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Qualcomm Inc QCOM

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Stock XNAS Rating as of
$180.10 +15.99 (9.74%)
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Company Report

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Qualcomm Earnings: Maintaining $140 Valuation as Qualcomm Posts Solid Results

Brian Colello

Narrow-moat Qualcomm reported solid fiscal second-quarter results and provided investors with a decent outlook for the June quarter, as the company is benefitting from a recovery in the Chinese smartphone market. Management was also bullish on its automotive chip prospects, reiterating its guidance for $4 billion of revenue in fiscal 2026 and boasting a $45 billion pipeline. We maintain our $140 fair value estimate and view shares as modestly overvalued.

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Price vs Fair Value

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QCOM is trading at a 29% premium.
Price
$180.10
Fair Value
$414.00
Uncertainty
High
1-Star Price
$883.00
5-Star Price
$65.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Qualcomm collects royalty income on the majority of 4G and 5G handsets sold, as it holds many essential patents used in these networks.

Bears

Qualcomm’s chip business faces a host of challenges, from potential share loss at Samsung and Apple, to some of its customers developing mobile processor IP and design expertise in-house.

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Trading Information

Previous Close Price
$164.11
Day Range
$175.29–181.69
52-Week Range
$101.47–181.69
Bid/Ask
$180.50 / $180.99
Market Cap
$200.99 Bil
Volume/Avg
25.9 Mil / 8.4 Mil

Key Statistics

Price/Earnings (Normalized)
17.94
Price/Sales
5.08
Dividend Yield (Trailing)
1.95%
Dividend Yield (Forward)
2.07%
Total Yield
2.73%

Company Profile

Qualcomm develops and licenses wireless technology and designs chips for smartphones. The company's key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G, 4G, and 5G networks. Qualcomm's IP is licensed by virtually all wireless device makers. The firm is also the world's largest wireless chip vendor, supplying nearly every premier handset maker with leading-edge processors. Qualcomm also sells RF-front end modules into smartphones, as well as chips into automotive and Internet of Things markets.
Sector
Technology
Industry
Semiconductors
Stock Style Box
Large Core
Total Number of Employees
50,000
Website
https://www.qualcomm.com

Competitors

Valuation

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Metric
QCOM
INTC
AVGO
Price/Earnings (Normalized)
 17.9429.2028.86
Price/Book Value
 7.501.228.25
Price/Sales
 5.082.3313.91
Price/Cash Flow
 18.067.4626.75
Price/Earnings
QCOM
INTC
AVGO

Financial Strength

Metric
QCOM
INTC
AVGO
Quick Ratio
 1.851.010.83
Current Ratio
 2.651.541.33
Interest Coverage
 12.690.356.63
Quick Ratio
QCOM
INTC
AVGO

Profitability

Metric
QCOM
INTC
AVGO
Return on Assets (Normalized)
 20.97%2.37%20.50%
Return on Equity (Normalized)
 48.60%4.35%59.22%
Return on Invested Capital (Normalized)
 28.90%2.66%26.13%
Return on Assets
QCOM
INTC
AVGO
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