BROADCOM INC (NASDAQ:AVGO) can be considered a quality stock. Here's why.

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.

What matters for quality investors.

• BROADCOM INC has shown strong performance in revenue growth over the past 5 years, with a 11.43% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• BROADCOM INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 348.0% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• BROADCOM INC maintains a healthy Debt/Free Cash Flow Ratio of 2.22, 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.
• The Profit Quality (5-year) of BROADCOM INC stands at 251.0%, 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 demonstrated consistent growth in EBIT over the past 5 years, with a strong 25.4%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• BROADCOM INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Zooming in on the fundamentals.

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to AVGO. AVGO was compared to 105 industry peers in the Semiconductors & Semiconductor Equipment industry. While AVGO has a great profitability rating, 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.

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.