Welcome to yet another blog by myowow. Today we will analyse QUALCOMM, INC. (QUALCOMM) is a holding company whose subsidiaries provide semiconductor solutions for mobile phones and other wireless products. The Company’s business is divided into two segments: the Chip Operating Division (COD) and the Licensing Division.
Table of Contents
Introduction
QUALCOMM Incorporated is an American multinational semiconductor and telecommunications equipment company that designs and markets wireless telecommunications products and services. The company has a market cap of $107.41 billion, a PE ratio of 25.85, and pays an annual dividend of $2.28 per share.
QUALCOMM was founded in 1985 and is headquartered in San Diego, California. The company’s product portfolio includes the Snapdragon line of mobile processors, cellular baseband chipsets, integrated circuits for 3G, 4G, and 5G smartphones and tablets, WiFi solutions, satellite navigation systems, cable modems and set-top boxes, femtocells, home gateways, broadband gateway routers, Internet of Things (IoT) devices and services, machine-to-machine (M2M) communications modules and systems software, Quick Charge technology for electric vehicle (EV) charging stations and automotive infotainment systems.
The company operates in three segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on code division multiple access (CDMA), orthogonal frequency division multiple access (OFDM), time division duplexing (TDD), single-carrier frequency domain equalization (SC-FDMA), Long Term Evolution (LTE), Ultra Mobile Broadband (UMB)and other technologies to the global
The Main Points
1. QUALCOMM Incorporated (NASDAQ: QCOM) is a world leader in 3G and next-generation mobile technologies.
2. The company has a strong history of innovation and has been instrumental in the development of many major mobile standards.
3. QUALCOMM’s products are used by leading handset manufacturers and operators around the world.
4. The company has a diversified business model with a focus on licensing and royalty revenues.
5. QUALCOMM is headquartered in San Diego, California, USA.
Point 1: QUALCOMM Incorporated (NASDAQ: QCOM) Basics and Analysis
QUALCOMM Incorporated (NASDAQ: QCOM) is an American multinational semiconductor and telecommunications equipment company that designs and markets wireless telecommunications products and services. It derives the majority of its revenue from chipmaking and the bulk of its profit from patent licensing businesses. The company was founded in 1985 and is headquartered in San Diego, California.
As of 2019, QUALCOMM is the world’s fourth-largest smartphone chipset manufacturer behind Intel, Samsung, and MediaTek. The company also owns a large portfolio of patents related to 3G, 4G, and 5G cellular technology standards.
Point 2: SWOT Analysis of QUALCOMM Incorporated (NASDAQ: QCOM)
A SWOT analysis of QUALCOMM Incorporated (NASDAQ: QCOM) can help investors determine whether the company is a good investment. The following is a SWOT analysis of QUALCOMM based on publicly available information.
Strengths:
-QUALCOMM has a strong competitive advantage in the mobile chip market.
-The company has a diversified product portfolio including chips for both high-end and low-end devices.
-QUALCOMM has a strong patent portfolio, which provides the company with royalty and licensing revenue streams.
-The company has established relationships with many of the world’s leading handset manufacturers.
Weaknesses:
-QUALCOMM is heavily dependent on the smartphone market, which is becoming increasingly saturated.
-The company is facing intensifying competition from rivals such as MediaTek and Spreadtrum.
-QUALCOMM’s earnings have been pressured in recent years by declining average selling prices for its chips.
Opportunities:
-The growth of the Internet of Things presents an opportunity for QUALCOMM to sell its chips for new types of devices.
-There is potential for 5G technology to drive significant demand for QUALCOMM’s chips in the future.
Point 3: What is the Future of QUALCOMM Incorporated (NASDAQ: QCOM)?
QUALCOMM Incorporated (NASDAQ: QCOM) is a global leader in wireless technology and innovation. They are the world’s largest fabless semiconductor company with revenue of $26.5 billion in 2016. The company is headquartered in San Diego, California and has approximately 34,000 employees worldwide.
The company’s chipsets are used in a variety of devices including smartphones, tablets, automotive systems, connected homes and industrial applications. Qualcomm Snapdragon processors are widely considered to be the best in the market and power some of the most popular devices on the market including the Samsung Galaxy S8, Google Pixel 2 and Sony Xperia XZ1.
Qualcomm was founded in 1985 and went public in 1991. The company has been profitable every year since 1992 and has paid dividends since 2003. The company has a strong balance sheet with $30 billion in cash and no debt.
Qualcomm’s shares have underperformed the market over the past five years as growth in the smartphone market has slowed down. The shares trade at around 17 times earnings which is a discount to the industry average of 25 times earnings.
The future for Qualcomm lies in their ability to continue to innovate and find new areas for growth. The company is well positioned to benefit from the growing trend for connectivity as more and more devices are connected to each other and the internet. They are also investing heavily in research and development with $5 billion being spent annually which gives
Point 4: Financial Analysis of QUALCOMM Incorporated (NASDAQ: QCOM)
The fourth and final point of our analysis looks at the financials of QUALCOMM Incorporated (NASDAQ: QCOM). As a reminder, we are using a 3-pronged approach to analyze QUALCOMM:
1) Technology
2) Business Model
3) Financials
Looking at the financials, we can see that QUALCOMM is a very strong company. They have reported increasing revenue and earnings per share for the last 10 years. In 2018, their revenue was $23.5 billion and their EPS was $4.26. Their operating margin is also very strong at 35%.
QUALCOMM also has a very strong balance sheet. They have $30 billion in cash and investments and no debt. This gives them a lot of flexibility to invest in new technology and continue to grow their business. Overall, the financials are very positive for QUALCOMM and they are in a strong position to continue to grow their business in the future.
Conclusion
All in all, I believe that Qualcomm is a very undervalued stock with a lot of upside potential. They have a strong product portfolio, they are leaders in 5G technology, and their financials are very solid. I think that Qualcomm is a great long-term investment and I would recommend buying the stock.
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