To stick with focus on profitability valuation, QUALCOMM Incorporated (NASDAQ:QCOM) also listed in significant eye catching mover, QCOM attains returns on investment ratio of 11.90%, which suggests it’s viable on security that has lesser ROI.
All eyes may be on what Qualcomm Inc. (QCOM) is doing outside of the smartphone market, but in China there’s still a lot of growth for it and its family of Snapdragon processors. At least that’s what Rosenblatt Securities thinks, raising its price target on Qualcomm to $75 a share from $70.
According to a research report issued by Rosenblatt Securities analyst Jun Zhang, which was covered by Barron’s, Qualcomm stands to gain market share in the Chinese market thanks to its Snapdragon processors. The chips are used in smartphones by Vive and Oppo, two Chinese manufactures that are enjoying a boom in sales, which will bode well for the chipmaker.
To strengthen this concept we can use profit margin, which is standing at positive 24.20%, and it is providing insight view about a variety of aspects of a firm’s financial performance. The operating profit margin and gross profit margin can be giving more focus view that is 26.80% and 60.50% respectively. Turns back to returns ratios, the co’s returns on assets calculated as 11.90%; that gives an idea as to how efficient management is at using its assets to generate earnings. Finally yet importantly, returns on equity stands at 18.70%.
EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at 18.40%, and looking further price to next year’s EPS is 4.96%. While take a short look on price to sales ratio, that was 4.19 and price to earning ration of 17.56 attracting passive investors.
Harmonic Inc. (NASDAQ:HLIT) kept active in profitability ratio analysis, on current situation shares price increased 3.92% to $5.30. The total volume of 1.53 Million shares held in the session, while on average its shares change hands 532.41 shares.
Efficiency Evaluation in Focus
Entering into profitability analysis, the co has noticeable returns on equity ratio of -22.80%, which discloses how corporation’s management efficiently generates profit from shareholders invested money. The returns on investment very popular metric among passive investors, it stands at -3.50%, when it lies in positive figure than security is feasible for investment or goes for higher ROI stocks. To see the other side of picture, profit margin of HLIT stands at negative -18.20%; that indicates a firm actually every dollar of sales keeps in earnings. The -12.10% returns on assets presents notable condition of firm. Mostly ROA known as a comparative measure, it is best to compare it against a firm’s previous ROA numbers or the ROA of a same firm.
To find out the technical position of HLIT, it holds price to book ratio of 1.47 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 18.03. HLIT is presenting price to cash flow of 7.87.