Why BROADCOM INC (NASDAQ:AVGO) should be investigated by quality investors.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if BROADCOM INC (NASDAQ:AVGO) is suited for quality investing. Investors should of course do their own research, but we spotted BROADCOM INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Some of the quality metrics of NASDAQ:AVGO highlighted

• BROADCOM INC has demonstrated significant revenue growth over the past 5 years, with a 11.43% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
• 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.
• With a Debt/Free Cash Flow Ratio of 4.01, BROADCOM INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• 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.
• The 5-year EBIT growth of BROADCOM INC has been remarkable, with 25.02% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• BROADCOM INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental analysis of NASDAQ:AVGO

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

Taking everything into account, AVGO scores 6 out of 10 in our fundamental rating. AVGO was compared to 109 industry peers in the Semiconductors & Semiconductor Equipment industry. AVGO has an excellent profitability rating, but there are concerns on its financial health. AVGO is valued quite expensively, but it does show have an excellent growth rating.

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.

Disclaimer

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.