QCOM Stock Review
Added 2023-06-02 10:39:19 +0000 UTCQUALCOMM Incorporated (NASDAQ:QCOM) is one of those sleeper dividend stocks that are getting no love right now with the latest AI hype cycle. It is basically a chipmaker for the mobile phone industry. In its core it’s a semiconductor play with a twist.
The dividend yield is just around 3% which is not the highest but also quite stable over the years.
The short interest is under 1% which means smart money is not betting on a downside for this stock.
The stock is down about 20% on the year chart, and is down 6% over the past 3 months, as it is regarded boring and not exciting. Exactly what I am looking for honestly.
the EDITDA is 35% which is great and NET income is 25% which is phenomenal. Margins are very good.
Growth is limited with 5% but this is not the stock you buy for massive annual revenue growth to begin with.
PE is at 12 and FWD at 18 which makes it a reasonably priced stock. Price to sales is 3 which is again not an expensive valuation.
it has 2X more assets than liabilities which is very impressive, although it has $15B in debt and only $7B in cash which is not ideal.
DCF valuation based on 5% growth and 12% discount rate is $132 per share for $QCOM as of June 2, 2023. Current share price is $115 per share, which implies a 14% upside and a nice dividend on top.
As a long term DCA this is very attractive long term at anything under $105 per share but building a long position slowly over time starting with current price level is doable.
Tom
Comments
Any inputs on Intel stock?
J D
2023-06-11 06:21:57 +0000 UTCI own some 😎😍
Zach
2023-06-02 16:56:12 +0000 UTCYou can’t discount cashflows from an ETF since it has not business line if it’s own. Try SOXX etf for what you are looking for.
Generico Fakero
2023-06-02 15:03:26 +0000 UTCAnd they are not overhyped
Generico Fakero
2023-06-02 15:01:12 +0000 UTCSolid view
Generico Fakero
2023-06-02 15:00:55 +0000 UTChhmm a thought on any ETF following those companies? Is there a way or a method to make an equivalent of a DCF to an ETF, my guess is no, but not sure.
Raul Neyra
2023-06-02 12:46:08 +0000 UTCbut i have to say that qualcom and broadcom where the two companys which checked most of my boxes in june,
Hannes Huber
2023-06-02 11:23:16 +0000 UTChey tom, yeah i also bought into qualcomm jun-juli 2022, i got 4/5 tranches, in my view its a really good invest, but i have to say i am bullish all in all on many chip manu. companys because chips are the future, so i bought many chip companys in june, amd nvidia intel qualcomm broadcom and also asml which is maybe also a good move because they build the the gold digging shovel like back in the days ;-)
Hannes Huber
2023-06-02 11:20:52 +0000 UTC
