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Why NASDAQ:AVGO qualifies as a quality stock.

By Mill Chart

Last update: Feb 21, 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.

Key Considerations 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 347.0% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
  • The Debt/Free Cash Flow Ratio of BROADCOM INC stands at 2.22, 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.
  • BROADCOM INC demonstrates consistent Profit Quality over the past 5 years, with a strong 251.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • 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.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, BROADCOM INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

Fundamental Analysis Observations

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.

Overall AVGO gets a fundamental rating of 7 out of 10. We evaluated AVGO against 106 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.

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.



NASDAQ:AVGO (4/19/2024, 7:00:00 PM)

After market: 1200.5 -4.21 (-0.35%)


-54.28 (-4.31%)


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