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Analyzing the Quality Characteristics of BROADCOM INC (NASDAQ:AVGO).

By Mill Chart

Last update: Feb 21, 2025

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.


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Exploring Why NASDAQ:AVGO Holds Appeal for Quality Investors.

  • BROADCOM INC has shown strong performance in revenue growth over the past 5 years, with a 17.94% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • With a notable ROIC excluding cash and goodwill at 1.0K%, BROADCOM INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • The Debt/Free Cash Flow Ratio of BROADCOM INC stands at 3.48, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • BROADCOM INC exhibits impressive Profit Quality (5-year) with a 248.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • The 5-year EBIT growth of BROADCOM INC has been remarkable, with 29.07% 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.

Zooming in on the fundamentals.

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.

Overall AVGO gets a fundamental rating of 6 out of 10. We evaluated AVGO against 108 industry peers in the Semiconductors & Semiconductor Equipment industry. While AVGO has a great profitability rating, there are some minor concerns on its financial health. AVGO is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make AVGO a good candidate for growth investing.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

BROADCOM INC

NASDAQ:AVGO (2/20/2025, 10:01:52 PM)

Premarket: 225.31 -1.43 (-0.63%)

226.74

-1.99 (-0.87%)



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