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BROADCOM INC (AVGO) Stock Fundamental Analysis

NASDAQ:AVGO - Nasdaq - US11135F1012 - Common Stock - Currency: USD

303.9  -1.07 (-0.35%)

Premarket: 304.46 +0.56 (+0.18%)

Fundamental Rating

6

Overall AVGO gets a fundamental rating of 6 out of 10. We evaluated AVGO against 110 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 priced too expensively while it is growing strongly. Keep and eye on this one!


Dividend Valuation Growth Profitability Health

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8

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.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B

1.2 Ratios

AVGO's Return On Assets of 7.85% is fine compared to the rest of the industry. AVGO outperforms 78.18% of its industry peers.
AVGO has a Return On Equity of 18.56%. This is amongst the best in the industry. AVGO outperforms 84.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.32%, AVGO belongs to the top of the industry, outperforming 82.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AVGO is above the industry average of 10.87%.
Industry RankSector Rank
ROA 7.85%
ROE 18.56%
ROIC 11.32%
ROA(3y)12.74%
ROA(5y)10.05%
ROE(3y)38.95%
ROE(5y)30.76%
ROIC(3y)14.76%
ROIC(5y)11.78%
AVGO Yearly ROA, ROE, ROICAVGO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

1.3 Margins

AVGO's Profit Margin of 22.64% is amongst the best of the industry. AVGO outperforms 85.45% of its industry peers.
AVGO's Profit Margin has been stable in the last couple of years.
AVGO has a Operating Margin of 37.75%. This is amongst the best in the industry. AVGO outperforms 95.45% of its industry peers.
AVGO's Operating Margin has improved in the last couple of years.
The Gross Margin of AVGO (66.35%) is better than 89.09% of its industry peers.
AVGO's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 37.75%
PM (TTM) 22.64%
GM 66.35%
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%
AVGO Yearly Profit, Operating, Gross MarginsAVGO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

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4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AVGO is still creating some value.
Compared to 1 year ago, AVGO has more shares outstanding
AVGO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AVGO has an improved debt to assets ratio.
AVGO Yearly Shares OutstandingAVGO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B
AVGO Yearly Total Debt VS Total AssetsAVGO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

2.2 Solvency

An Altman-Z score of 9.84 indicates that AVGO is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.84, AVGO is in the better half of the industry, outperforming 79.09% of the companies in the same industry.
The Debt to FCF ratio of AVGO is 2.96, which is a good value as it means it would take AVGO, 2.96 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.96, AVGO is doing good in the industry, outperforming 61.82% of the companies in the same industry.
A Debt/Equity ratio of 0.94 indicates that AVGO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.94, AVGO is doing worse than 86.36% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.94
Debt/FCF 2.96
Altman-Z 9.84
ROIC/WACC1
WACC11.34%
AVGO Yearly LT Debt VS Equity VS FCFAVGO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.3 Liquidity

AVGO has a Current Ratio of 1.08. 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 (1.08) than 90.00% of its industry peers.
A Quick Ratio of 0.98 indicates that AVGO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.98, AVGO is doing worse than 86.36% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.08
Quick Ratio 0.98
AVGO Yearly Current Assets VS Current LiabilitesAVGO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

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8

3. Growth

3.1 Past

AVGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.10%, which is quite impressive.
Measured over the past years, AVGO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.90% on average per year.
Looking at the last year, AVGO shows a very strong growth in Revenue. The Revenue has grown by 33.85%.
The Revenue has been growing by 17.94% on average over the past years. This is quite good.
EPS 1Y (TTM)34.1%
EPS 3Y20.14%
EPS 5Y17.9%
EPS Q2Q%44.16%
Revenue 1Y (TTM)33.85%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%20.16%

3.2 Future

AVGO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.54% yearly.
The Revenue is expected to grow by 19.78% on average over the next years. This is quite good.
EPS Next Y38.45%
EPS Next 2Y30.61%
EPS Next 3Y26.85%
EPS Next 5Y26.54%
Revenue Next Year21.83%
Revenue Next 2Y21.47%
Revenue Next 3Y19.89%
Revenue Next 5Y19.78%

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.
AVGO Yearly Revenue VS EstimatesAVGO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 20B 40B 60B 80B 100B
AVGO Yearly EPS VS EstimatesAVGO Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15

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4

4. Valuation

4.1 Price/Earnings Ratio

AVGO is valuated quite expensively with a Price/Earnings ratio of 52.04.
AVGO's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.41, AVGO is valued quite expensively.
A Price/Forward Earnings ratio of 36.69 indicates a quite expensive valuation of AVGO.
AVGO's Price/Forward Earnings ratio is in line with the industry average.
AVGO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 33.87, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 52.04
Fwd PE 36.69
AVGO Price Earnings VS Forward Price EarningsAVGO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

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 is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 62.98
EV/EBITDA 47.84
AVGO Per share dataAVGO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 -10

4.3 Compensation for Growth

AVGO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of AVGO may justify a higher PE ratio.
AVGO's earnings are expected to grow with 26.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.35
PEG (5Y)2.91
EPS Next 2Y30.61%
EPS Next 3Y26.85%

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5

5. Dividend

5.1 Amount

AVGO has a yearly dividend return of 0.78%, which is pretty low.
AVGO's Dividend Yield is a higher than the industry average which is at 2.47.
Compared to an average S&P500 Dividend Yield of 2.39, AVGO's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.78%

5.2 History

The dividend of AVGO is nicely growing with an annual growth rate of 16.17%!
AVGO has been paying a dividend for at least 10 years, so it has a reliable track record.
AVGO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.17%
Div Incr Years14
Div Non Decr Years14
AVGO Yearly Dividends per shareAVGO Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

AVGO pays out 81.25% of its income as dividend. This is not a sustainable payout ratio.
The dividend of AVGO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP81.25%
EPS Next 2Y30.61%
EPS Next 3Y26.85%
AVGO Yearly Income VS Free CF VS DividendAVGO Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B 10B 15B
AVGO Dividend Payout.AVGO Dividend Payout, showing the Payout Ratio.AVGO Dividend Payout.PayoutRetained Earnings

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BROADCOM INC

NASDAQ:AVGO (8/11/2025, 8:17:37 PM)

Premarket: 304.46 +0.56 (+0.18%)

303.9

-1.07 (-0.35%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)06-05 2025-06-05/amc
Earnings (Next)09-04 2025-09-04/amc
Inst Owners79.07%
Inst Owner Change-0.28%
Ins Owners1.94%
Ins Owner Change-5.01%
Market Cap1429.38B
Analysts84
Price Target298.65 (-1.73%)
Short Float %1.03%
Short Ratio2.24
Dividend
Industry RankSector Rank
Dividend Yield 0.78%
Yearly Dividend2.22
Dividend Growth(5Y)16.17%
DP81.25%
Div Incr Years14
Div Non Decr Years14
Ex-Date06-20 2025-06-20 (0.59)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.23%
Min EPS beat(2)-0.93%
Max EPS beat(2)5.39%
EPS beat(4)3
Avg EPS beat(4)1.58%
Min EPS beat(4)-0.93%
Max EPS beat(4)5.39%
EPS beat(8)4
Avg EPS beat(8)1%
EPS beat(12)6
Avg EPS beat(12)0.67%
EPS beat(16)8
Avg EPS beat(16)0.63%
Revenue beat(2)1
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)0.09%
Revenue beat(4)1
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)0.09%
Revenue beat(8)3
Avg Revenue beat(8)-1.03%
Revenue beat(12)3
Avg Revenue beat(12)-1.19%
Revenue beat(16)4
Avg Revenue beat(16)-1.09%
PT rev (1m)7.36%
PT rev (3m)24.48%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-0.4%
EPS NY rev (1m)0%
EPS NY rev (3m)0.16%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.35%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.85%
Valuation
Industry RankSector Rank
PE 52.04
Fwd PE 36.69
P/S 25.06
P/FCF 62.98
P/OCF 61.52
P/B 20.54
P/tB N/A
EV/EBITDA 47.84
EPS(TTM)5.84
EY1.92%
EPS(NY)8.28
Fwd EY2.73%
FCF(TTM)4.83
FCFY1.59%
OCF(TTM)4.94
OCFY1.63%
SpS12.13
BVpS14.79
TBVpS-13.74
PEG (NY)1.35
PEG (5Y)2.91
Profitability
Industry RankSector Rank
ROA 7.85%
ROE 18.56%
ROCE 14.95%
ROIC 11.32%
ROICexc 12.09%
ROICexgc 394.45%
OM 37.75%
PM (TTM) 22.64%
GM 66.35%
FCFM 39.79%
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-Score8
Asset Turnover0.35
Health
Industry RankSector Rank
Debt/Equity 0.94
Debt/FCF 2.96
Debt/EBITDA 2.12
Cap/Depr 5.68%
Cap/Sales 0.94%
Interest Coverage 7.36
Cash Conversion 74.93%
Profit Quality 175.71%
Current Ratio 1.08
Quick Ratio 0.98
Altman-Z 9.84
F-Score8
WACC11.34%
ROIC/WACC1
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)34.1%
EPS 3Y20.14%
EPS 5Y17.9%
EPS Q2Q%44.16%
EPS Next Y38.45%
EPS Next 2Y30.61%
EPS Next 3Y26.85%
EPS Next 5Y26.54%
Revenue 1Y (TTM)33.85%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%20.16%
Revenue Next Year21.83%
Revenue Next 2Y21.47%
Revenue Next 3Y19.89%
Revenue Next 5Y19.78%
EBIT growth 1Y49.25%
EBIT growth 3Y20.65%
EBIT growth 5Y29.07%
EBIT Next Year43.37%
EBIT Next 3Y25.18%
EBIT Next 5Y24.49%
FCF growth 1Y32.87%
FCF growth 3Y13.38%
FCF growth 5Y15.95%
OCF growth 1Y32.43%
OCF growth 3Y13.19%
OCF growth 5Y15.53%