QUALCOMM Incorporated
QUALCOMM Incorporated Fundamental Analysis
QUALCOMM Incorporated (QCOM) shows strong financial fundamentals with a PE ratio of 28.49, profit margin of 11.96%, and ROE of 21.63%. The company generates $44.8B in annual revenue with strong year-over-year growth of 13.66%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 81.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze QCOM's fundamental strength across five key dimensions:
Efficiency Score
ExcellentQCOM demonstrates superior asset utilization.
Valuation Score
ModerateQCOM shows balanced valuation metrics.
Growth Score
ModerateQCOM shows steady but slowing expansion.
Financial Health Score
ExcellentQCOM maintains a strong and stable balance sheet.
Profitability Score
ModerateQCOM maintains healthy but balanced margins.
Key Financial Metrics
Is QCOM Expensive or Cheap?
P/E Ratio
QCOM trades at 28.49 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, QCOM's PEG of -28.55 indicates potential undervaluation.
Price to Book
The market values QUALCOMM Incorporated at 6.62 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.55 times EBITDA. This signals the market has high growth expectations.
How Well Does QCOM Make Money?
Net Profit Margin
For every $100 in sales, QUALCOMM Incorporated keeps $11.96 as profit after all expenses.
Operating Margin
Core operations generate 27.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.63 in profit for every $100 of shareholder equity.
ROA
QUALCOMM Incorporated generates $10.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
QUALCOMM Incorporated generates strong operating cash flow of $14.36B, reflecting robust business health.
Free Cash Flow
QUALCOMM Incorporated generates strong free cash flow of $12.90B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $12.08 in free cash annually.
FCF Yield
QCOM converts 8.49% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.49
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-28.55
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.64
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.28
vs 25 benchmark
How QCOM Stacks Against Its Sector Peers
| Metric | QCOM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.49 | 35.19 | Better (Cheaper) |
| ROE | 21.63% | 1155.00% | Weak |
| Net Margin | 11.96% | -127067.00% (disorted) | Strong |
| Debt/Equity | 0.64 | 0.41 | Weak (High Leverage) |
| Current Ratio | 2.51 | 4.71 | Strong Liquidity |
| ROA | 10.12% | -314918.00% (disorted) | Strong |
QCOM outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews QUALCOMM Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
94.89%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
10.39%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
149.58%
Industry Style: Growth, Innovation, High Beta
High Growth