BROADCOM INC (1AVGO.MI) Stock Fundamental Analysis
BIT:1AVGO - Euronext Milan - US11135F1012 - Common Stock - Currency: EUR
Overall 1AVGO gets a fundamental rating of 5 out of 10. We evaluated 1AVGO against 51 industry peers in the Semiconductors & Semiconductor Equipment industry. 1AVGO scores excellent on profitability, 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.
1AVGO had a positive operating cash flow in the past year.
In the past 5 years 1AVGO has always been profitable.
1AVGO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.09%, 1AVGO is in line with its industry, outperforming 42.31% of the companies in the same industry.
1AVGO has a Return On Equity (14.43%) which is in line with its industry peers.
With a Return On Invested Capital value of 9.90%, 1AVGO perfoms like the industry average, outperforming 55.77% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1AVGO is in line with the industry average of 15.59%.
The last Return On Invested Capital (9.90%) for 1AVGO is well below the 3 year average (14.76%), which needs to be investigated, but indicates that 1AVGO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 14.43% | ||
| ROIC | 9.9% |
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
1AVGO's Profit Margin of 18.47% is fine compared to the rest of the industry. 1AVGO outperforms 65.38% of its industry peers.
In the last couple of years the Profit Margin of 1AVGO has remained more or less at the same level.
The Operating Margin of 1AVGO (34.66%) is better than 92.31% of its industry peers.
1AVGO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 65.02%, 1AVGO belongs to the top of the industry, outperforming 86.54% of the companies in the same industry.
In the last couple of years the Gross Margin of 1AVGO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.66% | ||
| PM (TTM) | 18.47% | ||
| GM | 65.02% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1AVGO is creating some value.
1AVGO has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1AVGO has more shares outstanding
1AVGO has a better debt/assets ratio than last year.
2.2 Solvency
1AVGO has an Altman-Z score of 7.83. This indicates that 1AVGO is financially healthy and has little risk of bankruptcy at the moment.
1AVGO has a Altman-Z score of 7.83. This is in the better half of the industry: 1AVGO outperforms 75.00% of its industry peers.
1AVGO has a debt to FCF ratio of 3.21. This is a good value and a sign of high solvency as 1AVGO would need 3.21 years to pay back of all of its debts.
With a Debt to FCF ratio value of 3.21, 1AVGO perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
1AVGO has a Debt/Equity ratio of 0.93. This is a neutral value indicating 1AVGO is somewhat dependend on debt financing.
The Debt to Equity ratio of 1AVGO (0.93) is worse than 86.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 3.21 | ||
| Altman-Z | 7.83 |
ROIC/WACC0.89
WACC11.15%
2.3 Liquidity
1AVGO has a Current Ratio of 1.00. 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 worse Current ratio (1.00) than 90.38% of its industry peers.
A Quick Ratio of 0.91 indicates that 1AVGO may have some problems paying its short term obligations.
The Quick ratio of 1AVGO (0.91) is worse than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.82% over the past year.
The Earnings Per Share has been growing by 17.90% on average over the past years. This is quite good.
The Revenue has grown by 40.30% in the past year. This is a very strong growth!
The Revenue has been growing by 17.94% on average over the past years. This is quite good.
EPS 1Y (TTM)24.82%
EPS 3Y20.14%
EPS 5Y17.9%
EPS Q2Q%45.59%
Revenue 1Y (TTM)40.3%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%24.71%
3.2 Future
Based on estimates for the next years, 1AVGO will show a very strong growth in Earnings Per Share. The EPS will grow by 24.96% on average per year.
1AVGO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.89% yearly.
EPS Next Y38.08%
EPS Next 2Y27.48%
EPS Next 3Y23.56%
EPS Next 5Y24.96%
Revenue Next Year20.8%
Revenue Next 2Y18.32%
Revenue Next 3Y17.01%
Revenue Next 5Y18.89%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 44.95, 1AVGO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, 1AVGO is valued a bit more expensive than the industry average as 78.85% of the companies are valued more cheaply.
1AVGO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.25.
The Price/Forward Earnings ratio is 30.49, which means the current valuation is very expensive for 1AVGO.
1AVGO's Price/Forward Earnings ratio is rather expensive when compared to the industry. 1AVGO is more expensive than 82.69% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1AVGO to the average of the S&P500 Index (22.15), we can say 1AVGO is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.95 | ||
| Fwd PE | 30.49 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1AVGO indicates a rather expensive valuation: 1AVGO more expensive than 86.54% of the companies listed in the same industry.
1AVGO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.55 | ||
| EV/EBITDA | 41.21 |
4.3 Compensation for Growth
The 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.
1AVGO's earnings are expected to grow with 23.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)2.51
EPS Next 2Y27.48%
EPS Next 3Y23.56%
5. Dividend
5.1 Amount
1AVGO has a yearly dividend return of 0.98%, which is pretty low.
1AVGO's Dividend Yield is a higher than the industry average which is at 1.39.
With a Dividend Yield of 0.98, 1AVGO pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
On average, the dividend of 1AVGO grows each year by 16.17%, which is quite nice.
Dividend Growth(5Y)16.17%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1AVGO pays out 100.79% 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.
DP100.79%
EPS Next 2Y27.48%
EPS Next 3Y23.56%
BIT:1AVGO (5/30/2025, 7:00:00 PM)
212.15
-0.35 (-0.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners78.95%
Inst Owner ChangeN/A
Ins Owners2.12%
Ins Owner ChangeN/A
Market Cap997.52B
Analysts83.48
Price Target212.74 (0.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend1.96
Dividend Growth(5Y)16.17%
DP100.79%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.08%
Min EPS beat(2)0.77%
Max EPS beat(2)5.39%
EPS beat(4)3
Avg EPS beat(4)1.59%
Min EPS beat(4)-0.91%
Max EPS beat(4)5.39%
EPS beat(8)5
Avg EPS beat(8)1.16%
EPS beat(12)7
Avg EPS beat(12)0.92%
EPS beat(16)9
Avg EPS beat(16)0.75%
Revenue beat(2)1
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-2.22%
Max Revenue beat(2)0.09%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)1.79%
Revenue beat(8)3
Avg Revenue beat(8)-1%
Revenue beat(12)4
Avg Revenue beat(12)-1%
Revenue beat(16)4
Avg Revenue beat(16)-0.99%
PT rev (1m)2.7%
PT rev (3m)-11.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.29%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)4.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.38%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.95 | ||
| Fwd PE | 30.49 | ||
| P/S | 20.74 | ||
| P/FCF | 54.55 | ||
| P/OCF | 53.2 | ||
| P/B | 16.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 41.21 |
EPS(TTM)4.72
EY2.22%
EPS(NY)6.96
Fwd EY3.28%
FCF(TTM)3.89
FCFY1.83%
OCF(TTM)3.99
OCFY1.88%
SpS10.23
BVpS13.09
TBVpS-12.5
PEG (NY)1.18
PEG (5Y)2.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 14.43% | ||
| ROCE | 13.09% | ||
| ROIC | 9.9% | ||
| ROICexc | 10.56% | ||
| ROICexgc | 548.47% | ||
| OM | 34.66% | ||
| PM (TTM) | 18.47% | ||
| GM | 65.02% | ||
| FCFM | 38.02% |
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-Score6
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 3.21 | ||
| Debt/EBITDA | 2.26 | ||
| Cap/Depr | 5.35% | ||
| Cap/Sales | 0.96% | ||
| Interest Coverage | 5.96 | ||
| Cash Conversion | 73.97% | ||
| Profit Quality | 205.84% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 7.83 |
F-Score6
WACC11.15%
ROIC/WACC0.89
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)24.82%
EPS 3Y20.14%
EPS 5Y17.9%
EPS Q2Q%45.59%
EPS Next Y38.08%
EPS Next 2Y27.48%
EPS Next 3Y23.56%
EPS Next 5Y24.96%
Revenue 1Y (TTM)40.3%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%24.71%
Revenue Next Year20.8%
Revenue Next 2Y18.32%
Revenue Next 3Y17.01%
Revenue Next 5Y18.89%
EBIT growth 1Y24.88%
EBIT growth 3Y20.65%
EBIT growth 5Y29.07%
EBIT Next Year43.51%
EBIT Next 3Y23.41%
EBIT Next 5Y23.08%
FCF growth 1Y22.98%
FCF growth 3Y13.38%
FCF growth 5Y15.95%
OCF growth 1Y22.99%
OCF growth 3Y13.19%
OCF growth 5Y15.53%