406.37 USD
-6.6 (-1.6%)
385.8 USD
-20.57 (-5.06%)
Taking everything into account, AVGO scores 6 out of 10 in our fundamental rating. AVGO was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. AVGO has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, AVGO is valued expensive at the moment.
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 4 of the past 5 years.
AVGO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of AVGO (11.43%) is better than 84.82% of its industry peers.
With an excellent Return On Equity value of 25.84%, AVGO belongs to the best of the industry, outperforming 90.18% of the companies in the same industry.
AVGO has a Return On Invested Capital of 12.26%. This is amongst the best in the industry. AVGO outperforms 85.71% of its industry peers.
AVGO had an Average Return On Invested Capital over the past 3 years of 14.76%. This is above the industry average of 10.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.43% | ||
| ROE | 25.84% | ||
| ROIC | 12.26% |
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 31.59%, AVGO belongs to the top of the industry, outperforming 90.18% of the companies in the same industry.
AVGO's Profit Margin has been stable in the last couple of years.
The Operating Margin of AVGO (39.20%) is better than 96.43% of its industry peers.
In the last couple of years the Operating Margin of AVGO has grown nicely.
With an excellent Gross Margin value of 67.03%, AVGO belongs to the best of the industry, outperforming 91.07% of the companies in the same industry.
In the last couple of years the Gross Margin of AVGO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.2% | ||
| PM (TTM) | 31.59% | ||
| GM | 67.03% |
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), AVGO is creating some value.
AVGO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 13.39 indicates that AVGO is not in any danger for bankruptcy at the moment.
AVGO's Altman-Z score of 13.39 is fine compared to the rest of the industry. AVGO outperforms 79.46% of its industry peers.
AVGO has a debt to FCF ratio of 2.58. This is a good value and a sign of high solvency as AVGO would need 2.58 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.58, AVGO is doing good in the industry, outperforming 66.07% of the companies in the same industry.
A Debt/Equity ratio of 0.86 indicates that AVGO is somewhat dependend on debt financing.
AVGO has a worse Debt to Equity ratio (0.86) than 83.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 13.39 |
ROIC/WACC1.17
WACC10.45%
2.3 Liquidity
A Current Ratio of 1.50 indicates that AVGO should not have too much problems paying its short term obligations.
AVGO's Current ratio of 1.50 is on the low side compared to the rest of the industry. AVGO is outperformed by 83.04% of its industry peers.
A Quick Ratio of 1.37 indicates that AVGO should not have too much problems paying its short term obligations.
The Quick ratio of AVGO (1.37) is worse than 77.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.47% over the past year.
Measured over the past years, AVGO shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.23% on average per year.
EPS 1Y (TTM)40.47%
EPS 3Y21.91%
EPS 5Y25.23%
EPS Q2Q%37.32%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%28.18%
3.2 Future
AVGO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.36% yearly.
AVGO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.46% yearly.
EPS Next Y40.29%
EPS Next 2Y37.85%
EPS Next 3Y33.21%
EPS Next 5Y15.36%
Revenue Next Year37.93%
Revenue Next 2Y35.1%
Revenue Next 3Y29.97%
Revenue Next 5Y24.46%
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.
4. Valuation
4.1 Price/Earnings Ratio
AVGO is valuated quite expensively with a Price/Earnings ratio of 59.59.
AVGO's Price/Earnings is on the same level as the industry average.
AVGO is valuated expensively when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
AVGO is valuated quite expensively with a Price/Forward Earnings ratio of 42.47.
AVGO's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.96. AVGO is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.59 | ||
| Fwd PE | 42.47 |
4.2 Price Multiples
AVGO's Enterprise Value to EBITDA ratio is in line with the industry average.
AVGO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 76.98 | ||
| EV/EBITDA | 60.42 |
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.
AVGO's earnings are expected to grow with 33.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.48
PEG (5Y)2.36
EPS Next 2Y37.85%
EPS Next 3Y33.21%
5. Dividend
5.1 Amount
AVGO has a yearly dividend return of 0.57%, which is pretty low.
AVGO's Dividend Yield is a higher than the industry average which is at 2.09.
Compared to an average S&P500 Dividend Yield of 2.31, AVGO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
The dividend of AVGO is nicely growing with an annual growth rate of 16.17%!
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)16.17%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
57.20% of the earnings are spent on dividend by AVGO. This is a bit on the high side, but may be sustainable.
AVGO's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP57.2%
EPS Next 2Y37.85%
EPS Next 3Y33.21%
406.37
-6.6 (-1.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.34%
Inst Owner Change0.81%
Ins Owners1.93%
Ins Owner Change-23.9%
Market Cap1.92T
Revenue(TTM)N/A
Net Income(TTM)18.93B
Analysts85.09
Price Target411.31 (1.22%)
Short Float %1.18%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend2.22
Dividend Growth(5Y)16.17%
DP57.2%
Div Incr Years14
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.21%
Min EPS beat(2)-0.93%
Max EPS beat(2)0.5%
EPS beat(4)3
Avg EPS beat(4)1.44%
Min EPS beat(4)-0.93%
Max EPS beat(4)5.39%
EPS beat(8)5
Avg EPS beat(8)1.17%
EPS beat(12)7
Avg EPS beat(12)0.73%
EPS beat(16)9
Avg EPS beat(16)0.71%
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)-1.17%
Revenue beat(4)1
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)0.09%
Revenue beat(8)3
Avg Revenue beat(8)-0.95%
Revenue beat(12)3
Avg Revenue beat(12)-1.21%
Revenue beat(16)4
Avg Revenue beat(16)-1.06%
PT rev (1m)4.34%
PT rev (3m)33.83%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)3.91%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)1.17%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)2.8%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 59.59 | ||
| Fwd PE | 42.47 | ||
| P/S | 32.02 | ||
| P/FCF | 76.98 | ||
| P/OCF | 75.44 | ||
| P/B | 26.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 60.42 |
EPS(TTM)6.82
EY1.68%
EPS(NY)9.57
Fwd EY2.35%
FCF(TTM)5.28
FCFY1.3%
OCF(TTM)5.39
OCFY1.33%
SpS12.69
BVpS15.52
TBVpS-12.47
PEG (NY)1.48
PEG (5Y)2.36
Graham Number48.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.43% | ||
| ROE | 25.84% | ||
| ROCE | 15.78% | ||
| ROIC | 12.26% | ||
| ROICexc | 13.21% | ||
| ROICexgc | 301.66% | ||
| OM | 39.2% | ||
| PM (TTM) | 31.59% | ||
| GM | 67.03% | ||
| FCFM | 41.6% |
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%
ROICexgc growth 3Y52.32%
ROICexgc 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-Score9
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.58 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 5.55% | ||
| Cap/Sales | 0.85% | ||
| Interest Coverage | 8.67 | ||
| Cash Conversion | 77.92% | ||
| Profit Quality | 131.68% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 13.39 |
F-Score9
WACC10.45%
ROIC/WACC1.17
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)40.47%
EPS 3Y21.91%
EPS 5Y25.23%
EPS Q2Q%37.32%
EPS Next Y40.29%
EPS Next 2Y37.85%
EPS Next 3Y33.21%
EPS Next 5Y15.36%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%28.18%
Revenue Next Year37.93%
Revenue Next 2Y35.1%
Revenue Next 3Y29.97%
Revenue Next 5Y24.46%
EBIT growth 1Y61.92%
EBIT growth 3Y20.65%
EBIT growth 5Y29.07%
EBIT Next Year45.92%
EBIT Next 3Y36.39%
EBIT Next 5Y33.79%
FCF growth 1Y43.52%
FCF growth 3Y13.38%
FCF growth 5Y15.95%
OCF growth 1Y42.59%
OCF growth 3Y13.19%
OCF growth 5Y15.53%
BROADCOM INC / AVGO FAQ
Can you provide the ChartMill fundamental rating for BROADCOM INC?
ChartMill assigns a fundamental rating of 7 / 10 to AVGO.
What is the valuation status for AVGO stock?
ChartMill assigns a valuation rating of 3 / 10 to BROADCOM INC (AVGO). This can be considered as Overvalued.
What is the profitability of AVGO stock?
BROADCOM INC (AVGO) has a profitability rating of 9 / 10.
Can you provide the financial health for AVGO stock?
The financial health rating of BROADCOM INC (AVGO) is 5 / 10.
What is the earnings growth outlook for BROADCOM INC?
The Earnings per Share (EPS) of BROADCOM INC (AVGO) is expected to grow by 40.29% in the next year.