BROADCOM INC (1YD.DE) Stock Fundamental Analysis
FRA:1YD - Deutsche Boerse Ag - US11135F1012 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1YD. 1YD was compared to 52 industry peers in the Semiconductors & Semiconductor Equipment industry. 1YD has an excellent profitability rating, but there are some minor concerns on its financial health. 1YD shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year 1YD was profitable.
1YD had a positive operating cash flow in the past year.
Each year in the past 5 years 1YD has been profitable.
Each year in the past 5 years 1YD had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.09%, 1YD is in line with its industry, outperforming 42.31% of the companies in the same industry.
1YD's Return On Equity of 14.43% is in line compared to the rest of the industry. 1YD outperforms 53.85% of its industry peers.
1YD's Return On Invested Capital of 9.90% is in line compared to the rest of the industry. 1YD outperforms 57.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1YD is in line with the industry average of 15.85%.
The last Return On Invested Capital (9.90%) for 1YD is well below the 3 year average (14.76%), which needs to be investigated, but indicates that 1YD had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 14.43% | ||
| ROIC | 9.9% |
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 18.47%, 1YD is in the better half of the industry, outperforming 63.46% of the companies in the same industry.
In the last couple of years the Profit Margin of 1YD has remained more or less at the same level.
With an excellent Operating Margin value of 34.66%, 1YD belongs to the best of the industry, outperforming 94.23% of the companies in the same industry.
1YD's Operating Margin has improved in the last couple of years.
1YD has a better Gross Margin (65.02%) than 86.54% of its industry peers.
1YD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.66% | ||
| PM (TTM) | 18.47% | ||
| GM | 65.02% |
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
1YD 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 1YD has been increased compared to 1 year ago.
Compared to 5 years ago, 1YD has more shares outstanding
Compared to 1 year ago, 1YD has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.75 indicates that 1YD is not in any danger for bankruptcy at the moment.
1YD has a Altman-Z score of 6.75. This is in the better half of the industry: 1YD outperforms 67.31% of its industry peers.
The Debt to FCF ratio of 1YD is 3.21, which is a good value as it means it would take 1YD, 3.21 years of fcf income to pay off all of its debts.
1YD's Debt to FCF ratio of 3.21 is in line compared to the rest of the industry. 1YD outperforms 50.00% of its industry peers.
1YD has a Debt/Equity ratio of 0.93. This is a neutral value indicating 1YD is somewhat dependend on debt financing.
1YD has a Debt to Equity ratio of 0.93. This is amonst the worse of the industry: 1YD underperforms 86.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 3.21 | ||
| Altman-Z | 6.75 |
ROIC/WACC1.04
WACC9.49%
2.3 Liquidity
A Current Ratio of 1.00 indicates that 1YD should not have too much problems paying its short term obligations.
The Current ratio of 1YD (1.00) is worse than 88.46% of its industry peers.
1YD has a Quick Ratio of 1.00. This is a bad value and indicates that 1YD is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.91, 1YD is doing worse than 82.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
1YD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.82%, which is quite impressive.
1YD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.90% yearly.
Looking at the last year, 1YD shows a very strong growth in Revenue. The Revenue has grown by 40.30%.
The Revenue has been growing by 17.94% on average over the past years. This is quite good.
EPS 1Y (TTM)24.82%
EPS 3Y20.14%
EPS 5Y17.9%
EPS Q2Q%45.59%
Revenue 1Y (TTM)40.3%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%24.71%
3.2 Future
1YD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.96% yearly.
1YD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.89% yearly.
EPS Next Y38.22%
EPS Next 2Y27.6%
EPS Next 3Y23.56%
EPS Next 5Y24.96%
Revenue Next Year20.82%
Revenue Next 2Y18.34%
Revenue Next 3Y17.01%
Revenue Next 5Y18.89%
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.
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
The Price/Earnings ratio is 37.80, which means the current valuation is very expensive for 1YD.
Based on the Price/Earnings ratio, 1YD is valued a bit more expensive than 67.31% of the companies in the same industry.
1YD is valuated rather expensively when we compare the Price/Earnings ratio to 28.10, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 25.60, 1YD can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, 1YD is valued a bit more expensive than the industry average as 78.85% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of 1YD to the average of the S&P500 Index (20.74), we can say 1YD is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.8 | ||
| Fwd PE | 25.6 |
4.2 Price Multiples
84.62% of the companies in the same industry are cheaper than 1YD, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1YD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.9 | ||
| EV/EBITDA | 35.19 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of 1YD may justify a higher PE ratio.
A more expensive valuation may be justified as 1YD's earnings are expected to grow with 23.56% in the coming years.
PEG (NY)0.99
PEG (5Y)2.11
EPS Next 2Y27.6%
EPS Next 3Y23.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.20%, 1YD has a reasonable but not impressive dividend return.
1YD's Dividend Yield is a higher than the industry average which is at 1.48.
Compared to an average S&P500 Dividend Yield of 2.43, 1YD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
5.2 History
On average, the dividend of 1YD grows each year by 16.17%, which is quite nice.
Dividend Growth(5Y)16.17%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
100.79% of the earnings are spent on dividend by 1YD. This is not a sustainable payout ratio.
The dividend of 1YD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP100.79%
EPS Next 2Y27.6%
EPS Next 3Y23.56%
FRA:1YD (5/5/2025, 7:00:00 PM)
178.42
-1.24 (-0.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners78.95%
Inst Owner ChangeN/A
Ins Owners2.12%
Ins Owner ChangeN/A
Market Cap838.92B
Analysts83.48
Price Target207.12 (16.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
Yearly Dividend1.96
Dividend Growth(5Y)16.17%
DP100.79%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.08%
Min EPS beat(2)0.77%
Max EPS beat(2)5.39%
EPS beat(4)3
Avg EPS beat(4)1.59%
Min EPS beat(4)-0.91%
Max EPS beat(4)5.39%
EPS beat(8)5
Avg EPS beat(8)1.16%
EPS beat(12)7
Avg EPS beat(12)0.92%
EPS beat(16)9
Avg EPS beat(16)0.75%
Revenue beat(2)1
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-2.22%
Max Revenue beat(2)0.09%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)1.79%
Revenue beat(8)3
Avg Revenue beat(8)-1%
Revenue beat(12)4
Avg Revenue beat(12)-1%
Revenue beat(16)4
Avg Revenue beat(16)-0.99%
PT rev (1m)-8.95%
PT rev (3m)-12.66%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)5.64%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)5.2%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)1.95%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)1.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.8 | ||
| Fwd PE | 25.6 | ||
| P/S | 17.45 | ||
| P/FCF | 45.9 | ||
| P/OCF | 44.76 | ||
| P/B | 13.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.19 |
EPS(TTM)4.72
EY2.65%
EPS(NY)6.97
Fwd EY3.91%
FCF(TTM)3.89
FCFY2.18%
OCF(TTM)3.99
OCFY2.23%
SpS10.22
BVpS13.09
TBVpS-12.5
PEG (NY)0.99
PEG (5Y)2.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.09% | ||
| ROE | 14.43% | ||
| ROCE | 13.09% | ||
| ROIC | 9.9% | ||
| ROICexc | 10.56% | ||
| ROICexgc | 548.47% | ||
| OM | 34.66% | ||
| PM (TTM) | 18.47% | ||
| GM | 65.02% | ||
| FCFM | 38.02% |
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-Score6
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 3.21 | ||
| Debt/EBITDA | 2.26 | ||
| Cap/Depr | 5.35% | ||
| Cap/Sales | 0.96% | ||
| Interest Coverage | 5.96 | ||
| Cash Conversion | 73.97% | ||
| Profit Quality | 205.84% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 6.75 |
F-Score6
WACC9.49%
ROIC/WACC1.04
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)24.82%
EPS 3Y20.14%
EPS 5Y17.9%
EPS Q2Q%45.59%
EPS Next Y38.22%
EPS Next 2Y27.6%
EPS Next 3Y23.56%
EPS Next 5Y24.96%
Revenue 1Y (TTM)40.3%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%24.71%
Revenue Next Year20.82%
Revenue Next 2Y18.34%
Revenue Next 3Y17.01%
Revenue Next 5Y18.89%
EBIT growth 1Y24.88%
EBIT growth 3Y20.65%
EBIT growth 5Y29.07%
EBIT Next Year43.77%
EBIT Next 3Y23.48%
EBIT Next 5Y23.08%
FCF growth 1Y22.98%
FCF growth 3Y13.38%
FCF growth 5Y15.95%
OCF growth 1Y22.99%
OCF growth 3Y13.19%
OCF growth 5Y15.53%