Qualcomm Inc

QCOM

Radio & Tv Broadcasting & Communications Equipment

Mkt Cap

$238B

PE

28.38

Debt

$15.46B

Cash

$9.219B

EV

$244.2B

FCF

$12.25B

Market Cap

$238B

P/E Ratio

28.38

Debt

$15.46B

Cash

$9.219B

EV

$244.2B

FCF

$12.25B

Charts data: {"Earnings":[{"time":"2014-09-27","value":7964000000},{"time":"2015-09-26","value":5268000000},{"time":"2016-09-24","value":5702000000},{"time":"2017-09-23","value":2465000000},{"time":"2018-09-29","value":-4864000000},{"time":"2019-09-28","value":4386000000},{"time":"2020-09-26","value":5198000000},{"time":"2021-09-25","value":9043000000},{"time":"2022-09-24","value":12936000000},{"time":"2023-09-23","value":7232000000}],"Sales":[{"time":"2014-09-27","value":26487000000},{"time":"2015-09-26","value":25281000000},{"time":"2016-09-24","value":23554000000},{"time":"2017-09-23","value":22291000000},{"time":"2018-09-29","value":22732000000},{"time":"2019-09-28","value":24273000000},{"time":"2020-09-26","value":23531000000},{"time":"2021-09-25","value":33566000000},{"time":"2022-09-24","value":44200000000},{"time":"2023-09-23","value":35820000000}],"Net Margins":[{"time":"2014-09-27","value":0.3006758032242232},{"time":"2015-09-26","value":0.20837783315533404},{"time":"2016-09-24","value":0.24208202428462258},{"time":"2017-09-23","value":0.11058274639989234},{"time":"2018-09-29","value":-0.2139714939292627},{"time":"2019-09-28","value":0.18069459893709058},{"time":"2020-09-26","value":0.22090008924397603},{"time":"2021-09-25","value":0.2694095215396532},{"time":"2022-09-24","value":0.29266968325791853},{"time":"2023-09-23","value":0.20189838079285316}],"Assets":[{"time":"2014-09-27","value":48574000000},{"time":"2015-09-26","value":50796000000},{"time":"2016-09-24","value":52359000000},{"time":"2017-09-23","value":65486000000},{"time":"2018-09-29","value":32686000000},{"time":"2019-09-28","value":32957000000},{"time":"2020-09-26","value":35594000000},{"time":"2021-09-25","value":41240000000},{"time":"2022-09-24","value":49014000000},{"time":"2023-09-23","value":51040000000}],"Stockholders Equity":[{"time":"2014-09-27","value":39169000000},{"time":"2015-09-26","value":31421000000},{"time":"2016-09-24","value":31778000000},{"time":"2017-09-23","value":30746000000},{"time":"2018-09-29","value":928000000},{"time":"2019-09-28","value":4909000000},{"time":"2020-09-26","value":6077000000},{"time":"2021-09-25","value":9950000000},{"time":"2022-09-24","value":18013000000},{"time":"2023-09-23","value":21581000000}],"ROE":[{"time":"2014-09-27","value":0.20332405729020397},{"time":"2015-09-26","value":0.1676585722924159},{"time":"2016-09-24","value":0.1794323116621562},{"time":"2017-09-23","value":0.08017303063813179},{"time":"2018-09-29","value":-5.241379310344827},{"time":"2019-09-28","value":0.8934609900183337},{"time":"2020-09-26","value":0.8553562613131479},{"time":"2021-09-25","value":0.9088442211055276},{"time":"2022-09-24","value":0.718148004219175},{"time":"2023-09-23","value":0.3351095871368333}],"ROA":[{"time":"2014-09-27","value":0.18071396220200106},{"time":"2015-09-26","value":0.12770690605559493},{"time":"2016-09-24","value":0.13050287438644742},{"time":"2017-09-23","value":0.04611672723940995},{"time":"2018-09-29","value":0.022700850517040936},{"time":"2019-09-28","value":0.23263646569772733},{"time":"2020-09-26","value":0.1757318649210541},{"time":"2021-09-25","value":0.2491270611057226},{"time":"2022-09-24","value":0.3235810176684213},{"time":"2023-09-23","value":0.15258620689655172}]}

QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, application processing, multimedia, and global positioning system products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, WCDMA, LTE and/or OFDMA-based 5G standards and their derivatives. The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, IoT, and extended reality, and investments, including non-marketable equity securities and, to a lesser extent, marketable equity securities, and convertible debt instruments. It also provides development, and other services and related products to the United States government agencies and their contractors. The company was incorporated in 1985 and is headquartered in San Diego, California.

Sector

10-K
9/24/23
10-Q
6/25/23
10-Q
3/26/23
10-Q
12/25/22
10-K
9/25/22
10-Q
6/26/22
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3/27/22
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12/26/21
10-K
9/26/21
10-Q
6/27/21
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3/28/21
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12/27/20
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9/27/20
10-Q
6/28/20
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3/29/20
10-Q
12/29/19
10-K
9/29/19
10-Q
6/30/19
10-Q
3/31/19
10-Q
12/30/18
10-K
9/30/18
10-Q
6/24/18
10-Q
3/25/18
10-Q
12/24/17

DCF

Discounted Cash Flow Valuation of Qualcomm Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$12.25B	$13.33B	$14.45B	$15.6B	$16.77B	$17.97B	$19.17B	$20.37B	$21.56B	$22.73B	$23.87B	$238.7B
DCF		$11.59B	$10.93B	$10.26B	$9.591B	$8.933B	$8.288B	$7.659B	$7.049B	$6.462B	$5.9B	$59B
Value	$145.7B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 12%

Earnings Stability 28%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	09-2015	09-2016	09-2017	09-2018	09-2019	09-2020	09-2021	09-2022	09-2023	TTM
Net Margin	21%	24%	11%	-21%	18%	22%	27%	29%	20%	23%
ROA	13%	13%	4.6%	2.3%	23%	18%	25%	32%	15%	16%
ROE	17%	18%	8%	-520%	89%	86%	91%	72%	34%	34%

What is the average Net Margin?

The average Net Margin over the past 5 years is +15.86%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +7.04%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +19.27%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +2.84%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -25.51%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +78.31%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	09-2015	09-2016	09-2017	09-2018	09-2019	09-2020	09-2021	09-2022	09-2023	TTM
Debt FCF	2.43	1.71	5.47	5.31	2.49	3.57	1.82	2.27	1.56	1.26
Debt Equity	0.35	0.37	0.71	17.79	3.25	2.59	1.58	0.86	0.71	0.63
MIN
Graham Stability	-	-	39%	-110%	100%	100%	100%	100%	80%	-110%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 1.26.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.60.

What is the Graham’s Stability?

Graham’s Stability measure stands at -1.09.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	09-2016	09-2018	09-2020	09-2022	Trend
Revenue	6.2%	9.5%	15%	-19%	2.5%
Net Income	3.5%	-	12%	-44%	5.8%
Stockholders Equity	-5.4%	88%	53%	20%	11%
FCF	5.3%	26%	31%	44%	6.5%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +9.52%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +2.48%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +5.81%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +87.63%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +10.88%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +25.92%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +6.5%.