QORVO INC (QRVO) Stock Fundamental Analysis
NASDAQ:QRVO - Nasdaq - US74736K1016 - Common Stock - Currency: USD
Overall QRVO gets a fundamental rating of 5 out of 10. We evaluated QRVO against 107 industry peers in the Semiconductors & Semiconductor Equipment industry. QRVO has an average financial health and profitability rating. QRVO has a decent growth rate and is not valued too expensively.
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.
QRVO had positive earnings in 4 of the past 5 years.
QRVO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
QRVO has a Return On Assets of 0.45%. This is comparable to the rest of the industry: QRVO outperforms 44.86% of its industry peers.
QRVO has a Return On Equity (0.80%) which is comparable to the rest of the industry.
The Return On Invested Capital of QRVO (6.15%) is better than 67.29% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for QRVO is below the industry average of 11.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.45% | ||
| ROE | 0.8% | ||
| ROIC | 6.15% |
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
With a Profit Margin value of 0.71%, QRVO perfoms like the industry average, outperforming 45.79% of the companies in the same industry.
QRVO has a Operating Margin of 10.59%. This is in the better half of the industry: QRVO outperforms 63.55% of its industry peers.
QRVO's Operating Margin has improved in the last couple of years.
QRVO has a Gross Margin (41.13%) 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 | 10.59% | ||
| PM (TTM) | 0.71% | ||
| GM | 41.13% |
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
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.
QRVO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.66 indicates that QRVO is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.66, QRVO perfoms like the industry average, outperforming 45.79% 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.
The Debt to FCF ratio of QRVO (3.20) is better than 63.55% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that QRVO is not too dependend on debt financing.
The Debt to Equity ratio of QRVO (0.46) is worse than 69.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | 2.66 |
ROIC/WACC0.58
WACC10.65%
2.3 Liquidity
QRVO has a Current Ratio of 2.60. This indicates that QRVO is financially healthy and has no problem in meeting its short term obligations.
QRVO has a Current ratio (2.60) which is in line with its industry peers.
A Quick Ratio of 1.78 indicates that QRVO should not have too much problems paying its short term obligations.
QRVO has a worse Quick ratio (1.78) than 60.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
QRVO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.97%, which is quite good.
QRVO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.48% yearly.
QRVO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.51%.
The Revenue has been growing slightly by 4.05% on average over the past years.
EPS 1Y (TTM)12.97%
EPS 3Y-13.91%
EPS 5Y1.48%
EPS Q2Q%-23.33%
Revenue 1Y (TTM)9.51%
Revenue growth 3Y-2.08%
Revenue growth 5Y4.05%
Sales Q2Q%-14.67%
3.2 Future
QRVO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.22% yearly.
QRVO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.65% yearly.
EPS Next Y-13.24%
EPS Next 2Y-4.89%
EPS Next 3Y3.35%
EPS Next 5Y7.22%
Revenue Next Year-1.46%
Revenue Next 2Y-1.17%
Revenue Next 3Y1.12%
Revenue Next 5Y4.65%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 12.64 indicates a correct valuation of QRVO.
Compared to the rest of the industry, the Price/Earnings ratio of QRVO indicates a rather cheap valuation: QRVO is cheaper than 90.65% of the companies listed in the same industry.
QRVO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.43.
QRVO is valuated correctly with a Price/Forward Earnings ratio of 12.92.
Based on the Price/Forward Earnings ratio, QRVO is valued cheaper than 91.59% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of QRVO to the average of the S&P500 Index (22.67), we can say QRVO is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 12.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, QRVO is valued cheaply inside the industry as 84.11% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of QRVO indicates a rather cheap valuation: QRVO is cheaper than 94.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.21 | ||
| EV/EBITDA | 10.56 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)8.55
EPS Next 2Y-4.89%
EPS Next 3Y3.35%
5. Dividend
5.1 Amount
No dividends for QRVO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
72.69
+1.73 (+2.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners105.08%
Inst Owner Change11.24%
Ins Owners0.34%
Ins Owner Change-0.02%
Market Cap6.87B
Analysts65.29
Price Target92.98 (27.91%)
Short Float %9.77%
Short Ratio2.66
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)1
Avg EPS beat(2)15.27%
Min EPS beat(2)-0.5%
Max EPS beat(2)31.03%
EPS beat(4)3
Avg EPS beat(4)15.67%
Min EPS beat(4)-0.5%
Max EPS beat(4)31.03%
EPS beat(8)7
Avg EPS beat(8)41.8%
EPS beat(12)11
Avg EPS beat(12)30.13%
EPS beat(16)15
Avg EPS beat(16)24.63%
Revenue beat(2)0
Avg Revenue beat(2)-0.25%
Min Revenue beat(2)-0.35%
Max Revenue beat(2)-0.14%
Revenue beat(4)1
Avg Revenue beat(4)0.29%
Min Revenue beat(4)-0.4%
Max Revenue beat(4)2.04%
Revenue beat(8)3
Avg Revenue beat(8)1.72%
Revenue beat(12)5
Avg Revenue beat(12)1.07%
Revenue beat(16)7
Avg Revenue beat(16)0.74%
PT rev (1m)2.69%
PT rev (3m)-26.34%
EPS NQ rev (1m)17.22%
EPS NQ rev (3m)-33.62%
EPS NY rev (1m)11.37%
EPS NY rev (3m)9.9%
Revenue NQ rev (1m)1.14%
Revenue NQ rev (3m)-11.71%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 12.92 | ||
| P/S | 1.81 | ||
| P/FCF | 14.21 | ||
| P/OCF | 10.99 | ||
| P/B | 2.03 | ||
| P/tB | 11.25 | ||
| EV/EBITDA | 10.56 |
EPS(TTM)5.75
EY7.91%
EPS(NY)5.63
Fwd EY7.74%
FCF(TTM)5.12
FCFY7.04%
OCF(TTM)6.62
OCFY9.1%
SpS40.1
BVpS35.76
TBVpS6.46
PEG (NY)N/A
PEG (5Y)8.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.45% | ||
| ROE | 0.8% | ||
| ROCE | 7.79% | ||
| ROIC | 6.15% | ||
| ROICexc | 7.23% | ||
| ROICexgc | 19.63% | ||
| OM | 10.59% | ||
| PM (TTM) | 0.71% | ||
| GM | 41.13% | ||
| FCFM | 12.76% |
ROA(3y)4.74%
ROA(5y)5.9%
ROE(3y)7.79%
ROE(5y)9.4%
ROIC(3y)7.77%
ROIC(5y)8.1%
ROICexc(3y)9.2%
ROICexc(5y)9.72%
ROICexgc(3y)25.11%
ROICexgc(5y)26.65%
ROCE(3y)9.84%
ROCE(5y)10.25%
ROICexcg growth 3Y-11.79%
ROICexcg growth 5Y26.06%
ROICexc growth 3Y-18.34%
ROICexc growth 5Y15.76%
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%
F-Score8
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 3.2 | ||
| Debt/EBITDA | 2.18 | ||
| Cap/Depr | 46.06% | ||
| Cap/Sales | 3.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.16% | ||
| Profit Quality | 1791.96% | ||
| Current Ratio | 2.6 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 2.66 |
F-Score8
WACC10.65%
ROIC/WACC0.58
Cap/Depr(3y)48.55%
Cap/Depr(5y)44.33%
Cap/Sales(3y)4.14%
Cap/Sales(5y)4.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.97%
EPS 3Y-13.91%
EPS 5Y1.48%
EPS Q2Q%-23.33%
EPS Next Y-13.24%
EPS Next 2Y-4.89%
EPS Next 3Y3.35%
EPS Next 5Y7.22%
Revenue 1Y (TTM)9.51%
Revenue growth 3Y-2.08%
Revenue growth 5Y4.05%
Sales Q2Q%-14.67%
Revenue Next Year-1.46%
Revenue Next 2Y-1.17%
Revenue Next 3Y1.12%
Revenue Next 5Y4.65%
EBIT growth 1Y39970.2%
EBIT growth 3Y-23.09%
EBIT growth 5Y13.89%
EBIT Next Year1.62%
EBIT Next 3Y10.75%
EBIT Next 5Y13.2%
FCF growth 1Y-49%
FCF growth 3Y-14.13%
FCF growth 5Y3.67%
OCF growth 1Y-44.34%
OCF growth 3Y-13.82%
OCF growth 5Y0.56%