Tom Nash
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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
J D
Any inputs on Intel stock?
Zach
I own some 😎😍
Generico Fakero
You 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
And they are not overhyped
Generico Fakero
Solid view
Raul Neyra
hhmm 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.
Hannes Huber
but i have to say that qualcom and broadcom where the two companys which checked most of my boxes in june,
Hannes Huber
hey 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 ;-)
