About QUALCOMM Incorporated
QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry 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 with connectivity and computing technologies for use in mobile devices; automotive systems for connectivity, digital cockpit, and ADAS/AD; and IoT, including consumer electronic devices, industrial devices, and edge networking products. 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 LTE, and/or OFDMA-based 5G products and derivatives; to use cellular standard-essential patents, including 3G, 4G and 5G for cellular devices. The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, IoT, and extended reality, and investments, including non-marketable equity securities and, to a lesser extent, marketable equity securities, and convertible debt instruments. It also provides development, and other services and sells related products to the United States government agencies and their contractors. In addition, the company is also involved in Qualcomm government technologies and data center businesses. Further, it provides security and intelligence services for unmanaged networks through software-based network security solutions. QUALCOMM Incorporated was incorporated in 1985 and is headquartered in San Diego, California.
QUALCOMM Incorporated (QCOM) is a Technology company in the Semiconductors industry with a market capitalisation of $194.4B. The stock trades at 20.80x trailing earnings and yields 2.08%.
- Sector
- Technology
- Industry
- Semiconductors
- Market cap
- $194.4B
- P/E ratio
- 20.80
- Forward P/E
- 17.84
- EPS (TTM)
- $8.75
- Revenue (TTM)
- $44.1B
- Free cash flow
- $10.2B
- Profit margin
- 21.0%
- Dividend yield
- 2.08%
- Beta
- 1.68
- Shares outstanding
- 1.1B
Financial health: Strong7.7/10
8 strengths, 2 concerns. Weakest points: revenue growth, earnings growth.
- Debt to equity: 0.70 (Watch, benchmark < 0.5) — Debt of 0.70x equity is moderate against the 0.5x benchmark. It has improved over the last 4 years.
- Net debt vs cash flow: 0.7y (Strong, benchmark < 4 years) — Net debt of $9.3B is 0.7x annual free cash flow — under a year of cash flow to repay.
- Current ratio: 2.82 (Strong, benchmark > 1.5) — Short-term assets cover 2.82x short-term liabilities, against Graham's 1.5x floor. It has improved over the last 4 years.
- Return on equity: 33.8% (Strong, benchmark > 15%) — Earns 33.8% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 54.2% (Strong, benchmark > 40%) — Keeps 54.2% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 21.0% (Strong, benchmark > 10%) — Turns 21.0% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $12.8B (Strong, benchmark positive) — Generated $12.8B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: -4.0% (Concern, benchmark > 10%) — Revenue changed -4.0% year on year, well short of the > 10% mark.
- Earnings growth: -23.0% (Concern, benchmark > 10%) — Earnings changed -23.0% year on year, well short of the > 10% mark.
- PEG ratio: 0.81 (Strong, benchmark < 1) — At 0.81, the price looks cheap relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 41.0% (Strong, benchmark < 60%) — Pays out 41.0% of earnings as dividends, leaving room to keep paying.