Now trading at a price of $123.29, QUALCOMM has moved -0.9% so far today.
Over the last year, QUALCOMM logged a -5.0% change, with its stock price reaching a high of $156.66 and a low of $101.47. Over the same period, the stock underperformed the S&P 500 index by -20.0%. As of April 2023, the company's 50-day average price was $114.02. QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. Based in San Diego, CA, the large-cap Technology company has 51,000 full time employees. QUALCOMM has offered a 2.4% dividend yield over the last 12 months.
Growing Revenues With Increasing Reinvestment in the Business:
| 2019-09-30 | 2020-09-30 | 2021-09-30 | 2022-09-30 | |
|---|---|---|---|---|
| Revenue (MM) | $24,273 | $23,531 | $33,566 | $44,200 |
| Gross Margins | 64.6% | 60.7% | 57.5% | 57.8% |
| Operating Margins | 31.6% | 26.6% | 29.2% | 35.9% |
| Net Margins | 18.07% | 22.09% | 26.94% | 29.27% |
| Net Income (MM) | $4,386 | $5,198 | $9,043 | $12,936 |
| Net Interest Expense (MM) | -627 | -602 | -559 | -399 |
| Net Interest Expense (MM) | -$627 | -$602 | -$559 | -$399 |
| Depreciation & Amort. (MM) | -$1,401 | -$1,393 | -$1,582 | -$1,762 |
| Earnings Per Share | $3.59 | $4.52 | $7.87 | $9.21 |
| EPS Growth | n/a | 25.91% | 74.12% | 17.03% |
| Diluted Shares (MM) | 1,220 | 1,149 | 1,149 | 1,114 |
| Free Cash Flow (MM) | $6,399 | $4,407 | $8,648 | $6,834 |
| Capital Expenditures (MM) | -$887 | -$1,407 | -$1,888 | -$2,262 |
| Net Current Assets (MM) | -$11,283 | -$10,998 | -$11,215 | -$10,277 |
| Current Ratio | 1.88 | 2.14 | 1.68 | 1.75 |
| Long Term Debt (MM) | $13,437 | $15,226 | $13,701 | $13,537 |
| Net Debt / EBITDA | 0.43 | 1.17 | 0.7 | 0.74 |
QUALCOMM has growing revenues and increasing reinvestment in the business, strong margins with a stable trend, and exceptional EPS growth. The company also benefits from low leverage, wider gross margins than its peer group, and consistent free cash flow. Furthermore, QUALCOMM has a decent current ratio.
A Very Low P/E Ratio but Trades Above Its Graham Number:
QUALCOMM has a trailing twelve month P/E ratio of 12.4, compared to an average of 27.16 for the Technology sector. Based on its EPS guidance of $8.96, the company has a forward P/E ratio of 12.7. According to the 20.1% compound average growth rate of QUALCOMM's historical and projected earnings per share, the company's PEG ratio is 0.62. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 10.2%. On this basis, the company's PEG ratio is 1.21. This implies that the shares are fairly valued. In contrast, QUALCOMM is likely overvalued compared to the book value of its equity, since its P/B ratio of 6.97 is higher than the sector average of 6.23. The company's shares are currently trading 146.3% above their Graham number.
QUALCOMM Has an Analyst Consensus of Some Upside Potential:
The 26 analysts following QUALCOMM have set target prices ranging from $88.27 to $170.03 per share, for an average of $124.32 with a buy rating. As of April 2023, the company is trading -8.3% away from its average target price, indicating that there is an analyst consensus of some upside potential.
QUALCOMM has a very low short interest because 0.9% of the company's shares are sold short. Institutions own 76.0% of the company's shares, and the insider ownership rate stands at 0.08%, suggesting a small amount of insider investors. The largest shareholder is the Vanguard Group, Inc., whose 10% stake in the company is worth $13,541,351,602.
