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Should you consider NASDAQ:AVGO for quality investing?

By Mill Chart

Last update: Aug 23, 2023

In this article we will dive into BROADCOM INC (NASDAQ:AVGO) as a possible candidate for quality investing. Investors should always do their own research, but we noticed BROADCOM INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NASDAQ:AVGO highlighted

  • The 5-year revenue growth of BROADCOM INC has been remarkable, with 13.49% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • With a robust ROIC excluding cash and goodwill at 353.0%, BROADCOM INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • BROADCOM INC maintains a healthy Debt/Free Cash Flow Ratio of 2.3, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • With a robust Profit Quality (5-year) ratio of 240.0%, BROADCOM INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
  • The 5-year EBIT growth of BROADCOM INC has been remarkable, with 39.83% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • BROADCOM INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental Analysis Observations

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

AVGO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 105 industry peers in the Semiconductors & Semiconductor Equipment industry. AVGO has an excellent profitability rating, but there are some minor concerns on its financial health. AVGO is not valued too expensively and it also shows a decent growth rate.

Our latest full fundamental report of AVGO contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.



NASDAQ:AVGO (12/8/2023, 7:00:01 PM)

After market: 945.24 +0.94 (+0.1%)


+22.04 (+2.39%)


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