Qualcomm Stock Analysis (NASDAQ:QCOM)

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$57.38 $0.72 (1.27%) QCOM stock closing price Mar 28, 2017 (Closing)
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Qualcomm
Updated on : Mar 28, 2017
previous close
QCOM 57.4 (0%)
NASDAQ 5875.1 (0%)
Closing Price On: Mar 28, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Wireless Equipment
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
7.8%
Operating Profit
Operating Margin:
23.5%
Sector Average:
2.7%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
11.68B
Debt/Equity Ratio:
 0.37
Compared to the industry
Cash Flow
Operating cash flow:
$1.38B
Net Income:
$682M
Dividend Yield
QCOM dividend yield:
3.61%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
Recent Growth
Long Term Growth
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
QCOM PS :
3.6
Industry PS :
2.6
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
16.7%
Return on Equity:
15.9%
Free Cash Flow Margin:
20.8%
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Qualcomm Analysis Video

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View Qualcomm stock analysis video. This is our QCOM analyst opinion covering the buy and sell arguments for QCOM stock.

Qualcomm Inc. Stock Rating (3.6/5)

Our Qualcomm stock opinion is based on fundamentals of the company. This Qualcomm stock analysis is based on latest Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy QCOM stock?

  • Qualcomm's average operating margin of 23.5% was exceptional.
  • LTM Net margins were good at 20.6% for Qualcomm.
  • The company has an operating cash flow which is 2 times the net income.
  • The Qualcomm stock currently trades at a price to earnings ratio of 13.8. We rate this as a positive, compared to the industry average of 25.8.
  • Qualcomm generates a high return on invested capital of 16.7%.
  • Qualcomm has a good Return On Equity (ROE) of 15.9%.
  • The company has a healthy free cash flow margin of 20.8%.

Should you sell QCOM stock?

  • 2017 Q1 revenue growth of 3.9% YoY was meagre.
  • Over the last 5 years, the company registered a poor revenue growth of 7.8%.
  • With a debt/equity ratio of  0.37, Qualcomm is highly leveraged in comparison to Computer and Technology peers.

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