Qualcomm Stock Analysis, Valuation (NASDAQ:QCOM)

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$58.79 $0.09 (0.15%) QCOM stock closing price Jun 20, 2018 (Closing)

Take a look at Amigobulls Qualcomm stock analysis video. This is our analyst opinion covering the buy and sell arguments for QCOM stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Qualcomm Inc. Stock Rating 2.7/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for QCOM stock analysis. We compare Qualcomm valuation with its sector peers to gauge relative attractiveness of QCOM stock. Qualcomm stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy QCOM stock?

  • QCOM stock is trading at an earnings multiple of 19.3 which is better than the sector average of 26.

Should you sell QCOM stock?

  • Qualcomm had a low YoY revenue growth of 4.9% in the 2018-03.
  • Long term revenue growth of 0.9 over the past 5 years has been disappointing.
  • Qualcomm posted an average Net loss of -20.2% in the last twelve months.
  • Qualcomm is debt laden and has a high debt/equity ratio of 0.97.
  • Qualcomm has a negative ROIC (Return on Invested Capital) of -19.5.
  • Qualcomm has a negative ROE (Return On Equity) of -16.1, indicating the company is not profitable.

Comments on this video and Qualcomm stock

Amigobulls Qualcomm stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

While doing a study of the company financials, Qualcomm revenue growth and profit or net income are two main metrics which help in identifying whether QCOM stock is overvalued or undervalued. One can also combine technical analysis and fundamental analysis to get a holistic picture about QCOM stock.