Qualcomm Stock Analysis (NASDAQ:QCOM)

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$53.22 $0.62 (1.15%) QCOM stock closing price Jul 24, 2017 (Closing)
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Qualcomm
Updated on : Jul 24, 2017
previous close
QCOM 53.2 (0%)
NASDAQ 6410.8 (0%)
Closing Price On: Jul 24, 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:
6%
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:
4.06%
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 :
3.5
Industry PS :
2.8
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%
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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 (3.5/5)

Our Qualcomm stock opinion is based on fundamentals of the company. This Qualcomm stock analysis is based on latest Q3 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 18.1% was exceptional.
  • Net margins came in at average 17.3% for Qualcomm over the last twelve months.
  • The Qualcomm stock currently trades at a price to earnings ratio of 12.9. We rate this as a positive, compared to the industry average of 26.6.
  • Qualcomm is a dividend paying stock with a high yield of 4.06%.
  • 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.
  • With a debt/equity ratio of  0.7, Qualcomm is highly leveraged in comparison to Computer and Technology peers.
  • Cash flow from operations is 0.1 times net income which is a negative signal.
  • The company has a negative free cash flow margin of -1.8%.

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