347.64 USD
+4.22 (+1.23%)
Overall AVGO gets a fundamental rating of 7 out of 10. We evaluated AVGO against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. AVGO has an excellent profitability rating, 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 could make AVGO a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year AVGO was profitable.
AVGO had a positive operating cash flow in the past year.
Each year in the past 5 years AVGO has been profitable.
AVGO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.52%, AVGO belongs to the top of the industry, outperforming 84.96% of the companies in the same industry.
Looking at the Return On Equity, with a value of 28.45%, AVGO belongs to the top of the industry, outperforming 91.15% of the companies in the same industry.
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 10.75%.
| 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.
With an excellent Operating Margin value of 40.94%, AVGO belongs to the best of the industry, outperforming 96.46% of the companies in the same industry.
AVGO's Operating Margin has improved in the last couple of years.
AVGO has a Gross Margin of 67.89%. This is amongst the best in 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AVGO is creating some value.
AVGO has more shares outstanding than it did 1 year ago.
AVGO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for AVGO has been reduced compared to a year ago.
2.2 Solvency
AVGO has an Altman-Z score of 11.89. This indicates that AVGO is financially healthy and has little risk of bankruptcy at the moment.
AVGO has a better Altman-Z score (11.89) than 76.11% of its industry peers.
AVGO has a debt to FCF ratio of 2.42. This is a good value and a sign of high solvency as AVGO would need 2.42 years to pay back of all of its debts.
The Debt to FCF ratio of AVGO (2.42) is better than 67.26% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that AVGO is somewhat dependend on debt financing.
AVGO has a Debt to Equity ratio of 0.76. This is in the lower half of the industry: AVGO underperforms 77.88% of its industry peers.
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 | 11.89 |
ROIC/WACC1
WACC10.7%
2.3 Liquidity
A Current Ratio of 1.71 indicates that AVGO should not have too much problems paying its short term obligations.
The Current ratio of AVGO (1.71) is worse than 80.53% of its industry peers.
A Quick Ratio of 1.58 indicates that AVGO should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.58, AVGO is not doing good in the industry: 73.45% of the companies in the same industry are doing better.
| 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.
AVGO shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.23% yearly.
AVGO shows a strong growth in Revenue. In the last year, 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, AVGO 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 24.45% on average over the next years. This is a very strong growth
EPS Next Y50.6%
EPS Next 2Y43.78%
EPS Next 3Y36.58%
EPS Next 5Y15.36%
Revenue Next Year52.67%
Revenue Next 2Y44.32%
Revenue Next 3Y36.95%
Revenue Next 5Y24.45%
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.
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
Based on the Price/Earnings ratio of 50.97, the valuation of AVGO can be described as expensive.
Based on the Price/Earnings ratio, AVGO is valued a bit cheaper than 60.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of AVGO to the average of the S&P500 Index (26.87), we can say AVGO is valued expensively.
A Price/Forward Earnings ratio of 33.85 indicates a quite expensive valuation of AVGO.
The rest of the industry has a similar Price/Forward Earnings ratio as AVGO.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, AVGO is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.97 | ||
| Fwd PE | 33.85 |
4.2 Price Multiples
AVGO's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AVGO indicates a somewhat cheap valuation: AVGO is cheaper than 62.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61 | ||
| EV/EBITDA | 47.83 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 36.58% in the coming years.
PEG (NY)1.01
PEG (5Y)2.02
EPS Next 2Y43.78%
EPS Next 3Y36.58%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, AVGO is not a good candidate for dividend investing.
AVGO's Dividend Yield is rather good when compared to the industry average which is at 0.57. AVGO pays more dividend than 81.42% of the companies in the same industry.
With a Dividend Yield of 0.75, AVGO pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
The dividend of AVGO is nicely growing with an annual growth rate of 11.45%!
AVGO has paid a dividend for at least 10 years, which is 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
48.18% of the earnings are spent on dividend by AVGO. This is a bit on the high side, but may be sustainable.
The dividend of AVGO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP48.18%
EPS Next 2Y43.78%
EPS Next 3Y36.58%
NASDAQ:AVGO (1/6/2026, 2:47:09 PM)
347.64
+4.22 (+1.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.09%
Inst Owner Change0%
Ins Owners1.92%
Ins Owner Change-8.24%
Market Cap1.64T
Revenue(TTM)63.89B
Net Income(TTM)23.13B
Analysts85.09
Price Target465.27 (33.84%)
Short Float %1.51%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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)17.25%
PT rev (3m)26.03%
EPS NQ rev (1m)2.22%
EPS NQ rev (3m)2.35%
EPS NY rev (1m)7.35%
EPS NY rev (3m)9.77%
Revenue NQ rev (1m)4.91%
Revenue NQ rev (3m)4.97%
Revenue NY rev (1m)10.69%
Revenue NY rev (3m)13.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.97 | ||
| Fwd PE | 33.85 | ||
| P/S | 25.7 | ||
| P/FCF | 61 | ||
| P/OCF | 59.62 | ||
| P/B | 20.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 47.83 |
EPS(TTM)6.82
EY1.96%
EPS(NY)10.27
Fwd EY2.95%
FCF(TTM)5.7
FCFY1.64%
OCF(TTM)5.83
OCFY1.68%
SpS13.53
BVpS17.21
TBVpS-10.33
PEG (NY)1.01
PEG (5Y)2.02
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 | 11.89 |
F-Score9
WACC10.7%
ROIC/WACC1
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 Y50.6%
EPS Next 2Y43.78%
EPS Next 3Y36.58%
EPS Next 5Y15.36%
Revenue 1Y (TTM)23.87%
Revenue growth 3Y24.38%
Revenue growth 5Y21.74%
Sales Q2Q%28.18%
Revenue Next Year52.67%
Revenue Next 2Y44.32%
Revenue Next 3Y36.95%
Revenue Next 5Y24.45%
EBIT growth 1Y71.53%
EBIT growth 3Y22.33%
EBIT growth 5Y43.11%
EBIT Next Year54.29%
EBIT Next 3Y36.28%
EBIT Next 5Y32.15%
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%.