BROADCOM INC (NASDAQ:AVGO) Exhibits Quality Stock Traits. Here's Why.

In this article we will dive into BROADCOM INC (NASDAQ:AVGO) as a possible candidate for quality investing. Investors should always do their own research, but we noticed BROADCOM INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NASDAQ:AVGO highlighted

• BROADCOM INC has shown strong performance in revenue growth over the past 5 years, with a 11.43% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• The ROIC excluding cash and goodwill of BROADCOM INC stands at 584.0%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• BROADCOM INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 4.01, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• BROADCOM INC demonstrates consistent Profit Quality over the past 5 years, with a strong 251.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• With a robust 5-year EBIT growth of 25.02%, BROADCOM INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• BROADCOM INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

A complete fundamental analysis of NASDAQ:AVGO

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

AVGO gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 109 industry peers in the Semiconductors & Semiconductor Equipment industry. AVGO has an excellent profitability rating, but there are some minor concerns on its financial health. AVGO has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!

For an up to date full fundamental analysis you can check the fundamental report of AVGO

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.