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Qorvo (QRVO)
NASDAQ:QRVO
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Qorvo
(NASDAQ:QRVO)55Neutral
Positive Factors
Aerospace & Defense Growth
Strength in Aerospace & Defense and enterprise end markets is supporting the company's growth.
Strategic Refocus
Qorvo is strategically refocusing on higher margin premium handsets.
Negative Factors
China Localization Risks
Increasing risks of China localization efforts to move away from US semiconductor suppliers are noted as a concern for Qorvo.
China Market Challenges
Continued China RF headwinds and mix shifts down-market are impacting the company's performance.
Inventory and Demand Issues
Near-term headwinds with elevated inventories and soft demand in auto and industrial markets are affecting performance.
Qorvo (QRVO) vs. S&P 500 (SPY)
Market Cap
$6.64B
Dividend YieldN/A
Average Volume (3M)2.66M
Price to Earnings (P/E)251.7
Beta (1Y)1.68
Revenue Growth9.51%
EPS GrowthN/A
CountryUS
Employees8,700
SectorTechnology
Sector Strength48
IndustrySemiconductors and Equipment
Share Statistics
EPS (TTM)0.28
Shares Outstanding93,396,835
10 Day Avg. Volume2,595,842
30 Day Avg. Volume2,664,644
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.75
Price to Cash Flow (P/CF)7.80
P/FCF Ratio7.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$91.82Price Target Upside19.56% Upside
Rating ConsensusHold
Number of Analyst Covering20
Qorvo Business Overview & Revenue Model
Company DescriptionQorvo, Inc. is a leading provider of innovative radio frequency (RF) solutions that drive wireless connectivity across diverse applications. The company operates primarily within the semiconductor industry, catering to markets such as mobile, infrastructure, defense, and industrial. Qorvo's core products include RF chips, integrated circuits, power amplifiers, and filters, which are essential components in enabling wireless communication and network infrastructure.
How the Company Makes MoneyQorvo 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 indicate challenges with declining revenue and profitability with a net margin of 2.11%, moderate leverage, and positive but declining cash flows. The balance sheet reveals concerns about leverage and negative ROE, while cash flow shows strong generation but hints at potential future challenges. Overall, financial health is impacted by decreasing revenue and profitability.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.65
Positive
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.40
Negative
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.70
Positive
| 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 | ||||
| 918.76M | 1.03B | 808.76M | 972.59M | 1.40B | 714.94M | Total Assets |
| 7.08B | 6.55B | 6.69B | 7.51B | 7.22B | 6.56B | Total Debt |
| 2.05B | 1.99B | 2.05B | 2.05B | 1.74B | 1.57B | Net Debt |
| 1.13B | 958.75M | 1.24B | 1.07B | 344.67M | 852.29M | Total Liabilities |
| 2.91B | 3.00B | 2.79B | 2.96B | 2.59B | 2.27B | Stockholders Equity |
| 4.16B | 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
Positive
76.80
Price Trends
76.74
Positive
77.25
Negative
93.33
Negative
Market Momentum
-1.70
Positive
53.36
Neutral
54.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QRVO, the sentiment is Positive. The current price of 76.8 is above the 20-day moving average (MA) of 74.91, above the 50-day MA of 76.74, and below the 200-day MA of 93.33, indicating a neutral trend. The MACD of -1.70 indicates Positive momentum. The RSI at 53.36 is Neutral, neither overbought nor oversold. The STOCH value of 54.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QRVO.
Qorvo Risk Analysis
Qorvo disclosed 32 risk factors in its most recent earnings report. Qorvo reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Qorvo Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $110.49B | 71.04 | 4.43% | 1.65% | -19.28% | -44.00% | |
74 Outperform | $900.80B | 155.28 | 14.85% | 1.21% | 43.99% | -62.55% | |
71 Outperform | $172.28B | 36.44 | 28.25% | 2.81% | -10.72% | -26.60% | |
69 Neutral | $54.98B | 22.04 | 28.16% | 1.89% | -4.99% | -9.18% | |
63 Neutral | $10.83B | 20.65 | 8.34% | 4.13% | -12.91% | -42.12% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% | |
55 Neutral | $6.64B | 251.68 | 0.77% | ― | 9.51% | ― |
* Technology Sector Average
Performance Comparison
QRVO
Qorvo
76.80
-39.27
-33.83%
ADI
Analog Devices
225.86
33.12
17.18%
AVGO
Broadcom
194.96
65.83
50.98%
NXPI
NXP Semiconductors
222.56
-25.26
-10.19%
SWKS
Skyworks Solutions
72.61
-30.34
-29.47%
TXN
Texas Instruments
190.52
22.91
13.67%
Qorvo Earnings Call Summary
Earnings Call Date: Jan 28, 2025 | % Change Since: -10.47% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in the Defense and Aerospace sector and positive cash flow generation, along with effective cost reduction strategies. However, these were balanced by challenges such as expected declines in Android 5G revenue, sequential declines in the mobile and automotive markets, and an anticipated increase in the tax rate.Highlights
Defense and Aerospace Revenue Growth
December was a record revenue quarter for Qorvo's Defense and Aerospace business, and they expect continued strength with full-year year-over-year growth this fiscal year and next fiscal year.
Free Cash Flow Generation
Qorvo generated operating cash flow of $214 million and capital expenditures of $38 million, resulting in free cash flow of $176 million.
Cost Reduction and Efficiency Improvements
Implemented a significant workforce reduction and streamlined digital transformation efforts, achieving over $100 million in gross annualized savings across COGS and OpEx.
HPA and CSG Growth Projections
Qorvo expects double-digit growth in HPA and CSG in fiscal '25 and double-digit growth again next fiscal year.
Lowlights
Decline in Android 5G Revenue
Android 5G revenue in ACG is expected to decline by approximately $150 million to $200 million annually in fiscal '26 and again in fiscal '27, primarily in China and mid-tier at Samsung.
Sequential Revenue Decline in Mobile Market
Revenue in the mobile market declined sequentially, with expectations of further decline in the current quarter.
Automotive and Consumer Market Weakness
Revenue for the quarter declined sequentially in automotive due to end-market softness and in consumer markets due to market headwinds.
Anticipated Increase in Tax Rate
Qorvo expects their non-GAAP tax rate to increase to between 18% and 19% in fiscal '26, up from approximately 11%.
Company Guidance
During the Qorvo Third Quarter 2025 Earnings Conference Call, the company provided guidance for the upcoming fiscal periods. For fiscal year 2025, Qorvo's Android 5G revenue within the Advanced Cellular Group (ACG) is expected to be approximately $875 million, with a projected decline of $150 million to $200 million annually in fiscal 2026 and fiscal 2027. ACG revenue is anticipated to experience a single-digit decline in fiscal 2026, while the High Performance Analog (HPA) and Connectivity and Sensors Group (CSG) are expected to grow by approximately 10% to 12%, excluding the silicon carbide business. Overall, the company forecasts flat revenue for fiscal 2026. Qorvo aims to improve its gross margin by 150 basis points in fiscal 2026, driven by portfolio management and restructuring efforts, with potential gross margins reaching up to 50% in a strong quarter during fiscal 2027. Operating expenses are projected to average approximately $250 million per quarter in fiscal 2026.Qorvo Corporate Events
Executive/Board Changes
Qorvo Board Member David H.Y. Ho to Retire
Neutral
Jan 10, 2025
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.