVO has a debt to FCF ratio of 2.64. This is a good value and a sign of high solvency as QRVO would need 2.64 years to pay back of all of its debts.
The Debt to FCF ratio of QRVO (2.64) is better than 64.29% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that QRVO is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.45, QRVO is doing worse than 69.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.64 | ||
| Altman-Z | 3 |
ROIC/WACC0.52
WACC10.95%
2.3 Liquidity
QRVO has a Current Ratio of 2.81. This indicates that QRVO is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.81, QRVO perfoms like the industry average, outperforming 51.79% of the companies in the same industry.
QRVO has a Quick Ratio of 2.01. This indicates that QRVO is financially healthy and has no problem in meeting its short term obligations.
QRVO's Quick ratio of 2.01 is in line compared to the rest of the industry. QRVO outperforms 48.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
QRVO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.63%.
QRVO shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.74% yearly.
The Revenue has decreased by -8.84% in the past year.
Measured over the past years, QRVO shows a small growth in Revenue. The Revenue has been growing by 2.80% on average per year.
EPS 1Y (TTM)-13.63%
EPS 3Y-22.36%
EPS 5Y-1.74%
EPS Q2Q%5.75%
Revenue 1Y (TTM)-8.84%
Revenue growth 3Y-7.15%
Revenue growth 5Y2.8%
Sales Q2Q%-7.66%
3.2 Future
Based on estimates for the next years, QRVO will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.83% on average per year.
Based on estimates for the next years, QRVO will show a small growth in Revenue. The Revenue will grow by 3.02% on average per year.
EPS Next Y6.24%
EPS Next 2Y9.18%
EPS Next 3Y12.15%
EPS Next 5Y8.83%
Revenue Next Year0.77%
Revenue Next 2Y2.54%
Revenue Next 3Y3.97%
Revenue Next 5Y3.02%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
QRVO is valuated correctly with a Price/Earnings ratio of 15.04.
92.86% of the companies in the same industry are more expensive than QRVO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.20, QRVO is valued a bit cheaper.
QRVO is valuated correctly with a Price/Forward Earnings ratio of 12.72.
Based on the Price/Forward Earnings ratio, QRVO is valued cheaper than 94.64% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. QRVO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.04 | ||
| Fwd PE | 12.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QRVO is valued cheaper than 83.04% 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 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.84 | ||
| EV/EBITDA | 12.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates QRVO does not grow enough to justify the current Price/Earnings ratio.
QRVO's earnings are expected to grow with 12.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.41
PEG (5Y)N/A
EPS Next 2Y9.18%
EPS Next 3Y12.15%
5. Dividend
5.1 Amount
QRVO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
87.67
+0.73 (+0.84%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.22%
Inst Owner Change-1.4%
Ins Owners0.44%
Ins Owner Change17.27%
Market Cap8.12B
Analysts66.47
Price Target99.15 (13.09%)
Short Float %3.16%
Short Ratio1.66
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)44.05%
Min EPS beat(2)38.89%
Max EPS beat(2)49.2%
EPS beat(4)3
Avg EPS beat(4)29.66%
Min EPS beat(4)-0.5%
Max EPS beat(4)49.2%
EPS beat(8)7
Avg EPS beat(8)25.87%
EPS beat(12)11
Avg EPS beat(12)36.76%
EPS beat(16)15
Avg EPS beat(16)28.66%
Revenue beat(2)2
Avg Revenue beat(2)1.87%
Min Revenue beat(2)0.24%
Max Revenue beat(2)3.5%
Revenue beat(4)2
Avg Revenue beat(4)0.81%
Min Revenue beat(4)-0.35%
Max Revenue beat(4)3.5%
Revenue beat(8)5
Avg Revenue beat(8)2.23%
Revenue beat(12)7
Avg Revenue beat(12)1.5%
Revenue beat(16)7
Avg Revenue beat(16)0.86%
PT rev (1m)0.88%
PT rev (3m)17.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)23.76%
EPS NY rev (1m)10.93%
EPS NY rev (3m)11.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.69%
Revenue NY rev (1m)1.49%
Revenue NY rev (3m)1.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.04 | ||
| Fwd PE | 12.72 | ||
| P/S | 2.22 | ||
| P/FCF | 13.84 | ||
| P/OCF | 11.22 | ||
| P/B | 2.36 | ||
| P/tB | 10.22 | ||
| EV/EBITDA | 12.88 |
EPS(TTM)5.83
EY6.65%
EPS(NY)6.89
Fwd EY7.86%
FCF(TTM)6.34
FCFY7.23%
OCF(TTM)7.82
OCFY8.92%
SpS39.41
BVpS37.1
TBVpS8.58
PEG (NY)2.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.35% | ||
| ROE | 2.36% | ||
| ROCE | 7.15% | ||
| ROIC | 5.65% | ||
| ROICexc | 7.28% | ||
| ROICexgc | 21.11% | ||
| OM | 10.18% | ||
| PM (TTM) | 2.22% | ||
| GM | 42.44% | ||
| FCFM | 16.08% |
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-21.22%
ROICexcg growth 5Y0.33%
ROICexc growth 3Y-25%
ROICexc growth 5Y0.33%
OM growth 3Y-28.13%
OM growth 5Y-7.18%
PM growth 3Y-59.34%
PM growth 5Y-32.05%
GM growth 3Y-5.12%
GM growth 5Y0.08%
F-Score7
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.64 | ||
| Debt/EBITDA | 2.35 | ||
| Cap/Depr | 47.55% | ||
| Cap/Sales | 3.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.68% | ||
| Profit Quality | 722.64% | ||
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.01 | ||
| Altman-Z | 3 |
F-Score7
WACC10.95%
ROIC/WACC0.52
Cap/Depr(3y)44.31%
Cap/Depr(5y)46.6%
Cap/Sales(3y)3.84%
Cap/Sales(5y)4.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.63%
EPS 3Y-22.36%
EPS 5Y-1.74%
EPS Q2Q%5.75%
EPS Next Y6.24%
EPS Next 2Y9.18%
EPS Next 3Y12.15%
EPS Next 5Y8.83%
Revenue 1Y (TTM)-8.84%
Revenue growth 3Y-7.15%
Revenue growth 5Y2.8%
Sales Q2Q%-7.66%
Revenue Next Year0.77%
Revenue Next 2Y2.54%
Revenue Next 3Y3.97%
Revenue Next 5Y3.02%
EBIT growth 1Y-5.57%
EBIT growth 3Y-33.27%
EBIT growth 5Y-4.58%
EBIT Next Year29.22%
EBIT Next 3Y11.42%
EBIT Next 5Y9.85%
FCF growth 1Y27.58%
FCF growth 3Y-16.61%
FCF growth 5Y-9.12%
OCF growth 1Y17.73%
OCF growth 3Y-15.98%
OCF growth 5Y-8.03%