QORVO INC (QRVO)
US74736K1016 - Common Stock
We assign a fundamental rating of 5 out of 10 to QRVO. QRVO was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. QRVO has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on QRVO.
1. Profitability
1.1 Basic Checks
In the past year QRVO was profitable.
In the past year QRVO had a positive cash flow from operations.
Of the past 5 years QRVO 4 years were profitable.
QRVO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -2.17%, QRVO is doing worse than 61.11% of the companies in the same industry.
QRVO's Return On Equity of -4.14% is on the low side compared to the rest of the industry. QRVO is outperformed by 63.89% of its industry peers.
QRVO's Return On Invested Capital of 5.61% is fine compared to the rest of the industry. QRVO outperforms 67.59% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for QRVO is below the industry average of 11.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.17% | ||
| ROE | -4.14% | ||
| ROIC | 5.61% |
ROA(3y)4.74%
ROA(5y)5.9%
ROE(3y)7.79%
ROE(5y)9.4%
ROIC(3y)7.77%
ROIC(5y)8.1%
1.3 Margins
QRVO's Operating Margin of 9.30% is fine compared to the rest of the industry. QRVO outperforms 64.81% of its industry peers.
In the last couple of years the Operating Margin of QRVO has grown nicely.
QRVO has a Gross Margin (39.22%) 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 | 9.3% | ||
| PM (TTM) | N/A | ||
| GM | 39.22% |
OM growth 3Y-21.46%
OM growth 5Y9.45%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.08%
GM growth 5Y0.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), QRVO is destroying value.
Compared to 1 year ago, QRVO has less shares outstanding
Compared to 5 years ago, QRVO has less shares outstanding
QRVO has a better debt/assets ratio than last year.
2.2 Solvency
QRVO has an Altman-Z score of 2.19. This is not the best score and indicates that QRVO is in the grey zone with still only limited risk for bankruptcy at the moment.
QRVO's Altman-Z score of 2.19 is in line compared to the rest of the industry. QRVO outperforms 42.59% of its industry peers.
QRVO has a debt to FCF ratio of 2.53. This is a good value and a sign of high solvency as QRVO would need 2.53 years to pay back of all of its debts.
The Debt to FCF ratio of QRVO (2.53) is better than 70.37% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that QRVO is not too dependend on debt financing.
QRVO has a Debt to Equity ratio of 0.45. This is in the lower half of the industry: QRVO underperforms 71.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.53 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.44
WACC12.63%
2.3 Liquidity
QRVO has a Current Ratio of 1.90. This is a normal value and indicates that QRVO is financially healthy and should not expect problems in meeting its short term obligations.
QRVO has a worse Current ratio (1.90) than 75.00% of its industry peers.
QRVO has a Quick Ratio of 1.38. This is a normal value and indicates that QRVO is financially healthy and should not expect problems in meeting its short term obligations.
QRVO has a worse Quick ratio (1.38) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
QRVO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 66.84%, which is quite impressive.
The Earnings Per Share has been growing slightly by 1.48% on average over the past years.
The Revenue has grown by 26.11% in the past year. This is a very strong growth!
QRVO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.05% yearly.
EPS 1Y (TTM)66.84%
EPS 3Y-13.91%
EPS 5Y1.48%
EPS Q2Q%-21.34%
Revenue 1Y (TTM)26.11%
Revenue growth 3Y-2.08%
Revenue growth 5Y4.05%
Sales Q2Q%-5.16%
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 14.78% on average per year.
Based on estimates for the next years, QRVO will show a small growth in Revenue. The Revenue will grow by 7.28% on average per year.
EPS Next Y-21.06%
EPS Next 2Y-1.14%
EPS Next 3Y8.19%
EPS Next 5Y14.78%
Revenue Next Year-1.83%
Revenue Next 2Y1.1%
Revenue Next 3Y3.18%
Revenue Next 5Y7.28%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.51 indicates a reasonable valuation of QRVO.
Based on the Price/Earnings ratio, QRVO is valued cheaply inside the industry as 95.37% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of QRVO to the average of the S&P500 Index (28.53), we can say QRVO is valued rather cheaply.
QRVO is valuated reasonably with a Price/Forward Earnings ratio of 10.79.
Based on the Price/Forward Earnings ratio, QRVO is valued cheaply inside the industry as 93.52% of the companies are valued more expensively.
QRVO is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.51 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QRVO is valued cheaply inside the industry as 87.04% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, QRVO is valued cheaply inside the industry as 99.07% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.01 | ||
| EV/EBITDA | 10.39 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)7.11
EPS Next 2Y-1.14%
EPS Next 3Y8.19%
5. Dividend
5.1 Amount
QRVO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
QORVO INC
NASDAQ:QRVO (11/15/2024, 8:00:01 PM)
After market: 65.61 0 (0%)65.61
-0.69 (-1.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.20B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.51 | ||
| Fwd PE | 10.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)7.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.17% | ||
| ROE | -4.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.3% | ||
| PM (TTM) | N/A | ||
| GM | 39.22% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)66.84%
EPS 3Y-13.91%
EPS 5Y
EPS Q2Q%
EPS Next Y-21.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)26.11%
Revenue growth 3Y-2.08%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
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