Qualcomm Stock Analysis, Valuation (NASDAQ:QCOM)

Add to My Stocks
$52.03 $0.05 (0.1%) QCOM stock closing price Sep 21, 2017 (Closing)
Watch Robo Advisor Video of QCOM Stock Analysis
Qualcomm
Updated on : Sep 21, 2017
previous close
QCOM 52 (0%)
NASDAQ 6422.7 (0%)
Closing Price On: Sep 21, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Wireless Equipment
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q3
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
18.1%
Sector Average:
5.8%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
21.9B
Debt/Equity Ratio:
 0.7
Compared to the industry
Cash Flow
Operating cash flow:
$82M
Net Income:
$866M
Dividend Yield
QCOM dividend yield:
4.15%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
High Dividend Yield
PE Valuation
Recent Growth
High Debt Burden
Cash Flow
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
QCOM PS :
3.4
Industry PS :
2.7
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
11.3%
Return on Equity:
12.5%
Free Cash Flow Margin:
-1.8%
Double Tap To Exit Full Screen
0:00
/

Qualcomm Stock Analysis

4812 7 3

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

Qualcomm Inc. Stock Rating 3.5/5

Our Qualcomm stock opinion is based on fundamentals of the company. This Qualcomm stock analysis is based on latest 2017 Q3 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy QCOM stock?

  • Qualcomm had a healthy average operating margin of 18.1% over the last 4 quarters.
  • Net margins stood at a healthy 17.3% (average) for Qualcomm in the Trailing Twelve Months.
  • The price to earnings multiple of 12.6 is attractive when compared with the industry average PE ratio of 26.
  • Qualcomm is a dividend paying stock with a high yield of 4.15%.
  • Qualcomm's return on invested capital of 11.3% is good.
  • The LTM ROE of 12.5% for Qualcomm is attractive.

Should you sell QCOM stock?

  • Qualcomm revenue saw a decline of -11.1% YoY in 2017 Q3.
  • Qualcomm has a debt/equity ratio of  0.7, which is worse than the average in the Computer and Technology sector.
  • The company has an operating cash flow which is 0.1 times the net income. This is not a healthy sign.
  • The company has a negative free cash flow margin of -1.8%.

Comments on this video and Qualcomm stock