Qualcomm Stock Analysis, Valuation (NASDAQ:QCOM)

Add to My Stocks
$51.44 $1.13 (2.15%) QCOM stock closing price Apr 20, 2018 (Closing)
Watch Robo Advisor Video of QCOM Stock Analysis
Qualcomm
Updated on : Apr 20, 2018
previous close
QCOM 51.4 (0%)
NASDAQ 7146.1 (0%)
Closing Price On: Apr 20, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Wireless Equipment
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
1.8%
Operating Profit
Operating Margin:
8.3%
Sector Average:
5.7%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Debt/Equity Ratio
Debt:
22.85B
Debt/Equity Ratio:
 0.96
Compared to the industry
Cash Flow
Operating cash flow:
$1.76B
Net Income:
-$5.95B
Dividend Yield
QCOM dividend yield:
4.35%
PROS      CONS
FCF Margin
High Dividend Yield
PE Valuation
Long Term Growth
Net Margins
High Debt Burden
ROIC
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
QCOM PS :
3.4
Industry PS :
2.9
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-13.5%
Return on Equity:
-14%
Free Cash Flow Margin:
25.3%
Double Tap To Exit Full Screen
0:00
/

Qualcomm Stock Analysis

4812 7 3

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 3.2/5

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?

  • The Qualcomm stock currently trades at a price to earnings ratio of 14.4. We rate this as a positive, compared to the industry average of 25.2.
  • Qualcomm is a dividend paying stock with a high yield of 4.35%.
  • The company has a healthy free cash flow margin of 25.3%.

Should you sell QCOM stock?

  • Long term revenue growth of 1.8% over the past 5 years has been disappointing.
  • Over the last 12 months, Qualcomm had an average Net loss of -18.6%.
  • With a debt/equity ratio of  0.96, Qualcomm is highly leveraged in comparison to Computer and Technology peers.
  • Qualcomm has a negative ROIC (Return on Invested Capital) of -13.5%.
  • Qualcomm has a negative return on equity of -14%. This indicates that the firm is inefficient at generating profits.

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.