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Why Quality Investors Should Delve into BROADCOM INC (NASDAQ:AVGO) for Investment Opportunities.

By Mill Chart

Last update: Apr 4, 2024

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.

Some of the quality metrics of NASDAQ:AVGO highlighted

  • 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.
  • With a robust ROIC excluding cash and goodwill at 1.0K%, BROADCOM INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • BROADCOM INC maintains a healthy Debt/Free Cash Flow Ratio of 4.13, 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 consistently achieved strong EBIT growth over the past 5 years, with a 25.02% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • The EBIT 5-year growth of BROADCOM INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

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.

Taking everything into account, AVGO scores 6 out of 10 in our fundamental rating. AVGO was compared to 107 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.

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

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 (5/17/2024, 7:00:01 PM)

After market: 1395.29 0 (0%)


-16.84 (-1.19%)


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