Attractive PE Ratio
Solid Price to Cash Flow Ratio
Strong Return on Equity
Healthy Operating Profit Margin
Strong Liquidity Ratios
Good Interest Coverage
📈 Record Revenue Growth
🚀 Strong Competitive Position
🔗 Licensing Strength
🌐 Diversification Initiatives
🧠 AI Innovation Potential
📊 Positive Market Trends
High Price to Sales Ratio
Elevated Price to Book Ratio
Moderate Net Profit Margin
Moderate Debt Levels
Qualcomm demonstrates a robust business model with strong competitive advantages in the chipset and licensing markets. Its diversification efforts and focus on AI innovation position it well for future growth, despite market challenges. The company’s strong financial performance and strategic partnerships indicate a bright outlook.
Analysis Date: February 5, 2025
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$366.10
Current Market Price: $127.00
IV/P Ratio: 2.88x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
65.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for QCOM
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (13.40)
P/B ratio ≤ 1.5 (5.26)
Current ratio ≥ 2.0 (2.62x)
Long-term debt < Net current assets (0.82x)
Margin of safety (65.0%)
QCOM does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
The return on equity (ROE) of 41.27% indicates that the company is generating significant profits from shareholders' equity.
An operating profit margin of 26.47% reflects strong operational efficiency and profitability.
The net profit margin of 25.94% is good but may be lower than industry leaders, indicating room for improvement.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
41.27%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
5.72%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
55.99%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
25.94%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
The current ratio of 2.62 and a quick ratio of 1.99 indicate solid liquidity, ensuring the company can meet its short-term obligations.
An interest coverage ratio of 15.77 suggests that the company has a strong ability to cover its interest expenses.
With a debt-to-equity ratio of 0.54, the company has moderate leverage, which could pose risks in a downturn.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.54x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q1 2025
Current Ratio
Current assets divided by current liabilities
2.62x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q1 2025
Qualcomm achieved record revenues of $11.7 billion and non-GAAP earnings per share of $3.41 in Q1 2025, indicating strong financial performance and effective management.
Qualcomm's chipset business reached $10.1 billion, with record revenues in handsets and automotive sectors, showcasing its leadership in critical markets.
Qualcomm's licensing business generated $1.5 billion in revenue, with high EBT margins, solidifying its position in intellectual property.
Qualcomm is targeting $22 billion in non-handset revenues by 2029, focusing on automotive, IoT, and AI applications, indicating strong growth potential.
The company is optimistic about the edge AI opportunity, with advancements in on-device AI processing enhancing its product portfolio's relevance across various sectors.
Qualcomm's ongoing partnerships and design win momentum in PCs and automotive sectors position it well for future growth amidst strong market demand.