Stock on Focus: Qorvo, Inc. (QRVO)

Company Profile:

Qorvo, Inc. is a provider of technologies and radio frequency (RF) solutions for mobile, infrastructure and defense and aerospace applications. The Company designs, develops, manufactures and markets its products to the United States and international original equipment manufacturers (OEMs) and original design manufacturers (ODMs). Its segments include Mobile Products (MP) and Infrastructure and Defense Products (IDP). The MP segment is a supplier of radio frequency (RF) solutions that perform various functions in the cellular radio front end section of smartphones and other cellular devices. The IDP segment is a supplier of RF solutions that support various global applications, including ubiquitous high-speed network connectivity to the cloud, data center communications, Internet connectivity throughout the home and workplace, and upgraded military capabilities across the globe. It operates design, sales and manufacturing facilities located throughout Asia, Europe and North America. Qorvo, Inc. was incorporated in 2013 and is headquartered in Greensboro, North Carolina.

Recent News:

On Sept. 26, 2016, the company announced the expansion of its CATV product portfolio to include two new control products designed for DOCSIS 3.1 cable networking. The newly added products give cable operators greater network design flexibility to enhance upstream and downstream bandwidth while reducing power consumption.

On Aug. 04, 2016, the company announced that all agenda items at Qorvo’s 2016 Annual Meeting of Stockholders were approved by the stockholders.

For the fiscal 2017 first quarter, ended July 2, 2016, the company reported revenue increased 4% year-over-year and 15% sequentially to $698.5 million, On a GAAP basis. Gross margin was 39.6%, operating expenses were $270.7 million, operating income was $5.7 million, and net loss was $5.7 million, or a loss of $0.04 per share based on 127.5 million weighted average shares outstanding.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

QRVO’s strengths can be seen in its strong growth. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 55.40. We rate Qorvo, Inc. (QRVO) a Strong BUY.