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Qorvo (NAS:QRVO) Owner Earnings per Share (TTM)

: 7.20 (As of Dec. 2022)
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In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Qorvo's Owner Earnings per Share (TTM) ended in Dec. 2022 was $7.20. It's Price-to-Owner-Earnings ratio for today is 14.3.


The historical rank and industry rank for Qorvo's Owner Earnings per Share (TTM) or its related term are showing as below:

QRVO' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 12.57   Med: 19.75   Max: 29.53
Current: 14.31


During the past 10 years, the highest Price-to-Owner-Earnings ratio of Qorvo was 29.53. The lowest was 12.57. And the median was 19.75.


QRVO's Price-to-Owner-Earnings is ranked better than
56.94% of 425 companies
in the Semiconductors industry
Industry Median: 17.88 vs QRVO: 14.31

Qorvo's Earnings per Share (Diluted) for the three months ended in Dec. 2022 was $-0.16. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2022 was $4.26. It's PE Ratio ratio for today is 24.17.

Qorvo's EPS without NRI for the three months ended in Dec. 2022 was $-0.16. Its EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2022 was $4.26. It's PE Ratio without NRI ratio for today is 24.17.


Qorvo Owner Earnings per Share (TTM) Historical Data

The historical data trend for Qorvo's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Qorvo Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 2.89 5.22 7.95 6.68

Qorvo Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.28 6.68 6.13 6.07 7.20

Competitive Comparison

For the Semiconductors subindustry, Qorvo's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Qorvo Owner Earnings per Share (TTM) Distribution

For the Semiconductors industry and Technology sector, Qorvo's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where Qorvo's Owner Earnings per Share (TTM) falls in comparison to its industry or sector. The grey bar indicates the Owner Earnings per Share (TTM)'s extreme value range as defined by GuruFocus.



Qorvo Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Qorvo's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 454
Depreciation, Depletion and Amortization 344
Change In Deferred Tax -8
5Y Average of Maintenance Capital Expenditure 148
Change In Working Capital 85
Shares Outstanding (Diluted Average) 101

1. Start with "Net Income" from income statement. Qorvo's Net Income for the trailing twelve months (TTM) ended in Dec. 2022 was $454 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Qorvo's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Dec. 2022 was $344 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Qorvo's Change In Deferred Tax for the trailing twelve months (TTM) ended in Dec. 2022 was $-8 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $148 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Qorvo's 5-Year Average Maintenance Capital Expenditure = $148 Mil

5. "Change In Working Capital" is from cashflow statement. Qorvo's Change In Working Capital for the trailing twelve months (TTM) ended in Dec. 2022 was $85 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Qorvo's Shares Outstanding (Diluted Average) for the months ended in Dec. 2022 was 100.943 Mil.

Qorvo's Onwer Earnings Per Share for Dec. 2022 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 453.843 +344.462+-8.248
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-148.34115807229+84.779)/100.943
=7.20

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=102.98/7.20
=14.3

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Qorvo Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Qorvo's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Qorvo (NAS:QRVO) Business Description

Qorvo logo
Industry
Traded in Other Exchanges
Address
7628 Thorndike Road, Greensboro, NC, USA, 27409-9421
Qorvo represents the combined entity of RF Micro Devices and TriQuint Semiconductor, which merged in January 2015. The company specializes in radio frequency filters, power amplifiers, and front-end modules used in many of the world's most advanced smartphones. Qorvo also has a suite of products sold into a variety of nonsmartphone end markets, such as wireless base stations, cable TV and networking equipment, and infrastructure and military applications.
Executives
Frank P. Stewart officer: VP, Advanced Cellular 7628 THORNDIKE ROAD, GREENSBORO NC 27409
Grant Brown officer: VP of Treasury & Interim CFO 7628 THORNDIKE ROAD, GREENSBORO NC 27409
Philip Chesley officer: Pres. Infra & Defense 7628 THORNDIKE ROAD, GREENSBORO NC 27409
Judy Bruner director C/O SANDISK CORPORATION, 601 MCCARTHY BLVD., MILPITAS CA 95035
Paul J Fego officer: VP, Global Operations 15 SECOR ROAD, PO BOX 5226, BROOKFIELD CT 06804
Susan Louise Spradley director C/O NORTEL NETWORKS, 8200 DIXIE ROAD STE 100, BRAMPTON ONTARIO A6 L6T 5PT
Mark J. Murphy officer: Chief Financial Officer DELPHI AUTOMOTIVE PLC, 5725 DELPHI DRIVE, TROY MI 48098
Gina Harrison officer: VP and Corporate Controller 7628 THORNDIKE ROAD, GREENSBORO NC 27409
Walter H Wilkinson director C/O RF MICRO DEVICES, INC., 7628 THORNDIKE ROAD, GREENSBORO NC 27409
Michael J. Laber officer: VP and Corporate Controller 2300 NE BROOKWOOD PARKWAY, HILLSBORO OR 97124
Steven J Buhaly officer: CFO and Secretary 1195 NW LOMPTON DRIVE, BEAVESTON OR 97006
Daniel A Dileo director C/O RF MICRO DEVICES, 7628 THORNDIKE ROAD, GREENSBORO NC 27409
C Scott Gibson director PMB 316, PO BOX 30,000, JACKSON WY 83002
Roderick Nelson director 2300 NE BROOKWOOD PARKWAY, HILLSBORO OR 97124
Ho David H Y director 5500 WAYZATA BOULEVARD, SUITE 600, GOLDEN VALLEY MN 55416

Qorvo (NAS:QRVO) Headlines

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