Qorvo, Inc. shares are trading close to a resistance zone which currently limits any upside potential. We expect that this level will be broken due to the stock's technical chart pattern.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
Strengths
● Before interest, taxes, depreciation and amortization, the company's margins are particularly high.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● The company is in a robust financial situation considering its net cash and margin position.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses
● The company's enterprise value to sales, at 4.42 times its current sales, is high.
● In relation to the value of its tangible assets, the company's valuation appears relatively high.
● The company is not the most generous with respect to shareholders' compensation.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
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Qorvo, Inc. specializes in the design, production and marketing of radio-frequency components and solutions. In particular, the group makes power amplifiers, embedded modules, selector switches, duplexers, power management devices, wireless connection solutions, frequency convertors, oscillators, couplers and optical components.
Net sales break down by activity as follows:
- mobile terminals and electronic devices (76.3%);
- defense and aeronautics equipment, network infrastructures (23.7%).
At the end of March 2022, the group had 7 production sites located in the United States (3), China (2), Costa Rica and Germany.
Net sales break down geographically as follows: the United States (41.5%), China (32.3%), Taiwan (7.4%), Asia (13.4%) and Europe (5.4%).