QCOM Investment Analysis Report & Stock Research, Qualcomm, Inc.

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Qualcomm, Incorporated (QCOM)

QCOM Stock Report

2-Year Price History

Recent Price
(7/2 4:00PM) -1.1%
$44.68
52-Week Price
$20.63 - $56.88
Market Capitalization
$73.9 Billion
Dividend Yield
1.50%
Most Recent Dividend
$0.62

Ockham's Rating

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QCOM Revenue

As we have often noted, in our valuation methodology, "Cash is King." Well, it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, QCOM the high and low end of the Price to Sales per share ratios are 10.61x and 5.59x respectively.

Notice that QCOM's current Price to Sales per share ratio is 7.37x, which is slightly under its historical average. This level of Price to Sales gives us a fairly neutral position on the QCOM shares. We would like to see a drop in the Price to Sales ratio just a little bit more (given current sales figures) before we would become more positive on a Price to Sales basis. Such a drop would increase the attractiveness of the stock but, as always, would need to be considered in the context of all other valuation factors.

QCOM Cash Earnings

As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of QCOM, Ockham views their current Cash Earnings as significantly above its historical average multiple of Cash Earnings. Looking at the last 9 years we can get a good understanding of what investors have grown to expect from QCOM. For example, QCOM's Cash Earnings ratio per share has fluctuated between 16.41 and 32.83 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where QCOM is with respect to prior business periods.

So what does this tell us about QCOM in particular? Basically, we would value the current level of Cash Earnings per share (which is at 33.34) as significantly overvalued. Just by looking at the last closing price of QCOM, which was $44.68, we can see that compared to the historical high Price to Cash Earnings levels we calculated, the market has already rewarded QCOM with a higher stock price. So basically, we don't view this level of Cash Earnings or stock price as compatible with a long term value at this point. Just remember, that does not mean that QCOM may not have other merits with which to find a good investment opportunity, it just means that we would prefer to see either an increase in Cash Earnings or a decrease in stock price before we would become bullish on this metric.

QCOM Dividends

A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.

When reviewing dividend yields for QCOM, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. QCOM’s estimated annual dividend is $0.68 resulting in a current dividend yield of 1.52%. The highest dividend yield from QCOM over recent history was 3.30% while the lowest dividend yield was 0.00%. The current dividend yield is below the historical median, which is slightly off-putting. We are a bit adverse to QCOM from this valuation metric.

Peer Comparison

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Qualcomm, Inc. Industry Grouping

(7/2/2009)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding QCOM) 5.76 2.95 » 22.26 0.83 0.55 » 3.62 3.84% 13.90%
*10 year range does not include current year values
Verizon Communications, Inc. VZ $89.6 Billion $30.18 3.89 3.12 » 10.80 0.84 0.67 » 2.76 7.52% 15.78%
Qualcomm, Inc. QCOM $73.9 Billion $44.68 33.34 9.50 » 65.63 7.37 2.91 » 25.39 22.92% 18.80%
Nippon Telegraph and Telephone Corp. ADS-Shs Sponsr Amer Dep Rec 1/2 sh NTT $63.2 Billion $20.06 1.87 1.60 » 10.24 0.58 0.47 » 2.72 3.25% 8.64%
France Telecom ADS FTE $60.7 Billion $23.20 3.67 2.58 » 27.39 0.71 0.17 » 7.63 5.18% 18.40%
NTT DoCoMo, Inc. ADS DCM $60.3 Billion $14.43 4.67 3.95 » 35.76 1.49 1.13 » 3.64 -1.45% 13.52%
Siemens AG ADS SI $57.3 Billion $66.46 14.70 3.49 » 27.12 0.53 0.31 » 1.36 4.72% 13.18%
>
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The latest TV Media Discussion

11:36:04 AM QCOM $44.39 Qualcomm, Inc.
2 days ago (07/02)
“…Business overseas, have a global footprint, do not have a lot of and if you look at what led this rally, really it was a lot of large cap tech names, and i'll use as an example, apple and google, and QUALCOMM and a lot of these big cap tech names. I'm not recommending these right now, because I think a lot are overextended. And the other thing investors need to know about big caps right now is they're really …” …more details…
12:41:44 PM QCOM $46.23 Qualcomm, Inc.
8 days ago (06/26)
“…Type of tv on the device, and that's pretty positive. >> craig, how about some of the under the radar ways to play mobile internet? So from a chip maker perspective, QUALCOMM sells both chips and is offering a description-based service that's going to cover 100 markets and 200 million people domestically by the end of the year. They brought up some of the spectrum the government sold off with the analog tv shut off. And two other names, texas instruments and QUALCOMM. QUALCOMM, two ways, and t.I. You play from the chip perspective. >> any other appliance makers? Apple and palm are making their names, r.I.M., these days. …” …more details…
12:40:05 PM QCOM $46.22 Qualcomm, Inc.
8 days ago (06/26)
“…Range, that's from andy grove in only the paraneed survive, and you're going to see it not only from apple, you're going to see it from broadcom, you're going to see it from kwal QUALCOMM, from com scope. You're going to see it around this phenomena, this next big change, which I regard as big as snail mail to e-mail, from word …” …more details…
6:11:12 PM QCOM $46.00 Qualcomm, Inc.
Mad Money
14 days ago (06/19)
“…On the quarter, spent a lot of time on the call, that's the first quarter that I really don't like from rimm. We're not going to do that. I want to replace in the four horsemen with QUALCOMM, which is the stock I own for my trust. I think you should try to figure out, though, even with 2009 dollars, do not make one bet. You are young, so you can take but I still need you to have …” …more details…
5:35:28 PM QCOM $45.68 Qualcomm, Inc.
Fast Money
14 days ago (06/19)
“…When it comes to the segment, size is an advantage. These guys are 35% of the the handset data points are much better. We're seeing it in china. We heard it from QUALCOMM and texas instruments. They are making second quarter share win gains and it's exciting when the other guys are starting to waffle. Exciting products coming out in the smartphone space we've been …” …more details…
9:34:13 AM QCOM $45.34 Qualcomm, Inc.
15 days ago (06/19)
“…And some other names you're going to want to follow on this friday morning, firearms maker smith & wesson, I should say, says it will buy a private company, QUALCOMM hit by charges from south korea's anti-trust we're seeing strength in solar and the sunshine this morning in new york city, it's going to be a good day for the markets, we'll see. …” …more details…
9:07:50 AM QCOM $45.32 Qualcomm, Inc.
15 days ago (06/19)
“…Goldman sachs up 2.4%. Amazon might cut out marketing affiliates in north carolina over a potential online sales stock. That stock up. QUALCOMM in a spat over licensing using terms like discriminatory as they are accused of bad practices in >>> prices climbing higher …” …more details…
8:50:42 AM QCOM $45.00 Qualcomm, Inc.
16 days ago (06/18)
“…Reform. Alexis: now let's go directly to charles payne four charleses joists. >> I want to jump and I have three stocks, the first is QUALCOMM. This is one where you can piggyback on wall street earnings per share continued to soar. That maine's analyst like it but in the meantime you have a …” …more details…
5:11:18 PM QCOM $45.24 Qualcomm, Inc.
Fast Money
16 days ago (06/17)
“…Now I think it's $15.75 on the buy it around there and your range is probably redistributed to $15.75 up to $16.50. >> you feed through with the talk about the smartphones, rimm, palm, but QUALCOMM really is the name. Their handset growth in the rest of the world, $300 million in china, goldman's conviction buy was built off of 13% handset these are the guys that are most and this is a trade that these …” …more details…
5:10:26 PM QCOM $44.82 Qualcomm, Inc.
Fast Money
16 days ago (06/17)
“…Potash and mosaic on there. Both those stocks rolled over today, and maybe got a washout in there today. >> let's move on to what was working in today's session. Technology was topping the tape. QUALCOMM, texas instruments getting an upgrade, moving the index higher 7% on the session, pretty good move on a downtake >> goldman sachs this morning raised QUALCOMM's target to $55. And it goes back -- you have to look back at texas instruments a couple weeks ago. It looks like the semiconductor and chip space is clearly rerating, rerating its estimates …” …more details…
3:06:48 PM QCOM $45.20 Qualcomm, Inc.
17 days ago (06/17)
“…The stock is higher today by as I said a little shy of 2 1/2%. Take a look at rearch in key earnings report after the bell tomorrow but the stock moving lower ahead of that, down 3% right now. QUALCOMM was added to the conviction buy list at goldman sachs today. The price target taken higher to 53 from 43. QUALCOMM shares up 4%. Baidu 3% is the move today and the stock is the 6-month price target raised at goldman 350 …” …more details…
10:02:59 AM QCOM $44.09 Qualcomm, Inc.
17 days ago (06/17)
“…Google shares following suit research in motion reports ahead of that, down 4 1/2%. That's pretty much where big cap technology is heading at the moment. QUALCOMM meantime is up 1 1/2%. I mentioned earlier it was add it to the conviction buy list at a call on the six-month price target raised there. …” …more details…
9:44:34 AM QCOM $44.37 Qualcomm, Inc.
17 days ago (06/17)
“…Wm back everybody. Three stocks in the move right now. QUALCOMM shares slightly higher and goldman sachs adding the telecom to the conviction buy list saying that QUALCOMM's unit was substantially undervalued or is. E-shares take ago hit and brokerage saying it's raising billions by selling stock. When you sell stock prices go …” …more details…
9:34:21 AM QCOM $44.30 Qualcomm, Inc.
17 days ago (06/17)
“…Iphone operating system 3.0 as we've been talking about in wide release happening today. The new 3gs phone out on friday and big developments out of apple this week. We're also watching some strength in QUALCOMM this morning, goldman sachs adding it to its conviction buy list, it's mixed trading here and obviously, the big focus is on the financials this morning, brian, back to you. Alexis: a nice segway, shibani, …” …more details…
9:32:59 AM QCOM $44.31 Qualcomm, Inc.
17 days ago (06/17)
“…Up a third% of large cap tech. That's the picture you're going to see. Apple with a fractional gain and google 57b research in motion ticking negatively here. Down 3% here. QUALCOMM is up 2%. It was added to the conviction buy list at goldman sachs. That's the upgrade. The target from 53 to 43. Stock is up 1 1/2%. …” …more details…
9:06:44 AM QCOM $44.24 Qualcomm, Inc.
17 days ago (06/17)
“…Secondary, coal producer patriot priced a big secondary. [email protected] >>> goldman sachs raised the price target on QUALCOMM from 53 to 43, add it it to conviction buy list. Goldman making a call on the price target. Six-month target raised at 350 from 300. The shares are up half a percent …” …more details…
6:30:05 PM QCOM $46.05 Qualcomm, Inc.
Mad Money
21 days ago (06/12)
“…Cycle is so gargantuan that there's demand for everything. And I think customers will ultimately be willing to pay up even for commodity semis. This company is nothing like QUALCOMM, which you know I ripped into your head and beat you to own. That's the one that is my large position for actionalertsplus.Com QUALCOMM is still my favorite stocks, my largest position for QUALCOMM created the technology that's made a lot of this mobile internet product possible. Triquint is not a creator. Triquint, though, is a stock that's right in the smartest, best place to be. Inside the iphone and other …” …more details…
3:45:27 PM QCOM $45.76 Qualcomm, Inc.
22 days ago (06/12)
“…Content for accessible. By freeing up band width, now more high definition content mobile devices like cell phones, even taxicabs and the tvs in the back seats of cars. This weekend QUALCOMM's flow tv will take its mobile tv service national. QUALCOMM spent more than $500 million to buy newly freed up bandwidth which will allow its service to reach 39 new cities. >>> meanwhile, at&t and verizon wireless which is co-owned by …” …more details…
7:30:49 AM QCOM $45.95 Qualcomm, Inc.
22 days ago (06/12)
“…Expectations, smaller loss than revenue coming in higher saying its first quarter forecast looks better than expected continuing a trend we have seen among companies that make chips for wireless companies. Now, QUALCOMM and texas instruments also out with bullish forecasts this week as well so nsm national semi a stock to keep an eye on. Right now keep your eyes on ashley webster. He's in london. Robert gray in new york. …” …more details…
6:46:50 PM QCOM $46.00 Qualcomm, Inc.
Mad Money
22 days ago (06/11)
“…Reported better than -- the bears held it down all day. It's really -- it was like they were holding it under water. It was really scary. They were like waterboarding the darn thing. I think QUALCOMM goes higher. That's a bigger play than american tower. The lightning round is over. …” …more details…
5:11:55 PM QCOM $45.98 Qualcomm, Inc.
Fast Money
22 days ago (06/11)
“…Produce phones, palm, and maybe i'll get excited about your >> how about microsoft today? >> it could be the bing. I don't know what it is. The QUALCOMM news today was interested and interesting for the phone guiles sguys as well. Like nokia. If things are good for QUALCOMM, things should be good. >> nokia feels the pressure to cut prices. >> I know jeff is not a nokia I just think the valuation and their presence in the markets …” …more details…
3:04:50 PM QCOM $46.36 Qualcomm, Inc.
23 days ago (06/11)
“…A lot of favorable analysts notes out today. But you want to see a chart, take a look at a six month of palm. Unbelievable 600%. I want it talk with QUALCOMM in positive territory earlier today where they were negative. They've raised their guidance on the top line. They would not give per share guidance here because they're cautious on a few things including emerging markets and …” …more details…
10:09:30 AM QCOM $45.96 Qualcomm, Inc.
23 days ago (06/11)
“…That impact of the gas pump continues to start to take a let's move on over to brian shactman at the nasdaq. >> thank you, bertha. Up .9 of a percent. I want to talk about QUALCOMM. Came out with release. Upped the guidance, stock popped and dropped. I talked to traders, went through the release. Here's what you need to know. Cautious comments on emerging …” …more details…
9:32:56 AM QCOM $46.12 Qualcomm, Inc.
23 days ago (06/11)
“…One thing that could help us throughout the day is well, the outlook for chips, getting a brighter outlook first, it was texas instruments, now, it is QUALCOMM, in spite of better than expected forecasts coming out of QUALCOMM to reflect stronger demand for data capable chips, you're seeing downward pressure on the sector. Nvidia able to resist the trend …” …more details…
9:32:01 AM QCOM $46.12 Qualcomm, Inc.
23 days ago (06/11)
“…Power. Last one, clorox boost the give vend from 9% to 50 cents. Let's move over to nasdaq. I want to talk about QUALCOMM because it's a very interesting they upped their guidance for the stock down 1.8%. Poring through the release and this is basically what i've the head of the company saying while we do not forecast that, …” …more details…
4:11:13 PM QCOM $46.07 Qualcomm, Inc.
24 days ago (06/10)
“…Starent is a great play on wireless network infrastructure products, which really benefits from the exploding data rates we're seeing in the market the cell phone wars are happening, but starent and QUALCOMM are great ways to >> we'll take a look. Thanks very much for your insights. We'll see you soon. Closing bell" russia's plan to possibly move out of u.S. Treasuries. Is it a concern for both the dollar and the u.S. Economy? …” …more details…
6:46:22 PM QCOM $45.86 Qualcomm, Inc.
Mad Money
24 days ago (06/09)
“…And on semiconductors, I like tellabs, actionalert trusts.Com QUALCOMM. It's got good visibility out of 2012. I gave them the rant this weekend. Let's go to tom in delaware. …” …more details…
2:39:00 PM QCOM $46.26 Qualcomm, Inc.
25 days ago (06/09)
“…Rolling. That's another texas instruments play. Someone downgraded and I thought that was dumb. QUALCOMM is the gurts of all the 3 g and 4 g and I think they have the visibility. A handful of the companies have this is a rally linked to wireless internet which morgan …” …more details…
6:07:13 PM QCOM $45.77 Qualcomm, Inc.
Mad Money
25 days ago (06/08)
“…In the recession. Demand from china has ignited the stock. It's up 74% this year. QUALCOMM, another trust dot come name. Strong 3-g, soon 4-g numbers. Up 45% for the year, I think it will continue as cell phone sales are at long last starting to pick up. …” …more details…
12:15:27 PM QCOM $44.62 Qualcomm, Inc.
26 days ago (06/08)
“…That will help us in that space as we bring atom into smart phones. >> we talk about amd being a competitor. QUALCOMM announced a chip and it's got an extra layer of does that mean you rush and try and zig anding. And get something up to speed or …” …more details…
6:54:16 PM QCOM $45.54 Qualcomm, Inc.
Mad Money
29 days ago (06/04)
“…Is it a smart pin play? We've said over and over that neither triquint or another isn't as good. May I remind people QUALCOMM remains my favorite in the group and they will bust out earnings. We saw that today from a number of trade papers, QCOM. That's why I own it for actionalertsplus.Com, my charitable trust. It's my largest position and you've heard it and my subscribesers have heard it. …” …more details…
3:28:08 PM QCOM $45.22 Qualcomm, Inc.
6/4/2009 3:28 PM
“…>> taking it further back, we have trouble in the late '80s, needless to say. >> I didn't tap that moment. >> you were 12, right? >> I remember when mark was on QUALCOMM. Remember that? He was on leaps for QUALCOMM at the end of 1999. Made so much money before it happened, at the end it was funny -- >> the first of january, they …” …more details…
3:05:07 PM QCOM $44.96 Qualcomm, Inc.
6/4/2009 3:05 PM
“…1.5%. Look at the components you're seeing strength from the chip equipment names. Take a look at the semiconductor there is strnt strength on the chip equipment names. QUALCOMM is giving the stock a bit of a lift today, up about 3% now. Initiated with an outperform rating at bernstein. The target there, 55 bucks. M&a to talk about in tech today. …” …more details…
9:34:29 AM QCOM $44.05 Qualcomm, Inc.
6/4/2009 9:34 AM
“…Apple and google, price targets were taken higher. Oppenheimer raising apple's price target. Google the story there. Citi taking it from 580 to 450. Watch QUALCOMM today as well because adobe -- sorry, let's it's down .1f 1%. Target raised at morgan stanley. …” …more details…
9:03:34 AM QCOM $43.55 Qualcomm, Inc.
6/4/2009 9:03 AM
“…Meantime, adobe is up 1% in the premarket as the target was raised by morgan stanley from 34 bernstein initiated coverage on technology stocks includeing QUALCOMM and broad come. And intel, 1650 price target. The shares are off half a they're buying wind river for $884. …” …more details…
6:17:10 PM QCOM $43.69 Qualcomm, Inc.
Mad Money
6/3/2009 6:17 PM
“…We did all know this was coming. I only got behind tessera after the stock had already gone from 16 and change to $20 when the international trade commission decided in its favor against QUALCOMM, which I own for my charitable trust, which you can follow along with at actionalertsplus.Com. And it also had to do with motorola and free-scale, major patent infringement case. I thought tessera was cheap at …” …more details…
9:38:47 AM QCOM $43.49 Qualcomm, Inc.
6/3/2009 9:38 AM
“…Stock from underperform and that's driving it higher. Tessera technology and shibani talked about this one. This is mind-boggling, won a major court ruling last week versus motorola QUALCOMM and freescale and cut a deal today with motorola and because that have were able to raise their guidance on sales and that's why the stock is up 6% out of the applied signals another one to take a look at. …” …more details…
5:48:26 PM QCOM $43.99 Qualcomm, Inc.
Fast Money
6/2/2009 5:48 PM
“…It to have the same kind of tendencies for consumers to buy high-end phones as they do in the other asian markets like japan and korea. >> paul, always great to have hope you'll come back to "fast money" soon. >> paul jacobs, ceo of QUALCOMM. Don't go anywhere. Rapid-fire setup for all of tomorrow's trades up next. It raining? - ( nextel chirps throughout ) …” …more details…
5:45:38 PM QCOM $43.91 Qualcomm, Inc.
Fast Money
6/2/2009 5:45 PM
“…Holds more than 25 wireless patents and has been named one of america's best ceos. "fast money" gets what's next in wireless from the ultimate mobile insider. QUALCOMM ceo dr. Paul jacobs with us from san diego. Paul, always great to have you good to be with you, melissa. >> and you know, the first question I wanted to ask is who wireless wars? But more appropriately, how much …” …more details…
5:36:12 PM QCOM $43.91 Qualcomm, Inc.
Fast Money
6/2/2009 5:36 PM
“…>>> welcome back to "fast money," america's post-market here's what we've got coming up in a big second half. Kicking off wireless war series this week, we are talking to the ceo of QUALCOMM, which is of course the number one maker of chips for cell phones. And the russian president knocking the dollar. What medvedev said about the bust that could change your >>> plus, can oprah hang on to her crown as the world's …” …more details…
View All Qualcomm, Inc. News

Key Fundamentals

QCOM - Qualcomm, Incorporated Fundamentals
Price (7/2 4:00PM) $44.68
Volume (7/2 4:00PM) 12.7 Million
Last Close Price $45.16
10 Day Average Volume 16.6 Million
13 Week Price Range $39.01 - $46.73
52 Week Price Range $20.63 - $56.88
LTM Revenue $10.0 Billion
 
Shares Outstanding (09/2008) 1.7 Billion
Market Capitalization $73.9 Billion
Shares Held By Institutions 1.4 Billion
Institutional Holders 1,328
% Shares Held By Institutions 83.90%
Earnings Per Share (EPS) $1.90
P/E Ratio 45.10
Book Value Per Share $10.34
 
Gross Margin 72.50%
Annual Dividend 0.68
Dividend Yield 1.50%
Beta 1.00
Fiscal Year Ends September

About Qualcomm, Inc.

Qualcomm, Incorporated is considered to operate in the Technology sector. They specifically operate in the Communication Equipment business segment contained within the Telecommunications industry.

The Company develops, designs, manufactures and markets digital wireless telecommunications products and services.

NASDAQ 1796.52

-49.2  -2.67%
S&P; 500 896.42

-26.91  -2.91%
^DIA 82.99

-2.04  -2.4%