BROADCOM INC (AVGO) Stock Fundamental Analysis

NASDAQ:AVGO • US11135F1012

319.55 USD
-2.15 (-0.67%)
At close: Feb 27, 2026
317.686 USD
-1.86 (-0.58%)
After Hours: 2/27/2026, 8:00:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

7

AVGO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 115 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.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • In the past year AVGO was profitable.
  • AVGO had a positive operating cash flow in the past year.
  • AVGO had positive earnings in each of the past 5 years.
  • AVGO had a positive operating cash flow in each of the past 5 years.
AVGO Yearly Net Income VS EBIT VS OCF VS FCFAVGO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B 20B 25B

1.2 Ratios

  • With an excellent Return On Assets value of 13.52%, AVGO belongs to the best of the industry, outperforming 86.09% of the companies in the same industry.
  • AVGO has a better Return On Equity (28.45%) than 91.30% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 10.66%, AVGO belongs to the top of the industry, outperforming 83.48% of the companies in the same industry.
  • AVGO had an Average Return On Invested Capital over the past 3 years of 10.89%. This is in line with the industry average of 10.63%.
Industry RankSector 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%
AVGO Yearly ROA, ROE, ROICAVGO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

1.3 Margins

  • AVGO's Profit Margin of 36.20% is amongst the best of the industry. AVGO outperforms 94.78% of its industry peers.
  • AVGO's Profit Margin has improved in the last couple of years.
  • AVGO has a better Operating Margin (40.94%) than 96.52% of its industry peers.
  • AVGO's Operating Margin has improved in the last couple of years.
  • With an excellent Gross Margin value of 67.89%, AVGO belongs to the best of the industry, outperforming 90.43% of the companies in the same industry.
  • In the last couple of years the Gross Margin of AVGO has grown nicely.
Industry RankSector 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%
AVGO Yearly Profit, Operating, Gross MarginsAVGO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

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.
  • Compared to 1 year ago, AVGO has more shares outstanding
  • 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.
AVGO Yearly Shares OutstandingAVGO Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B
AVGO Yearly Total Debt VS Total AssetsAVGO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

2.2 Solvency

  • An Altman-Z score of 11.17 indicates that AVGO is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 11.17, AVGO is doing good in the industry, outperforming 75.65% of the companies in the same industry.
  • 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.
  • AVGO has a Debt to FCF ratio of 2.42. This is in the better half of the industry: AVGO outperforms 64.35% of its industry peers.
  • AVGO has a Debt/Equity ratio of 0.76. This is a neutral value indicating 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 78.26% of its industry peers.
  • Although AVGO does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.76
Debt/FCF 2.42
Altman-Z 11.17
ROIC/WACC1.02
WACC10.42%
AVGO Yearly LT Debt VS Equity VS FCFAVGO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B

2.3 Liquidity

  • AVGO has a Current Ratio of 1.71. This is a normal value and indicates that AVGO is financially healthy and should not expect problems in meeting its short term obligations.
  • AVGO has a worse Current ratio (1.71) than 81.74% of its industry peers.
  • A Quick Ratio of 1.58 indicates that AVGO should not have too much problems paying its short term obligations.
  • AVGO's Quick ratio of 1.58 is on the low side compared to the rest of the industry. AVGO is outperformed by 72.17% of its industry peers.
Industry RankSector Rank
Current Ratio 1.71
Quick Ratio 1.58
AVGO Yearly Current Assets VS Current LiabilitesAVGO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

10

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
  • Looking at the last year, AVGO shows a very strong growth in Revenue. The Revenue has grown by 23.87%.
  • Measured over the past years, AVGO shows a very strong growth in Revenue. The Revenue has been growing by 21.74% on average per year.
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

  • The Earnings Per Share is expected to grow by 28.32% on average over the next years. This is a very strong growth
  • AVGO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 30.05% yearly.
EPS Next Y50.89%
EPS Next 2Y44.81%
EPS Next 3Y37.14%
EPS Next 5Y28.32%
Revenue Next Year53.36%
Revenue Next 2Y45.66%
Revenue Next 3Y37.92%
Revenue Next 5Y30.05%

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.
AVGO Yearly Revenue VS EstimatesAVGO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 50B 100B 150B 200B
AVGO Yearly EPS VS EstimatesAVGO Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20

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5

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 46.85 indicates a quite expensive valuation of AVGO.
  • Based on the Price/Earnings ratio, AVGO is valued a bit cheaper than 70.43% of the companies in the same industry.
  • AVGO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.07.
  • AVGO is valuated quite expensively with a Price/Forward Earnings ratio of 31.05.
  • Based on the Price/Forward Earnings ratio, AVGO is valued a bit cheaper than the industry average as 67.83% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 28.05. AVGO is around the same levels.
Industry RankSector Rank
PE 46.85
Fwd PE 31.05
AVGO Price Earnings VS Forward Price EarningsAVGO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • AVGO's Enterprise Value to EBITDA is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, AVGO is valued a bit cheaper than the industry average as 66.09% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 56.29
EV/EBITDA 44.77
AVGO Per share dataAVGO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 -10 15

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 excellent profitability rating of AVGO may justify a higher PE ratio.
  • AVGO's earnings are expected to grow with 37.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)1.86
EPS Next 2Y44.81%
EPS Next 3Y37.14%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • AVGO has a yearly dividend return of 0.81%, which is pretty low.
  • In the last 3 months the price of AVGO has falen by -20.70%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • AVGO's Dividend Yield is rather good when compared to the industry average which is at 0.47. AVGO pays more dividend than 83.48% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, AVGO's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.81%

5.2 History

  • On average, the dividend of AVGO grows each year by 11.45%, which is quite nice.
  • AVGO has paid a dividend for at least 10 years, which is a reliable track record.
  • AVGO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)11.45%
Div Incr Years14
Div Non Decr Years14
AVGO Yearly Dividends per shareAVGO Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

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.
  • The dividend of AVGO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP48.18%
EPS Next 2Y44.81%
EPS Next 3Y37.14%
AVGO Yearly Income VS Free CF VS DividendAVGO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B 20B 25B
AVGO Dividend Payout.AVGO Dividend Payout, showing the Payout Ratio.AVGO Dividend Payout.PayoutRetained Earnings

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BROADCOM INC

NASDAQ:AVGO (2/27/2026, 8:00:02 PM)

After market: 317.686 -1.86 (-0.58%)

319.55

-2.15 (-0.67%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)12-11
Earnings (Next)03-04
Inst Owners79.09%
Inst Owner Change0.98%
Ins Owners1.92%
Ins Owner Change-19.79%
Market Cap1.52T
Revenue(TTM)63.89B
Net Income(TTM)23.13B
Analysts85.36
Price Target462.47 (44.73%)
Short Float %1.17%
Short Ratio1.66
Dividend
Industry RankSector Rank
Dividend Yield 0.81%
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)-1.21%
PT rev (3m)16.54%
EPS NQ rev (1m)1.21%
EPS NQ rev (3m)3.7%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)8.94%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)4.94%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)12.47%
Valuation
Industry RankSector Rank
PE 46.85
Fwd PE 31.05
P/S 23.71
P/FCF 56.29
P/OCF 55.02
P/B 18.64
P/tB N/A
EV/EBITDA 44.77
EPS(TTM)6.82
EY2.13%
EPS(NY)10.29
Fwd EY3.22%
FCF(TTM)5.68
FCFY1.78%
OCF(TTM)5.81
OCFY1.82%
SpS13.47
BVpS17.15
TBVpS-10.29
PEG (NY)0.92
PEG (5Y)1.86
Graham Number51.29
Profitability
Industry RankSector 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 RankSector 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 11.17
F-Score9
WACC10.42%
ROIC/WACC1.02
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 Y50.89%
EPS Next 2Y44.81%
EPS Next 3Y37.14%
EPS Next 5Y28.32%
Revenue 1Y (TTM)23.87%
Revenue growth 3Y24.38%
Revenue growth 5Y21.74%
Sales Q2Q%28.18%
Revenue Next Year53.36%
Revenue Next 2Y45.66%
Revenue Next 3Y37.92%
Revenue Next 5Y30.05%
EBIT growth 1Y71.53%
EBIT growth 3Y22.33%
EBIT growth 5Y43.11%
EBIT Next Year54.61%
EBIT Next 3Y35.9%
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%.