BROADCOM INC (1AVGO.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AVGO - US11135F1012 - Common Stock
293.95 EUR
+4.7 (+1.62%)
1AVGO gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 61 industry peers in the Semiconductors & Semiconductor Equipment industry. 1AVGO scores excellent on profitability, but there are some minor concerns on its financial health. 1AVGO shows excellent growth, but is valued quite expensive already. This makes 1AVGO very considerable for growth investing!
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.
Each year in the past 5 years 1AVGO has been profitable.
In the past 5 years 1AVGO always reported a positive cash flow from operatings.
1.2 Ratios
1AVGO has a Return On Assets of 13.52%. This is in the better half of the industry: 1AVGO outperforms 72.13% of its industry peers.
Looking at the Return On Equity, with a value of 28.45%, 1AVGO is in the better half of the industry, outperforming 78.69% of the companies in the same industry.
With a Return On Invested Capital value of 10.67%, 1AVGO perfoms like the industry average, outperforming 55.74% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1AVGO is below the industry average of 14.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.52% | ||
| ROE | 28.45% | ||
| ROIC | 10.67% |
ROA(3y)12.13%
ROA(5y)12.05%
ROE(3y)31.95%
ROE(5y)34.21%
ROIC(3y)10.92%
ROIC(5y)10.8%
1.3 Margins
Looking at the Profit Margin, with a value of 36.20%, 1AVGO belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
In the last couple of years the Profit Margin of 1AVGO has grown nicely.
1AVGO's Operating Margin of 40.96% is amongst the best of the industry. 1AVGO outperforms 91.80% of its industry peers.
1AVGO's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 67.89%, 1AVGO belongs to the best of the industry, outperforming 90.16% 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 | 40.96% | ||
| PM (TTM) | 36.2% | ||
| GM | 67.89% |
OM growth 3Y-1.38%
OM growth 5Y17.74%
PM growth 3Y2.31%
PM growth 5Y26.56%
GM growth 3Y0.66%
GM growth 5Y3.66%
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.
1AVGO has more shares outstanding than it did 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 11.98 indicates that 1AVGO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.98, 1AVGO belongs to the top of the industry, outperforming 80.33% of the companies in the same industry.
1AVGO has a debt to FCF ratio of 2.42. This is a good value and a sign of high solvency as 1AVGO would need 2.42 years to pay back of all of its debts.
1AVGO's Debt to FCF ratio of 2.42 is in line compared to the rest of the industry. 1AVGO outperforms 55.74% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that 1AVGO is somewhat dependend on debt financing.
1AVGO's Debt to Equity ratio of 0.76 is on the low side compared to the rest of the industry. 1AVGO is outperformed by 83.61% of its industry peers.
Even though the debt/equity ratio score it not favorable for 1AVGO, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.42 | ||
| Altman-Z | 11.98 |
ROIC/WACC1.02
WACC10.5%
2.3 Liquidity
1AVGO has a Current Ratio of 1.71. This is a normal value and indicates that 1AVGO is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.71, 1AVGO is not doing good in the industry: 75.41% of the companies in the same industry are doing better.
1AVGO has a Quick Ratio of 1.58. This is a normal value and indicates that 1AVGO is financially healthy and should not expect problems in meeting its short term obligations.
1AVGO's Quick ratio of 1.58 is in line compared to the rest of the industry. 1AVGO outperforms 40.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.47% over the past year.
The Earnings Per Share has been growing by 25.23% on average over the past years. This is a very strong growth
Looking at the last year, 1AVGO shows a very strong growth in Revenue. The Revenue has grown by 23.87%.
The Revenue has been growing by 21.74% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)40.47%
EPS 3Y21.91%
EPS 5Y25.23%
EPS Q2Q%37.32%
Revenue 1Y (TTM)23.87%
Revenue growth 3Y24.38%
Revenue growth 5Y21.74%
Sales Q2Q%28.18%
3.2 Future
Based on estimates for the next years, 1AVGO will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.36% on average per year.
The Revenue is expected to grow by 24.46% on average over the next years. This is a very strong growth
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
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
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
A Price/Earnings ratio of 50.77 indicates a quite expensive valuation of 1AVGO.
Based on the Price/Earnings ratio, 1AVGO is valued a bit more expensive than the industry average as 67.21% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of 1AVGO to the average of the S&P500 Index (26.59), we can say 1AVGO is valued expensively.
The Price/Forward Earnings ratio is 36.21, which means the current valuation is very expensive for 1AVGO.
Based on the Price/Forward Earnings ratio, 1AVGO is valued a bit more expensive than the industry average as 73.77% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 24.03. 1AVGO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.77 | ||
| Fwd PE | 36.21 |
4.2 Price Multiples
1AVGO's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. 1AVGO is more expensive than 83.61% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1AVGO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.79 | ||
| EV/EBITDA | 48.22 |
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 33.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)2.01
EPS Next 2Y37.85%
EPS Next 3Y33.21%
5. Dividend
5.1 Amount
With a yearly dividend of 0.79%, 1AVGO is not a good candidate for dividend investing.
1AVGO's Dividend Yield is a higher than the industry average which is at 0.79.
With a Dividend Yield of 0.79, 1AVGO pays less dividend than the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
The dividend of 1AVGO is nicely growing with an annual growth rate of 11.49%!
Dividend Growth(5Y)11.49%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1AVGO pays out 48.18% of its income as dividend. 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.
DP48.18%
EPS Next 2Y37.85%
EPS Next 3Y33.21%
BIT:1AVGO (12/23/2025, 7:00:00 PM)
293.95
+4.7 (+1.62%)
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)63.89B
Net Income(TTM)23.13B
Analysts85.09
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend2.02
Dividend Growth(5Y)11.49%
DP48.18%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.58%
Min EPS beat(2)0.5%
Max EPS beat(2)2.65%
EPS beat(4)3
Avg EPS beat(4)1.91%
Min EPS beat(4)-0.93%
Max EPS beat(4)5.39%
EPS beat(8)6
Avg EPS beat(8)1.66%
EPS beat(12)8
Avg EPS beat(12)0.98%
EPS beat(16)10
Avg EPS beat(16)0.94%
Revenue beat(2)1
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)0.96%
Revenue beat(4)2
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-1.89%
Max Revenue beat(4)0.96%
Revenue beat(8)4
Avg Revenue beat(8)-0.43%
Revenue beat(12)4
Avg Revenue beat(12)-0.99%
Revenue beat(16)5
Avg Revenue beat(16)-0.91%
PT rev (1m)6.62%
PT rev (3m)14.54%
EPS NQ rev (1m)1.67%
EPS NQ rev (3m)3.59%
EPS NY rev (1m)1.29%
EPS NY rev (3m)15.26%
Revenue NQ rev (1m)4.32%
Revenue NQ rev (3m)4.8%
Revenue NY rev (1m)1.15%
Revenue NY rev (3m)2.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.77 | ||
| Fwd PE | 36.21 | ||
| P/S | 25.61 | ||
| P/FCF | 60.79 | ||
| P/OCF | 59.42 | ||
| P/B | 20.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 48.22 |
EPS(TTM)5.79
EY1.97%
EPS(NY)8.12
Fwd EY2.76%
FCF(TTM)4.84
FCFY1.64%
OCF(TTM)4.95
OCFY1.68%
SpS11.48
BVpS14.6
TBVpS-8.76
PEG (NY)1.26
PEG (5Y)2.01
Graham Number43.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.52% | ||
| ROE | 28.45% | ||
| ROCE | 17.15% | ||
| ROIC | 10.67% | ||
| ROICexc | 11.93% | ||
| ROICexgc | 257.33% | ||
| OM | 40.96% | ||
| PM (TTM) | 36.2% | ||
| GM | 67.89% | ||
| FCFM | 42.13% |
ROA(3y)12.13%
ROA(5y)12.05%
ROE(3y)31.95%
ROE(5y)34.21%
ROIC(3y)10.92%
ROIC(5y)10.8%
ROICexc(3y)12.93%
ROICexc(5y)12.95%
ROICexgc(3y)453.87%
ROICexgc(5y)377.41%
ROCE(3y)17.55%
ROCE(5y)17.35%
ROICexgc growth 3Y-3.75%
ROICexgc growth 5Y10.41%
ROICexc growth 3Y-10.05%
ROICexc growth 5Y22.41%
OM growth 3Y-1.38%
OM growth 5Y17.74%
PM growth 3Y2.31%
PM growth 5Y26.56%
GM growth 3Y0.66%
GM growth 5Y3.66%
F-Score9
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.42 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 7.1% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 9.79 | ||
| Cash Conversion | 78.8% | ||
| Profit Quality | 116.38% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 11.98 |
F-Score9
WACC10.5%
ROIC/WACC1.02
Cap/Depr(3y)8.12%
Cap/Depr(5y)8.04%
Cap/Sales(3y)1.1%
Cap/Sales(5y)1.24%
Profit Quality(3y)190.31%
Profit Quality(5y)184.64%
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)23.87%
Revenue growth 3Y24.38%
Revenue growth 5Y21.74%
Sales Q2Q%28.18%
Revenue Next Year37.93%
Revenue Next 2Y35.1%
Revenue Next 3Y29.97%
Revenue Next 5Y24.46%
EBIT growth 1Y71.61%
EBIT growth 3Y22.66%
EBIT growth 5Y43.34%
EBIT Next Year40.82%
EBIT Next 3Y31.46%
EBIT Next 5Y32.16%
FCF growth 1Y38.63%
FCF growth 3Y18.17%
FCF growth 5Y18.34%
OCF growth 1Y37.95%
OCF growth 3Y18.06%
OCF growth 5Y17.95%
BROADCOM INC / 1AVGO.MI FAQ
Can you provide the ChartMill fundamental rating for BROADCOM INC?
ChartMill assigns a fundamental rating of 6 / 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 50.77 and the Price/Book (PB) ratio is 20.13.
Is the dividend of BROADCOM INC sustainable?
The dividend rating of BROADCOM INC (1AVGO.MI) is 4 / 10 and the dividend payout ratio is 48.18%.