Qualcomm Inc (QCOM) stock analysis

P/E below its 5-year median

Qualcomm's P/E of 13.9 is below its own 5-year median of 17.7.

P/E below the industry

Qualcomm's P/E of 13.9 is below the Communications Equipment median of 24.9.

EV/EBITDA above its 5-year median

Qualcomm's EV/EBITDA of 18.7 is above its 5-year median of 12.6.

P/S above the industry

Qualcomm's price-to-sales of 4.30 is above the Communications Equipment median of 3.04 (book value is negative, so we use sales).

Trading below fair value

The share price of $176.57 is below our fair value estimate of $193.43.

Margin of safety under 20%

The price is 8.7% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 6.4% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 25.5% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 146% over the last twelve months, against a 5-year average of 8.5% a year.

Growing slower than the industry

Revenue grew -2.6% over the last twelve months; the Communications Equipment median is 10.9%.

Guidance lowered

Qualcomm lowered its Q4 FY26 QTL revenues outlook on Jul 29, 2026.

Gross margin slipping

Gross margin was 53.1% over the last twelve months, against 55.4% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings grew over 5 years

Net income grew 8.5% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 31.6% over the last twelve months, against a 5-year average of 23.9%.

Net margin above the industry

Qualcomm's net margin of 31.6% is above the Communications Equipment median of -2.2%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 73.7% of total debt.

Interest well covered

Operating income covers interest expense 12.6 times.

Short-term assets cover short-term debts

Current assets are 1.86 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.67; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Qualcomm paid dividends worth 2.1% of the share price over the last twelve months.

Yield below Treasuries

The 2.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Qualcomm yields 2.1%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.