QORVO INC (QRVO) Stock Fundamental Analysis
USA - NASDAQ:QRVO - US74736K1016 - Common Stock
92.06 USD
+1.39 (+1.53%)
92.06 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to QRVO. QRVO was compared to 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
QRVO had positive earnings in the past year.
QRVO had a positive operating cash flow in the past year.
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
QRVO's Return On Assets of 1.35% is in line compared to the rest of the industry. QRVO outperforms 54.46% of its industry peers.
QRVO has a Return On Equity (2.36%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 5.65%, QRVO is in the better half of the industry, outperforming 66.96% 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 10.99%.
The last Return On Invested Capital (5.65%) for QRVO is above the 3 year average (4.84%), which is a sign of increasing profitability.
| 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 54.46% of its industry peers.
In the last couple of years the Profit Margin of QRVO has declined.
Looking at the Operating Margin, with a value of 10.18%, QRVO is in the better half of the industry, outperforming 66.07% of the companies in the same industry.
QRVO's Operating Margin has declined in the last couple of years.
QRVO's Gross Margin of 42.44% is in line compared to the rest of the industry. QRVO outperforms 45.54% of its industry peers.
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.
The number of shares outstanding for QRVO has been reduced compared to 1 year ago.
Compared to 5 years ago, QRVO has less shares outstanding
Compared to 1 year ago, QRVO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.07 indicates that QRVO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.07, QRVO is in line with its industry, outperforming 45.54% of the companies in the same industry.
The Debt to FCF ratio of QRVO is 2.64, which is a good value as it means it would take QRVO, 2.64 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.64, QRVO is doing good in the industry, outperforming 65.18% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that QRVO is not too dependend on debt financing.
QRVO has a worse Debt to Equity ratio (0.45) than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.64 | ||
| Altman-Z | 3.07 |
ROIC/WACC0.51
WACC11.17%
2.3 Liquidity
A Current Ratio of 2.81 indicates that QRVO has no problem at all paying its short term obligations.
QRVO has a Current ratio (2.81) which is comparable to the rest of the industry.
A Quick Ratio of 2.01 indicates that QRVO has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.01, QRVO is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.01 |
3. Growth
3.1 Past
The earnings per share for QRVO have decreased strongly by -13.63% in the last year.
The Earnings Per Share has been decreasing by -1.74% on average over the past years.
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
The Earnings Per Share is expected to grow by 8.83% on average over the next years. This is quite good.
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 Y6.76%
EPS Next 2Y9.69%
EPS Next 3Y12.38%
EPS Next 5Y8.83%
Revenue Next Year0.74%
Revenue Next 2Y2.53%
Revenue Next 3Y3.95%
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
With a Price/Earnings ratio of 15.79, QRVO is valued correctly.
94.64% of the companies in the same industry are more expensive than QRVO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of QRVO to the average of the S&P500 Index (27.67), we can say QRVO is valued slightly cheaper.
QRVO is valuated correctly with a Price/Forward Earnings ratio of 13.24.
Based on the Price/Forward Earnings ratio, QRVO is valued cheaply inside the industry as 97.32% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.33, QRVO is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.79 | ||
| Fwd PE | 13.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QRVO is valued cheaper than 82.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, QRVO is valued cheaply inside the industry as 94.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.53 | ||
| EV/EBITDA | 13.31 |
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.
A more expensive valuation may be justified as QRVO's earnings are expected to grow with 12.38% in the coming years.
PEG (NY)2.34
PEG (5Y)N/A
EPS Next 2Y9.69%
EPS Next 3Y12.38%
5. Dividend
5.1 Amount
QRVO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
92.06
+1.39 (+1.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.19%
Inst Owner Change0.33%
Ins Owners0.54%
Ins Owner Change16.04%
Market Cap8.53B
Revenue(TTM)3.65B
Net Income(TTM)81.23M
Analysts66.47
Price Target100.09 (8.72%)
Short Float %4.01%
Short Ratio1.83
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)0.94%
PT rev (3m)18.66%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)24.1%
EPS NY rev (1m)0.48%
EPS NY rev (3m)11.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.78%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.79 | ||
| Fwd PE | 13.24 | ||
| P/S | 2.34 | ||
| P/FCF | 14.53 | ||
| P/OCF | 11.78 | ||
| P/B | 2.48 | ||
| P/tB | 10.73 | ||
| EV/EBITDA | 13.31 |
EPS(TTM)5.83
EY6.33%
EPS(NY)6.95
Fwd EY7.55%
FCF(TTM)6.34
FCFY6.88%
OCF(TTM)7.82
OCFY8.49%
SpS39.41
BVpS37.1
TBVpS8.58
PEG (NY)2.34
PEG (5Y)N/A
Graham Number69.76
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%
ROICexgc growth 3Y-21.22%
ROICexgc 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 | 3.07 |
F-Score7
WACC11.17%
ROIC/WACC0.51
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 Y6.76%
EPS Next 2Y9.69%
EPS Next 3Y12.38%
EPS Next 5Y8.83%
Revenue 1Y (TTM)-8.84%
Revenue growth 3Y-7.15%
Revenue growth 5Y2.8%
Sales Q2Q%-7.66%
Revenue Next Year0.74%
Revenue Next 2Y2.53%
Revenue Next 3Y3.95%
Revenue Next 5Y3.02%
EBIT growth 1Y-5.57%
EBIT growth 3Y-33.27%
EBIT growth 5Y-4.58%
EBIT Next Year36.5%
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%