NasdaqGS:QCOM

Stock Analysis Report

Executive Summary

QUALCOMM Incorporated designs, develops, manufactures, and markets digital communication products worldwide.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has QUALCOMM's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

QCOM

-0.9%

US Semiconductor

0.07%

US Market


1 Year Return

18.2%

QCOM

23.5%

US Semiconductor

8.9%

US Market

Return vs Industry: QCOM underperformed the US Semiconductor industry which returned 23.5% over the past year.

Return vs Market: QCOM exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

QCOMIndustryMarket
7 Day0.8%-0.9%0.07%
30 Day2.7%1.9%-0.3%
90 Day3.4%-1.3%-1.6%
1 Year23.0%18.2%26.0%23.5%11.3%8.9%
3 Year29.8%15.9%80.4%69.8%46.3%36.8%
5 Year22.4%2.5%129.7%106.0%62.1%44.3%

Price Volatility Vs. Market

How volatile is QUALCOMM's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is QUALCOMM undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: QCOM ($78.47) is trading below our estimate of fair value ($220.17)

Significantly Below Fair Value: QCOM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: QCOM is poor value based on its PE Ratio (28.6x) compared to the Semiconductor industry average (27.5x).

PE vs Market: QCOM is poor value based on its PE Ratio (28.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: QCOM is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: QCOM is overvalued based on its PB Ratio (17.5x) compared to the US Semiconductor industry average (2.7x).


Next Steps

Future Growth

How is QUALCOMM forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

15.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QCOM's forecast earnings growth (15% per year) is above the savings rate (2.7%).

Earnings vs Market: QCOM's earnings (15% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: QCOM's earnings are forecast to grow, but not significantly.

Revenue vs Market: QCOM's revenue (14% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: QCOM's revenue (14% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: QCOM's Return on Equity is forecast to be very high in 3 years time (200.9%).


Next Steps

Past Performance

How has QUALCOMM performed over the past 5 years?

-39.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: QCOM's earnings have declined by -39.1% per year over the past 5 years.

Accelerating Growth: QCOM has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: QCOM has become profitable in the last year, making it difficult to compare its past year earnings growth to the Semiconductor industry (-6.2%).


Return on Equity

High ROE: Whilst QCOM's Return on Equity (63.46%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: QCOM has a higher Return on Assets than the Semiconductor industry average last year.


Return on Capital Employed

ROCE Improving: QCOM has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is QUALCOMM's financial position?


Financial Position Analysis

Short Term Liabilities: QCOM's short term assets ($19.2B) exceeds its short term liabilities ($10.9B)

Long Term Liabilities: QCOM's short term assets (19.2B) exceeds its long term liabilities (17.8B)


Debt to Equity History and Analysis

Debt Level: QCOM's debt to equity ratio (300.7%) is considered high

Reducing Debt: QCOM's debt to equity ratio has increased from 0.03% to 300.7% over the past 5 years.

Debt Coverage: QCOM's debt is well covered by operating cash flow (34.2%).

Interest Coverage: QCOM's interest payments on its debt are well covered by EBIT (36.3x coverage).


Balance Sheet

Inventory Level: QCOM has a low level of unsold assets or inventory.

Debt Coverage by Assets: QCOM's debt is covered by short term assets (assets are 1.169120x debt).


Next Steps

Dividend

What is QUALCOMM's current dividend yield, its reliability and sustainability?

3.16%

Current Dividend Yield


Upcoming Dividend Payment

Purchase QUALCOMM before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years3.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: QCOM's dividend (3.16%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: QCOM's dividend (3.16%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: QCOM's dividends per share have been stable in the past 10 years.

Growing Dividend: QCOM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (90.4%), QCOM's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: QCOM's dividends in 3 years are forecast to be well covered by earnings (47.6% payout ratio).


Next Steps

Management

What is the CEO of QUALCOMM's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Steve Mollenkopf (50yo)

5.6yrs

Tenure

US$19,975,472

Compensation

Mr. Steven M. Mollenkopf, also known as Steve, has been the Chief Executive Officer of QUALCOMM Incorporated since March 4, 2014. Mr. Mollenkopf served as an Executive Vice President of QUALCOMM Incorporat ...


CEO Compensation Analysis

Compensation vs. Market: Steve's total compensation ($USD19.98M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.6yrs

Average Tenure

51.5yo

Average Age

Experienced Management: QCOM's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

62yo

Average Age

Experienced Board: QCOM's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: QCOM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$199,73729 Aug 19
Mark McLaughlin
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares2,705
Max PriceUS$73.84
SellUS$8,29920 Aug 19
Erin Polek
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares109
Max PriceUS$76.14
SellUS$97,65105 Aug 19
Erin Polek
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares1,386
Max PriceUS$70.46
SellUS$480,59116 May 19
Michelle Sterling
EntityIndividual
Shares5,560
Max PriceUS$86.44
SellUS$603,83513 May 19
Donald Rosenberg
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares7,141
Max PriceUS$84.56
SellUS$1,844,89108 May 19
Alexander Rogers
EntityIndividual
Shares20,862
Max PriceUS$88.43
SellUS$1,543,94807 May 19
Brian Modoff
EntityIndividual
Shares17,440
Max PriceUS$88.53
SellUS$546,12207 May 19
Erin Polek
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares6,118
Max PriceUS$89.51
SellUS$179,16007 May 19
Clark Randt
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$89.58

Ownership Breakdown


Management Team

  • Franklin Antonio

    Co-Founder & Chief Scientist

    • Tenure: 34.8yrs
  • Don Rosenberg (68yo)

    Executive VP

    • Tenure: 12yrs
    • Compensation: US$6.60m
  • Akash Palkhiwala

    Senior VP of Finance & Interim CFO

    • Tenure: 0.2yrs
  • Penny Baldwin

    Chief Marketing Officer & Senior VP

    • Tenure: 2yrs
  • Cristiano Amon (49yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$13.62m
  • Steve Mollenkopf (50yo)

    CEO & Director

    • Tenure: 5.6yrs
    • Compensation: US$19.98m
  • Jim Thompson (55yo)

    Chief Technology Officer

    • Tenure: 2.6yrs
    • Compensation: US$9.14m
  • Mary Gendron (53yo)

    Senior VP & Chief Information Officer

    • Tenure: 3.6yrs
  • Erin Polek (45yo)

    Senior VP

    • Tenure: 0.9yrs
  • Mauricio Lopez-Hodoyan

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Tony Vinciquerra (64yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$366.54k
  • Mark Fields (58yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$179.15k
  • Ann Livermore (60yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$365.04k
  • Jeff Henderson (54yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$466.78k
  • Barbara Alexander (70yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: US$396.04k
  • Harish Manwani (66yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$348.98k
  • Mark McLaughlin (53yo)

    Independent Chairman of the Board

    • Tenure: 0.2yrs
    • Compensation: US$347.80k
  • Steve Mollenkopf (50yo)

    CEO & Director

    • Tenure: 5.6yrs
    • Compensation: US$19.98m
  • Sandy Randt (73yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$350.04k
  • Francisco Ros (68yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$350.04k

Company Information

QUALCOMM Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: QUALCOMM Incorporated
  • Ticker: QCOM
  • Exchange: NasdaqGS
  • Founded: 1985
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$95.393b
  • Shares outstanding: 1.22b
  • Website: https://www.qualcomm.com

Number of Employees


Location

  • QUALCOMM Incorporated
  • 5775 Morehouse Drive
  • San Diego
  • California
  • 92121
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QCOMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1991
QCOM *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1991
QCIDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1991
QCIXTRA (XETRA Trading Platform)YesCommon StockDEEURDec 1991
QCOMSNSE (Santiago Stock Exchange)YesCommon StockCLUSDDec 1991
QCOMSWX (SIX Swiss Exchange)YesCommon StockCHCHFDec 1991
QCOMWBAG (Wiener Boerse AG)YesCommon StockATEURDec 1991
QCOMBASE (Buenos Aires Stock Exchange)CEDEAR EACH 11 REP 1 ORD USD0.0001ARARSSep 2000
QCOM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM SHSBRBRLAug 2012

Biography

QUALCOMM Incorporated designs, develops, manufactures, and markets digital communication products worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licens ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:41
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.