Qualcomm Stock Gifts $87 Billion

Core Insights - Qualcomm (QCOM) has returned a significant $87 billion to its investors over the past decade through dividends and buybacks, driven by strong cash generation from its chipset sales and high-margin royalty income [1][4] - QCOM stock ranks as the 22nd highest return to shareholders in history, indicating robust capital return capabilities [3][4] - The company has a free cash flow margin of nearly 26.9% and an operating margin of 27.8% in the last twelve months (LTM) [11] Financial Performance - Revenue growth for QCOM stands at 15.8% LTM, with a three-year average growth of 1.4% [11] - The lowest annual revenue growth recorded in the last three years was -8.4% [11] - Qualcomm stock is currently valued at a price-to-earnings (P/E) multiple of 17.7, which is lower compared to the S&P [11] Market Position - QCOM's capital return as a percentage of its current market cap appears inversely related to growth potential for reinvestments, contrasting with companies like Meta and Microsoft that have lower capital returns but higher growth rates [5][6] - The company’s strong fundamentals are essential, but it has experienced significant declines in the past, including a nearly 79% drop during the Dot-Com bubble and about 48% during the Global Financial Crisis [8][9]