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?
- 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%.