Business Description

Qorvo represents the combined entity of RF Micro Devices and TriQuint Semiconductor, which merged with one another in January 2015. The company specializes in radio frequency filters, power amplifiers, and front-end modules used in many of the world’s most advanced smartphones. Qorvo also has a suite of products sold into a variety of nonsmartphone end markets, such as wireless base stations, cable TV and networking equipment, and infrastructure and military applications.

Recommendation (Nov 2020)

A poor business in the past, but may be turning around now. Highly overvalued with lots of EVA baked into today’s price of $147.39 per share.

If we assume that EPS will grow between 8-12% CAGR for 5 years and that QRVO will trade at a PE multiple of 30x in 2025, then the implied Investor Return would be between 3-7%.

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