NasdaqGS:QCOM

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

High growth potential established dividend payer.


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

Stable Share Price: QCOM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.5%

QCOM

3.9%

US Semiconductor

1.3%

US Market


1 Year Return

26.5%

QCOM

39.2%

US Semiconductor

6.1%

US Market

Return vs Industry: QCOM underperformed the US Semiconductor industry which returned 38.1% over the past year.

Return vs Market: QCOM exceeded the US Market which returned 6.7% over the past year.


Shareholder returns

QCOMIndustryMarket
7 Day1.5%3.9%1.3%
30 Day3.9%2.9%-0.3%
90 Day30.3%26.9%16.6%
1 Year30.5%26.5%41.9%39.2%8.4%6.1%
3 Year85.1%65.8%84.6%74.7%35.8%26.9%
5 Year73.4%44.5%198.6%169.3%62.7%44.7%

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?

27.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: QCOM ($93.25) is trading above our estimate of fair value ($92.45)

Significantly Below Fair Value: QCOM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: QCOM is good value based on its PE Ratio (27.1x) compared to the Semiconductor industry average (37.2x).

PE vs Market: QCOM is poor value based on its PE Ratio (27.1x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: QCOM is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: QCOM is overvalued based on its PB Ratio (34.5x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

How is QUALCOMM forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

30.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QCOM's forecast earnings growth (30.1% per year) is above the savings rate (2.2%).

Earnings vs Market: QCOM's earnings (30.1% per year) are forecast to grow faster than the US market (22.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: QCOM's revenue (15.2% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: QCOM's revenue (15.2% 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 (189.4%).


Next Steps

Past Performance

How has QUALCOMM performed over the past 5 years?

-22.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QCOM has high quality earnings.

Growing Profit Margin: QCOM's current net profit margins (16.4%) are higher than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: QCOM's earnings have declined by -22.3% per year over the past 5 years.

Accelerating Growth: QCOM's earnings growth over the past year (67.5%) exceeds its 5-year average (-22.3% per year).

Earnings vs Industry: QCOM earnings growth over the past year (67.5%) exceeded the Semiconductor industry -10.8%.


Return on Equity

High ROE: Whilst QCOM's Return on Equity (132.94%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is QUALCOMM's financial position?


Financial Position Analysis

Short Term Liabilities: QCOM's short term assets ($15.3B) exceed its short term liabilities ($9.8B).

Long Term Liabilities: QCOM's short term assets ($15.3B) do not cover its long term liabilities ($19.1B).


Debt to Equity History and Analysis

Debt Level: QCOM's debt to equity ratio (523.7%) is considered high.

Reducing Debt: QCOM's debt to equity ratio has increased from 3.4% to 523.7% over the past 5 years.

Debt Coverage: QCOM's debt is well covered by operating cash flow (52.3%).

Interest Coverage: QCOM's interest payments on its debt are well covered by EBIT (25.6x coverage).


Balance Sheet


Next Steps

Dividend

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

2.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: QCOM's dividend (2.79%) is higher than the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: QCOM's dividend (2.79%) is low compared to the top 25% of dividend payers in the US market (4.58%).


Stability and Growth of Payments

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 reasonable payout ratio (72%), QCOM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: QCOM's dividends in 3 years are forecast to be well covered by earnings (44.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Steve Mollenkopf (51yo)

6.33yrs

Tenure

US$23,065,052

Compensation

Mr. Steven M. Mollenkopf, also known as Steve, serves as Independent Director at Boeing Company since April 27, 2020. He has been the Chief Executive Officer of QUALCOMM Incorporated since March 4, 2014. M ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD23.07M) is above average for companies of similar size in the US market ($USD11.49M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Steven Mollenkopf
CEO & Director6.33yrsUS$23.07m0.062% $64.9m
Cristiano Amon
President2.5yrsUS$13.42m0.0045% $4.7m
Akash Palkhiwala
Executive VP & CFO0.92yrUS$4.96m0.0019% $2.0m
James Thompson
Chief Technology Officer3.33yrsUS$11.72m0.012% $12.7m
Alexander Rogers
Executive VP & President of Qualcomm Technology Licensing13.17yrsUS$7.21m0.0013% $1.3m
David Wise
Senior VP & Treasurer4.58yrsUS$2.82m0.0024% $2.5m
Franklin Antonio
Co-Founder & Chief Scientist35.5yrsno datano data
Erin Polek
Senior VP1.67yrsno datano data
Mary Gendron
Senior VP & Chief Information Officer4.33yrsno datano data
Mauricio Lopez-Hodoyan
Vice President of Investor Relationsno datano datano data

4.3yrs

Average Tenure

51yo

Average Age

Experienced Management: QCOM's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Mollenkopf
CEO & Director6.33yrsUS$23.07m0.062% $64.9m
Anthony Vinciquerra
Independent Director5yrsUS$338.55k0.00049% $514.0k
Mark Fields
Independent Director2.08yrsUS$313.55k0.00020% $209.8k
Ann Livermore
Independent Director3.75yrsUS$357.55k0.0017% $1.8m
Jeffrey Henderson
Independent Director4.5yrsUS$501.25k0.00064% $671.4k
Irene Rosenfeld
Independent Director1.75yrsUS$437.01k0.000040% $42.0k
Harish Manwani
Independent Director6.17yrsUS$333.55k0.0011% $1.2m
Kornelis Smit
Independent Director2.08yrsUS$363.55k0.00017% $178.3k
Mark McLaughlin
Independent Chairman of the Board0.92yrUS$388.35k0.0013% $1.4m
Clark Randt
Independent Director6.75yrsUS$331.55k0.00087% $912.6k

4.1yrs

Average Tenure

61.5yo

Average Age

Experienced Board: QCOM's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: QCOM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$104.900b
  • Shares outstanding: 1.12b
  • 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
QC-UETLX (Eurotlx)YesCommon StockITEURDec 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 Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on code division multiple access (CDMA), orthogonal frequency division multiple access, and other technologies for use in wireless voice and data communications, networking, application processing, multimedia, and global positioning system products. This segment also provides products designed for the implementation of small cells. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, wideband CDMA, CDMA time division duplex, long term evolution, and/or fifth generation standards and their derivatives. The QSI segment invests in early-stage companies in various industries, including artificial intelligence, automotive, digital healthcare, enterprise software and solutions, mobile and networking and investment for supporting the design and introduction of new products and services for voice and data communications, and new industry segments. The company also provides development, and other services and related products to the United States government agencies and their contractors. QUALCOMM Incorporated was founded in 1985 and is headquartered in San Diego, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/09 23:51
End of Day Share Price2020/07/09 00:00
Earnings2020/03/29
Annual Earnings2019/09/29


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.