QCOM Qualcomm Inc

Qualcomm designs mobile processors and wireless chipsets based on its own CDMA and 5G patents, with a large and growing automotive semiconductor division. Sector: Technology.

Qualcomm Inc (QCOM) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

From a capital efficiency perspective, ROIC is 16.90%, WACC is 10.81%, and the economic spread is 6.09%. On balance, the company marginally exceed their cost of capital, suggesting modest but present value creation. Supporting metrics show ROE at 21.38% and ROA at 12.01%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that is value-creative but with less room for execution slippage.

Turning to how the market is pricing the underlying earnings, trailing P/E of 26.04, forward P/E of 11.79, PEG of 1.92. The forward multiple comes in well below the trailing figure, reflecting analyst expectations for earnings acceleration across the company. A PEG in this range suggests valuation is fair rather than compelling — the company is priced adequately for its growth, with limited buffer for downside revisions. The current ratio of 2.51 indicates the company is well-positioned to meet near-term obligations. The combined picture across P/E, forward P/E, PEG, and current ratio suggests a company that is priced for continued execution — where disappointment would be costly and outperformance would likely require positive earnings surprises.

On the margin front: gross margin sits at 55.10%, operating margin at 27.20%, and free cash flow margin at 28.81%. At this level, the company reflects reasonable cost discipline and adequate pricing leverage at the production layer. Operating margins sit in a healthy range — not exceptional, but indicating reasonable operational efficiency. At this FCF margin level, the company have considerable financial flexibility without reliance on external financing. This margin set supports the view that earnings quality is high and cash generation is not merely accounting-driven.

On the forward picture: TTM revenue growth of 5.00% reflecting consistent if unspectacular revenue expansion. Consensus EPS estimates point to 120.9% earnings growth over the next 12 months — a compelling near-term earnings catalyst that, if delivered, changes the valuation conversation materially. Analyst price targets suggest street expectations imply a constructive but measured return profile on a 12-month view. Revenue growth is grounded in reported results; price targets are forward projections that embed assumptions about multiple expansion, earnings delivery, and macro conditions. The key risk in both directions is whether the company can maintain their operating trajectory as macro and sector conditions evolve. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The composite picture leans positive, with capital efficiency and growth momentum providing the core of the investment thesis.

This assessment is based solely on the quantitative metrics presented above and does not constitute financial advice. Investors should consider their own risk tolerance and conduct independent research before making investment decisions.