370.52 USD
-35.85 (-8.82%)
Overall AVGO gets a fundamental rating of 6 out of 10. We evaluated AVGO against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. While AVGO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. AVGO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
AVGO had positive earnings in the past year.
In the past year AVGO had a positive cash flow from operations.
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.
The Return On Equity of AVGO (25.84%) is better than 90.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.26%, AVGO belongs to the top of the industry, outperforming 85.71% 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 10.82%.
| 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
AVGO has a Profit Margin of 31.59%. This is amongst the best in the industry. AVGO outperforms 90.18% of its industry peers.
In the last couple of years the Profit Margin of AVGO has remained more or less at the same level.
The Operating Margin of AVGO (39.20%) is better than 96.43% of its industry peers.
AVGO's Operating Margin has improved in the last couple of years.
AVGO has a better Gross Margin (67.03%) than 91.07% of its industry peers.
AVGO's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AVGO is still 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 has a better Altman-Z score (13.39) than 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.
AVGO has a better Debt to FCF ratio (2.58) than 66.07% of its industry peers.
AVGO has a Debt/Equity ratio of 0.86. This is a neutral value indicating AVGO is somewhat dependend on debt financing.
AVGO's Debt to Equity ratio of 0.86 is on the low side compared to the rest of the industry. AVGO is outperformed by 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
AVGO has a Current Ratio of 1.50. This is a normal value and indicates that AVGO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.50, AVGO is doing worse than 83.04% of the companies in the same industry.
AVGO has a Quick Ratio of 1.37. 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 Quick ratio of 1.37. This is in the lower half of the industry: AVGO underperforms 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.
Based on estimates for the next years, AVGO will show a very strong growth in Revenue. The Revenue will grow by 24.46% on average per year.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
AVGO is valuated quite expensively with a Price/Earnings ratio of 54.33.
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.
With a Price/Forward Earnings ratio of 38.73, AVGO can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as AVGO.
When comparing the Price/Forward Earnings ratio of AVGO to the average of the S&P500 Index (23.96), we can say AVGO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.33 | ||
| Fwd PE | 38.73 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AVGO.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.19 | ||
| EV/EBITDA | 60.42 |
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.
A more expensive valuation may be justified as AVGO's earnings are expected to grow with 33.21% in the coming years.
PEG (NY)1.35
PEG (5Y)2.15
EPS Next 2Y37.85%
EPS Next 3Y33.21%
5. Dividend
5.1 Amount
With a yearly dividend of 0.57%, AVGO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.09, AVGO pays a bit more dividend than its industry peers.
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.
The dividend of AVGO is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP57.2%
EPS Next 2Y37.85%
EPS Next 3Y33.21%
NASDAQ:AVGO (12/12/2025, 9:47:09 AM)
370.52
-35.85 (-8.82%)
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 Cap1.75T
Revenue(TTM)N/A
Net Income(TTM)18.93B
Analysts85.09
Price Target411.31 (11.01%)
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 | 54.33 | ||
| Fwd PE | 38.73 | ||
| P/S | 29.2 | ||
| P/FCF | 70.19 | ||
| P/OCF | 68.78 | ||
| P/B | 23.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 60.42 |
EPS(TTM)6.82
EY1.84%
EPS(NY)9.57
Fwd EY2.58%
FCF(TTM)5.28
FCFY1.42%
OCF(TTM)5.39
OCFY1.45%
SpS12.69
BVpS15.52
TBVpS-12.47
PEG (NY)1.35
PEG (5Y)2.15
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.