BROADCOM INC (1AVGO.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AVGO - US11135F1012 - Common Stock
293.45 EUR
-16.1 (-5.2%)
1AVGO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 65 industry peers in the Semiconductors & Semiconductor Equipment industry. While 1AVGO has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, 1AVGO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
1AVGO had positive earnings in the past year.
1AVGO had a positive operating cash flow in the past year.
1AVGO had positive earnings in 4 of the past 5 years.
Of the past 5 years 1AVGO 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 11.43%, 1AVGO is doing good in the industry, outperforming 72.31% of the companies in the same industry.
1AVGO's Return On Equity of 25.84% is fine compared to the rest of the industry. 1AVGO outperforms 75.38% of its industry peers.
1AVGO has a better Return On Invested Capital (12.26%) than 64.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1AVGO is in line with the industry average of 14.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.43% | ||
| ROE | 25.84% | ||
| ROIC | 12.26% |
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 31.59% is amongst the best of the industry. 1AVGO outperforms 86.15% of its industry peers.
In the last couple of years the Profit Margin of 1AVGO has remained more or less at the same level.
1AVGO has a better Operating Margin (39.20%) than 92.31% of its industry peers.
In the last couple of years the Operating Margin of 1AVGO has grown nicely.
1AVGO's Gross Margin of 67.03% is amongst the best of the industry. 1AVGO outperforms 89.23% of its industry peers.
1AVGO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.2% | ||
| PM (TTM) | 31.59% | ||
| GM | 67.03% |
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
1AVGO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for 1AVGO. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
1AVGO has an Altman-Z score of 11.51. This indicates that 1AVGO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.51, 1AVGO belongs to the top of the industry, outperforming 81.54% of the companies in the same industry.
The Debt to FCF ratio of 1AVGO is 2.58, which is a good value as it means it would take 1AVGO, 2.58 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1AVGO (2.58) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.86 indicates that 1AVGO is somewhat dependend on debt financing.
The Debt to Equity ratio of 1AVGO (0.86) is worse than 87.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 11.51 |
ROIC/WACC1.17
WACC10.47%
2.3 Liquidity
1AVGO has a Current Ratio of 1.50. This is a normal value and indicates that 1AVGO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 1AVGO (1.50) is worse than 83.08% of its industry peers.
1AVGO has a Quick Ratio of 1.37. This is a normal value and indicates that 1AVGO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.37, 1AVGO is doing worse than 73.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.47% over the past year.
Measured over the past years, 1AVGO shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.23% on average per year.
EPS 1Y (TTM)40.47%
EPS 3Y21.91%
EPS 5Y25.23%
EPS Q2Q%37.32%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%28.18%
3.2 Future
The Earnings Per Share is expected to grow by 15.36% on average over the next years. This is quite good.
1AVGO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.46% yearly.
EPS Next Y40.29%
EPS Next 2Y37.85%
EPS Next 3Y33.21%
EPS Next 5Y15.36%
Revenue Next Year37.93%
Revenue Next 2Y35.1%
Revenue Next 3Y29.97%
Revenue Next 5Y24.46%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
1AVGO is valuated quite expensively with a Price/Earnings ratio of 50.59.
Compared to the rest of the industry, the Price/Earnings ratio of 1AVGO indicates a slightly more expensive valuation: 1AVGO is more expensive than 67.69% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.55, 1AVGO is valued quite expensively.
With a Price/Forward Earnings ratio of 36.05, 1AVGO can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, 1AVGO is valued a bit more expensive than 75.38% of the companies in the same industry.
1AVGO is valuated expensively when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.59 | ||
| Fwd PE | 36.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1AVGO is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1AVGO indicates a slightly more expensive valuation: 1AVGO is more expensive than 60.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.33 | ||
| EV/EBITDA | 51.53 |
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 33.21% in the coming years.
PEG (NY)1.26
PEG (5Y)2.01
EPS Next 2Y37.85%
EPS Next 3Y33.21%
5. Dividend
5.1 Amount
1AVGO has a yearly dividend return of 0.58%, which is pretty low.
1AVGO's Dividend Yield is comparable with the industry average which is at 0.75.
Compared to an average S&P500 Dividend Yield of 1.87, 1AVGO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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 57.20% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of 1AVGO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP57.2%
EPS Next 2Y37.85%
EPS Next 3Y33.21%
BIT:1AVGO (12/15/2025, 7:00:00 PM)
293.45
-16.1 (-5.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.34%
Inst Owner ChangeN/A
Ins Owners1.93%
Ins Owner ChangeN/A
Market Cap1.39T
Revenue(TTM)N/A
Net Income(TTM)18.93B
Analysts85.09
Price Target353.63 (20.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend1.9
Dividend Growth(5Y)16.17%
DP57.2%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.21%
Min EPS beat(2)-0.93%
Max EPS beat(2)0.5%
EPS beat(4)3
Avg EPS beat(4)1.44%
Min EPS beat(4)-0.93%
Max EPS beat(4)5.39%
EPS beat(8)5
Avg EPS beat(8)1.17%
EPS beat(12)7
Avg EPS beat(12)0.73%
EPS beat(16)9
Avg EPS beat(16)0.71%
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)-1.17%
Revenue beat(4)1
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)0.09%
Revenue beat(8)3
Avg Revenue beat(8)-0.95%
Revenue beat(12)3
Avg Revenue beat(12)-1.21%
Revenue beat(16)4
Avg Revenue beat(16)-1.06%
PT rev (1m)6.06%
PT rev (3m)14.54%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)1.74%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)1.17%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)0.44%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.59 | ||
| Fwd PE | 36.05 | ||
| P/S | 27.18 | ||
| P/FCF | 65.33 | ||
| P/OCF | 64.03 | ||
| P/B | 22.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 51.53 |
EPS(TTM)5.8
EY1.98%
EPS(NY)8.14
Fwd EY2.77%
FCF(TTM)4.49
FCFY1.53%
OCF(TTM)4.58
OCFY1.56%
SpS10.8
BVpS13.2
TBVpS-10.61
PEG (NY)1.26
PEG (5Y)2.01
Graham Number41.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.43% | ||
| ROE | 25.84% | ||
| ROCE | 15.78% | ||
| ROIC | 12.26% | ||
| ROICexc | 13.21% | ||
| ROICexgc | 301.66% | ||
| OM | 39.2% | ||
| PM (TTM) | 31.59% | ||
| GM | 67.03% | ||
| FCFM | 41.6% |
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%
ROICexgc growth 3Y52.32%
ROICexgc 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-Score9
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.58 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 5.55% | ||
| Cap/Sales | 0.85% | ||
| Interest Coverage | 8.67 | ||
| Cash Conversion | 77.92% | ||
| Profit Quality | 131.68% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 11.51 |
F-Score9
WACC10.47%
ROIC/WACC1.17
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)40.47%
EPS 3Y21.91%
EPS 5Y25.23%
EPS Q2Q%37.32%
EPS Next Y40.29%
EPS Next 2Y37.85%
EPS Next 3Y33.21%
EPS Next 5Y15.36%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%28.18%
Revenue Next Year37.93%
Revenue Next 2Y35.1%
Revenue Next 3Y29.97%
Revenue Next 5Y24.46%
EBIT growth 1Y61.92%
EBIT growth 3Y20.65%
EBIT growth 5Y29.07%
EBIT Next Year45.92%
EBIT Next 3Y36.39%
EBIT Next 5Y33.79%
FCF growth 1Y43.52%
FCF growth 3Y13.38%
FCF growth 5Y15.95%
OCF growth 1Y42.59%
OCF growth 3Y13.19%
OCF growth 5Y15.53%
BROADCOM INC / 1AVGO.MI FAQ
Can you provide the ChartMill fundamental rating for BROADCOM INC?
ChartMill assigns a fundamental rating of 5 / 10 to 1AVGO.MI.
What is the valuation status for 1AVGO stock?
ChartMill assigns a valuation rating of 2 / 10 to BROADCOM INC (1AVGO.MI). This can be considered as Overvalued.
What is the profitability of 1AVGO stock?
BROADCOM INC (1AVGO.MI) has a profitability rating of 7 / 10.
What is the valuation of BROADCOM INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BROADCOM INC (1AVGO.MI) is 50.59 and the Price/Book (PB) ratio is 22.23.
Is the dividend of BROADCOM INC sustainable?
The dividend rating of BROADCOM INC (1AVGO.MI) is 3 / 10 and the dividend payout ratio is 57.2%.