BROADCOM INC (1AVGO.MI) Stock Fundamental Analysis
Europe - BIT:1AVGO - US11135F1012 - Common Stock
285.6 EUR
-3.75 (-1.3%)
Overall 1AVGO gets a fundamental rating of 6 out of 10. We evaluated 1AVGO against 57 industry peers in the Semiconductors & Semiconductor Equipment industry. While 1AVGO belongs to the best of the industry regarding profitability, 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
1AVGO had positive earnings in the past year.
1AVGO had a positive operating cash flow in the past year.
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's Return On Assets of 11.43% is fine compared to the rest of the industry. 1AVGO outperforms 70.18% of its industry peers.
1AVGO's Return On Equity of 25.84% is fine compared to the rest of the industry. 1AVGO outperforms 73.68% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.26%, 1AVGO is in the better half of the industry, outperforming 63.16% 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 14.73%.
| 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
With an excellent Profit Margin value of 31.59%, 1AVGO belongs to the best of the industry, outperforming 92.98% of the companies in the same industry.
1AVGO's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 39.20%, 1AVGO belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
In the last couple of years the Operating Margin of 1AVGO has grown nicely.
1AVGO has a better Gross Margin (67.03%) than 91.23% of its industry peers.
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.
Compared to 1 year ago, 1AVGO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 11.36 indicates that 1AVGO is not in any danger for bankruptcy at the moment.
1AVGO's Altman-Z score of 11.36 is amongst the best of the industry. 1AVGO outperforms 87.72% 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.
1AVGO has a Debt to FCF ratio (2.58) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.86 indicates that 1AVGO is somewhat dependend on debt financing.
1AVGO has a Debt to Equity ratio of 0.86. This is amonst the worse of the industry: 1AVGO underperforms 85.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 11.36 |
ROIC/WACC1.07
WACC11.48%
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.
Looking at the Current ratio, with a value of 1.50, 1AVGO is doing worse than 77.19% of the companies in the same industry.
A Quick Ratio of 1.37 indicates that 1AVGO should not have too much problems paying its short term obligations.
1AVGO has a worse Quick ratio (1.37) than 70.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
1AVGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.52%, which is quite impressive.
1AVGO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.90% yearly.
1AVGO shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.01%.
The Revenue has been growing by 17.94% on average over the past years. This is quite good.
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
Based on estimates for the next years, 1AVGO will show a very strong growth in Earnings Per Share. The EPS will grow by 26.54% on average per year.
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 Year22.63%
Revenue Next 2Y28.28%
Revenue Next 3Y26.83%
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 53.38 indicates a quite expensive valuation of 1AVGO.
71.93% of the companies in the same industry are cheaper than 1AVGO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.06. 1AVGO is valued rather expensively when compared to this.
1AVGO is valuated quite expensively with a Price/Forward Earnings ratio of 40.45.
Based on the Price/Forward Earnings ratio, 1AVGO is valued a bit more expensive than the industry average as 71.93% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.64, 1AVGO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.38 | ||
| Fwd PE | 40.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1AVGO is valued expensively inside the industry as 85.96% of the companies are valued cheaper.
1AVGO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.6 | ||
| EV/EBITDA | 50.85 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of 1AVGO may justify a higher PE ratio.
1AVGO's earnings are expected to grow with 27.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.39
PEG (5Y)2.98
EPS Next 2Y30.76%
EPS Next 3Y27.16%
5. Dividend
5.1 Amount
1AVGO has a yearly dividend return of 0.68%, which is pretty low.
1AVGO's Dividend Yield is a higher than the industry average which is at 1.24.
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
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
57.20% of the earnings are spent on dividend by 1AVGO. This is a bit on the high side, but may be sustainable.
1AVGO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.2%
EPS Next 2Y30.76%
EPS Next 3Y27.16%
BIT:1AVGO (9/25/2025, 7:00:00 PM)
285.6
-3.75 (-1.3%)
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 Cap1348.71B
Analysts84.49
Price Target308.75 (8.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend1.89
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)19.58%
PT rev (3m)27.63%
EPS NQ rev (1m)2.32%
EPS NQ rev (3m)2.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.8%
Revenue NQ rev (1m)2.58%
Revenue NQ rev (3m)3.02%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.38 | ||
| Fwd PE | 40.45 | ||
| P/S | 26.46 | ||
| P/FCF | 63.6 | ||
| P/OCF | 62.33 | ||
| P/B | 21.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 50.85 |
EPS(TTM)5.35
EY1.87%
EPS(NY)7.06
Fwd EY2.47%
FCF(TTM)4.49
FCFY1.57%
OCF(TTM)4.58
OCFY1.6%
SpS10.79
BVpS13.2
TBVpS-10.6
PEG (NY)1.39
PEG (5Y)2.98
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 | 11.36 |
F-Score9
WACC11.48%
ROIC/WACC1.07
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 Y38.51%
EPS Next 2Y30.76%
EPS Next 3Y27.16%
EPS Next 5Y26.54%
Revenue 1Y (TTM)28.01%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%22.03%
Revenue Next Year22.63%
Revenue Next 2Y28.28%
Revenue Next 3Y26.83%
Revenue Next 5Y19.78%
EBIT growth 1Y61.92%
EBIT growth 3Y20.65%
EBIT growth 5Y29.07%
EBIT Next Year43.37%
EBIT Next 3Y25.18%
EBIT Next 5Y24.49%
FCF growth 1Y43.52%
FCF growth 3Y13.38%
FCF growth 5Y15.95%
OCF growth 1Y42.59%
OCF growth 3Y13.19%
OCF growth 5Y15.53%