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Why BROADCOM INC (NASDAQ:AVGO) Deserves Consideration as a Quality Investment.

By Mill Chart

Last update: Nov 29, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if BROADCOM INC (NASDAQ:AVGO) is suited for quality investing. Investors should of course do their own research, but we spotted BROADCOM INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

  • 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 notable ROIC excluding cash and goodwill at 326.0%, BROADCOM INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • The Debt/Free Cash Flow Ratio of BROADCOM INC stands at 2.26, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • The Profit Quality (5-year) of BROADCOM INC stands at 240.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • BROADCOM INC has experienced impressive EBIT growth over the past 5 years, with 39.83% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • 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.

A complete fundamental analysis of NASDAQ:AVGO

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Taking everything into account, AVGO scores 6 out of 10 in our fundamental rating. AVGO was compared to 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.

For an up to date full fundamental analysis you can check the fundamental report of AVGO

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

Disclaimer

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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