Qualcomm Stock Analysis, Valuation (NASDAQ:QCOM)
Qualcomm Stock Analysis
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%.