BROADCOM INC (1AVGO.MI) Stock Fundamental Analysis
Europe - BIT:1AVGO - US11135F1012 - Common Stock
294 EUR
-15.2 (-4.92%)
Taking everything into account, 1AVGO scores 6 out of 10 in our fundamental rating. 1AVGO was compared to 62 industry peers in the Semiconductors & Semiconductor Equipment industry. 1AVGO scores excellent on profitability, but 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
1AVGO had positive earnings in the past year.
In the past year 1AVGO had a positive cash flow from operations.
1AVGO had positive earnings in each of the past 5 years.
Each year in the past 5 years 1AVGO had a positive operating cash flow.
1.2 Ratios
1AVGO has a better Return On Assets (11.43%) than 78.33% of its industry peers.
With a decent Return On Equity value of 25.84%, 1AVGO is doing good in the industry, outperforming 76.67% of the companies in the same industry.
1AVGO's Return On Invested Capital of 12.26% is fine compared to the rest of the industry. 1AVGO outperforms 65.00% of its industry peers.
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 14.29%.
| 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 88.33% 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 91.67% of its industry peers.
In the last couple of years the Operating Margin of 1AVGO has grown nicely.
Looking at the Gross Margin, with a value of 67.03%, 1AVGO belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1AVGO is creating some value.
Compared to 1 year ago, 1AVGO has more shares outstanding
1AVGO has more shares outstanding than it did 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 11.35. This indicates that 1AVGO is financially healthy and has little risk of bankruptcy at the moment.
1AVGO's Altman-Z score of 11.35 is fine compared to the rest of the industry. 1AVGO outperforms 78.33% of its industry peers.
1AVGO has a debt to FCF ratio of 2.58. This is a good value and a sign of high solvency as 1AVGO would need 2.58 years to pay back of 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 58.33% of the companies in the same 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 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 11.35 |
ROIC/WACC1.15
WACC10.7%
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.
1AVGO has a Current ratio of 1.50. This is amonst the worse of the industry: 1AVGO underperforms 80.00% 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's Quick ratio of 1.37 is on the low side compared to the rest of the industry. 1AVGO is outperformed by 70.00% 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%.
Measured over the past years, 1AVGO shows a quite strong growth in Revenue. The Revenue has been growing by 17.94% on average per year.
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 36.03% on average per year.
Based on estimates for the next years, 1AVGO will show a very strong growth in Revenue. The Revenue will grow by 27.33% on average per year.
EPS Next Y40.2%
EPS Next 2Y39.49%
EPS Next 3Y36.83%
EPS Next 5Y36.03%
Revenue Next Year22.86%
Revenue Next 2Y29.38%
Revenue Next 3Y29.59%
Revenue Next 5Y27.33%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 54.04 indicates a quite expensive valuation of 1AVGO.
Based on the Price/Earnings ratio, 1AVGO is valued a bit more expensive than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.06, 1AVGO is valued quite expensively.
1AVGO is valuated quite expensively with a Price/Forward Earnings ratio of 35.98.
1AVGO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1AVGO is more expensive than 68.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.73. 1AVGO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.04 | ||
| Fwd PE | 35.98 |
4.2 Price Multiples
80.00% 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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.38 | ||
| EV/EBITDA | 50.81 |
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 36.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.34
PEG (5Y)3.02
EPS Next 2Y39.49%
EPS Next 3Y36.83%
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, 1AVGO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.31, 1AVGO pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.66, 1AVGO pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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 earnings are growing more, so the dividend growth is sustainable.
DP57.2%
EPS Next 2Y39.49%
EPS Next 3Y36.83%
BIT:1AVGO (11/7/2025, 7:00:00 PM)
294
-15.2 (-4.92%)
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 Cap1.39T
Revenue(TTM)59.93B
Net Income(TTM)18.93B
Analysts84.81
Price Target333.41 (13.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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)6.25%
PT rev (3m)29.13%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)3.69%
EPS NY rev (1m)0.31%
EPS NY rev (3m)1.26%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)2.78%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.04 | ||
| Fwd PE | 35.98 | ||
| P/S | 26.78 | ||
| P/FCF | 64.38 | ||
| P/OCF | 63.1 | ||
| P/B | 21.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 50.81 |
EPS(TTM)5.44
EY1.85%
EPS(NY)8.17
Fwd EY2.78%
FCF(TTM)4.57
FCFY1.55%
OCF(TTM)4.66
OCFY1.58%
SpS10.98
BVpS13.42
TBVpS-10.78
PEG (NY)1.34
PEG (5Y)3.02
Graham Number40.53
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 | 11.35 |
F-Score9
WACC10.7%
ROIC/WACC1.15
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 Y40.2%
EPS Next 2Y39.49%
EPS Next 3Y36.83%
EPS Next 5Y36.03%
Revenue 1Y (TTM)28.01%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%22.03%
Revenue Next Year22.86%
Revenue Next 2Y29.38%
Revenue Next 3Y29.59%
Revenue Next 5Y27.33%
EBIT growth 1Y61.92%
EBIT growth 3Y20.65%
EBIT growth 5Y29.07%
EBIT Next Year44.66%
EBIT Next 3Y32.44%
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 6 / 10 to 1AVGO.MI.
What is the valuation status for 1AVGO stock?
ChartMill assigns a valuation rating of 3 / 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 8 / 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 54.04 and the Price/Book (PB) ratio is 21.9.
Is the dividend of BROADCOM INC sustainable?
The dividend rating of BROADCOM INC (1AVGO.MI) is 4 / 10 and the dividend payout ratio is 57.2%.