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

  • AVGOP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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

  • An Altman-Z score of 7.96 indicates that AVGOP is not in any danger for bankruptcy at the moment.
  • A Debt/Equity ratio of 1.88 is on the high side and indicates that AVGOP has dependencies on debt 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.
  • A Quick Ratio of 2.05 indicates that AVGOP has no problem at all paying 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

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

6

3. AVGOP Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 31.88% over the past year.
  • 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

  • Based on estimates for the next years, AVGOP will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.63% on average per year.
  • AVGOP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.79% yearly.
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

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

  • Based on the Price/Earnings ratio of 40.19, the valuation of AVGOP can be described as expensive.
  • The average S&P500 Price/Earnings ratio is at 26.64. AVGOP is valued rather expensively when compared to this.
  • A Price/Forward Earnings ratio of 34.40 indicates a quite expensive valuation of AVGOP.
  • When comparing the Price/Forward Earnings ratio of AVGOP to the average of the S&P500 Index (21.36), we can say AVGOP is valued expensively.
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%

More info and screens

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
Industry Strength93.17
Industry Growth91.93
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 Number0 (-100%)
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.


What is the profitability of AVGOP stock?

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


What is the valuation of BROADCOM INC - AVGO 8 09/30/22 based on its PE and PB ratios?

The Price/Earnings (PE) ratio for BROADCOM INC - AVGO 8 09/30/22 (AVGOP) is 40.19 and the Price/Book (PB) ratio is 27.29.


Can you provide the financial health for AVGOP stock?

The financial health rating of BROADCOM INC - AVGO 8 09/30/22 (AVGOP) is 6 / 10.