QCOMQCOM
US • TECHNOLOGY
$166.97
P/E
18.16
PEG
0.10
FCF Yield
6.9%
Rev Growth YoY
-3.5% YoY
Gross Margin
54.8%
Health Score
9/10
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 the licensing of intellectual property for mobile communications, including 5G technologies. The company operates in the highly competitive wireless technology market, holding a leading position in modem and application processor technology for smartphones and expanding into adjacent markets like automotive and IoT. As a large-cap company with a market capitalisation of $180.35B and trailing twelve-month revenue of $44.49B, Qualcomm possesses significant financial scale. A defining characteristic is its extensive patent portfolio for cellular technologies, which underpins its substantial licensing revenue stream and creates a competitive moat.
Financial Health
Qualcomm demonstrates strong profitability with a gross margin of 54.8% and a net margin of 22.3%, indicating efficient operations and solid pricing power. The balance sheet is healthy, with a moderate debt-to-equity ratio of 0.7x and a strong current ratio of 2.82x, providing ample liquidity to cover short-term obligations...
Risk Assessment
- REVENUE DECELERATION — Revenue declined 3.5% year-over-year, a reversal from prior growth and a primary concern for the investment thesis.
- VALUATION DIVERGENCE — The current price of $166.97 is 67% above the Python DCF estimate of $99.81, suggesting the market is pricing in growth expectations not captured by the simplified model.
- TECHNICALS — The price of $166.97 is below its 200-day moving average of $169.14, indicating an established intermediate-term downtrend.
- INSIDER ACTIVITY — Over the last 90 days, there were 10 insider sells compared to 0 insider buys, a net-selling signal that typically warrants caution.
- 52-WEEK POSITION — The current price of $166.97 is closer to the 52-week low of $121.54 than the high of $258.96, reflecting significant downward price momentum from recent highs....
Qualcomm demonstrates strong profitability with a gross margin of 54.8% and a net margin of 22.3%, indicating efficient operations and solid pricing power. The balance sheet is healthy, with a moderate debt-to-equity ratio of 0.7x and a strong current ratio of 2.82x, providing ample liquidity to cover short-term obligations. The company is a prodigious cash generator, producing $12.40B in free cash flow, which translates to an attractive free cash flow yield of 6.9%. This robust financial health supports significant capital allocation flexibility, including reinvestment in the business, debt reduction, and a strong capacity for returning capital to shareholders through dividends and buybacks.
- REVENUE DECELERATION — Revenue declined 3.5% year-over-year, a reversal from prior growth and a primary concern for the investment thesis. - VALUATION DIVERGENCE — The current price of $166.97 is 67% above the Python DCF estimate of $99.81, suggesting the market is pricing in growth expectations not captured by the simplified model. - TECHNICALS — The price of $166.97 is below its 200-day moving average of $169.14, indicating an established intermediate-term downtrend. - INSIDER ACTIVITY — Over the last 90 days, there were 10 insider sells compared to 0 insider buys, a net-selling signal that typically warrants caution. - 52-WEEK POSITION — The current price of $166.97 is closer to the 52-week low of $121.54 than the high of $258.96, reflecting significant downward price momentum from recent highs.
Unlock the full AI report
Full 8-section analysis includes:
Metric deep-dives