Qualcomm Inc/De (NASDAQ: QCOM)

Sector: Technology Industry: Semiconductors CIK: 0000804328
Market Cap 199.55 Bn
P/B 9.41
P/E 36.01
P/S 4.51
ROIC (Qtr) -33.23
Div Yield % 2.40
Rev 1y % (Qtr) 10.03
Total Debt (Qtr) 14.81 Bn
Debt/Equity (Qtr) 0.70

About

Qualcomm Incorporated, known as Qualcomm, is a global leader in the development and commercialization of foundational technologies for the wireless industry. The company's main business activities encompass the development and supply of integrated circuits and system software for mobile devices, automotive systems, and Internet of Things (IoT) devices. With a rich history of driving innovation and collaboration across many ecosystems, Qualcomm's position within the industry remains strong. Qualcomm's primary products include its Snapdragon family...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 14.01B provides robust 0.95x coverage of total debt 14.81B, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 37.64B provides 2.54x coverage of total debt 14.81B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 14.01B provides exceptional 21.10x coverage of interest expenses 664M, showing strong debt service capability.
  • Robust free cash flow of 12.83B exceeds capital expenditure of 1.18B by 10.89x, indicating strong organic growth funding capability.
  • Strong operating cash flow of 14.01B provides 4.51x coverage of SG&A expenses 3.11B, showing efficient operational cost management.

Bear case

  • Operating cash flow of 14.01B barely covers its investment activities of (800M), with a coverage ratio of -17.52, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 14.01B provides thin coverage of dividend payments of (3.81B) with a -3.68 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (800M) provide weak support for R&D spending of 9.04B, which is -0.09x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 7.84B provide limited coverage of acquisition spending of (743M), which is -10.56x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 14.01B provides minimal 1.97x coverage of tax expenses of 7.12B, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Concentration Risk Benchmark Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Semiconductors
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NVDA Nvidia Corp 4,521.08 Bn 45.58 24.16 10.48 Bn
2 TSM Taiwan Semiconductor Manufacturing Co Ltd 1,648.98 Bn 31.97 13.84 31.18 Bn
3 AVGO Broadcom Inc. 1,565.97 Bn 67.71 24.51 65.14 Bn
4 MU Micron Technology Inc 366.37 Bn 30.76 8.66 12.43 Bn
5 AMD Advanced Micro Devices Inc 333.34 Bn 100.83 10.41 3.87 Bn
6 INTC Intel Corp 271.33 Bn 1,370.33 5.08 46.55 Bn
7 QCOM Qualcomm Inc/De 199.55 Bn 36.01 4.51 14.81 Bn
8 TXN Texas Instruments Inc 172.17 Bn 34.14 9.97 14.05 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.12 4.13
EV to Cash from Ops. EV/CFO 14.74 -370.81
EV to Debt EV to Debt 13.95 88.27
EV to EBIT EV/EBIT 15.50 -65.23
EV to EBITDA EV/EBITDA 14.80 22.97
EV to Free Cash Flow [EV/FCF] EV/FCF 16.10 -8.14
EV to Market Cap EV to Market Cap 1.04 0.80
EV to Revenue EV/Rev 4.66 20.31
Price to Book Value [P/B] P/B 9.41 5.16
Price to Earnings [P/E] P/E 36.01 9.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.46 2.39
Dividend Payout Ratio % Div Payout % (Qtr) 68.90 8.25
Dividend per Basic Share Div per Share (Qtr) 3.48 0.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 29.72 9.91
Interest Coverage Int. cover (Qtr) 20.07 8.38
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -14.26 -155.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -0.08 45.60
Dividend Growth (1y) % Div 1y % (Qtr) 5.45 5.64
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -46.12 26.23
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 18.51 47.12
EBIT Growth (1y) % EBIT 1y % (Qtr) 20.44 25.83
EBT Growth (1y) % EBT 1y % (Qtr) 22.14 39.93
EPS Growth (1y) % EPS 1y % (Qtr) -44.44 24.64
FCF Growth (1y) % FCF 1y % (Qtr) 14.89 244.42
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 12.07 43.10
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.88 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.25 0.09
Cash Ratio Cash Ratio (Qtr) 0.86 2.23
Current Ratio Curr Ratio (Qtr) 2.82 5.43
Debt to Equity Ratio Debt/Equity (Qtr) 0.70 0.34
Interest Cover Ratio Int Coverage (Qtr) 20.07 8.38
Times Interest Earned Times Interest Earned (Qtr) 20.07 8.38
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 33.70 -112.38
EBIT Margin % EBIT Margin % (Qtr) 30.09 -91.98
EBT Margin % EBT Margin % (Qtr) 28.59 -132.25
Gross Margin % Gross Margin % (Qtr) 55.40 47.73
Net Profit Margin % Net Margin % (Qtr) 12.50 -133.26