Is BROADCOM INC (NASDAQ:AVGO) a Strong Candidate for Quality Investing?

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.

Looking into the quality metrics of BROADCOM INC

• Over the past 5 years, BROADCOM INC has experienced impressive revenue growth, with 11.43% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• BROADCOM INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 1.0K% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• BROADCOM INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 4.13, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• 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.

Fundamental analysis of NASDAQ:AVGO

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

Overall AVGO gets a fundamental rating of 6 out of 10. We evaluated AVGO against 107 industry peers in the Semiconductors & Semiconductor Equipment industry. AVGO scores excellent on profitability, but there are some minor concerns on its financial health. AVGO is not valued too expensively and it also shows a decent growth rate.

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

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.