BROADCOM INC (1AVGO.MI) Stock Fundamental Analysis
BIT:1AVGO - US11135F1012 - Common Stock
258.85 EUR
+1.75 (+0.68%)
Taking everything into account, 1AVGO scores 5 out of 10 in our fundamental rating. 1AVGO was compared to 60 industry peers in the Semiconductors & Semiconductor Equipment industry. 1AVGO has an excellent profitability rating, but there are some minor concerns on its financial health. 1AVGO is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year 1AVGO was profitable.
In the past year 1AVGO had a positive cash flow from operations.
In the past 5 years 1AVGO has always been profitable.
In the past 5 years 1AVGO always reported a positive cash flow from operatings.
1.2 Ratios
1AVGO has a Return On Assets of 7.85%. This is comparable to the rest of the industry: 1AVGO outperforms 58.33% of its industry peers.
With a decent Return On Equity value of 18.56%, 1AVGO is doing good in the industry, outperforming 70.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 11.32%, 1AVGO is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
1AVGO had an Average Return On Invested Capital over the past 3 years of 14.76%. This is in line with the industry average of 13.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 18.56% | ||
| ROIC | 11.32% |
ROA(3y)12.74%
ROA(5y)10.05%
ROE(3y)38.95%
ROE(5y)30.76%
ROIC(3y)14.76%
ROIC(5y)11.78%
1.3 Margins
The Profit Margin of 1AVGO (22.64%) is better than 76.67% of its industry peers.
1AVGO's Profit Margin has been stable in the last couple of years.
1AVGO has a Operating Margin of 37.75%. This is amongst the best in the industry. 1AVGO outperforms 95.00% of its industry peers.
In the last couple of years the Operating Margin of 1AVGO has grown nicely.
With an excellent Gross Margin value of 66.35%, 1AVGO belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
1AVGO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.75% | ||
| PM (TTM) | 22.64% | ||
| GM | 66.35% |
OM growth 3Y-2.23%
OM growth 5Y9.44%
PM growth 3Y-21.3%
PM growth 5Y-0.85%
GM growth 3Y1.13%
GM growth 5Y2.71%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1AVGO is still creating some value.
1AVGO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for 1AVGO has been increased compared to 5 years ago.
The debt/assets ratio for 1AVGO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.76 indicates that 1AVGO is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1AVGO (9.76) is better than 81.67% of its industry peers.
1AVGO has a debt to FCF ratio of 2.96. This is a good value and a sign of high solvency as 1AVGO would need 2.96 years to pay back of all of its debts.
The Debt to FCF ratio of 1AVGO (2.96) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.94 indicates that 1AVGO is somewhat dependend on debt financing.
1AVGO has a worse Debt to Equity ratio (0.94) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 2.96 | ||
| Altman-Z | 9.76 |
ROIC/WACC1
WACC11.32%
2.3 Liquidity
1AVGO has a Current Ratio of 1.08. This is a normal value and indicates that 1AVGO is financially healthy and should not expect problems in meeting its short term obligations.
1AVGO has a Current ratio of 1.08. This is amonst the worse of the industry: 1AVGO underperforms 86.67% of its industry peers.
1AVGO has a Quick Ratio of 1.08. This is a bad value and indicates that 1AVGO is not financially healthy enough and could expect problems in meeting its short term obligations.
1AVGO's Quick ratio of 0.98 is on the low side compared to the rest of the industry. 1AVGO is outperformed by 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
1AVGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.10%, which is quite impressive.
The Earnings Per Share has been growing by 17.90% on average over the past years. This is quite good.
Looking at the last year, 1AVGO shows a very strong growth in Revenue. The Revenue has grown by 33.85%.
The Revenue has been growing by 17.94% on average over the past years. This is quite good.
EPS 1Y (TTM)34.1%
EPS 3Y20.14%
EPS 5Y17.9%
EPS Q2Q%44.16%
Revenue 1Y (TTM)33.85%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%20.16%
3.2 Future
The Earnings Per Share is expected to grow by 26.54% on average over the next years. This is a very strong growth
Based on estimates for the next years, 1AVGO will show a quite strong growth in Revenue. The Revenue will grow by 19.78% on average per year.
EPS Next Y38.51%
EPS Next 2Y30.76%
EPS Next 3Y27.16%
EPS Next 5Y26.54%
Revenue Next Year21.82%
Revenue Next 2Y21.46%
Revenue Next 3Y19.89%
Revenue Next 5Y19.78%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 51.67 indicates a quite expensive valuation of 1AVGO.
81.67% of the companies in the same industry are cheaper than 1AVGO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.03, 1AVGO is valued quite expensively.
With a Price/Forward Earnings ratio of 36.32, 1AVGO can be considered very expensive at the moment.
73.33% of the companies in the same industry are cheaper than 1AVGO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.63. 1AVGO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.67 | ||
| Fwd PE | 36.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1AVGO is valued more expensive than 86.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1AVGO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.48 | ||
| EV/EBITDA | 47.47 |
4.3 Compensation for Growth
1AVGO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1AVGO has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1AVGO's earnings are expected to grow with 27.16% in the coming years.
PEG (NY)1.34
PEG (5Y)2.89
EPS Next 2Y30.76%
EPS Next 3Y27.16%
5. Dividend
5.1 Amount
1AVGO has a yearly dividend return of 0.76%, which is pretty low.
1AVGO's Dividend Yield is a higher than the industry average which is at 1.29.
With a Dividend Yield of 0.76, 1AVGO pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
The dividend of 1AVGO is nicely growing with an annual growth rate of 16.17%!
Dividend Growth(5Y)16.17%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1AVGO pays out 81.25% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1AVGO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP81.25%
EPS Next 2Y30.76%
EPS Next 3Y27.16%
BIT:1AVGO (9/3/2025, 7:00:00 PM)
258.85
+1.75 (+0.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.07%
Inst Owner ChangeN/A
Ins Owners1.94%
Ins Owner ChangeN/A
Market Cap1217.49B
Analysts84
Price Target257.38 (-0.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Yearly Dividend1.91
Dividend Growth(5Y)16.17%
DP81.25%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.23%
Min EPS beat(2)-0.93%
Max EPS beat(2)5.39%
EPS beat(4)3
Avg EPS beat(4)1.58%
Min EPS beat(4)-0.93%
Max EPS beat(4)5.39%
EPS beat(8)4
Avg EPS beat(8)1%
EPS beat(12)6
Avg EPS beat(12)0.67%
EPS beat(16)8
Avg EPS beat(16)0.63%
Revenue beat(2)1
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)0.09%
Revenue beat(4)1
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)0.09%
Revenue beat(8)3
Avg Revenue beat(8)-1.03%
Revenue beat(12)3
Avg Revenue beat(12)-1.19%
Revenue beat(16)4
Avg Revenue beat(16)-1.09%
PT rev (1m)4.04%
PT rev (3m)20.99%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-0.39%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.67 | ||
| Fwd PE | 36.32 | ||
| P/S | 24.86 | ||
| P/FCF | 62.48 | ||
| P/OCF | 61.03 | ||
| P/B | 20.38 | ||
| P/tB | N/A | ||
| EV/EBITDA | 47.47 |
EPS(TTM)5.01
EY1.94%
EPS(NY)7.13
Fwd EY2.75%
FCF(TTM)4.14
FCFY1.6%
OCF(TTM)4.24
OCFY1.64%
SpS10.41
BVpS12.7
TBVpS-11.79
PEG (NY)1.34
PEG (5Y)2.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 18.56% | ||
| ROCE | 14.95% | ||
| ROIC | 11.32% | ||
| ROICexc | 12.09% | ||
| ROICexgc | 394.45% | ||
| OM | 37.75% | ||
| PM (TTM) | 22.64% | ||
| GM | 66.35% | ||
| FCFM | 39.79% |
ROA(3y)12.74%
ROA(5y)10.05%
ROE(3y)38.95%
ROE(5y)30.76%
ROIC(3y)14.76%
ROIC(5y)11.78%
ROICexc(3y)18.03%
ROICexc(5y)14.28%
ROICexgc(3y)580.38%
ROICexgc(5y)446.38%
ROCE(3y)18.99%
ROCE(5y)15.15%
ROICexcg growth 3Y52.32%
ROICexcg growth 5Y48.04%
ROICexc growth 3Y-10.43%
ROICexc growth 5Y7.73%
OM growth 3Y-2.23%
OM growth 5Y9.44%
PM growth 3Y-21.3%
PM growth 5Y-0.85%
GM growth 3Y1.13%
GM growth 5Y2.71%
F-Score8
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 2.96 | ||
| Debt/EBITDA | 2.12 | ||
| Cap/Depr | 5.68% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | 7.36 | ||
| Cash Conversion | 74.93% | ||
| Profit Quality | 175.71% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 9.76 |
F-Score8
WACC11.32%
ROIC/WACC1
Cap/Depr(3y)8.59%
Cap/Depr(5y)7.96%
Cap/Sales(3y)1.2%
Cap/Sales(5y)1.43%
Profit Quality(3y)199.96%
Profit Quality(5y)248.47%
High Growth Momentum
Growth
EPS 1Y (TTM)34.1%
EPS 3Y20.14%
EPS 5Y17.9%
EPS Q2Q%44.16%
EPS Next Y38.51%
EPS Next 2Y30.76%
EPS Next 3Y27.16%
EPS Next 5Y26.54%
Revenue 1Y (TTM)33.85%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%20.16%
Revenue Next Year21.82%
Revenue Next 2Y21.46%
Revenue Next 3Y19.89%
Revenue Next 5Y19.78%
EBIT growth 1Y49.25%
EBIT growth 3Y20.65%
EBIT growth 5Y29.07%
EBIT Next Year43.37%
EBIT Next 3Y25.18%
EBIT Next 5Y24.49%
FCF growth 1Y32.87%
FCF growth 3Y13.38%
FCF growth 5Y15.95%
OCF growth 1Y32.43%
OCF growth 3Y13.19%
OCF growth 5Y15.53%