QC

Qualcomm Inc

QCOM
—
Accountable AI Logo

Qualcomm Inc AI Insights

Informational only. Not investment advice.
As of 2025-12-08

Snapshot

  • Operating margin 28% TTM vs industry median 2.4% - 11x advantage funds 9B R&D spend (20% of revenue)[Operating Margin]
  • Goodwill 11.4B is 54% of equity (21.2B TTM) - acquisition-heavy strategy creates impairment exposure[Goodwill]
  • EPS 3Y CAGR of -25% TTM despite 44.3B revenue - net margin compression from 28% op margin to 12.5% net[EPS Growth 3Y]

Watch Triggers

  • Inventory: Rises above 7B or >35% of current assets — Current 6.5B already elevated; further buildup signals smartphone demand deterioration
  • Net Margin: Falls below 10% TTM — Gap between 28% operating and 12.5% net margin suggests tax/interest pressure intensifying
  • R&D as % Revenue: Drops below 18% of revenue — 9B R&D (20% TTM) is competitive moat - cuts signal capitulation on diversification

Bull Case

Licensing moat: 28% operating margin TTM (11x industry) with asset-light model (capex 2.7% of revenue) creates durable cash generation

Operating MarginFree Cash FlowCapital Expenditure

ROIC 14.4% TTM vs industry median -0.3% demonstrates capital allocation discipline despite 14.8B debt load

ROICDebt to EquityROE

Bear Case

P/B 21.8x TTM vs tangible book 8.7B - paying 190B market cap for 21.2B equity with 11.4B goodwill embedded

P/B RatioGoodwillTangible Book Value

EPS declined -25% 3Y CAGR TTM while inventory at 6.5B (33% of current assets) signals demand weakness

EPS Growth 3YInventoryNet Margin

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
55%

Leverage QCOM's top insights and create a custom strategy based on them in seconds. Our AI editor does it all — in one click.

Take Me to The Editor

Forward Thesis

FCF generation (12.8B TTM) will fund diversification beyond smartphone dependency

1-3ymed
  • 29% FCF margin enables 3.5B dividend + buybacks
  • Automotive/IoT segments growing faster than mobile
  • R&D at 9B positions for AI edge computing
FCF 12.8B TTM on 1.2B capex (2.7% of revenue)Debt/equity 0.70 provides M&A flexibilityCash flow 14B TTM exceeds net income 5.5B
Valuation Context
Caveats

Public Strategies Rankings

See how Qualcomm Inc ranks across different investment strategies.

Leverage QCOM's top insights and create a custom strategy in seconds. Our AI editor does it all — in one click.

Data Partners
Morningstar Logo

Fundamental company data provided by Morningstar, updated daily.

Accountable Finance, Inc. Disclaimer
accountable.finance is not operated by a broker or a dealer. Under no circumstances does any information posted on accountable.finance represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. In no event shall accountable.finance be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on accountable.finance, or relating to the use of, or inability to use, accountable.finance or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. Stock quotes and fundamental company data provided by Morningstar, updated daily.
Accountable Logo
© 2025 Accountable Finance, Inc. All rights reserved.