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GuruFocus has detected 4 Warning Signs with Qualcomm Inc $QCOM.
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Qualcomm Inc (NAS:QCOM)
Profitability
8 (As of Mar. 2017)

Qualcomm Inc has the Profitability Rank of 8. It has a higher profitability and may stay that way.

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

Qualcomm Inc's operating margin for the quarter that ended in Mar. 2017 was 14.53%. As of today, Qualcomm Inc's Piotroski F-Score is 5.


Definition

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way.

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.

Qualcomm Inc has the Profitability Rank of 8. It has a higher profitability and may stay that way.

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 Rank is based on these factors:

•1. Operating Margin

Operating Margin - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Qualcomm Inc's Operating Margin for the quarter that ended in Mar. 2017 is calculated as:

Operating Margin=Operating Income (Q: Mar. 2017 ) / Revenue (Q: Mar. 2017 )
=729 / 5016
=14.53 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

•2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Qualcomm Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.

•3. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

Qualcomm Inc operating margin has been in 5-year decline. The average rate of decline per year is -5%.

•4. Consistency of the profitability

•5. Predictability Rank


Related Terms

Financial Strength Rank, Operating Margin, Piotroski F-Score

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