Qualcomm (QCOM, Financial) stock saw a significant drop of 4.5%, reflecting market reactions to the company's latest quarterly results. The decline is compounded by investor worries over intensified competition from Huawei and potential business risks with Apple.
Despite the recent drop, Qualcomm (QCOM, Financial) is priced at $167.95, which positions it at a Price-to-Earnings (P/E) ratio of 17.94. The company's current market capitalization is approximately $185.75 billion. While the stock is considered "Modestly Overvalued" according to its GF Value, which stands at $149.81, investors should weigh this against the firm's established financial strengths.
Qualcomm (QCOM, Financial) showcases robust financial health with a strong Altman Z-Score of 6.38, indicating a low probability of bankruptcy. The company's Piotroski F-Score sits at an impressive 8, signifying a very healthy financial status. The company also sports a high EBITDA margin of 32.7% and a net margin of 26.03%, further emphasizing its profitability.
However, there are warning signs that investors should consider. Qualcomm's gross margin and operating margin have shown a long-term decline, and the company's tax rate appears unsustainably low, which could impact earnings stability. Moreover, insider activity reveals significant selling over the past three months, with no insider buying, which might concern potential investors.
Overall, while Qualcomm (QCOM, Financial) exhibits strong financial metrics, it faces external challenges and internal warning signs that warrant cautious optimism from investors.
