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Why Quality Investors May Find BROADCOM INC (NASDAQ:AVGO) Attractive.

By Mill Chart

Last update: Jan 31, 2024

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 demonstrated significant revenue growth over the past 5 years, with a 11.43% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • BROADCOM INC demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 347.0% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • With a Debt/Free Cash Flow Ratio of 2.22, BROADCOM INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
  • With a robust Profit Quality (5-year) ratio of 251.0%, 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.
  • BROADCOM INC has experienced impressive EBIT growth over the past 5 years, with 25.02% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • BROADCOM INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

Fundamental analysis of NASDAQ:AVGO

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

We assign a fundamental rating of 7 out of 10 to AVGO. AVGO was compared to 106 industry peers in the Semiconductors & Semiconductor Equipment industry. While AVGO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AVGO has a decent growth rate and is not valued too expensively.

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

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.

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BROADCOM INC

NASDAQ:AVGO (4/23/2024, 7:00:00 PM)

After market: 1258.14 +8.95 (+0.72%)

1249.19

+24.73 (+2.02%)

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