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Also traded in: Argentina, Austria, Brazil, Chile, Germany, Mexico, Switzerland, UK

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash-to-Debt 1.70
QCOM's Cash-to-Debt is ranked lower than
60% of the 855 Companies
in the Global Semiconductors industry.

( Industry Median: 1.62 vs. QCOM: 1.70 )
Ranked among companies with meaningful Cash-to-Debt only.
QCOM' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.01  Med: 14.22 Max: No Debt
Current: 1.7
Equity-to-Asset 0.47
QCOM's Equity-to-Asset is ranked lower than
66% of the 852 Companies
in the Global Semiconductors industry.

( Industry Median: 0.60 vs. QCOM: 0.47 )
Ranked among companies with meaningful Equity-to-Asset only.
QCOM' s Equity-to-Asset Range Over the Past 10 Years
Min: 0.06  Med: 0.74 Max: 0.91
Current: 0.47
0.06
0.91
Debt-to-Equity 0.71
QCOM's Debt-to-Equity is ranked lower than
70% of the 647 Companies
in the Global Semiconductors industry.

( Industry Median: 0.36 vs. QCOM: 0.71 )
Ranked among companies with meaningful Debt-to-Equity only.
QCOM' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.01  Med: 0.11 Max: 6.73
Current: 0.71
0.01
6.73
Debt-to-EBITDA 4.40
QCOM's Debt-to-EBITDA is ranked lower than
69% of the 546 Companies
in the Global Semiconductors industry.

( Industry Median: 1.78 vs. QCOM: 4.40 )
Ranked among companies with meaningful Debt-to-EBITDA only.
QCOM' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.04  Med: 0.79 Max: 4.4
Current: 4.4
0.04
4.4
Interest Coverage 5.29
QCOM's Interest Coverage is ranked lower than
74% of the 667 Companies
in the Global Semiconductors industry.

( Industry Median: 55.34 vs. QCOM: 5.29 )
Ranked among companies with meaningful Interest Coverage only.
QCOM' s Interest Coverage Range Over the Past 10 Years
Min: 5.29  Med: 74.9 Max: 1510
Current: 5.29
5.29
1510
Piotroski F-Score: 5
Altman Z-Score: 3.41
Beneish M-Score: -2.31
WACC vs ROIC
9.82%
7.81%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating Margin % 11.72
QCOM's Operating Margin % is ranked higher than
85% of the 853 Companies
in the Global Semiconductors industry.

( Industry Median: 5.72 vs. QCOM: 11.72 )
Ranked among companies with meaningful Operating Margin % only.
QCOM' s Operating Margin % Range Over the Past 10 Years
Min: 11.72  Med: 28.79 Max: 33.94
Current: 11.72
11.72
33.94
Net Margin % 11.06
QCOM's Net Margin % is ranked higher than
87% of the 853 Companies
in the Global Semiconductors industry.

( Industry Median: 4.67 vs. QCOM: 11.06 )
Ranked among companies with meaningful Net Margin % only.
QCOM' s Net Margin % Range Over the Past 10 Years
Min: 11.06  Med: 27.96 Max: 31.95
Current: 11.06
11.06
31.95
ROE % 7.88
QCOM's ROE % is ranked higher than
71% of the 837 Companies
in the Global Semiconductors industry.

( Industry Median: 5.98 vs. QCOM: 7.88 )
Ranked among companies with meaningful ROE % only.
QCOM' s ROE % Range Over the Past 10 Years
Min: 7.88  Med: 17.94 Max: 21.17
Current: 7.88
7.88
21.17
ROA % 4.24
QCOM's ROA % is ranked higher than
70% of the 862 Companies
in the Global Semiconductors industry.

( Industry Median: 3.09 vs. QCOM: 4.24 )
Ranked among companies with meaningful ROA % only.
QCOM' s ROA % Range Over the Past 10 Years
Min: 4.19  Med: 11.96 Max: 16.93
Current: 4.24
4.19
16.93
ROC (Joel Greenblatt) % 125.28
QCOM's ROC (Joel Greenblatt) % is ranked higher than
98% of the 860 Companies
in the Global Semiconductors industry.

( Industry Median: 10.68 vs. QCOM: 125.28 )
Ranked among companies with meaningful ROC (Joel Greenblatt) % only.
QCOM' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 54.24  Med: 229.1 Max: 320.43
Current: 125.28
54.24
320.43
3-Year Revenue Growth Rate -1.10
QCOM's 3-Year Revenue Growth Rate is ranked higher than
53% of the 784 Companies
in the Global Semiconductors industry.

( Industry Median: 2.80 vs. QCOM: -1.10 )
Ranked among companies with meaningful 3-Year Revenue Growth Rate only.
QCOM' s 3-Year Revenue Growth Rate Range Over the Past 10 Years
Min: -15.9  Med: 20.8 Max: 84.8
Current: -1.1
-15.9
84.8
3-Year EBITDA Growth Rate -16.80
QCOM's 3-Year EBITDA Growth Rate is ranked lower than
55% of the 639 Companies
in the Global Semiconductors industry.

( Industry Median: 5.60 vs. QCOM: -16.80 )
Ranked among companies with meaningful 3-Year EBITDA Growth Rate only.
QCOM' s 3-Year EBITDA Growth Rate Range Over the Past 10 Years
Min: -16.8  Med: 17.1 Max: 95.7
Current: -16.8
-16.8
95.7
3-Year EPS without NRI Growth Rate -27.90
QCOM's 3-Year EPS without NRI Growth Rate is ranked lower than
56% of the 584 Companies
in the Global Semiconductors industry.

( Industry Median: 4.80 vs. QCOM: -27.90 )
Ranked among companies with meaningful 3-Year EPS without NRI Growth Rate only.
QCOM' s 3-Year EPS without NRI Growth Rate Range Over the Past 10 Years
Min: -27.9  Med: 16.2 Max: 97.9
Current: -27.9
-27.9
97.9
GuruFocus has detected 8 Warning Signs with Qualcomm Inc QCOM.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
» QCOM's 30-Y Financials

Financials (Next Earnings Date: 2018-01-25)


Revenue & Net Income
Cash & Debt
Operating Cash Flow & Free Cash Flow
Operating Cash Flow & Net Income

» Details

Guru Trades

Q4 2016

QCOM Guru Trades in Q4 2016

Mario Gabelli 3,547 sh (New)
Jim Simons 269,760 sh (New)
First Eagle Investment 2,254,453 sh (+150.01%)
David Tepper 1,400,000 sh (+55.56%)
John Buckingham 40,380 sh (+12.75%)
Sarah Ketterer 3,390,137 sh (+10.93%)
David Carlson 1,100,000 sh (+6.80%)
Joel Greenblatt 1,112,953 sh (+4.04%)
Murray Stahl 5,887 sh (+3.50%)
Spiros Segalas 7,101,639 sh (+27.06%)
Bill Nygren 4,745,000 sh (unchged)
T Rowe Price Equity Income Fund 4,425,000 sh (unchged)
Ron Baron 4,000 sh (unchged)
Dodge & Cox 5,430 sh (unchged)
John Hussman 127,000 sh (unchged)
Steven Romick 1,815,560 sh (unchged)
Paul Singer 1,034,000 sh (unchged)
Steven Cohen Sold Out
Pioneer Investments Sold Out
Ken Fisher 9,688,348 sh (-0.03%)
Mairs and Power 1,484,888 sh (-0.08%)
First Pacific Advisors 2,330,270 sh (-0.46%)
Lee Ainslie 47,900 sh (-3.66%)
Barrow, Hanley, Mewhinney & Strauss 20,101,407 sh (-4.39%)
PRIMECAP Management 16,108,699 sh (-5.13%)
Richard Snow 809,382 sh (-11.08%)
David Rolfe 2,920,979 sh (-15.61%)
Richard Pzena 743,731 sh (-15.78%)
Jeremy Grantham 6,805,290 sh (-17.89%)
Jerome Dodson 250,000 sh (-23.08%)
David Dreman 17,118 sh (-39.50%)
Paul Tudor Jones 4,878 sh (-94.14%)
Manning & Napier Advisors, Inc 219,275 sh (-95.37%)
» More
Q1 2017

QCOM Guru Trades in Q1 2017

Julian Robertson 173,000 sh (New)
Seth Klarman 5,216,000 sh (New)
Daniel Loeb 3,500,000 sh (New)
Caxton Associates 6,500 sh (New)
Paul Tudor Jones 27,716 sh (+468.18%)
John Buckingham 79,784 sh (+97.58%)
David Rolfe 4,081,972 sh (+39.75%)
T Rowe Price Equity Income Fund 5,950,000 sh (+34.46%)
First Pacific Advisors 2,722,640 sh (+16.84%)
Steven Romick 2,120,810 sh (+16.81%)
Sarah Ketterer 3,864,119 sh (+13.98%)
Barrow, Hanley, Mewhinney & Strauss 22,765,058 sh (+13.25%)
Ken Fisher 10,041,310 sh (+3.64%)
Mairs and Power 1,529,125 sh (+2.98%)
PRIMECAP Management 16,197,444 sh (+0.55%)
Richard Pzena 743,776 sh (+0.01%)
Bill Nygren 4,745,000 sh (unchged)
Ron Baron 4,000 sh (unchged)
Dodge & Cox 5,430 sh (unchged)
Paul Singer 131,200 sh (unchged)
Mario Gabelli Sold Out
First Eagle Investment Sold Out
David Tepper Sold Out
Lee Ainslie Sold Out
Jim Simons Sold Out
Jerome Dodson Sold Out
David Dreman 16,562 sh (-3.25%)
Joel Greenblatt 1,074,616 sh (-3.44%)
Manning & Napier Advisors, Inc 211,523 sh (-3.54%)
Richard Snow 772,444 sh (-4.56%)
Murray Stahl 5,251 sh (-10.80%)
Jeremy Grantham 6,000,067 sh (-11.83%)
John Hussman 102,000 sh (-19.69%)
David Carlson 600,000 sh (-45.45%)
Spiros Segalas 5,521,806 sh (-22.25%)
» More
Q2 2017

QCOM Guru Trades in Q2 2017

First Eagle Investment 1,495,038 sh (New)
Jim Simons 202,560 sh (New)
Lee Ainslie 3,812,886 sh (New)
David Dreman 30,139 sh (+81.98%)
Manning & Napier Advisors, Inc 269,000 sh (+27.17%)
First Pacific Advisors 3,020,180 sh (+10.93%)
Barrow, Hanley, Mewhinney & Strauss 25,175,774 sh (+10.59%)
Steven Romick 2,340,250 sh (+10.35%)
Sarah Ketterer 4,007,406 sh (+3.71%)
Richard Snow 800,855 sh (+3.68%)
T Rowe Price Equity Income Fund 6,167,200 sh (+3.65%)
John Buckingham 82,044 sh (+2.83%)
Murray Stahl 5,300 sh (+0.93%)
Mairs and Power 1,530,545 sh (+0.09%)
John Hussman 102,000 sh (unchged)
Richard Pzena 743,776 sh (unchged)
Dodge & Cox 5,430 sh (unchged)
Seth Klarman 5,216,000 sh (unchged)
Ron Baron 4,000 sh (unchged)
David Carlson Sold Out
Daniel Loeb Sold Out
Julian Robertson Sold Out
Caxton Associates Sold Out
Jeremy Grantham 5,898,843 sh (-1.69%)
PRIMECAP Management 15,658,828 sh (-3.33%)
Bill Nygren 4,345,000 sh (-8.43%)
Paul Tudor Jones 24,998 sh (-9.81%)
David Rolfe 3,273,233 sh (-19.81%)
Joel Greenblatt 289,668 sh (-73.04%)
Ken Fisher 1,093,398 sh (-89.11%)
Spiros Segalas 1,921,120 sh (-65.21%)
» More
Q3 2017

QCOM Guru Trades in Q3 2017

Steven Cohen 30,730 sh (New)
Jim Simons 2,934,044 sh (+1348.48%)
Joel Greenblatt 491,725 sh (+69.75%)
Lee Ainslie 4,456,410 sh (+16.88%)
John Buckingham 90,798 sh (+10.67%)
Steven Romick 2,515,220 sh (+7.48%)
First Pacific Advisors 3,209,940 sh (+6.28%)
Richard Snow 818,001 sh (+2.14%)
Barrow, Hanley, Mewhinney & Strauss 25,674,098 sh (+1.98%)
T Rowe Price Equity Income Fund 6,275,000 sh (+1.75%)
Spiros Segalas 2,620,669 sh (+36.41%)
Richard Pzena 743,776 sh (unchged)
Dodge & Cox 5,430 sh (unchged)
Jeremy Grantham 350,000 sh (unchged)
Ron Baron 4,000 sh (unchged)
Bill Nygren 4,345,000 sh (unchged)
Seth Klarman Sold Out
Paul Tudor Jones Sold Out
Mairs and Power 1,528,324 sh (-0.15%)
PRIMECAP Management 15,405,818 sh (-1.62%)
David Dreman 28,524 sh (-5.36%)
Sarah Ketterer 3,764,989 sh (-6.05%)
Jeremy Grantham 5,474,411 sh (-7.20%)
Manning & Napier Advisors, Inc 248,611 sh (-7.58%)
David Rolfe 3,008,360 sh (-8.09%)
Murray Stahl 4,301 sh (-18.85%)
Ken Fisher 703,913 sh (-35.62%)
John Hussman 52,000 sh (-49.02%)
First Eagle Investment 50,000 sh (-96.66%)
» More
» Details

Insider Trades

Latest Guru Trades with QCOM

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Barrow, Hanley, Mewhinney & Strauss 2017-09-30 Add 1.98%0.04%$49.64 - $56.81 $ 64.7622%25,674,098
T Rowe Price Equity Income Fund 2017-09-30 Add 1.75%0.03%$49.64 - $56.81 $ 64.7622%6,275,000
Ken Fisher 2017-09-30 Reduce -35.62%0.04%$49.64 - $56.81 $ 64.7622%703,913
Joel Greenblatt 2017-09-30 Add 69.75%0.15%$49.64 - $56.81 $ 64.7622%491,725
First Eagle Investment 2017-09-30 Reduce -96.66%0.19%$49.64 - $56.81 $ 64.7622%50,000
David Dreman 2017-09-30 Reduce -5.36%0.05%$49.64 - $56.81 $ 64.7622%28,524
Seth Klarman 2017-09-30 Sold Out 3.31%$49.64 - $56.81 $ 64.7622%0
Barrow, Hanley, Mewhinney & Strauss 2017-06-30 Add 10.59%0.2%$52.5 - $59.28 $ 64.7616%25,175,774
T Rowe Price Equity Income Fund 2017-06-30 Add 3.65%0.06%$52.5 - $59.28 $ 64.7616%6,167,200
Bill Nygren 2017-06-30 Reduce -8.43%0.14%$52.5 - $59.28 $ 64.7616%4,345,000
First Eagle Investment 2017-06-30 New Buy0.2%$52.5 - $59.28 $ 64.7616%1,495,038
Ken Fisher 2017-06-30 Reduce -89.11%0.86%$52.5 - $59.28 $ 64.7616%1,093,398
Joel Greenblatt 2017-06-30 Reduce -73.04%0.57%$52.5 - $59.28 $ 64.7616%289,668
David Dreman 2017-06-30 Add 81.98%0.41%$52.5 - $59.28 $ 64.7616%30,139
Julian Robertson 2017-06-30 Sold Out 1.87%$52.5 - $59.28 $ 64.7616%0
Barrow, Hanley, Mewhinney & Strauss 2017-03-31 Add 13.25%0.23%$52.66 - $66.88 $ 64.7612%22,765,058
Ken Fisher 2017-03-31 Add 3.64%0.03%$52.66 - $66.88 $ 64.7612%10,041,310
T Rowe Price Equity Income Fund 2017-03-31 Add 34.46%0.4%$52.66 - $66.88 $ 64.7612%5,950,000
Seth Klarman 2017-03-31 New Buy3.55%$52.66 - $66.88 $ 64.7612%5,216,000
Joel Greenblatt 2017-03-31 Reduce -3.44%0.03%$52.66 - $66.88 $ 64.7612%1,074,616
Richard Pzena 2017-03-31 Add 0.01%$52.66 - $66.88 $ 64.7612%743,776
Julian Robertson 2017-03-31 New Buy1.87%$52.66 - $66.88 $ 64.7612%173,000
David Dreman 2017-03-31 Reduce -3.25%0.02%$52.66 - $66.88 $ 64.7612%16,562
David Tepper 2017-03-31 Sold Out 1.62%$52.66 - $66.88 $ 64.7612%0
First Eagle Investment 2017-03-31 Sold Out 0.38%$52.66 - $66.88 $ 64.7612%0
Mario Gabelli 2017-03-31 Sold Out $52.66 - $66.88 $ 64.7612%0
Barrow, Hanley, Mewhinney & Strauss 2016-12-31 Reduce -4.39%0.1%$64.16 - $70.09 $ 64.76-4%20,101,407
Ken Fisher 2016-12-31 Reduce -0.03%$64.16 - $70.09 $ 64.76-4%9,688,348
First Eagle Investment 2016-12-31 Add 150.01%0.23%$64.16 - $70.09 $ 64.76-4%2,254,453
David Tepper 2016-12-31 Add 55.56%0.58%$64.16 - $70.09 $ 64.76-4%1,400,000
Joel Greenblatt 2016-12-31 Add 4.04%0.04%$64.16 - $70.09 $ 64.76-4%1,112,953
Richard Pzena 2016-12-31 Reduce -15.78%0.06%$64.16 - $70.09 $ 64.76-4%743,731
David Dreman 2016-12-31 Reduce -39.50%0.47%$64.16 - $70.09 $ 64.76-4%17,118
Mario Gabelli 2016-12-31 New Buy$64.16 - $70.09 $ 64.76-4%3,547
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Business Description

Industry: Semiconductors » Semiconductors    NAICS: 334118    SIC: 3577
Compare:NAS:TXN, NAS:AVGO, NAS:NVDA, NAS:NXPI, NAS:ADI, XTER:IFX, NAS:MCHP, MIL:STM, TSE:6723, NAS:SWKS, NAS:XLNX, TPE:2454, SHSE:600703, NAS:MXIM, TSE:6963, NAS:MRVL, NAS:AMD, TPE:2311, NAS:QRVO, NAS:ON » details
Traded in other countries:QCOM.Argentina, QCOM.Austria, QCOM34.Brazil, QCOM.Chile, QCI.Germany, QCOM.Mexico, QCOM.Switzerland, 0QZ3.UK,
Headquarter Location:USA
Qualcomm Inc develops and licenses wireless technology. It also engages in designing chips for mobile phones. The company is also the world's largest wireless chip vendor, supplying many premier handset makers with leading-edge processors.

Qualcomm develops and licenses wireless technology and also designs chips for mobile phones. The company's key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G and 4G networks. In turn, Qualcomm's IP is licensed by virtually all wireless device makers. The firm is also the world's largest wireless chip vendor, supplying many premier handset makers with leading-edge processors.

Guru Investment Theses on Qualcomm Inc

David Rolfe Comments on Qualcomm - Oct 16, 2017

Qualcomm (NASDAQ:QCOM)’s stock continues to be stuck in lawsuit purgatory. Ironies abound. A judge says Apple doesn’t have to pay Qualcomm, even though Apple admits they owe Qualcomm at least $4 per phone. The FTC says Qualcomm is violating antitrust, even though the head of the FTC admits Qualcomm isn’t violating anti-trust. Both Companies have been quite public in their respective legal positions. Apple is adamant about letting a judge decide on a fair price (or royalty rate) from them to pay for Qualcomm’s technology. Qualcomm is just as adamant that they will once again go to great lengths to defend what they believe is a fair market price for their technology. The public posturing from Apple’s CEO Cook seems to imply that Apple is in no hurry to reach an out-of-court settlement. Qualcomm’s CEO Mollenkopf continues to expect an out -of-court settlement.

Our main position in holding the stock throughout this turmoil is that we cannot conceive that a U.S. court (judge) would rule that a U.S. company’s patent estate can be rendered virtually worthless. In addition, at the stock’s current valuation, the market, in our view, has priced in either an onerous settlement with Apple or an onerous settlement that for all practical purposes emasculates Qualcomm’s cash-cow royalty business. We believe either extreme is unlikely. Furthermore, the risk/reward for Qualcomm’s stock (currently in the low $50’s), again in our view, is significantly asymmetric to the upside, particularly in a world were other notable semiconductor companies such as NVidia and Broadcom sport market caps of over $110 billion and over $105 billion, respectively – and both on lower revenues and profits than Qualcomm.

Last, we believe that the market is giving little benefit for the earnings accretion of the Company’s planned year-end closing of their +$47 billion acquisition of NXP Semiconductor. The Company has obtained regulatory clearance in four jurisdictions, including the U.S. and Taiwan, and is still working on clearances from five other regions consisting of the EU, China, Japan, South Korea, and the Philippines. Just recently the Company has offered NXP-owned patent concessions to win regulatory approval in the EU.



From David Rolfe (Trades, Portfolio)'s Wedgewood Partners 3rd quarter shareholder letter.

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David Rolfe Comments on Qualcomm - Apr 14, 2017

The stock was our worst relative performer during the first quarter. While the stock was up nicely (+35%) in 2016 (after a dismal -30% in 2015), it suffered sharp profit-taking following Apple’s lawsuit filed in February. Apple’s lawsuit was filed just days after the Federal Trade Commission, in one of its final acts under the Obama administration, announced that it would sue Qualcomm (NASDAQ:QCOM) for its purportedly anti-competitive practices. The FTC alleged that, in the U.S., Qualcomm used its unfair (dominant) supplier of smartphone modems to demand higher patent payments. Apple was specifically called out for allegedly entering into an exclusivity deal with Qualcomm in order to avoid its onerous terms. It’s never fun when your children are fighting amongst themselves, and the same can be said when two of your portfolio children are fighting each other—and quite publicly at that. We have owned Apple since 2005 and have cheered the Company on during their long (and expensive) efforts to protect their IP. We have done the same during our +10-year ownership with Qualcomm’s legal battles as well. To hear each side state their respective cases, quite frankly, one can easily agree with both plaintiffs and defendants. However, we come down on the side that Qualcomm deserves to charge its current IP royalty rates given that they have been the mobile industry’s de facto R&D arm. No doubt Apple has been a prodigious investor in their own R&D, but most smartphone manufacturers are not much more than smartphone assemblers of discrete hardware and software. These lawsuits go right to the heart of Qualcomm’s royalty franchise. Not too surprising then that the stock fell sharply on news of the FTC and Apple lawsuits. In our view, the stock fell too sharply, from $66 to as low as $ 53. At valuations of $55 and below, the market embeds, in our view, a far too onerous settlement with Apple at a new royalty rate that is much too low, in our opinion. The Company’s NXP Semiconductor acquisitions remains on schedule. On the share price weakness, we added to our position in the stock in mid-to-late February.

From David Rolfe (Trades, Portfolio)'s Wedgewood Partners first-quarter 2017 shareholder letter.

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Jerome Dodson Comments on Qualcomm - Nov 01, 2016

Qualcomm (NASDAQ:QCOM), a provider of software and semiconductor chips used in mobile phones, boosted the Fund’s return by 67 basis points, as its stock rose 27.9% from $53.57 to $68.50. Investors cheered the company’s progress in China, as it signed licensing agreements with several smartphone manufacturers and its new Snapdragon chips gained market share in the country. In late September, the stock jumped on reports that the company was in talks to acquire NXP Semiconductors, a leading provider of semiconductors to the automotive industry. If the deal occurs, it would be significantly accretive to earnings, as Qualcomm would add a new, fast-growing revenue stream while putting its $31 billion cash balance to work.

From Jerome Dodson (Trades, Portfolio)'s Parnassus Fund third-quarter 2016 commentary.

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David Rolfe Comments on Qualcomm - Oct 21, 2016

Qualcomm (NASDAQ:QCOM) was also a top contributor to performance over the past three months. We saw Qualcomm make meaningful progress on its technology licensing (QTL) front after several quarters of patiently waiting for the Company to capture unpaid royalties in China. Although Qualcomm’s chipset franchise (QCT) usually garners most of the attention for the Company, its high-margin QTL segment actually generates two-thirds to three-quarters of consolidated profitability. So while revenues at Qualcomm grew 4%, operating income grew almost 30%, year-over-year. Although it has taken several quarters to eventually materialize, we think that the “lumpy” nature of QTL revenues does not make Qualcomm’s long-term prospects for monetizing its prolific research and development spend (cumulative $16 billion over the past three years), any less attractive. In our opinion, Qualcomm shares remain underappreciated by the market, trading at just 14X next 12 month earnings. In addition, the Company maintains a fortress-like balance sheet with about $20 billion in net cash. As a valuation thought-experiment, if Qualcomm levered its balance sheet to be at parity with the average S&P 500 company's (excluding financials) net debt-to-operating earnings ratio4, the Company would have close to 35% of its market cap available for redeployment. We continue to expect that the long-term growth of the business will drive the stock higher and help close that gap, but our conviction in the stock is reinforced by the Company’s excellent financial health, which is a byproduct of their superior profitability.

From David Rolfe (Trades, Portfolio)'s Wedgewood Partners third-quarter 2016 shareholder letter.

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David Rolfe Comments on Qualcomm - Oct 17, 2016

Qualcomm (NASDAQ:QCOM) was also a top contributor to performance over the past three months. We saw Qualcomm make meaningful progress on its technology licensing (QTL) front after several quarters of patiently waiting for the Company to capture unpaid royalties in China. Although Qualcomm’s chipset franchise (QCT) usually garners most of the attention for the Company, its high-margin QTL segment actually generates two-thirds to three-quarters of consolidated profitability. So while revenues at Qualcomm grew 4%, operating income grew almost 30%, year-over-year. Although it has taken several quarters to eventually materialize, we think that the “lumpy” nature of QTL revenues does not make Qualcomm’s long-term prospects for monetizing its prolific research and development spend (cumulative $16 billion over the past three years), any less attractive. In our opinion, Qualcomm shares remain underappreciated by the market, trading at just 14X next 12 month earnings. In addition, the Company maintains a fortress-like balance sheet with about $20 billion in net cash. As a valuation thought-experiment, if Qualcomm levered its balance sheet to be at parity with the average S&P 500 company's (excluding financials) net debt-to-operating earnings ratio4, the Company would have close to 35% of its market cap available for redeployment. We continue to expect that the long-term growth of the business will drive the stock higher and help close that gap, but our conviction in the stock is reinforced by the Company’s excellent financial health, which is a byproduct of their superior profitability.



From Wedgewood Partners' third quarter 2016 shareholder commentary.



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Wedgewood Partners Comments on Qualcomm - Jan 18, 2016

Of note regarding our continued conviction to hold onto Qualcomm (NASDAQ:QCOM), we think Qualcomm's underperformance during the quarter was largely attributed to customer compliance issues and increasing regulatory scrutiny. Both pertain to Qualcomm's lucrative licensing segment, which accounts for the majority of the Company's profitability. Qualcomm continues to represent an excellent risk-reward trade-off, with shares trading at historically low multiples. Ample growth catalysts include management's aggressive investment in increasing customer compliance with respect to signing licensing agreements, as well as retaking market share in its still-dominant chipset business.



We think the existential crisis that the market is pricing into Qualcomm’s shares is much too dire. First, China’s “techno-nationalism” has made it notoriously difficult for U.S. technology companies to compete on the Mainland 2. We believe too that Qualcomm’s 2015 settlement with Chinese regulators over licensing practices represents a very unique and attractive new source of high-margin, revenue growth. To date, it has been difficult for Qualcomm to begin collecting, per their settlement. However, during the quarter, the Company announced that they had signed licensing agreements with four of the five largest Chinese mobile device original equipment manufacturers, so we expect to see licensing revenue ramp faster than the market is expecting. Second, we think there is a good probability Qualcomm wins back share at some key chipset accounts, which should bode well for margins, especially as the Company has invested in a nimbler cost-structure. Last, while we can attribute some of Qualcomm’s recent stumbles to a mobile handset industry that is entering a more mature phase of growth, the Company is relatively further along in the process of converting its business model to reflect those realities, and we expect double-digit earnings per share gains over the next few years. We estimate that Qualcomm currently trades at a mid-single digit forward earning per share multiple, adjusted for net cash, which is a substantial discount to both the Russell 1000 Growth Index and S&P 500 Index. We expect continued significant buyback activity over the next several quarters, which should enhance the Company’s per-share growth prospects.



From Wedgewood Partners' fourth quarter 2015 client letter.



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Ratios

vs
industry
vs
history
PE Ratio 39.25
QCOM's PE Ratio is ranked higher than
56% of the 595 Companies
in the Global Semiconductors industry.

( Industry Median: 22.64 vs. QCOM: 39.25 )
Ranked among companies with meaningful PE Ratio only.
QCOM' s PE Ratio Range Over the Past 10 Years
Min: 13.18  Med: 19.7 Max: 49.59
Current: 39.25
13.18
49.59
Forward PE Ratio 17.06
QCOM's Forward PE Ratio is ranked higher than
79% of the 121 Companies
in the Global Semiconductors industry.

( Industry Median: 17.73 vs. QCOM: 17.06 )
Ranked among companies with meaningful Forward PE Ratio only.
N/A
PE Ratio without NRI 39.25
QCOM's PE Ratio without NRI is ranked higher than
57% of the 592 Companies
in the Global Semiconductors industry.

( Industry Median: 22.86 vs. QCOM: 39.25 )
Ranked among companies with meaningful PE Ratio without NRI only.
QCOM' s PE Ratio without NRI Range Over the Past 10 Years
Min: 13.18  Med: 20.14 Max: 49.59
Current: 39.25
13.18
49.59
Price-to-Owner-Earnings 26.99
QCOM's Price-to-Owner-Earnings is ranked lower than
53% of the 377 Companies
in the Global Semiconductors industry.

( Industry Median: 22.39 vs. QCOM: 26.99 )
Ranked among companies with meaningful Price-to-Owner-Earnings only.
QCOM' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 12.11  Med: 19.13 Max: 36.48
Current: 26.99
12.11
36.48
PB Ratio 3.10
QCOM's PB Ratio is ranked lower than
60% of the 835 Companies
in the Global Semiconductors industry.

( Industry Median: 2.02 vs. QCOM: 3.10 )
Ranked among companies with meaningful PB Ratio only.
QCOM' s PB Ratio Range Over the Past 10 Years
Min: 2.18  Med: 3.24 Max: 5.49
Current: 3.1
2.18
5.49
PS Ratio 4.33
QCOM's PS Ratio is ranked lower than
74% of the 838 Companies
in the Global Semiconductors industry.

( Industry Median: 1.79 vs. QCOM: 4.33 )
Ranked among companies with meaningful PS Ratio only.
QCOM' s PS Ratio Range Over the Past 10 Years
Min: 2.94  Med: 5.46 Max: 9.48
Current: 4.33
2.94
9.48
Price-to-Free-Cash-Flow 24.11
QCOM's Price-to-Free-Cash-Flow is ranked higher than
51% of the 380 Companies
in the Global Semiconductors industry.

( Industry Median: 21.04 vs. QCOM: 24.11 )
Ranked among companies with meaningful Price-to-Free-Cash-Flow only.
QCOM' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 10.6  Med: 18.85 Max: 39.8
Current: 24.11
10.6
39.8
Price-to-Operating-Cash-Flow 20.57
QCOM's Price-to-Operating-Cash-Flow is ranked lower than
62% of the 486 Companies
in the Global Semiconductors industry.

( Industry Median: 13.78 vs. QCOM: 20.57 )
Ranked among companies with meaningful Price-to-Operating-Cash-Flow only.
QCOM' s Price-to-Operating-Cash-Flow Range Over the Past 10 Years
Min: 8.57  Med: 16.09 Max: 33.73
Current: 20.57
8.57
33.73
EV-to-EBIT 22.79
QCOM's EV-to-EBIT is ranked higher than
54% of the 597 Companies
in the Global Semiconductors industry.

( Industry Median: 17.61 vs. QCOM: 22.79 )
Ranked among companies with meaningful EV-to-EBIT only.
QCOM' s EV-to-EBIT Range Over the Past 10 Years
Min: 9.4  Med: 15 Max: 32.2
Current: 22.79
9.4
32.2
EV-to-EBITDA 16.09
QCOM's EV-to-EBITDA is ranked higher than
54% of the 661 Companies
in the Global Semiconductors industry.

( Industry Median: 12.96 vs. QCOM: 16.09 )
Ranked among companies with meaningful EV-to-EBITDA only.
QCOM' s EV-to-EBITDA Range Over the Past 10 Years
Min: 8.3  Med: 12.8 Max: 24.7
Current: 16.09
8.3
24.7
EV-to-Revenue 3.59
QCOM's EV-to-Revenue is ranked lower than
73% of the 843 Companies
in the Global Semiconductors industry.

( Industry Median: 1.80 vs. QCOM: 3.59 )
Ranked among companies with meaningful EV-to-Revenue only.
QCOM' s EV-to-Revenue Range Over the Past 10 Years
Min: 2.6  Med: 4.7 Max: 8.6
Current: 3.59
2.6
8.6
Shiller PE Ratio 21.46
QCOM's Shiller PE Ratio is ranked higher than
80% of the 148 Companies
in the Global Semiconductors industry.

( Industry Median: 44.35 vs. QCOM: 21.46 )
Ranked among companies with meaningful Shiller PE Ratio only.
QCOM' s Shiller PE Ratio Range Over the Past 10 Years
Min: 15.83  Med: 33.58 Max: 81.81
Current: 21.46
15.83
81.81
Current Ratio 4.00
QCOM's Current Ratio is ranked higher than
67% of the 855 Companies
in the Global Semiconductors industry.

( Industry Median: 2.23 vs. QCOM: 4.00 )
Ranked among companies with meaningful Current Ratio only.
QCOM' s Current Ratio Range Over the Past 10 Years
Min: 0.92  Med: 3.74 Max: 8.08
Current: 4
0.92
8.08
Quick Ratio 3.81
QCOM's Quick Ratio is ranked higher than
73% of the 855 Companies
in the Global Semiconductors industry.

( Industry Median: 1.70 vs. QCOM: 3.81 )
Ranked among companies with meaningful Quick Ratio only.
QCOM' s Quick Ratio Range Over the Past 10 Years
Min: 0.69  Med: 3.49 Max: 7.91
Current: 3.81
0.69
7.91
Days Inventory 71.34
QCOM's Days Inventory is ranked higher than
60% of the 827 Companies
in the Global Semiconductors industry.

( Industry Median: 79.77 vs. QCOM: 71.34 )
Ranked among companies with meaningful Days Inventory only.
QCOM' s Days Inventory Range Over the Past 10 Years
Min: 43.34  Med: 52.4 Max: 71.34
Current: 71.34
43.34
71.34
Days Sales Outstanding 59.47
QCOM's Days Sales Outstanding is ranked higher than
58% of the 779 Companies
in the Global Semiconductors industry.

( Industry Median: 64.24 vs. QCOM: 59.47 )
Ranked among companies with meaningful Days Sales Outstanding only.
QCOM' s Days Sales Outstanding Range Over the Past 10 Years
Min: 24.23  Med: 29.9 Max: 132.28
Current: 59.47
24.23
132.28
Days Payable 73.48
QCOM's Days Payable is ranked higher than
54% of the 758 Companies
in the Global Semiconductors industry.

( Industry Median: 53.42 vs. QCOM: 73.48 )
Ranked among companies with meaningful Days Payable only.
QCOM' s Days Payable Range Over the Past 10 Years
Min: 45.72  Med: 71.04 Max: 112.12
Current: 73.48
45.72
112.12

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield % 3.46
QCOM's Dividend Yield % is ranked higher than
85% of the 622 Companies
in the Global Semiconductors industry.

( Industry Median: 1.76 vs. QCOM: 3.46 )
Ranked among companies with meaningful Dividend Yield % only.
QCOM' s Dividend Yield % Range Over the Past 10 Years
Min: 1.03  Med: 1.64 Max: 4.43
Current: 3.46
1.03
4.43
Dividend Payout Ratio 1.33
QCOM's Dividend Payout Ratio is ranked lower than
66% of the 411 Companies
in the Global Semiconductors industry.

( Industry Median: 0.39 vs. QCOM: 1.33 )
Ranked among companies with meaningful Dividend Payout Ratio only.
QCOM' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.3  Med: 0.35 Max: 1.33
Current: 1.33
0.3
1.33
3-Year Dividend Growth Rate 12.60
QCOM's 3-Year Dividend Growth Rate is ranked higher than
71% of the 293 Companies
in the Global Semiconductors industry.

( Industry Median: 6.30 vs. QCOM: 12.60 )
Ranked among companies with meaningful 3-Year Dividend Growth Rate only.
QCOM' s 3-Year Dividend Growth Rate Range Over the Past 10 Years
Min: 0  Med: 0 Max: 70.3
Current: 12.6
0
70.3
Forward Dividend Yield % 3.52
QCOM's Forward Dividend Yield % is ranked higher than
85% of the 571 Companies
in the Global Semiconductors industry.

( Industry Median: 1.99 vs. QCOM: 3.52 )
Ranked among companies with meaningful Forward Dividend Yield % only.
N/A
5-Year Yield-on-Cost % 8.21
QCOM's 5-Year Yield-on-Cost % is ranked higher than
94% of the 791 Companies
in the Global Semiconductors industry.

( Industry Median: 2.06 vs. QCOM: 8.21 )
Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
QCOM' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.44  Med: 3.88 Max: 10.48
Current: 8.21
2.44
10.48
3-Year Average Share Buyback Ratio 4.10
QCOM's 3-Year Average Share Buyback Ratio is ranked higher than
98% of the 616 Companies
in the Global Semiconductors industry.

( Industry Median: -3.70 vs. QCOM: 4.10 )
Ranked among companies with meaningful 3-Year Average Share Buyback Ratio only.
QCOM' s 3-Year Average Share Buyback Ratio Range Over the Past 10 Years
Min: -18.1  Med: -1.7 Max: 4.3
Current: 4.1
-18.1
4.3

Valuation & Return

vs
industry
vs
history
Price-to-Net-Cash 37.22
QCOM's Price-to-Net-Cash is ranked lower than
99.99% of the 255 Companies
in the Global Semiconductors industry.

( Industry Median: 9.59 vs. QCOM: 37.22 )
Ranked among companies with meaningful Price-to-Net-Cash only.
QCOM' s Price-to-Net-Cash Range Over the Past 10 Years
Min: 8.03  Med: 19.06 Max: 128.94
Current: 37.22
8.03
128.94
Price-to-Net-Current-Asset-Value 10.77
QCOM's Price-to-Net-Current-Asset-Value is ranked lower than
99.99% of the 579 Companies
in the Global Semiconductors industry.

( Industry Median: 4.71 vs. QCOM: 10.77 )
Ranked among companies with meaningful Price-to-Net-Current-Asset-Value only.
QCOM' s Price-to-Net-Current-Asset-Value Range Over the Past 10 Years
Min: 5.2  Med: 11.43 Max: 42.02
Current: 10.77
5.2
42.02
Price-to-Tangible-Book 4.68
QCOM's Price-to-Tangible-Book is ranked lower than
70% of the 802 Companies
in the Global Semiconductors industry.

( Industry Median: 2.16 vs. QCOM: 4.68 )
Ranked among companies with meaningful Price-to-Tangible-Book only.
QCOM' s Price-to-Tangible-Book Range Over the Past 10 Years
Min: 3.27  Med: 4.53 Max: 11.35
Current: 4.68
3.27
11.35
Price-to-Intrinsic-Value-Projected-FCF 1.19
QCOM's Price-to-Intrinsic-Value-Projected-FCF is ranked higher than
76% of the 465 Companies
in the Global Semiconductors industry.

( Industry Median: 1.62 vs. QCOM: 1.19 )
Ranked among companies with meaningful Price-to-Intrinsic-Value-Projected-FCF only.
QCOM' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 0.8  Med: 1.67 Max: 65.69
Current: 1.19
0.8
65.69
Price-to-Median-PS-Value 0.79
QCOM's Price-to-Median-PS-Value is ranked higher than
89% of the 763 Companies
in the Global Semiconductors industry.

( Industry Median: 1.18 vs. QCOM: 0.79 )
Ranked among companies with meaningful Price-to-Median-PS-Value only.
QCOM' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.03  Med: 1.11 Max: 3.26
Current: 0.79
0.03
3.26
Price-to-Graham-Number 2.85
QCOM's Price-to-Graham-Number is ranked lower than
60% of the 546 Companies
in the Global Semiconductors industry.

( Industry Median: 1.56 vs. QCOM: 2.85 )
Ranked among companies with meaningful Price-to-Graham-Number only.
QCOM' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.65  Med: 2.48 Max: 8.51
Current: 2.85
1.65
8.51
Earnings Yield (Greenblatt) % 4.39
QCOM's Earnings Yield (Greenblatt) % is ranked higher than
68% of the 860 Companies
in the Global Semiconductors industry.

( Industry Median: 3.46 vs. QCOM: 4.39 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) % only.
QCOM' s Earnings Yield (Greenblatt) % Range Over the Past 10 Years
Min: 3.1  Med: 6.65 Max: 10.7
Current: 4.39
3.1
10.7
Forward Rate of Return (Yacktman) % 5.79
QCOM's Forward Rate of Return (Yacktman) % is ranked higher than
53% of the 384 Companies
in the Global Semiconductors industry.

( Industry Median: 8.32 vs. QCOM: 5.79 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) % only.
QCOM' s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: 5.4  Med: 18.6 Max: 42.4
Current: 5.79
5.4
42.4

More Statistics

Revenue (TTM) (Mil) $22,290.00
EPS (TTM) $ 1.65
Beta1.46
Short Percentage of Float1.24%
52-Week Range $48.92 - 70.24
Shares Outstanding (Mil)1,474.16

Analyst Estimate

Sep18 Sep19 Sep20
Revenue (Mil $) 23,949 25,988 30,468
EPS ($) 3.76 4.34 5.17
EPS without NRI ($) 3.76 4.34 5.17
EPS Growth Rate
(Future 3Y To 5Y Estimate)
9.69%
Dividends per Share ($) 2.38 2.49 2.62

Piotroski F-Score Details

Piotroski F-Score: 55
Positive ROAY
Positive CFROAY
Higher ROA yoyN
CFROA > ROAY
Lower Leverage yoyN
Higher Current Ratio yoyY
Less Shares Outstanding yoyY
Higher Gross Margin yoyN
Higher Asset Turnover yoyN

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