QCOMQCOM
US • TECHNOLOGY
$184.79
P/E
20.10
PEG
0.12
FCF Yield
6.2%
Rev Growth YoY
-3.5% YoY
Gross Margin
54.8%
Health Score
8/10
D/E Ratio
0.70
Confidence
MEDIUM
Business Snapshot
Qualcomm is a dominant player in the semiconductor industry, primarily generating revenue through the sale of chipsets and licensing of intellectual property for mobile and wireless communications. Operating in the highly competitive semiconductor market, it holds a leading position in 5G modem and application processor technology for smartphones and adjacent verticals like automotive and IoT. As a large-cap company with a market capitalisation of $198.91B and trailing twelve-month revenue of $44.49B, it possesses significant financial scale. A defining characteristic is its robust intellectual property licensing model, which yields high-margin royalty streams tied to the adoption of its wireless technologies.
Financial Health
Qualcomm reported a gross margin of 54.8% and a net margin of 22.3%. The net margin figure indicates strong profitability, though the data does not provide a prior-year comparison for margins to assess directional change...
Risk Assessment
- REVENUE DECELERATION — Revenue declined -3.5% year-over-year, which is a contraction that signals weakening demand or market headwinds.
- TECHNICALS — The current price of $184.79 is well below the 52-week high of $258.96, indicating a significant 28.6% decline from the peak and suggesting sustained downward price pressure.
- INSIDER SELLING — Insiders have engaged in 10 sell transactions versus 0 buys over the last 90 days, a strong signal of a lack of confidence at the management level.
- ANALYST SENTIMENT — Only 37% of analysts rate the stock as a buy, with 55% holding a hold opinion, indicating limited Wall Street conviction and a cautious outlook from the sell-side....
Qualcomm reported a gross margin of 54.8% and a net margin of 22.3%. The net margin figure indicates strong profitability, though the data does not provide a prior-year comparison for margins to assess directional change. The balance sheet is healthy, with a manageable debt/equity ratio of 0.7x and a strong current ratio of 2.82x, suggesting ample short-term liquidity relative to liabilities. Free cash flow is substantial at $12.37B, translating to an attractive FCF yield of 6.2%, which underscores the company's strong cash generation capabilities. This robust cash flow provides Qualcomm with significant flexibility for reinvestment, share buybacks, and maintaining or increasing its dividend, making it a financially resilient business.
- REVENUE DECELERATION — Revenue declined -3.5% year-over-year, which is a contraction that signals weakening demand or market headwinds. - TECHNICALS — The current price of $184.79 is well below the 52-week high of $258.96, indicating a significant 28.6% decline from the peak and suggesting sustained downward price pressure. - INSIDER SELLING — Insiders have engaged in 10 sell transactions versus 0 buys over the last 90 days, a strong signal of a lack of confidence at the management level. - ANALYST SENTIMENT — Only 37% of analysts rate the stock as a buy, with 55% holding a hold opinion, indicating limited Wall Street conviction and a cautious outlook from the sell-side.
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