320.33 USD
-10.78 (-3.26%)
At close: Feb 3, 2026
316.93 USD
-3.4 (-1.06%)
After Hours: 2/3/2026, 7:25:07 PM
Taking everything into account, AVGO scores 7 out of 10 in our fundamental rating. AVGO was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. AVGO scores excellent on profitability, but there are some minor concerns on its financial health. AVGO is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make AVGO suitable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year AVGO was profitable.
- In the past year AVGO had a positive cash flow from operations.
- Each year in the past 5 years AVGO has been profitable.
- In the past 5 years AVGO always reported a positive cash flow from operatings.
1.2 Ratios
- AVGO's Return On Assets of 13.52% is amongst the best of the industry. AVGO outperforms 84.96% of its industry peers.
- The Return On Equity of AVGO (28.45%) is better than 91.15% of its industry peers.
- With an excellent Return On Invested Capital value of 10.66%, AVGO belongs to the best of the industry, outperforming 82.30% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for AVGO is in line with the industry average of 10.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.52% | ||
| ROE | 28.45% | ||
| ROIC | 10.66% |
ROA(3y)12.13%
ROA(5y)12.05%
ROE(3y)31.95%
ROE(5y)34.21%
ROIC(3y)10.89%
ROIC(5y)10.78%
1.3 Margins
- AVGO has a better Profit Margin (36.20%) than 95.58% of its industry peers.
- In the last couple of years the Profit Margin of AVGO has grown nicely.
- AVGO has a Operating Margin of 40.94%. This is amongst the best in the industry. AVGO outperforms 96.46% of its industry peers.
- AVGO's Operating Margin has improved in the last couple of years.
- AVGO's Gross Margin of 67.89% is amongst the best of the industry. AVGO outperforms 91.15% of its industry peers.
- In the last couple of years the Gross Margin of AVGO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.94% | ||
| PM (TTM) | 36.2% | ||
| GM | 67.89% |
OM growth 3Y-1.65%
OM growth 5Y17.55%
PM growth 3Y2.31%
PM growth 5Y26.56%
GM growth 3Y0.66%
GM growth 5Y3.66%
2. Health
2.1 Basic Checks
- AVGO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- AVGO has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, AVGO has more shares outstanding
- The debt/assets ratio for AVGO has been reduced compared to a year ago.
2.2 Solvency
- AVGO has an Altman-Z score of 11.50. This indicates that AVGO is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 11.50, AVGO is doing good in the industry, outperforming 73.45% of the companies in the same industry.
- The Debt to FCF ratio of AVGO is 2.42, which is a good value as it means it would take AVGO, 2.42 years of fcf income to pay off all of its debts.
- AVGO has a better Debt to FCF ratio (2.42) than 66.37% of its industry peers.
- A Debt/Equity ratio of 0.76 indicates that AVGO is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.76, AVGO is not doing good in the industry: 77.88% of the companies in the same industry are doing better.
- Even though the debt/equity ratio score it not favorable for AVGO, 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 | 11.5 |
ROIC/WACC0.99
WACC10.8%
2.3 Liquidity
- A Current Ratio of 1.71 indicates that AVGO should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.71, AVGO is not doing good in the industry: 81.42% of the companies in the same industry are doing better.
- A Quick Ratio of 1.58 indicates that AVGO should not have too much problems paying its short term obligations.
- AVGO has a worse Quick ratio (1.58) than 74.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
- AVGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.47%, which is quite impressive.
- The Earnings Per Share has been growing by 25.23% on average over the past years. This is a very strong growth
- AVGO shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.87%.
- AVGO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.74% yearly.
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, AVGO will show a very strong growth in Earnings Per Share. The EPS will grow by 28.32% on average per year.
- The Revenue is expected to grow by 29.08% on average over the next years. This is a very strong growth
EPS Next Y51.18%
EPS Next 2Y44.47%
EPS Next 3Y37.31%
EPS Next 5Y28.32%
Revenue Next Year53.44%
Revenue Next 2Y44.88%
Revenue Next 3Y37.37%
Revenue Next 5Y29.08%
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 stable.
- 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
- AVGO is valuated quite expensively with a Price/Earnings ratio of 46.97.
- Compared to the rest of the industry, the Price/Earnings ratio of AVGO indicates a somewhat cheap valuation: AVGO is cheaper than 66.37% of the companies listed in the same industry.
- AVGO is valuated expensively when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 31.07 indicates a quite expensive valuation of AVGO.
- Based on the Price/Forward Earnings ratio, AVGO is valued a bit cheaper than the industry average as 66.37% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.51, AVGO is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.97 | ||
| Fwd PE | 31.07 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AVGO is valued a bit cheaper than 61.06% of the companies in the same industry.
- 66.37% of the companies in the same industry are more expensive than AVGO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.21 | ||
| EV/EBITDA | 46.16 |
4.3 Compensation for Growth
- AVGO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- AVGO has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as AVGO's earnings are expected to grow with 37.31% in the coming years.
PEG (NY)0.92
PEG (5Y)1.86
EPS Next 2Y44.47%
EPS Next 3Y37.31%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.79%, AVGO is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.50, AVGO pays a better dividend. On top of this AVGO pays more dividend than 82.30% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, AVGO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
- The dividend of AVGO is nicely growing with an annual growth rate of 11.45%!
- AVGO has been paying a dividend for at least 10 years, so it has a reliable track record.
- AVGO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.45%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
- AVGO pays out 48.18% of its income as dividend. This is a bit on the high side, but may be sustainable.
- AVGO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP48.18%
EPS Next 2Y44.47%
EPS Next 3Y37.31%
320.33
-10.78 (-3.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)12-11 2025-12-11/amc
Earnings (Next)03-04 2026-03-04/amc
Inst Owners79.09%
Inst Owner Change-2.71%
Ins Owners1.92%
Ins Owner Change-19.85%
Market Cap1.51T
Revenue(TTM)63.89B
Net Income(TTM)23.13B
Analysts85
Price Target468.16 (46.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend2.36
Dividend Growth(5Y)11.45%
DP48.18%
Div Incr Years14
Div Non Decr Years14
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)1.67%
EPS beat(12)8
Avg EPS beat(12)0.98%
EPS beat(16)10
Avg EPS beat(16)0.95%
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)0.62%
PT rev (3m)18.76%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)2.49%
EPS NY rev (1m)0.39%
EPS NY rev (3m)9.15%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)5.21%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)12.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.97 | ||
| Fwd PE | 31.07 | ||
| P/S | 23.68 | ||
| P/FCF | 56.21 | ||
| P/OCF | 54.93 | ||
| P/B | 18.61 | ||
| P/tB | N/A | ||
| EV/EBITDA | 46.16 |
EPS(TTM)6.82
EY2.13%
EPS(NY)10.31
Fwd EY3.22%
FCF(TTM)5.7
FCFY1.78%
OCF(TTM)5.83
OCFY1.82%
SpS13.53
BVpS17.21
TBVpS-10.33
PEG (NY)0.92
PEG (5Y)1.86
Graham Number51.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.52% | ||
| ROE | 28.45% | ||
| ROCE | 17.14% | ||
| ROIC | 10.66% | ||
| ROICexc | 11.93% | ||
| ROICexgc | 257.21% | ||
| OM | 40.94% | ||
| 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)10.89%
ROIC(5y)10.78%
ROICexc(3y)12.9%
ROICexc(5y)12.93%
ROICexgc(3y)453.16%
ROICexgc(5y)376.99%
ROCE(3y)17.51%
ROCE(5y)17.33%
ROICexgc growth 3Y-4.02%
ROICexgc growth 5Y10.23%
ROICexc growth 3Y-10.3%
ROICexc growth 5Y22.21%
OM growth 3Y-1.65%
OM growth 5Y17.55%
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 | 78.83% | ||
| Profit Quality | 116.38% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 11.5 |
F-Score9
WACC10.8%
ROIC/WACC0.99
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 Y51.18%
EPS Next 2Y44.47%
EPS Next 3Y37.31%
EPS Next 5Y28.32%
Revenue 1Y (TTM)23.87%
Revenue growth 3Y24.38%
Revenue growth 5Y21.74%
Sales Q2Q%28.18%
Revenue Next Year53.44%
Revenue Next 2Y44.88%
Revenue Next 3Y37.37%
Revenue Next 5Y29.08%
EBIT growth 1Y71.53%
EBIT growth 3Y22.33%
EBIT growth 5Y43.11%
EBIT Next Year53.89%
EBIT Next 3Y35.58%
EBIT Next 5Y32.68%
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 / AVGO FAQ
Can you provide the ChartMill fundamental rating for BROADCOM INC?
ChartMill assigns a fundamental rating of 7 / 10 to AVGO.
Can you provide the valuation status for BROADCOM INC?
ChartMill assigns a valuation rating of 5 / 10 to BROADCOM INC (AVGO). This can be considered as Fairly Valued.
Can you provide the profitability details for BROADCOM INC?
BROADCOM INC (AVGO) has a profitability rating of 9 / 10.
How financially healthy is BROADCOM INC?
The financial health rating of BROADCOM INC (AVGO) is 5 / 10.
Can you provide the dividend sustainability for AVGO stock?
The dividend rating of BROADCOM INC (AVGO) is 6 / 10 and the dividend payout ratio is 48.18%.