Steven Romick (Trades, Portfolio) added 305,250 shares to his Qualcomm Inc. (QCOM, Financial) stake during the first quarter. The trade had a 0.18% impact on his portfolio.
Romick now owns 2.1 millions shares of the company.
Headquartered in San Diego, Qualcomm develops, designs, manufactures and markets digital telecommunications products and services. The company operates through three segments: Qualcomm CDMA Technologies, Qualcomm Technology Licensing and Qualcomm Strategic Initiatives.
The company has a market cap of $78.43 billion, an enterprise value of $79.29 billion, a price-earnings (P/E) ratio of 16.19 and a price-book (P/B) ratio of 2.51.
According to GuruFocus, the company has a 7 of 10 financial strength rating with a cash-debt ratio of 0.93 and an equity-asset ratio of 0.60. Its Altman Z-Score of 4.07 indicates it is financially strong and not in danger of filing for bankruptcy. The company’s Beneish M-Score of -2.00 indicates it is a manipulator of its financial statements.
The company has an 8 of 10 profitability and growth rating. It has an operating margin of 23.50%, a net margin of 20.56%, a return on assets (ROA) of 9.56% and a return on capital (ROC) of 267.38%.
Qualcomm’s P/E ratio of 16.09 is close to its one-year low of 15.2. Its price-sales (P/S) ratio of 3.32 is at its one-year low of 3.32. Its dividend yield is close to its 10-year high and its P/B ratio of 2.5 is at its one-year low.
Over the previous five years, Qualcomm has averaged a 4.65% increase in revenue and a 1.40% increase in net income. Its earnings per share has increased 1.71%, its gross margin has increased by 65.70% and its cash flow has increased by 9.11%.
Qualcomm shares are trading above their intrinsic value according to the Peter Lynch chart below.
Disclosure: Author does not own any shares of this company.
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