Qualcomm Stock Analysis (NASDAQ:QCOM)

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$56.66 $0.26 (0.46%) QCOM stock closing price Mar 27, 2017 (Closing)
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Qualcomm
Updated on : Mar 27, 2017
previous close
QCOM 56.7 (0%)
NASDAQ 5840.4 (0%)
Closing Price On: Mar 27, 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:
3.65%
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 :
3.5
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?

  • The TTM operating margin was good at 23.5% for Qualcomm.
  • Net margins stood at a healthy 20.6% (average) for Qualcomm in the Trailing Twelve Months.
  • The company has an operating cash flow which is 2 times the net income. We see this as a positive signal.
  • QCOM stock is trading at an earnings multiple of 13.7 which is better than the industry average of 25.6.
  • Qualcomm's return on invested capital of 16.7% is good.
  • The LTM ROE of 15.9% for Qualcomm is attractive.
  • The company has a good Free Cash Flow (FCF) margin of 20.8%.

Should you sell QCOM stock?

  • Qualcomm salesgrew by a marginal 3.9% year over year in 2017 Q1.
  • Long term revenue growth of 7.8% over the past 5 years has been disappointing.
  • With a debt/equity ratio of  0.37, Qualcomm is highly leveraged in comparison to Computer and Technology peers.

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