Qorvo (QRVO) AI Stock Analysis

• Market Cap: $5.26B
• Dividend Yield: N/A
• Average Volume (3M): 2.88M
• Price to Earnings (P/E): 198.9
• Beta (1Y): 1.62
• Revenue Growth: 9.51%
• EPS Growth: N/A
• Country: US
• Employees: 8,700
• Sector: Technology
• Sector Strength: 51
• Industry: Semiconductors
• EPS (TTM): 0.28
• Shares Outstanding: 93,396,835
• 10 Day Avg. Volume: 3,549,017
• 30 Day Avg. Volume: 2,878,052
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.77
• Price to Cash Flow (P/CF): 7.80
• P/FCF Ratio: 7.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $92.69
• Price Target Upside: 64.72% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 19

Qorvo's overall stock score reflects significant challenges with declining revenue and profitability, moderate leverage, and bearish technical indicators. While there are positives in cash flow generation and sector-specific growth, the high valuation and negative guidance weigh heavily on the score.

Positive Factors

Growth in Aerospace & Defense

Strength in Aerospace & Defense and enterprise end markets is supporting the company's growth.

Operational Improvements

Activist involvement increases confidence in significant earnings growth through operational improvements.

Strategic Focus

Qorvo is strategically refocusing on higher margin premium handsets.

Negative Factors

China Market Challenges

Continued China RF headwinds and mix shifts down-market are impacting the company's performance.

Inventory and Demand Challenges

Near-term headwinds with elevated inventories and soft demand in auto and industrial markets are affecting performance.

Smartphone Market Weakness

QRVO continues to see weakness in their core smartphone business, with the Android 5G opportunity declining faster than expected.

Qorvo Business Overview & Revenue Model

Company Description

Qorvo, Inc. develops and commercializes technologies and products for wireless, wired, and power markets worldwide. The company operates through two segments, Mobile Products, and Infrastructure and Defense Products. It offers mobile devices, such as smartphones, wearables, laptops, tablets and other devices; radio frequency power management integrated circuits, ultra-wideband (UWB) system-on-a-chip (SoC) and system-in-package (SiP) solutions, MEMS-based sensors, antenna tuners, and antennaplexers, as well as discrete multiplexers, duplexers, filters, and switches; and cellular base stations include switch-low noise amplifier (LNA) modules, variable gain amplifiers, integrated power amplifier (PA) Doherty modules, discrete LNAs, and high power GaN amplifiers. The company's also provides SiC products, such as Schottky diodes and transistors for automotive, industrial, IT infrastructure and renewable energy markets; SoC hardware, firmware, and application software for smart home applications; power management solutions include programmable power management integrated circuits (ICs) and power application controllers; RF products and compound semiconductor foundry services to defense primes and other global defense and aerospace customers; RF connectivity and UWB SoC solutions for automotive connectivity; and Wi-Fi products, such as PAs, switches, LNAs and bulk acoustic wave filters, as well as integrated solutions including front end modules (FEMs) and integrated FEMs. It sells its products directly to original equipment manufacturers and original design manufacturers, as well as through a network of sales representative firms and distributors. The company was founded in 1957 and is headquartered in Greensboro, North Carolina.

How the Company Makes Money

Qorvo generates revenue through the design, manufacturing, and sale of its RF solutions. Its primary revenue streams include the sale of semiconductor products to original equipment manufacturers (OEMs) and service providers in various sectors, such as mobile devices, telecommunications, aerospace, and defense. The company partners with industry leaders to integrate its RF components into a wide array of devices, from smartphones to communication networks. Qorvo's earnings are significantly influenced by its ability to innovate and deliver high-performance products that meet the evolving demands of wireless communication technologies, as well as its strategic relationships with key industry players.

Qorvo Financial Statement Overview

Summary

Qorvo's financials reflect challenges with declining revenue and profitability, moderate leverage, and positive but declining cash flows. While the company demonstrates operational cash flow strength, concerns over revenue growth and profitability impact its overall financial health.

Income Statement

Qorvo has shown a significant decrease in revenue and profitability over recent years. The Net Profit Margin for TTM is 2.11%, indicating limited profitability. Revenue growth is negative compared to previous periods, reflecting challenges in maintaining sales momentum. EBITDA Margin for TTM is 9.78%, demonstrating moderate operational efficiency.

Balance Sheet

The Balance Sheet highlights concerns with the Debt-to-Equity Ratio at 0.56 in the latest annual report, indicating moderate leverage. The ROE is negative in the latest annual period, reflecting challenges in generating returns for shareholders. The absence of stockholders' equity and liabilities data in the TTM period raises concerns about transparency and financial health.

Cash Flow

Qorvo's cash flow statement shows a positive Free Cash Flow to Net Income Ratio in TTM, indicating strong cash generation capability. Operating Cash Flow is robust, though declining from previous years, suggesting operational cash flow strength but potential future challenges if trends continue.

Breakdown
TTM	Mar 2024	Jun 2023	Jun 2022	Jun 2021	Mar 2020
Income Statement		Total Revenue
3.79B	3.77B	3.57B	4.65B	4.02B	3.24B
	Gross Profit
1.58B	1.49B	1.30B	2.29B	1.88B	1.32B
	EBIT
178.75M	91.70M	183.17M	883.00M	426.47M	-13.45M
	EBITDA
459.25M	463.74M	531.94M	1.61B	1.34B	924.41M
	Net Income Common Stockholders
26.98M	-70.32M	103.15M	1.03B	733.61M	334.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
189.64M	1.03B	808.76M	972.59M	1.40B	714.94M
	Total Assets
946.42M	6.55B	6.69B	7.51B	7.22B	6.56B
	Total Debt
0.00	1.99B	2.05B	2.05B	1.74B	1.57B
	Net Debt
-113.67M	958.75M	1.24B	1.07B	344.67M	852.29M
	Total Liabilities
299.44M	3.00B	2.79B	2.96B	2.59B	2.27B
	Stockholders Equity
646.99M	3.56B	3.90B	4.55B	4.63B	4.29B
Cash Flow		Free Cash Flow
483.56M	705.96M	684.28M	835.78M	1.11B	781.54M
	Operating Cash Flow
625.36M	833.19M	843.23M	1.05B	1.30B	945.65M
	Investing Cash Flow
-172.26M	-136.47M	-153.41M	-595.96M	-218.66M	-1.11B
	Financing Cash Flow
-772.66M	-459.57M	-853.35M	-875.51M	-401.92M	165.56M

Qorvo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 56.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QRVO, the sentiment is Negative. The current price of 56.27 is below the 20-day moving average (MA) of 67.28, below the 50-day MA of 72.13, and below the 200-day MA of 88.83, indicating a bearish trend. The MACD of -0.54 indicates Negative momentum. The RSI at 46.78 is Neutral, neither overbought nor oversold. The STOCH value of 31.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QRVO.

Qorvo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAMT	76 Outperform	$2.73B	24.72	23.12%	2.22%	36.10%	48.15%
MTSI	75 Outperform	$7.27B	138.48	-9.49%	―	26.40%	-234.22%
SWKS	72 Outperform	$8.68B	17.33	8.34%	4.92%	-12.91%	-42.12%
ALGM	70 Outperform	$4.02B	―	-6.32%	―	-28.33%	-129.75%
ON	68 Neutral	$14.80B	9.65	18.97%	―	-14.19%	-27.42%
Sector *	57 Neutral	$19.95B	9.66	-12.05%	2.76%	5.40%	-24.89%
QRVO	52 Neutral	$5.26B	198.90	0.77%	―	9.51%	―

Qorvo Corporate Events

Qorvo Board Member David H.Y. Ho to Retire

David H.Y. Ho, a board member of Qorvo, Inc., will retire from the Board and not seek reelection at the 2025 Annual Meeting of Stockholders due to other professional commitments. His departure is not due to any disagreements with the company, and the company has expressed gratitude for his valuable contributions.