BROADCOM INC (1AVGO.MI) Stock Fundamental Analysis
Europe - BIT:1AVGO - US11135F1012 - Common Stock
306 EUR
+9 (+3.03%)
Overall 1AVGO gets a fundamental rating of 6 out of 10. We evaluated 1AVGO against 65 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 shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
1AVGO had positive earnings in the past year.
In the past year 1AVGO had a positive cash flow from operations.
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
1AVGO has a Return On Assets of 11.43%. This is in the better half of the industry: 1AVGO outperforms 70.77% of its industry peers.
The Return On Equity of 1AVGO (25.84%) is better than 72.31% of its industry peers.
With a decent Return On Invested Capital value of 12.26%, 1AVGO is doing good in the industry, outperforming 61.54% 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 14.69%.
| 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
Looking at the Profit Margin, with a value of 31.59%, 1AVGO belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
1AVGO's Profit Margin has been stable in the last couple of years.
1AVGO has a Operating Margin of 39.20%. This is amongst the best in the industry. 1AVGO outperforms 92.31% 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 67.03%, 1AVGO belongs to the best of the industry, outperforming 90.77% 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 | 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.
The number of shares outstanding for 1AVGO has been increased compared to 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
1AVGO has an Altman-Z score of 11.86. This indicates that 1AVGO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1AVGO (11.86) is better than 80.00% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 2.58, 1AVGO is in line with its industry, outperforming 58.46% of the companies in the same industry.
1AVGO has a Debt/Equity ratio of 0.86. This is a neutral value indicating 1AVGO is somewhat dependend on debt financing.
1AVGO has a worse Debt to Equity ratio (0.86) than 87.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 11.86 |
ROIC/WACC1.06
WACC11.56%
2.3 Liquidity
A Current Ratio of 1.50 indicates that 1AVGO should not have too much problems paying its short term obligations.
1AVGO has a Current ratio of 1.50. This is in the lower half of the industry: 1AVGO underperforms 78.46% 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.
1AVGO has a Quick ratio of 1.37. This is in the lower half of the industry: 1AVGO underperforms 72.31% of its industry peers.
| 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 38.52% over the past year.
The Earnings Per Share has been growing by 17.90% on average over the past years. This is quite good.
1AVGO shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.01%.
1AVGO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.94% yearly.
EPS 1Y (TTM)38.52%
EPS 3Y20.14%
EPS 5Y17.9%
EPS Q2Q%36.29%
Revenue 1Y (TTM)28.01%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%22.03%
3.2 Future
The Earnings Per Share is expected to grow by 33.02% on average over the next years. This is a very strong growth
Based on estimates for the next years, 1AVGO will show a very strong growth in Revenue. The Revenue will grow by 24.71% on average per year.
EPS Next Y39.77%
EPS Next 2Y38.82%
EPS Next 3Y33.99%
EPS Next 5Y33.02%
Revenue Next Year22.83%
Revenue Next 2Y28.67%
Revenue Next 3Y27.37%
Revenue Next 5Y24.71%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 56.67 indicates a quite expensive valuation of 1AVGO.
Compared to the rest of the industry, the Price/Earnings ratio of 1AVGO indicates a slightly more expensive valuation: 1AVGO is more expensive than 72.31% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of 1AVGO to the average of the S&P500 Index (27.29), we can say 1AVGO is valued expensively.
A Price/Forward Earnings ratio of 38.10 indicates a quite expensive valuation of 1AVGO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1AVGO indicates a slightly more expensive valuation: 1AVGO is more expensive than 69.23% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of 1AVGO to the average of the S&P500 Index (22.85), we can say 1AVGO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.67 | ||
| Fwd PE | 38.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1AVGO is valued more expensive than 80.00% of the companies in the same industry.
1AVGO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 67.52 | ||
| EV/EBITDA | 53.2 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
1AVGO's earnings are expected to grow with 33.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.42
PEG (5Y)3.17
EPS Next 2Y38.82%
EPS Next 3Y33.99%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, 1AVGO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.13, 1AVGO has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, 1AVGO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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
57.20% of the earnings are spent on dividend by 1AVGO. This is a bit on the high side, but may be sustainable.
The dividend of 1AVGO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.2%
EPS Next 2Y38.82%
EPS Next 3Y33.99%
BIT:1AVGO (10/15/2025, 7:00:00 PM)
306
+9 (+3.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.37%
Inst Owner ChangeN/A
Ins Owners1.93%
Ins Owner ChangeN/A
Market Cap1445.05B
Analysts84.53
Price Target313.81 (2.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend1.92
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)21.92%
PT rev (3m)29.72%
EPS NQ rev (1m)1.33%
EPS NQ rev (3m)3.31%
EPS NY rev (1m)0.91%
EPS NY rev (3m)0.95%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)2.75%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.67 | ||
| Fwd PE | 38.1 | ||
| P/S | 28.09 | ||
| P/FCF | 67.52 | ||
| P/OCF | 66.17 | ||
| P/B | 22.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 53.2 |
EPS(TTM)5.4
EY1.76%
EPS(NY)8.03
Fwd EY2.62%
FCF(TTM)4.53
FCFY1.48%
OCF(TTM)4.62
OCFY1.51%
SpS10.89
BVpS13.32
TBVpS-10.7
PEG (NY)1.42
PEG (5Y)3.17
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%
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-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 | 11.86 |
F-Score9
WACC11.56%
ROIC/WACC1.06
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)38.52%
EPS 3Y20.14%
EPS 5Y17.9%
EPS Q2Q%36.29%
EPS Next Y39.77%
EPS Next 2Y38.82%
EPS Next 3Y33.99%
EPS Next 5Y33.02%
Revenue 1Y (TTM)28.01%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%22.03%
Revenue Next Year22.83%
Revenue Next 2Y28.67%
Revenue Next 3Y27.37%
Revenue Next 5Y24.71%
EBIT growth 1Y61.92%
EBIT growth 3Y20.65%
EBIT growth 5Y29.07%
EBIT Next Year44.66%
EBIT Next 3Y32.44%
EBIT Next 5Y30.88%
FCF growth 1Y43.52%
FCF growth 3Y13.38%
FCF growth 5Y15.95%
OCF growth 1Y42.59%
OCF growth 3Y13.19%
OCF growth 5Y15.53%