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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Qorvo, Inc. (XNAS:QRVO) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
QRVO
Name:
QORVO, INC. (XNAS:QRVO)
Sector:
276.32M
Industry:
Semiconductors
CEO:
Mr. Robert Bruggeworth
Total Employees:
8,900
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -197.99% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF QORVO, INC.(QRVO) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND SEMICONDUCTORS INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
90.14
One Month Price Target:
$90.84
Six Month Price Target :
$94.32
Likely Price in One Year's Time:
Ticker:
$98.49
Likely Trading Range Today Under (Normal Volatility)
$89.69
Price Upper limit ($) :
$90.61
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$84.61
This week:
$77.78
This month :
$65.42
Other Primary facts
Market Cap:
9.16B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
103.20M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
13.6%
-15.63%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$115.81
$104.12
$64.47
$76.16
Medium risk (<10%) entry points
Buy Call
Sell Call
$100.31
Buy Put:
Sell Put:
$97.82
$79.93
$82.46
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
QRVO
Sharpe Ratio:
0.07%
Comparison:
QRVO, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -97.77% lower than the industry
& is -96.98% lower than the market/S&P 500 average
Average Returns/Yield of
QRVO
Daily returns:
0.01%
Weekly returns:
0.05%
Monthly returns:
0.22%
Yearly returns:
31.95%
Comparison of returns:
Average annual returns/yield (last 3 years) is -91.80% below industry average
Classification:
QRVO, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.88
Statistical test of Returns:
QRVO has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.99%
Weekly Volatility:
6.69%
Monthly Volatility:
13.38%
Yearly Volatility:
46.35%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.37%
Volatility in last five trading days has been -54.18% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-6.13%
Weekly VaR:
-13.71%
Monthly VaR:
-27.43%
How Much Can the price of
QRVO
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-24%
Worst case (decline):
>85%
This translates to price declining to:
$68.38
This translates to price declining to:
$13.52
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
QRVO is a 93.59% riskier investment compared to the market/S&P 500 & is 65.85% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -15.70% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
QRVO
Beta in relation to market/S&P 500--1.38
Expected beta in 1 year's time:
1.035
Expected beta in 3 year's time:
1.464
Unlevered (debt free) Beta:
1.039
Beta in relation to Nasdaq (XNAS):
1.281
Beta in relation to all global stocks::
0.907
Beta Comparison & Analysis
Beta of competitors/peers::
1.059
Beta is 30.22% higher than peers
Average Industry Beta:
1.41
Beta is -2.22% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
23.99%
Sustainable growth rate is -13.25% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.100
Alpha is -152.15% below industry average alpha yield
Alpha is -635% below the market average
Analysis of Cost of Capital of
QRVO
Equity cost of capital:
0.126
Equity cost of capital is -1.68% below industry mean WACC
Unlevered (without debt) cost of capital:
9.49%
Before-tax cost of debt:
3.63%
After-tax cost of debt:
2.86%
Overall debt rating:
Upper medium A grade (third highest grade),CO8<=0.0429,"Medium BBB grade (Fourth highest grade)
Weighted average cost of capital (WACC):
2.86%
WACC is -1.47% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$45.01
Revenue growth rate per share of (3Y):
2
Annual revenue growth rate is 75.03% above the industry average
EPS:
$9.26
Expected Annual growth rate of EPS (3Y):
106.81%
Expected future EPS growth rate is 104.86% higher than the Semiconductors industry
Free cash flow (FCF) per share:
$10.21
-
-
Debt per share
$16.87
EBITDA per share
$14.69
Valuation Analysis Today of
QRVO
P/E Ratio:
12.2
P/E Ratio of Competitors/Peers:
232.26
P/E ratio is -94.75% lower than main peers & is -70.59% lower than the industry
Stock price/value with industry average P/E ratio: $384.07
QRVO is -76.53% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
2
Price to sales ratio is -75.36% below the industry mean
P/B (Price to book value ratio):
2
Price to free cash flow: 8.83
-
Net income growth rate (3Y):
-2143.60%
Net income growth rate is 3642.22% higher than the average industry net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
37.47%
Net debt to equity ratio:
11.76%
Debt to assets ratio:
23.95%
Net debt to assets ratio:
7.52%
Debt-to-asset ratio is -38.56% below industry average
Ability to repay debt:
Interest coverage ratio:
23.94
Interest coverage ratio is -26.98% less than industry average
Looking forward:
Debt growth rate:
11.02%
Annual debt growth is -88% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.07%
Analysis of Key Statistics
Correlation of price movement with the market:
0.738
Statistical significance of correlation:
QRVO has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.627
Stock price is 17.68% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.627
Correlation of price movement with Nasdaq (^IXIC):
-0.031
Covariance of price movement with the market:
-0.053
Kurtosis
3.825
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.082
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
QRVO
Gross Profit Margin Ratio:
197%
Operating Profit Margin Ratio:
26.39%
Operating profit margin is 12.17% higher than the industry
Net Profit Margin Ratio:
197%
Effective Tax Rate:
12.51%
Effective tax rate is -17.11% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
22.23%
Return on equity (ROE) is -22.26% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
14.21%
Return on assets (ROA) is 7.95% higher than the industry
Financial Leverage:
1.3x
Current Ratio:
3.37
Current ratio is -16.93% below industry average
Cash Conversion Cycle (days):
22.8
Cash conversion cycle is -58.76% below industry average
The remaining useful life of property plant & equipment is: 2.0 years
Stock based compensation to net income ratio:
2.44%
In-depth Efficiency Analysis
Revenue generated per employee:
522.0K
Each employee generates -16% less revenue than industry average revenue per employee
EBITDA generated per employee:
170.3K
Each employee generates -27% less EBITDA than industry average revenue per employee
Profit generated per employee:
116.1K
Each employee generates -28% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
31.0K
Each employee generates 12% more free cash flow than industry average revenue per employee
Assets/Capital per employee
550.3K
Each employee generates 12% more free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 17.75%
Growth rate in R&D investment/expenditure is 25.36% higher than the industry
Competitors/Peer firms of
QRVO
SABRP
QUALTRICS INTERNATIONAL INC. (XNAS:XM)
NUANCE COMMUNICATIONS, INC. (XNAS:NUAN)
ENTEGRIS, INC. (XNAS:ENTG)
AKAMAI TECHNOLOGIES, INC. (XNAS:AKAM)
NICE LTD (XNAS:NICE)
SPLUNK INC. (XNAS:SPLK)
CHECK POINT SOFTWARE TECHNOLOGIES LTD. (XNAS:CHKP)
NortonLifeLock Inc. (XNAS:NLOK)
Current Analyst Ratings
Strong buy�4%
Buy�29%
Hold�63%
Sell�4%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
4/2/22
Revenue:
4.65B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
2.36B
2.29B
623.64M
-
349.72M
-
86.75M
1.06B
-
63.33M
271.56M
1.52B
1.23B
1.03B
1.18B
147.73M
1.03B
Statement of Cash Flow
Date:
Period:
89.83M
Differed Income Tax :
2.00M
Stock Based Compensation :
25.24M
Change in Working Capital :
- 51639.00K
Accounts Receivables:
- 35752.00K
Other Working Capital:
- 14540.00K
Other Non-Cash Items:
- 9487.00K
Net Cash Provided by Operating Activities:
341.57M
Investments in PP&E:
- 65248.00K
Net Acquisitions:
- 166818.00K
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
6/30/21
2022
Q1
1.20B
-
1.20B
516.54M
570.14M
87.16M
2.37B
1.27B
2.74B
656.90M
45.94M
-
186.58M
4.90B
-
7.27B
352.14M
5.24M
-
-
346.33M
703.71M
1.74B
178.21M
1.92B
-
2.62B
4.21B
404.56M
32.9M
-
June 30, 2021 at 6:00:00 AM
3.42B
4.65B
7.27B
-
1.75B
546.5M
-
4.10M
- 227962.00K
- 1250.00K
9.56M
- 300017.00K
-
- 19670.00K
- 311379.00K
- 8.00K
- 197779.00K
1.20B
1.40B
341.57M
- 65248.00K
276.32M
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
QRVO
2023
2024
2025
2026
2027
$98.98
$1,346.08
$1,470.82
$1,607.12
$1,756.05