QCOM QUALCOMM Incorporated - Fundamental Analysis
NEUTRAL
QCOM Stock | Fundamental Analysis & Investment Insights
NASDAQ
•
Technology
•
Semiconductors
Current Price
$173.98
Analyst Target
$190.12
+9.3% Upside
52W High
$205.95
52W Low
$120.8
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
Qualcomm (QCOM) trades at a current price of $173.98, down significantly from its 52-week high of $205.95, reflecting ongoing investor skepticism despite solid profitability and a compelling forward valuation. The stock exhibits strong financial health with a robust ROE of 23.34%, gross margin of 55.43%, and manageable leverage (Debt/Equity: 0.74), but faces headwinds from lackluster near-term earnings growth visibility and negative insider selling activity. While forward P/E of 14.23 appears attractive versus its historical and peer averages, the absence of recent earnings beats and mixed price momentum temper enthusiasm. Analysts maintain a 'buy' recommendation with a $190.12 target, implying ~9% upside, aligning with a modestly positive future outlook, though insider selling by top executives raises governance concerns.
Key Strengths
High operating margin of 26.24% reflects strong pricing power and cost discipline in the semiconductor space
ROE of 23.34% exceeds sector average of 27.62% and demonstrates efficient use of equity capital
Forward P/E of 14.23 is significantly below both its current P/E of 34.73 and the sector average of 175.57, suggesting potential undervaluation
Strong liquidity position with current ratio of 2.82 and quick ratio of 1.58, indicating low near-term financial risk
Dividend yield of 2.05% offers income appeal in a growth-heavy tech sector, supported by a sustainable 69.46% payout ratio
Key Risks
Current P/E of 34.73 is elevated relative to forward P/E, indicating potential earnings compression or multiple contraction risk
Insider selling by CEO and COO totaling $27.74M over the past six months signals lack of confidence at the highest levels
Revenue growth of 10.00% YoY lags the sector average of 20.77%, raising concerns about competitive positioning
No quarterly earnings beats in the last four quarters with zero average surprise, suggesting persistent execution or forecasting issues
Missing key financial data (e.g., free cash flow, total debt/cash, ROIC) limits full financial transparency and increases investment risk
AI Fair Value Estimate
Based on comprehensive analysis
$190.12
+9.3% above current price
Performance Snowflake
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Stock Price & Analyst Targets
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Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
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Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
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Insider Trading & Analyst Ratings
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