BROADCOM INC (1YD.DE) Stock Fundamental Analysis
FRA:1YD - Deutsche Boerse Ag - US11135F1012 - Common Stock - Currency: EUR
1YD gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 51 industry peers in the Semiconductors & Semiconductor Equipment industry. While 1YD belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1YD is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
1YD had positive earnings in the past year.
In the past year 1YD had a positive cash flow from operations.
Each year in the past 5 years 1YD has been profitable.
1YD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1YD has a Return On Assets of 6.09%. This is comparable to the rest of the industry: 1YD outperforms 41.18% of its industry peers.
1YD has a Return On Equity (14.43%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 9.90%, 1YD is in line with its industry, outperforming 54.90% of the companies in the same industry.
1YD had an Average Return On Invested Capital over the past 3 years of 14.76%. This is in line with the industry average of 15.59%.
The 3 year average ROIC (14.76%) for 1YD is well above the current ROIC(9.90%). The reason for the recent decline needs to be investigated.
| 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 62.75% 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.
1YD has a better Operating Margin (34.66%) than 92.16% of its industry peers.
1YD's Operating Margin has improved in the last couple of years.
The Gross Margin of 1YD (65.02%) is better than 86.27% of its industry peers.
In the last couple of years the Gross Margin of 1YD has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1YD is creating some value.
Compared to 1 year ago, 1YD has more shares outstanding
1YD has more shares outstanding than it did 5 years ago.
1YD has a better debt/assets ratio than last year.
2.2 Solvency
1YD has an Altman-Z score of 7.62. This indicates that 1YD is financially healthy and has little risk of bankruptcy at the moment.
1YD has a Altman-Z score of 7.62. This is in the better half of the industry: 1YD outperforms 74.51% of its industry peers.
1YD has a debt to FCF ratio of 3.21. This is a good value and a sign of high solvency as 1YD would need 3.21 years to pay back of all of its debts.
1YD has a Debt to FCF ratio of 3.21. This is comparable to the rest of the industry: 1YD outperforms 49.02% of its industry peers.
A Debt/Equity ratio of 0.93 indicates that 1YD is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.93, 1YD is doing worse than 86.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 3.21 | ||
| Altman-Z | 7.62 |
ROIC/WACC0.88
WACC11.23%
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 90.20% 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.
The Quick ratio of 1YD (0.91) is worse than 84.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.82% over the past year.
1YD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.90% yearly.
The Revenue has grown by 40.30% in the past year. This is a very strong growth!
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.
The Revenue is expected to grow by 18.89% on average over the next years. This is quite good.
EPS Next Y38.08%
EPS Next 2Y27.48%
EPS Next 3Y23.56%
EPS Next 5Y24.96%
Revenue Next Year20.8%
Revenue Next 2Y18.32%
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.
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 43.87 indicates a quite expensive valuation of 1YD.
Based on the Price/Earnings ratio, 1YD is valued a bit more expensive than 70.59% of the companies in the same industry.
1YD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.35.
1YD is valuated quite expensively with a Price/Forward Earnings ratio of 29.81.
Based on the Price/Forward Earnings ratio, 1YD is valued a bit more expensive than 76.47% of the companies in the same industry.
1YD is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.87 | ||
| Fwd PE | 29.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1YD is valued expensively inside the industry as 86.27% of the companies are valued cheaper.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1YD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.33 | ||
| EV/EBITDA | 40.05 |
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 1YD may justify a higher PE ratio.
1YD's earnings are expected to grow with 23.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)2.45
EPS Next 2Y27.48%
EPS Next 3Y23.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.03%, 1YD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.40, 1YD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, 1YD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
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.
1YD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP100.79%
EPS Next 2Y27.48%
EPS Next 3Y23.56%
FRA:1YD (5/27/2025, 7:00:00 PM)
206.65
+1.5 (+0.73%)
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 Cap971.66B
Analysts83.48
Price Target213.26 (3.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Yearly Dividend1.97
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)-6.2%
PT rev (3m)-10.07%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)5.33%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)4.96%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)1.72%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.87 | ||
| Fwd PE | 29.81 | ||
| P/S | 20.28 | ||
| P/FCF | 53.33 | ||
| P/OCF | 52.02 | ||
| P/B | 15.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 40.05 |
EPS(TTM)4.71
EY2.28%
EPS(NY)6.93
Fwd EY3.35%
FCF(TTM)3.87
FCFY1.87%
OCF(TTM)3.97
OCFY1.92%
SpS10.19
BVpS13.04
TBVpS-12.46
PEG (NY)1.15
PEG (5Y)2.45
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 | 7.62 |
F-Score6
WACC11.23%
ROIC/WACC0.88
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 Y38.08%
EPS Next 2Y27.48%
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 Year20.8%
Revenue Next 2Y18.32%
Revenue Next 3Y17.01%
Revenue Next 5Y18.89%
EBIT growth 1Y24.88%
EBIT growth 3Y20.65%
EBIT growth 5Y29.07%
EBIT Next Year43.51%
EBIT Next 3Y23.41%
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%