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Exploring BROADCOM INC (NASDAQ:AVGO)s quality characteristics.

By Mill Chart

Last update: Sep 15, 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.

Why NASDAQ:AVGO may be interesting for quality investors.

  • Over the past 5 years, BROADCOM INC has experienced impressive revenue growth, with 13.49% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • The ROIC excluding cash and goodwill of BROADCOM INC stands at 327.0%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • BROADCOM INC maintains a healthy Debt/Free Cash Flow Ratio of 2.26, 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.
  • BROADCOM INC demonstrates consistent Profit Quality over the past 5 years, with a strong 240.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • With a robust 5-year EBIT growth of 39.83%, BROADCOM INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • 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 of NASDAQ:AVGO

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various 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 scores excellent on profitability, but there are some minor concerns on its financial health. AVGO has a correct valuation and a medium growth rate.

Check the latest full fundamental report of AVGO for a complete fundamental analysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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BROADCOM INC

NASDAQ:AVGO (4/26/2024, 7:00:00 PM)

After market: 1344.07 0 (0%)

1344.07

+49.65 (+3.84%)

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