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Why Quality-Oriented Investors Should Consider NASDAQ:AVGO.

By Mill Chart

Last update: May 17, 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.

Why NASDAQ:AVGO may be interesting for quality investors.

  • The 5-year revenue growth of BROADCOM INC has been remarkable, with 11.43% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • With a notable ROIC excluding cash and goodwill at 1.0K%, BROADCOM INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • With a favorable Debt/Free Cash Flow Ratio of 4.13, BROADCOM INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • With a favorable Profit Quality (5-year) ratio of 251.0%, BROADCOM INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • 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.

A complete fundamental analysis of NASDAQ:AVGO

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of 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 has an excellent profitability rating, but there are some minor concerns on its financial health. AVGO is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!

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.



NASDAQ:AVGO (6/17/2024, 7:00:01 PM)

After market: 1845.99 +17.12 (+0.94%)


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