BROADCOM INC - AVGO 8 09/30/22 (AVGOP) Fundamental Analysis & Valuation

NASDAQ:AVGOP • US11135F2002

Current stock price

1406.7 USD
-37.32 (-2.58%)
Last:

This AVGOP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

0

1. AVGOP Profitability Analysis

1.1 Basic Checks

  • AVGOP had positive earnings in the past year.
AVGOP Yearly Net Income VS EBIT VS OCF VS FCFAVGOP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 5B 10B

1.2 Ratios

Industry RankSector Rank
ROA 14.2%
ROE 48.5%
ROIC 15.76%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
AVGOP Yearly ROA, ROE, ROICAVGOP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 0 10 20 30 40

1.3 Margins

Industry RankSector Rank
OM 40.69%
PM (TTM) 31.96%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
AVGOP Yearly Profit, Operating, Gross MarginsAVGOP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 0 20 40 60

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3

2. AVGOP Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AVGOP is creating some value.
  • AVGOP has more shares outstanding than it did 1 year ago.
  • Compared to 1 year ago, AVGOP has an improved debt to assets ratio.
AVGOP Yearly Shares OutstandingAVGOP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 100M 200M 300M 400M
AVGOP Yearly Total Debt VS Total AssetsAVGOP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 20B 40B 60B

2.2 Solvency

  • AVGOP has an Altman-Z score of 7.96. This indicates that AVGOP is financially healthy and has little risk of bankruptcy at the moment.
  • AVGOP has a Debt/Equity ratio of 1.88. This is a high value indicating a heavy dependency on external financing.
Industry RankSector Rank
Debt/Equity 1.88
Debt/FCF N/A
Altman-Z 7.96
ROIC/WACC1.41
WACC11.2%
AVGOP Yearly LT Debt VS Equity VS FCFAVGOP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 10B 20B 30B 40B

2.3 Liquidity

  • AVGOP has a Current Ratio of 2.32. This indicates that AVGOP is financially healthy and has no problem in meeting its short term obligations.
  • AVGOP has a Quick Ratio of 2.05. This indicates that AVGOP is financially healthy and has no problem in meeting its short term obligations.
Industry RankSector Rank
Current Ratio 2.32
Quick Ratio 2.05
AVGOP Yearly Current Assets VS Current LiabilitesAVGOP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 5B 10B 15B

More info and screens

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

6

3. AVGOP Growth Analysis

3.1 Past

  • AVGOP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.88%, which is quite impressive.
  • The Earnings Per Share has been growing by 19.90% on average over the past years. This is quite good.
  • The Revenue has grown by 19.50% in the past year. This is quite good.
  • The Revenue has been growing by 15.70% on average over the past years. This is quite good.
EPS 1Y (TTM)31.88%
EPS 3Y10.36%
EPS 5Y19.9%
EPS Q2Q%39.8%
Revenue 1Y (TTM)19.5%
Revenue growth 3Y9.6%
Revenue growth 5Y15.7%
Sales Q2Q%24.87%

3.2 Future

  • The Earnings Per Share is expected to grow by 11.63% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 6.79% on average over the next years.
EPS Next Y34.56%
EPS Next 2Y20.84%
EPS Next 3Y15.54%
EPS Next 5Y11.63%
Revenue Next Year20.01%
Revenue Next 2Y12.65%
Revenue Next 3Y9.24%
Revenue Next 5Y6.79%

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 decreasing.
AVGOP Yearly Revenue VS EstimatesAVGOP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10B 20B 30B
AVGOP Yearly EPS VS EstimatesAVGOP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10 20 30 40

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1

4. AVGOP Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 40.19 indicates a quite expensive valuation of AVGOP.
  • The average S&P500 Price/Earnings ratio is at 25.71. AVGOP is valued rather expensively when compared to this.
  • The Price/Forward Earnings ratio is 34.40, which means the current valuation is very expensive for AVGOP.
  • AVGOP is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 40.19
Fwd PE 34.4
AVGOP Price Earnings VS Forward Price EarningsAVGOP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 33
AVGOP Per share dataAVGOP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • AVGOP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • AVGOP's earnings are expected to grow with 15.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.16
PEG (5Y)2.02
EPS Next 2Y20.84%
EPS Next 3Y15.54%

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

0

5. AVGOP Dividend Analysis

5.1 Amount

  • No dividends for AVGOP!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

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AVGOP Fundamentals: All Metrics, Ratios and Statistics

BROADCOM INC - AVGO 8 09/30/22

NASDAQ:AVGOP (9/29/2022, 8:11:34 PM)

1406.7

-37.32 (-2.58%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)09-01
Earnings (Next)12-07
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap569.71B
Revenue(TTM)31.68B
Net Income(TTM)10.13B
Analysts82.58
Price Target2152.53 (53.02%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP67.27%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 40.19
Fwd PE 34.4
P/S 17.98
P/FCF N/A
P/OCF N/A
P/B 27.29
P/tB N/A
EV/EBITDA 33
EPS(TTM)35
EY2.49%
EPS(NY)40.89
Fwd EY2.91%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS78.22
BVpS51.55
TBVpSN/A
PEG (NY)1.16
PEG (5Y)2.02
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 14.2%
ROE 48.5%
ROCE N/A
ROIC 15.76%
ROICexc N/A
ROICexgc 79.31%
OM 40.69%
PM (TTM) 31.96%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y0%
ROICexgc growth 5Y0%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.44
Health
Industry RankSector Rank
Debt/Equity 1.88
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.32
Quick Ratio 2.05
Altman-Z 7.96
F-Score7
WACC11.2%
ROIC/WACC1.41
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)31.88%
EPS 3Y10.36%
EPS 5Y19.9%
EPS Q2Q%39.8%
EPS Next Y34.56%
EPS Next 2Y20.84%
EPS Next 3Y15.54%
EPS Next 5Y11.63%
Revenue 1Y (TTM)19.5%
Revenue growth 3Y9.6%
Revenue growth 5Y15.7%
Sales Q2Q%24.87%
Revenue Next Year20.01%
Revenue Next 2Y12.65%
Revenue Next 3Y9.24%
Revenue Next 5Y6.79%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A

BROADCOM INC - AVGO 8 09/30/22 / AVGOP Fundamental Analysis FAQ

What is the fundamental rating for AVGOP stock?

ChartMill assigns a fundamental rating of 6 / 10 to AVGOP.


What is the valuation status for AVGOP stock?

ChartMill assigns a valuation rating of 1 / 10 to BROADCOM INC - AVGO 8 09/30/22 (AVGOP). This can be considered as Overvalued.


Can you provide the profitability details for BROADCOM INC - AVGO 8 09/30/22?

BROADCOM INC - AVGO 8 09/30/22 (AVGOP) has a profitability rating of 8 / 10.


What is the expected EPS growth for BROADCOM INC - AVGO 8 09/30/22 (AVGOP) stock?

The Earnings per Share (EPS) of BROADCOM INC - AVGO 8 09/30/22 (AVGOP) is expected to grow by 34.56% in the next year.


Can you provide the dividend sustainability for AVGOP stock?

The dividend rating of BROADCOM INC - AVGO 8 09/30/22 (AVGOP) is 4 / 10 and the dividend payout ratio is 67.27%.