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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 1.71
QCOM's Cash-to-Debt is ranked higher than
50% of the 860 Companies
in the Global Semiconductors industry.

( Industry Median: 1.59 vs. QCOM: 1.71 )
Ranked among companies with meaningful Cash-to-Debt only.
QCOM' s Cash-to-Debt Range Over the Past 10 Years
Min: 0.01  Med: 14.06 Max: No Debt
Current: 1.71
0.01
No Debt
Equity-to-Asset 0.37
QCOM's Equity-to-Asset is ranked lower than
82% of the 856 Companies
in the Global Semiconductors industry.

( Industry Median: 0.60 vs. QCOM: 0.37 )
Ranked among companies with meaningful Equity-to-Asset only.
QCOM' s Equity-to-Asset Range Over the Past 10 Years
Min: 0.06  Med: 0.77 Max: 0.91
Current: 0.37
0.06
0.91
Debt-to-Equity 0.97
QCOM's Debt-to-Equity is ranked lower than
81% of the 649 Companies
in the Global Semiconductors industry.

( Industry Median: 0.35 vs. QCOM: 0.97 )
Ranked among companies with meaningful Debt-to-Equity only.
QCOM' s Debt-to-Equity Range Over the Past 10 Years
Min: 0  Med: 0.11 Max: 6.73
Current: 0.97
0
6.73
Debt-to-EBITDA 6.06
QCOM's Debt-to-EBITDA is ranked lower than
79% of the 557 Companies
in the Global Semiconductors industry.

( Industry Median: 1.81 vs. QCOM: 6.06 )
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: 6.06
Current: 6.06
0.04
6.06
Interest Coverage 5.97
QCOM's Interest Coverage is ranked lower than
88% of the 683 Companies
in the Global Semiconductors industry.

( Industry Median: 55.91 vs. QCOM: 5.97 )
Ranked among companies with meaningful Interest Coverage only.
QCOM' s Interest Coverage Range Over the Past 10 Years
Min: 5.97  Med: 77.32 Max: No Debt
Current: 5.97
5.97
No Debt
Piotroski F-Score: 3
Altman Z-Score: 2.88
Beneish M-Score: -3.55
WACC vs ROIC
9.90%
1350.80%
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 % 17.07
QCOM's Operating Margin % is ranked higher than
59% of the 859 Companies
in the Global Semiconductors industry.

( Industry Median: 5.83 vs. QCOM: 17.07 )
Ranked among companies with meaningful Operating Margin % only.
QCOM' s Operating Margin % Range Over the Past 10 Years
Min: 17.07  Med: 30.37 Max: 34.37
Current: 17.07
17.07
34.37
Net Margin % -20.15
QCOM's Net Margin % is ranked lower than
88% of the 859 Companies
in the Global Semiconductors industry.

( Industry Median: 4.90 vs. QCOM: -20.15 )
Ranked among companies with meaningful Net Margin % only.
QCOM' s Net Margin % Range Over the Past 10 Years
Min: -20.15  Med: 27.96 Max: 31.95
Current: -20.15
-20.15
31.95
ROE % -16.14
QCOM's ROE % is ranked lower than
85% of the 839 Companies
in the Global Semiconductors industry.

( Industry Median: 7.09 vs. QCOM: -16.14 )
Ranked among companies with meaningful ROE % only.
QCOM' s ROE % Range Over the Past 10 Years
Min: -16.14  Med: 17.94 Max: 21.17
Current: -16.14
-16.14
21.17
ROA % -7.24
QCOM's ROA % is ranked lower than
83% of the 866 Companies
in the Global Semiconductors industry.

( Industry Median: 3.57 vs. QCOM: -7.24 )
Ranked among companies with meaningful ROA % only.
QCOM' s ROA % Range Over the Past 10 Years
Min: -7.24  Med: 11.96 Max: 16.93
Current: -7.24
-7.24
16.93
ROC (Joel Greenblatt) % 71.38
QCOM's ROC (Joel Greenblatt) % is ranked higher than
93% of the 865 Companies
in the Global Semiconductors industry.

( Industry Median: 12.10 vs. QCOM: 71.38 )
Ranked among companies with meaningful ROC (Joel Greenblatt) % only.
QCOM' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 54.24  Med: 247.53 Max: 320.43
Current: 71.38
54.24
320.43
3-Year Revenue Growth Rate -1.10
QCOM's 3-Year Revenue Growth Rate is ranked lower than
59% of the 777 Companies
in the Global Semiconductors industry.

( Industry Median: 2.70 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
83% of the 642 Companies
in the Global Semiconductors industry.

( Industry Median: 8.50 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: 0  Med: 18.2 Max: 109.8
Current: -16.8
0
109.8
3-Year EPS without NRI Growth Rate -27.90
QCOM's 3-Year EPS without NRI Growth Rate is ranked lower than
87% of the 588 Companies
in the Global Semiconductors industry.

( Industry Median: 10.50 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: 0  Med: 12.4 Max: 97.9
Current: -27.9
0
97.9
GuruFocus has detected 6 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: 2018-07-19)


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

» Details

Guru Trades

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
Q4 2017

QCOM Guru Trades in Q4 2017

Pioneer Investments 1,457,960 sh (New)
Andreas Halvorsen 604,892 sh (New)
Paul Tudor Jones 48,124 sh (New)
George Soros 154,800 sh (New)
John Paulson 40,000 sh (New)
Steven Cohen 100,360 sh (+226.59%)
Jeremy Grantham 5,734,033 sh (+4.74%)
Murray Stahl 4,401 sh (+2.33%)
T Rowe Price Equity Income Fund 6,375,000 sh (+1.59%)
Richard Pzena 744,080 sh (+0.04%)
First Eagle Investment 50,000 sh (unchged)
Jeremy Grantham 299,000 sh (unchged)
Ron Baron 4,000 sh (unchged)
Dodge & Cox 5,430 sh (unchged)
Lee Ainslie Sold Out
Bill Nygren Sold Out
Spiros Segalas Sold Out
John Buckingham 90,750 sh (-0.05%)
PRIMECAP Management 15,314,552 sh (-0.59%)
Richard Snow 775,846 sh (-5.15%)
Mairs and Power 1,376,106 sh (-9.96%)
Joel Greenblatt 437,080 sh (-11.11%)
David Dreman 25,321 sh (-11.23%)
Barrow, Hanley, Mewhinney & Strauss 22,705,011 sh (-11.56%)
Ken Fisher 595,392 sh (-15.42%)
Sarah Ketterer 3,035,961 sh (-19.36%)
David Rolfe 2,187,950 sh (-27.27%)
First Pacific Advisors 1,750,839 sh (-45.46%)
Steven Romick 1,365,211 sh (-45.72%)
Jim Simons 146,758 sh (-95.00%)
John Hussman 2,000 sh (-96.15%)
» More
Q1 2018

QCOM Guru Trades in Q1 2018

Stanley Druckenmiller 411,000 sh (New)
PRIMECAP Management 21,609,105 sh (+41.10%)
Joel Greenblatt 595,265 sh (+36.19%)
Ken Fisher 741,544 sh (+24.55%)
Pioneer Investments 1,616,950 sh (+10.90%)
Sarah Ketterer 3,148,440 sh (+3.70%)
Paul Tudor Jones 49,245 sh (+2.33%)
John Buckingham 92,699 sh (+2.15%)
T Rowe Price Equity Income Fund 6,430,000 sh (+0.86%)
Steven Romick 1,365,211 sh (unchged)
Ron Baron 4,000 sh (unchged)
Jeremy Grantham 110,000 sh (unchged)
Louis Moore Bacon 200,000 sh (unchged)
Paul Tudor Jones 200,000 sh (unchged)
Paul Tudor Jones 158,000 sh (unchged)
John Paulson 10,000 sh (unchged)
Andreas Halvorsen Sold Out
John Paulson Sold Out
George Soros Sold Out
Steven Cohen Sold Out
First Eagle Investment Sold Out
First Pacific Advisors 1,736,572 sh (-0.81%)
Mairs and Power 1,361,840 sh (-1.04%)
Jeremy Grantham 5,571,214 sh (-2.84%)
David Dreman 24,529 sh (-3.13%)
Barrow, Hanley, Mewhinney & Strauss 21,657,645 sh (-4.61%)
Richard Pzena 700,983 sh (-5.79%)
Dodge & Cox 5,000 sh (-7.92%)
David Rolfe 1,942,088 sh (-11.24%)
Jim Simons 128,660 sh (-12.33%)
Murray Stahl 3,646 sh (-17.16%)
John Hussman 1,200 sh (-40.00%)
Richard Snow 360,217 sh (-53.57%)
» 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 2018-03-31 Reduce -4.61%0.1%$53.66 - $68.67 $ 59.08-7%21,657,645
T Rowe Price Equity Income Fund 2018-03-31 Add 0.86%0.02%$53.66 - $68.67 $ 59.08-7%6,430,000
Ken Fisher 2018-03-31 Add 24.55%0.01%$53.66 - $68.67 $ 59.08-7%741,544
Richard Pzena 2018-03-31 Reduce -5.79%0.01%$53.66 - $68.67 $ 59.08-7%700,983
Joel Greenblatt 2018-03-31 Add 36.19%0.12%$53.66 - $68.67 $ 59.08-7%595,265
David Dreman 2018-03-31 Reduce -3.13%0.03%$53.66 - $68.67 $ 59.08-7%24,529
Dodge & Cox 2018-03-31 Reduce -7.92%$53.66 - $68.67 $ 59.08-7%5,000
First Eagle Investment 2018-03-31 Sold Out 0.01%$53.66 - $68.67 $ 59.08-7%0
John Paulson 2018-03-31 Sold Out 0.05%$53.66 - $68.67 $ 59.08-7%0
George Soros 2018-03-31 Sold Out 0.27%$53.66 - $68.67 $ 59.08-7%0
Barrow, Hanley, Mewhinney & Strauss 2017-12-31 Reduce -11.56%0.23%$51.01 - $68.91 $ 59.08-2%22,705,011
T Rowe Price Equity Income Fund 2017-12-31 Add 1.59%0.03%$51.01 - $68.91 $ 59.08-2%6,375,000
Richard Pzena 2017-12-31 Add 0.04%$51.01 - $68.91 $ 59.08-2%744,080
Ken Fisher 2017-12-31 Reduce -15.42%0.01%$51.01 - $68.91 $ 59.08-2%595,392
Joel Greenblatt 2017-12-31 Reduce -11.11%0.04%$51.01 - $68.91 $ 59.08-2%437,080
George Soros 2017-12-31 New Buy0.27%$51.01 - $68.91 $ 59.08-2%154,800
John Paulson 2017-12-31 New Buy0.05%$51.01 - $68.91 $ 59.08-2%40,000
David Dreman 2017-12-31 Reduce -11.23%0.09%$51.01 - $68.91 $ 59.08-2%25,321
Bill Nygren 2017-12-31 Sold Out 1.26%$51.01 - $68.91 $ 59.08-2%0
Barrow, Hanley, Mewhinney & Strauss 2017-09-30 Add 1.98%0.04%$49.64 - $56.81 $ 59.0812%25,674,098
T Rowe Price Equity Income Fund 2017-09-30 Add 1.75%0.03%$49.64 - $56.81 $ 59.0812%6,275,000
Ken Fisher 2017-09-30 Reduce -35.62%0.04%$49.64 - $56.81 $ 59.0812%703,913
Joel Greenblatt 2017-09-30 Add 69.75%0.15%$49.64 - $56.81 $ 59.0812%491,725
First Eagle Investment 2017-09-30 Reduce -96.66%0.19%$49.64 - $56.81 $ 59.0812%50,000
David Dreman 2017-09-30 Reduce -5.36%0.05%$49.64 - $56.81 $ 59.0812%28,524
Seth Klarman 2017-09-30 Sold Out 3.31%$49.64 - $56.81 $ 59.0812%0
Barrow, Hanley, Mewhinney & Strauss 2017-06-30 Add 10.59%0.2%$52.5 - $59.28 $ 59.086%25,175,774
T Rowe Price Equity Income Fund 2017-06-30 Add 3.65%0.06%$52.5 - $59.28 $ 59.086%6,167,200
Bill Nygren 2017-06-30 Reduce -8.43%0.14%$52.5 - $59.28 $ 59.086%4,345,000
First Eagle Investment 2017-06-30 New Buy0.2%$52.5 - $59.28 $ 59.086%1,495,038
Ken Fisher 2017-06-30 Reduce -89.11%0.86%$52.5 - $59.28 $ 59.086%1,093,398
Joel Greenblatt 2017-06-30 Reduce -73.04%0.57%$52.5 - $59.28 $ 59.086%289,668
David Dreman 2017-06-30 Add 81.98%0.41%$52.5 - $59.28 $ 59.086%30,139
Julian Robertson 2017-06-30 Sold Out 1.87%$52.5 - $59.28 $ 59.086%0
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Business Description

Industry: Semiconductors » Semiconductors    NAICS: 334118    SIC: 3577
Compare:NAS:AVGO, NAS:TXN, NAS:NXPI, NAS:ADI, XTER:IFX, MIL:STM, NAS:MCHP, TPE:2454, TSE:6723, NAS:XLNX, NAS:SWKS, NAS:MXIM, NAS:NVDA, TPE:2311, SHSE:600703, NAS:AMD, NAS:MRVL, TSE:6963, NAS:ON, NAS:QRVO » 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 - Apr 16, 2018

Qualcomm (NASDAQ:QCOM) was a top detractor during the first quarter. Shares retreated after President Trump issued an order to block any attempt by Broadcom to acquire Qualcomm shares or stage a proxy contest, per research from the Committee on Foreign Investment in the United States (CIFIUS). As best as we can tell, given the limited public disclosures, CFIUS speculated that any change in control from Qualcomm to Broadcom could pose a risk to the national security of the United States. Specifically, CFIUS claimed that Qualcomm’s research and development (R&D) efforts were critical to the U.S.’ leadership in the development of global wireless communications standards, and worried that any efforts by Broadcom to defund that R&D risked a “reduction in Qualcomm’s long-term technological competitiveness and 17 influence in standard setting [which] would significantly impact U.S. national security,” especially vis a vis China.5

While we’re not surprised that this deal was terminated, we are surprised that it was terminated in this manner. First, as we have frustratingly witnessed, regulators the worldover – including our own U.S. FTC – have pressured Qualcomm’s business model, and therefore R&D, for years, either through fiat and/or lawsuit. Second, Apple (one of Qualcomm’s largest customers) has indemnified and compelled its Chinese contract manufacturers to withhold several billion dollars in very high margin payments to Qualcomm over the past 15 or so months with little or no pushback from U.S. regulators. In addition, Huawei – a quasi-Chinese SOE – has mimicked Apple’s behavior and withheld – what we estimate to be – several hundred million in high margin revenue dollars over the same timeframe – again, no regulators seem to have a problem with this. So, it makes us wonder why CFIUS and U.S. POTUS decided that Broadcom’s proposed ~$80 per share offer for Qualcomm represents the most intolerable potential risk to the national security of the United States, when clearly Qualcomm has already been pressured by the actual activities of governments, including the U.S. In fact, we’d argue that the actions (and inactions) of regulators, particularly during the past 15 months, are what precipitated Broadcom’s attempt at unlocking growth and value at Qualcomm.

Despite this detour, we will continue to be patient with our Qualcomm ownership, as we think many investors have become overly negative. For example, it is consensus to assume close to zero revenues from Apple and Huawei over the next year, and maybe longer. However, Apple (and we suspect Huawei) is accruing expenses for a potential settlement with Qualcomm. While that might be an accounting necessity, we think it’s also indicative of a real probability. Second, Qualcomm has set several hundred commercial precedents with handset OEMs, most recently with Samsung – the largest handset OEM by units – and offered similar licensing terms to Apple. So we are highly skeptical Apple is being treated unfairly, despite its claims. Once these commercial arrangements are settled, we expect Qualcomm’s longer-term organic growth to be driven by the global shift to 5G standards, where Qualcomm has dominant technological positioning. Further, we think there continues to be a high probability that the Company’s acquisition of NXP Semiconductor will get approved in the coming months, which could lead to sizable earnings per share accretion.

From David Rolfe (Trades, Portfolio)'s Wedgewood Partners first quarter 2018 shareholder letter.

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Leith Wheeler Comments on Qualcomm - Mar 09, 2018

After a tumultuous year of battling Apple over licensing payments, shares of Qualcomm Inc. (+25.2%) rebounded in the fourth quarter as rumors began to swirl that Broadcom was interested in acquiring the company. In November, Broadcom officially offered to buy Qualcomm for $70/ share of cash and stock. Qualcomm (NASDAQ:QCOM) rejected the offer, saying it dramatically undervalues the company and setting the stage for a potential proxy battle. Shares of Qualcomm remain attractive at less than 14 times earnings per share with a 3.5% dividend yield compared to the overall market of 18.5 times and 1.8%, respectively.



From Leith Wheeler Investment Funds' 4th quarter 2017 commentary.



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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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Top Ranked Articles about Qualcomm Inc

Qualcomm Snapdragon 710 Mobile Platform Brings In-Demand Premium Features to a New Tier of Smartphones
Qualcomm Announces Cash Offers for Four Series of Notes Open to Retail Holders Only
Qualcomm Announces Private Exchange Offers for Four Series of Notes Open to Certain Investors
Qualcomm Announces Cash Offers for Four Series of Notes Open to Retail Holders Only
Qualcomm Announces Private Exchange Offers for Four Series of Notes Open to Certain Investors
Qualcomm and Facebook to Bring High-Speed Internet Connectivity Over 60GHz to Urban Areas
Qualcomm Introduces Industry's First 5G NR Solution for Small Cells and Remote Radio Heads
Qualcomm Integrates Newest Wi-Fi Security Standard Across Mobile and Networking Infrastructure Portfolios
T-Mobile and Sprint Assure Nextel Horror Won’t Repeat T-Mobile and Sprint are taking steps to ensure seamless subscriber integration
T-Mobile (NASDAQ:TMUS) and Sprint (NYSE:S) are taking effective steps to avoid the disaster of Sprint and the Nextel merger deal that happened back in 2005. Customers are worried that the $26 billion proposed deal between the third- and fourth-largest national carriers will cause the kind of inconvenience they suffered when Sprint joined forces with Nextel, which had a network that used a different technology. Read more...
Qualcomm Extends Cash Tender Offer for All Outstanding Shares of NXP

Ratios

vs
industry
vs
history
Forward PE Ratio 17.70
QCOM's Forward PE Ratio is ranked higher than
54% of the 155 Companies
in the Global Semiconductors industry.

( Industry Median: 19.05 vs. QCOM: 17.70 )
Ranked among companies with meaningful Forward PE Ratio only.
N/A
Price-to-Owner-Earnings 30.96
QCOM's Price-to-Owner-Earnings is ranked lower than
99.99% of the 386 Companies
in the Global Semiconductors industry.

( Industry Median: 22.66 vs. QCOM: 30.96 )
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: 18.91 Max: 36.48
Current: 30.96
12.11
36.48
PB Ratio 3.69
QCOM's PB Ratio is ranked lower than
77% of the 839 Companies
in the Global Semiconductors industry.

( Industry Median: 1.99 vs. QCOM: 3.69 )
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: 3.69
2.18
5.49
PS Ratio 3.90
QCOM's PS Ratio is ranked lower than
79% of the 841 Companies
in the Global Semiconductors industry.

( Industry Median: 1.83 vs. QCOM: 3.90 )
Ranked among companies with meaningful PS Ratio only.
QCOM' s PS Ratio Range Over the Past 10 Years
Min: 2.94  Med: 5.32 Max: 9.22
Current: 3.9
2.94
9.22
Price-to-Free-Cash-Flow 23.59
QCOM's Price-to-Free-Cash-Flow is ranked lower than
52% of the 390 Companies
in the Global Semiconductors industry.

( Industry Median: 21.35 vs. QCOM: 23.59 )
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: 18.91 Max: 71.23
Current: 23.59
10.6
71.23
Price-to-Operating-Cash-Flow 19.20
QCOM's Price-to-Operating-Cash-Flow is ranked lower than
64% of the 504 Companies
in the Global Semiconductors industry.

( Industry Median: 14.14 vs. QCOM: 19.20 )
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: 15.97 Max: 33.73
Current: 19.2
8.57
33.73
EV-to-EBIT 31.38
QCOM's EV-to-EBIT is ranked lower than
73% of the 614 Companies
in the Global Semiconductors industry.

( Industry Median: 17.38 vs. QCOM: 31.38 )
Ranked among companies with meaningful EV-to-EBIT only.
QCOM' s EV-to-EBIT Range Over the Past 10 Years
Min: 9.4  Med: 14.7 Max: 35.4
Current: 31.38
9.4
35.4
EV-to-EBITDA 18.70
QCOM's EV-to-EBITDA is ranked lower than
66% of the 674 Companies
in the Global Semiconductors industry.

( Industry Median: 12.58 vs. QCOM: 18.70 )
Ranked among companies with meaningful EV-to-EBITDA only.
QCOM' s EV-to-EBITDA Range Over the Past 10 Years
Min: 8.3  Med: 12.6 Max: 24.7
Current: 18.7
8.3
24.7
EV-to-Revenue 3.16
QCOM's EV-to-Revenue is ranked lower than
74% of the 850 Companies
in the Global Semiconductors industry.

( Industry Median: 1.84 vs. QCOM: 3.16 )
Ranked among companies with meaningful EV-to-Revenue only.
QCOM' s EV-to-Revenue Range Over the Past 10 Years
Min: 2.6  Med: 4.6 Max: 8.6
Current: 3.16
2.6
8.6
Shiller PE Ratio 23.18
QCOM's Shiller PE Ratio is ranked higher than
70% of the 158 Companies
in the Global Semiconductors industry.

( Industry Median: 43.42 vs. QCOM: 23.18 )
Ranked among companies with meaningful Shiller PE Ratio only.
QCOM' s Shiller PE Ratio Range Over the Past 10 Years
Min: 15.83  Med: 33.02 Max: 71.98
Current: 23.18
15.83
71.98
Current Ratio 3.60
QCOM's Current Ratio is ranked higher than
71% of the 851 Companies
in the Global Semiconductors industry.

( Industry Median: 2.27 vs. QCOM: 3.60 )
Ranked among companies with meaningful Current Ratio only.
QCOM' s Current Ratio Range Over the Past 10 Years
Min: 0.92  Med: 3.73 Max: 9.29
Current: 3.6
0.92
9.29
Quick Ratio 3.46
QCOM's Quick Ratio is ranked higher than
76% of the 851 Companies
in the Global Semiconductors industry.

( Industry Median: 1.71 vs. QCOM: 3.46 )
Ranked among companies with meaningful Quick Ratio only.
QCOM' s Quick Ratio Range Over the Past 10 Years
Min: 0.69  Med: 3.47 Max: 9.16
Current: 3.46
0.69
9.16
Days Inventory 71.04
QCOM's Days Inventory is ranked higher than
54% of the 835 Companies
in the Global Semiconductors industry.

( Industry Median: 78.45 vs. QCOM: 71.04 )
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: 71.04
Current: 71.04
43.34
71.04
Days Sales Outstanding 57.08
QCOM's Days Sales Outstanding is ranked higher than
68% of the 773 Companies
in the Global Semiconductors industry.

( Industry Median: 62.35 vs. QCOM: 57.08 )
Ranked among companies with meaningful Days Sales Outstanding only.
QCOM' s Days Sales Outstanding Range Over the Past 10 Years
Min: 23.99  Med: 29.45 Max: 132.28
Current: 57.08
23.99
132.28
Days Payable 52.85
QCOM's Days Payable is ranked higher than
60% of the 753 Companies
in the Global Semiconductors industry.

( Industry Median: 50.93 vs. QCOM: 52.85 )
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: 52.85
45.72
112.12

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield % 3.85
QCOM's Dividend Yield % is ranked higher than
85% of the 652 Companies
in the Global Semiconductors industry.

( Industry Median: 1.61 vs. QCOM: 3.85 )
Ranked among companies with meaningful Dividend Yield % only.
QCOM' s Dividend Yield % Range Over the Past 10 Years
Min: 1.03  Med: 1.73 Max: 4.46
Current: 3.85
1.03
4.46
3-Year Dividend Growth Rate 12.60
QCOM's 3-Year Dividend Growth Rate is ranked higher than
60% of the 296 Companies
in the Global Semiconductors industry.

( Industry Median: 6.40 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 % 4.22
QCOM's Forward Dividend Yield % is ranked higher than
82% of the 608 Companies
in the Global Semiconductors industry.

( Industry Median: 1.84 vs. QCOM: 4.22 )
Ranked among companies with meaningful Forward Dividend Yield % only.
N/A
5-Year Yield-on-Cost % 9.11
QCOM's 5-Year Yield-on-Cost % is ranked higher than
92% of the 808 Companies
in the Global Semiconductors industry.

( Industry Median: 1.92 vs. QCOM: 9.11 )
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: 4.09 Max: 10.55
Current: 9.11
2.44
10.55
3-Year Average Share Buyback Ratio 4.10
QCOM's 3-Year Average Share Buyback Ratio is ranked higher than
96% of the 609 Companies
in the Global Semiconductors industry.

( Industry Median: -3.60 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-Current-Asset-Value 16.74
QCOM's Price-to-Net-Current-Asset-Value is ranked lower than
99% of the 574 Companies
in the Global Semiconductors industry.

( Industry Median: 4.82 vs. QCOM: 16.74 )
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: 3.53  Med: 11.68 Max: 217.35
Current: 16.74
3.53
217.35
Price-to-Tangible-Book 6.39
QCOM's Price-to-Tangible-Book is ranked lower than
86% of the 805 Companies
in the Global Semiconductors industry.

( Industry Median: 2.15 vs. QCOM: 6.39 )
Ranked among companies with meaningful Price-to-Tangible-Book only.
QCOM' s Price-to-Tangible-Book Range Over the Past 10 Years
Min: 3.07  Med: 4.67 Max: 33.82
Current: 6.39
3.07
33.82
Price-to-Intrinsic-Value-Projected-FCF 1.20
QCOM's Price-to-Intrinsic-Value-Projected-FCF is ranked higher than
63% of the 475 Companies
in the Global Semiconductors industry.

( Industry Median: 1.63 vs. QCOM: 1.20 )
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: 0.72  Med: 1.48 Max: 591.25
Current: 1.2
0.72
591.25
Price-to-Median-PS-Value 0.73
QCOM's Price-to-Median-PS-Value is ranked higher than
81% of the 758 Companies
in the Global Semiconductors industry.

( Industry Median: 1.16 vs. QCOM: 0.73 )
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: 1.07 Max: 5.59
Current: 0.73
0.03
5.59
Earnings Yield (Greenblatt) % 3.18
QCOM's Earnings Yield (Greenblatt) % is ranked lower than
52% of the 863 Companies
in the Global Semiconductors industry.

( Industry Median: 3.62 vs. QCOM: 3.18 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) % only.
QCOM' s Earnings Yield (Greenblatt) % Range Over the Past 10 Years
Min: 2.8  Med: 6.8 Max: 10.7
Current: 3.18
2.8
10.7
Forward Rate of Return (Yacktman) % -2.89
QCOM's Forward Rate of Return (Yacktman) % is ranked lower than
63% of the 393 Companies
in the Global Semiconductors industry.

( Industry Median: 8.71 vs. QCOM: -2.89 )
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: -3.5  Med: 19.6 Max: 24.5
Current: -2.89
-3.5
24.5

More Statistics

Revenue (TTM) (Mil) $22,604.00
EPS (TTM) $ -3.10
Beta1.51
Volatility39.22%
52-Week Range $48.56 - 69.28
Shares Outstanding (Mil)1,482.86

Analyst Estimate

Sep18 Sep19 Sep20
Revenue (Mil $) 22,039 25,242 29,368
EBIT (Mil $) 3,146 7,453 8,817
EBITDA (Mil $) 5,140 9,251 10,741
EPS ($) 3.25 4.04 4.72
EPS without NRI ($) 3.25 4.04 4.72
EPS Growth Rate
(Future 3Y To 5Y Estimate)
9.73%
Dividends per Share ($) 2.39 2.56 2.80

Piotroski F-Score Details

Piotroski F-Score: 33
Positive ROAN
Positive CFROAY
Higher ROA yoyN
CFROA > ROAY
Lower Leverage yoyN
Higher Current Ratio yoyY
Less Shares Outstanding yoyN
Higher Gross Margin yoyN
Higher Asset Turnover yoyN

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