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 54 industry peers in the Semiconductors & Semiconductor Equipment industry. While 1AVGO has a great profitability rating, there are some minor concerns on its financial health. 1AVGO is valued quite expensively, but it does show have an excellent growth rating.
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
1AVGO's Return On Assets of 7.85% is in line compared to the rest of the industry. 1AVGO outperforms 44.44% of its industry peers.
1AVGO has a Return On Equity of 18.56%. This is in the better half of the industry: 1AVGO outperforms 64.81% of its industry peers.
1AVGO has a Return On Invested Capital (11.32%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for 1AVGO is in line with the industry average of 16.29%.
| 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 62.96% of its industry peers.
1AVGO's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 37.75%, 1AVGO belongs to the top of the industry, outperforming 90.74% of the companies in the same industry.
In the last couple of years the Operating Margin of 1AVGO has grown nicely.
The Gross Margin of 1AVGO (66.35%) is better than 88.89% of its industry peers.
In the last couple of years the Gross Margin of 1AVGO has grown nicely.
| 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
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.
Compared to 5 years ago, 1AVGO has more shares outstanding
The debt/assets ratio for 1AVGO has been reduced compared to a year ago.
2.2 Solvency
1AVGO has an Altman-Z score of 9.38. This indicates that 1AVGO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1AVGO (9.38) is better than 72.22% of its industry peers.
The Debt to FCF ratio of 1AVGO is 2.96, which is a good value as it means it would take 1AVGO, 2.96 years of fcf income to pay off all of its debts.
1AVGO has a Debt to FCF ratio of 2.96. This is comparable to the rest of the industry: 1AVGO outperforms 46.30% of its industry peers.
A Debt/Equity ratio of 0.94 indicates that 1AVGO is somewhat dependend on debt financing.
1AVGO's Debt to Equity ratio of 0.94 is on the low side compared to the rest of the industry. 1AVGO is outperformed by 87.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 2.96 | ||
| Altman-Z | 9.38 |
ROIC/WACC0.98
WACC11.57%
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 worse Current ratio (1.08) than 90.74% 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 has a Quick ratio of 0.98. This is in the lower half of the industry: 1AVGO underperforms 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.10% 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 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
1AVGO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.78% yearly.
EPS Next Y38.45%
EPS Next 2Y30.61%
EPS Next 3Y26.85%
EPS Next 5Y26.54%
Revenue Next Year21.74%
Revenue Next 2Y21.29%
Revenue Next 3Y19.65%
Revenue Next 5Y19.78%
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.
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 49.44 indicates a quite expensive valuation of 1AVGO.
Based on the Price/Earnings ratio, 1AVGO is valued a bit more expensive than 75.93% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. 1AVGO is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 34.84, which means the current valuation is very expensive for 1AVGO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1AVGO indicates a rather expensive valuation: 1AVGO more expensive than 85.19% of the companies listed in the same industry.
1AVGO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.44 | ||
| Fwd PE | 34.84 |
4.2 Price Multiples
85.19% of the companies in the same industry are cheaper than 1AVGO, based on the Enterprise Value to EBITDA ratio.
1AVGO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.8 | ||
| EV/EBITDA | 45.51 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 1AVGO may justify a higher PE ratio.
A more expensive valuation may be justified as 1AVGO's earnings are expected to grow with 26.85% in the coming years.
PEG (NY)1.29
PEG (5Y)2.76
EPS Next 2Y30.61%
EPS Next 3Y26.85%
5. Dividend
5.1 Amount
With a yearly dividend of 0.82%, 1AVGO is not a good candidate for dividend investing.
1AVGO's Dividend Yield is a higher than the industry average which is at 1.19.
Compared to an average S&P500 Dividend Yield of 2.34, 1AVGO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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.
1AVGO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP81.25%
EPS Next 2Y30.61%
EPS Next 3Y26.85%
BIT:1AVGO (7/17/2025, 7:00:00 PM)
247.7
+9.9 (+4.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79%
Inst Owner ChangeN/A
Ins Owners1.94%
Ins Owner ChangeN/A
Market Cap1165.05B
Analysts84.17
Price Target247.39 (-0.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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)14.81%
PT rev (3m)8.91%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-0.25%
EPS NY rev (1m)-0.84%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)0.09%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.44 | ||
| Fwd PE | 34.84 | ||
| P/S | 23.79 | ||
| P/FCF | 59.8 | ||
| P/OCF | 58.42 | ||
| P/B | 19.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 45.51 |
EPS(TTM)5.01
EY2.02%
EPS(NY)7.11
Fwd EY2.87%
FCF(TTM)4.14
FCFY1.67%
OCF(TTM)4.24
OCFY1.71%
SpS10.41
BVpS12.7
TBVpS-11.79
PEG (NY)1.29
PEG (5Y)2.76
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 | 9.38 |
F-Score8
WACC11.57%
ROIC/WACC0.98
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 Y38.45%
EPS Next 2Y30.61%
EPS Next 3Y26.85%
EPS Next 5Y26.54%
Revenue 1Y (TTM)33.85%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%20.16%
Revenue Next Year21.74%
Revenue Next 2Y21.29%
Revenue Next 3Y19.65%
Revenue Next 5Y19.78%
EBIT growth 1Y49.25%
EBIT growth 3Y20.65%
EBIT growth 5Y29.07%
EBIT Next Year43.51%
EBIT Next 3Y23.41%
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%