QUALCOMM (NasdaqGS:QCOM) - Share price, News & Analysis

QCOM fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	1/6
Past Performance	2/6
Financial Health	5/6
Dividends	5/6

QCOM Stock Overview

QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide.

Rewards

Trading at 47.1% below our estimate of its fair value

Earnings have grown 43.6% per year over the past 5 years

Pays a reliable dividend of 2.22%

Risk Analysis

High level of non-cash earnings

Significant insider selling over the past 3 months

QUALCOMM Competitors

NVIDIA

NasdaqGS:NVDA

US$443.4b

Broadcom

NasdaqGS:AVGO

US$240.2b

Advanced Micro Devices

NasdaqGS:AMD

US$154.1b

Marvell Technology

NasdaqGS:MRVL

US$49.0b

Price History & Performance

Summary of all time highs, changes and price drops for QUALCOMM
Historical stock prices
Current Share Price	US$134.93
52 Week High	US$193.58
52 Week Low	US$122.17
Beta	1.22
1 Month Change	-1.45%
3 Month Change	-18.29%
1 Year Change	3.67%
3 Year Change	65.56%
5 Year Change	133.97%
Change since IPO	23,887.56%

Recent News & Updates

May 11

Qualcomm: Undervalued With A $700 Billion Market Opportunity

Qualcomm had a monster quarter smashing Wall Street expectations. The company has developed the world's first 5G AI processor. QCOM has recently acquired Arriver to bolster their self-driving vehicle technology. They are also the first to market a commercial Wi-Fi 7 solution, which should enable IoT devices globally. According to Qualcomm’s investor day, they now are attacking a $700 billion market opportunity.

May 05

QUALCOMM (NASDAQ:QCOM) Has Announced That It Will Be Increasing Its Dividend To US$0.75

QUALCOMM Incorporated ( NASDAQ:QCOM ) has announced that it will be increasing its dividend on the 23rd of June to...

May 01

Why QUALCOMM Incorporated (NASDAQ:QCOM) Could Be Worth Watching

Let's talk about the popular QUALCOMM Incorporated ( NASDAQ:QCOM ). The company's shares received a lot of attention...

Apr 28

Qualcomm: Monster Quarter

Qualcomm smashed March quarter estimates. The company continues to transform the business with growth in IoT and a surging backlog in Automotive. The stock is cheap at just 11x FY23 estimates that appear far too conservative.

Shareholder Returns

	QCOM	US Semiconductor	US Market
7D	-4.0%	-1.4%	-2.5%
1Y	3.7%	4.6%	-10.4%

Return vs Industry: QCOM matched the US Semiconductor industry which returned 4.6% over the past year.

Return vs Market: QCOM exceeded the US Market which returned -10.4% over the past year.

Price Volatility

Is QCOM's price volatile compared to industry and market?
QCOM volatility
QCOM Average Weekly Movement	7.4%
Semiconductor Industry Average Movement	8.6%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	2.8%

Stable Share Price: QCOM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: QCOM's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1985	45,000	Cristiano Amon	https://www.qualcomm.com

QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. The company 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 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, application processing, multimedia, and global positioning system products.

QUALCOMM Fundamentals Summary

How do QUALCOMM's earnings and revenue compare to its market cap?
QCOM fundamental statistics
Market Cap	US$151.12b
Earnings (TTM)	US$11.16b
Revenue (TTM)	US$39.26b

13.5x

P/E Ratio

3.8x

P/S Ratio

Is QCOM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
QCOM income statement (TTM)
Revenue	US$39.26b
Cost of Revenue	US$16.29b
Gross Profit	US$22.97b
Other Expenses	US$11.81b
Earnings	US$11.16b

Last Reported Earnings

Mar 27, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	9.96
Gross Margin	58.51%
Net Profit Margin	28.42%
Debt/Equity Ratio	117.6%

How did QCOM perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

27%

Payout Ratio

Does QCOM pay a reliable dividends?

See QCOM dividend history and benchmarks

When do you need to buy QCOM by to receive an upcoming dividend?
QUALCOMM dividend dates
Ex Dividend Date	Jun 01 2022
Dividend Pay Date	Jun 23 2022
Days until Ex dividend	15 days
Days until Dividend pay date	37 days

Does QCOM pay a reliable dividends?

See QCOM dividend history and benchmarks

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

47.1%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: QCOM ($134.93) is trading below our estimate of fair value ($255.26)

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

Price To Earnings Ratio

PE vs Industry: QCOM is good value based on its PE Ratio (13.5x) compared to the US Semiconductor industry average (18.7x).

PE vs Market: QCOM is good value based on its PE Ratio (13.5x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: QCOM is poor value based on its PEG Ratio (8.8x)

Price to Book Ratio

PB vs Industry: QCOM is overvalued based on its PB Ratio (11.3x) compared to the US Semiconductor industry average (3.4x).

Future Growth

How is QUALCOMM forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

1.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: QCOM's forecast earnings growth (1.5% per year) is below the savings rate (1.9%).

Earnings vs Market: QCOM's earnings (1.5% per year) are forecast to grow slower than the US market (12.6% per year).

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

Revenue vs Market: QCOM's revenue (5.3% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: QCOM's revenue (5.3% 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 (54.6%).

Past Performance

How has QUALCOMM performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

43.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: QCOM has a high level of non-cash earnings.

Growing Profit Margin: QCOM's current net profit margins (28.4%) are higher than last year (27.3%).

Past Earnings Growth Analysis

Earnings Trend: QCOM's earnings have grown significantly by 43.6% per year over the past 5 years.

Accelerating Growth: QCOM's earnings growth over the past year (39.4%) is below its 5-year average (43.6% per year).

Earnings vs Industry: QCOM earnings growth over the past year (39.4%) underperformed the Semiconductor industry 77.9%.

Return on Equity

High ROE: Whilst QCOM's Return on Equity (83.73%) is outstanding, this metric is skewed due to their high level of debt.

Financial Health

How is QUALCOMM's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: QCOM's short term assets ($21.6B) exceed its short term liabilities ($13.4B).

Long Term Liabilities: QCOM's short term assets ($21.6B) exceed its long term liabilities ($17.5B).

Debt to Equity History and Analysis

Debt Level: QCOM's net debt to equity ratio (31%) is considered satisfactory.

Reducing Debt: QCOM's debt to equity ratio has increased from 38.8% to 117.6% over the past 5 years.

Debt Coverage: QCOM's debt is well covered by operating cash flow (58.7%).

Interest Coverage: QCOM's interest payments on its debt are well covered by EBIT (30x coverage).

Balance Sheet

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.22%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: QCOM's dividend (2.22%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: QCOM's dividend (2.22%) is low compared to the top 25% of dividend payers in the US market (4.05%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (27.4%), QCOM's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (46.7%), QCOM's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Semiconductors industry.

Management

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

3.1yrs

Average management tenure

CEO

Cristiano Amon (51 yo)

4.33yrs

Tenure

US$20,638,924

Compensation

Mr. Cristiano Renno Amon has been Chief Executive Officer and Director of QUALCOMM Incorporated since June 30, 2021 and as its President since January 04, 2018. Mr. Amon served as the President of Qualcomm...

CEO Compensation Analysis

Compensation vs Market: Cristiano's total compensation ($USD20.64M) is above average for companies of similar size in the US market ($USD13.26M).

Compensation vs Earnings: Cristiano's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: QCOM's management team is considered experienced (3.1 years average tenure).

Board Members

Experienced Board: QCOM's board of directors are considered experienced (3.8 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/15 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2022/03/27
Annual Earnings	2021/09/26