Qualcomm Stock Analysis, Valuation (NASDAQ:QCOM)

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$51.98 $0.32 (0.61%) QCOM stock closing price Sep 20, 2017 (Closing)
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Qualcomm
Updated on : Sep 20, 2017
previous close
QCOM 52 (0%)
NASDAQ 6456 (0%)
Closing Price On: Sep 20, 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:
4.16%
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%
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Qualcomm Stock Analysis

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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?

  • The TTM operating margin was good at 18.1% for Qualcomm.
  • LTM Net margins were good at 17.3% for Qualcomm.
  • QCOM stock is trading at an earnings multiple of 12.6 which is better than the industry average of 26.2.
  • The company has a healthy dividend yield of 4.16%.
  • 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.
  • The company has an operating cash flow which is 0.1 times the net income. This is not a healthy sign.
  • Qualcomm has a negative FCF (Free Cash Flow) margin of -1.8%.

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