Qualcomm Stock Analysis (NASDAQ:QCOM)

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$53.84 $0.13 (0.24%) QCOM stock closing price Jul 21, 2017 (Closing)
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Qualcomm
Updated on : Jul 21, 2017
previous close
QCOM 53.8 (0%)
NASDAQ 6387.8 (0%)
Closing Price On: Jul 21, 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:
4.01%
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.
  • LTM Net margins were good at 17.3% for Qualcomm.
  • The price to earnings multiple of 13 is attractive when compared with the industry average PE ratio of 26.4.
  • Qualcomm's dividend yield of 4.01% is attractive.
  • Qualcomm has an attractive ROIC (Return on Invested Capital) of 11.3%
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Qualcomm at 12.5%.

Should you sell QCOM stock?

  • Qualcomm sales declined by -11.1% year on year in 2017 Q3.
  • Qualcomm is debt laden and has a high debt/equity ratio of  0.7.
  • Cash flow from operations is low at 0.1 times the net income.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -1.8%.

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