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

NASDAQ:AVGOP - Nasdaq - US11135F2002 - Currency: USD

1406.7  -37.32 (-2.58%)

Fundamental Rating

2

AVGOP gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. AVGOP may be in some trouble as it scores bad on both profitability and health. AVGOP is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

In the past year AVGOP was profitable.
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 2015 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 2015 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 2015 2016 2017 2018 2019 2020 2021 0 20 40 60

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3

2. Health

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 2015 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 2015 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.
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 2015 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 2015 2016 2017 2018 2019 2020 2021 5B 10B 15B

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 31.88% over the past year.
AVGOP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 19.90% yearly.
Looking at the last year, AVGOP shows a quite strong growth in Revenue. The Revenue has grown by 19.50% in the last year.
AVGOP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.70% yearly.
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

AVGOP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.63% yearly.
Based on estimates for the next years, AVGOP will show a small growth in Revenue. The Revenue will grow by 6.79% on average per year.
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.
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 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10 20 30 40

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1

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 40.19, the valuation of AVGOP can be described as expensive.
AVGOP is valuated rather expensively when we compare the Price/Earnings ratio to 27.91, which is the current average of the S&P500 Index.
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 (37.11), we can say AVGOP is valued inline with the index average.
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 10 20 30 40

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

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

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0

5. Dividend

5.1 Amount

AVGOP does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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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 SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)09-01 2022-09-01/amc
Earnings (Next)12-07 2022-12-07
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap569.71B
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
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
ROICexcg growth 3Y0%
ROICexcg 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