BROADCOM INC (1AVGO.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AVGO - US11135F1012 - Common Stock
346.75 EUR
+1.9 (+0.55%)
Overall 1AVGO gets a fundamental rating of 6 out of 10. We evaluated 1AVGO against 65 industry peers in the Semiconductors & Semiconductor Equipment industry. While 1AVGO belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1AVGO shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
In the past year 1AVGO was profitable.
In the past year 1AVGO had a positive cash flow from operations.
In the past 5 years 1AVGO has always been profitable.
1AVGO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1AVGO has a Return On Assets of 11.43%. This is in the better half of the industry: 1AVGO outperforms 70.77% of its industry peers.
With a decent Return On Equity value of 25.84%, 1AVGO is doing good in the industry, outperforming 72.31% of the companies in the same industry.
1AVGO's Return On Invested Capital of 12.26% is fine compared to the rest of the industry. 1AVGO outperforms 61.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1AVGO is in line with the industry average of 15.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.43% | ||
| ROE | 25.84% | ||
| ROIC | 12.26% |
ROA(3y)12.74%
ROA(5y)10.05%
ROE(3y)38.95%
ROE(5y)30.76%
ROIC(3y)14.76%
ROIC(5y)11.78%
1.3 Margins
1AVGO has a Profit Margin of 31.59%. This is amongst the best in the industry. 1AVGO outperforms 86.15% of its industry peers.
In the last couple of years the Profit Margin of 1AVGO has remained more or less at the same level.
1AVGO has a Operating Margin of 39.20%. This is amongst the best in the industry. 1AVGO outperforms 92.31% of its industry peers.
1AVGO's Operating Margin has improved in the last couple of years.
1AVGO has a Gross Margin of 67.03%. This is amongst the best in the industry. 1AVGO outperforms 90.77% of its industry peers.
In the last couple of years the Gross Margin of 1AVGO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.2% | ||
| PM (TTM) | 31.59% | ||
| GM | 67.03% |
OM growth 3Y-2.23%
OM growth 5Y9.44%
PM growth 3Y-21.3%
PM growth 5Y-0.85%
GM growth 3Y1.13%
GM growth 5Y2.71%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1AVGO is creating some value.
The number of shares outstanding for 1AVGO has been increased compared to 1 year ago.
Compared to 5 years ago, 1AVGO has more shares outstanding
Compared to 1 year ago, 1AVGO has an improved debt to assets ratio.
2.2 Solvency
1AVGO has an Altman-Z score of 13.31. This indicates that 1AVGO is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1AVGO (13.31) is better than 83.08% of its industry peers.
The Debt to FCF ratio of 1AVGO is 2.58, which is a good value as it means it would take 1AVGO, 2.58 years of fcf income to pay off all of its debts.
1AVGO has a Debt to FCF ratio (2.58) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.86 indicates that 1AVGO is somewhat dependend on debt financing.
1AVGO has a Debt to Equity ratio of 0.86. This is amonst the worse of the industry: 1AVGO underperforms 86.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 13.31 |
ROIC/WACC1.17
WACC10.47%
2.3 Liquidity
A Current Ratio of 1.50 indicates that 1AVGO should not have too much problems paying its short term obligations.
1AVGO's Current ratio of 1.50 is on the low side compared to the rest of the industry. 1AVGO is outperformed by 81.54% of its industry peers.
1AVGO has a Quick Ratio of 1.37. This is a normal value and indicates that 1AVGO is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.37, 1AVGO is not doing good in the industry: 72.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
1AVGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.52%, which is quite impressive.
Measured over the past years, 1AVGO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.90% on average per year.
The Revenue has grown by 28.01% in the past year. This is a very strong growth!
1AVGO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.94% yearly.
EPS 1Y (TTM)38.52%
EPS 3Y20.14%
EPS 5Y17.9%
EPS Q2Q%36.29%
Revenue 1Y (TTM)28.01%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%22.03%
3.2 Future
Based on estimates for the next years, 1AVGO will show a very strong growth in Earnings Per Share. The EPS will grow by 36.03% on average per year.
1AVGO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.97% yearly.
EPS Next Y40.13%
EPS Next 2Y40.38%
EPS Next 3Y38.72%
EPS Next 5Y36.03%
Revenue Next Year22.76%
Revenue Next 2Y30.12%
Revenue Next 3Y30.85%
Revenue Next 5Y27.97%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 64.09 indicates a quite expensive valuation of 1AVGO.
Compared to the rest of the industry, the Price/Earnings ratio of 1AVGO indicates a slightly more expensive valuation: 1AVGO is more expensive than 69.23% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.29, 1AVGO is valued quite expensively.
With a Price/Forward Earnings ratio of 42.17, 1AVGO can be considered very expensive at the moment.
73.85% of the companies in the same industry are cheaper than 1AVGO, based on the Price/Forward Earnings ratio.
1AVGO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.09 | ||
| Fwd PE | 42.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1AVGO is valued expensively inside the industry as 81.54% of the companies are valued cheaper.
1AVGO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 76.44 | ||
| EV/EBITDA | 60.01 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of 1AVGO may justify a higher PE ratio.
1AVGO's earnings are expected to grow with 38.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.6
PEG (5Y)3.58
EPS Next 2Y40.38%
EPS Next 3Y38.72%
5. Dividend
5.1 Amount
1AVGO has a yearly dividend return of 0.62%, which is pretty low.
1AVGO's Dividend Yield is comparable with the industry average which is at 1.18.
Compared to an average S&P500 Dividend Yield of 2.31, 1AVGO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
The dividend of 1AVGO is nicely growing with an annual growth rate of 16.17%!
Dividend Growth(5Y)16.17%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1AVGO pays out 57.20% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of 1AVGO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.2%
EPS Next 2Y40.38%
EPS Next 3Y38.72%
BIT:1AVGO (12/9/2025, 7:00:00 PM)
346.75
+1.9 (+0.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.34%
Inst Owner ChangeN/A
Ins Owners1.93%
Ins Owner ChangeN/A
Market Cap1.64T
Revenue(TTM)59.93B
Net Income(TTM)18.93B
Analysts85.09
Price Target353.63 (1.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Yearly Dividend1.91
Dividend Growth(5Y)16.17%
DP57.2%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.21%
Min EPS beat(2)-0.93%
Max EPS beat(2)0.5%
EPS beat(4)3
Avg EPS beat(4)1.44%
Min EPS beat(4)-0.93%
Max EPS beat(4)5.39%
EPS beat(8)5
Avg EPS beat(8)1.17%
EPS beat(12)7
Avg EPS beat(12)0.73%
EPS beat(16)9
Avg EPS beat(16)0.71%
Revenue beat(2)0
Avg Revenue beat(2)-1.53%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)-1.17%
Revenue beat(4)1
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)0.09%
Revenue beat(8)3
Avg Revenue beat(8)-0.95%
Revenue beat(12)3
Avg Revenue beat(12)-1.21%
Revenue beat(16)4
Avg Revenue beat(16)-1.06%
PT rev (1m)6.06%
PT rev (3m)37.39%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)3.91%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)1.17%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)2.8%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.09 | ||
| Fwd PE | 42.17 | ||
| P/S | 31.8 | ||
| P/FCF | 76.44 | ||
| P/OCF | 74.91 | ||
| P/B | 26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 60.01 |
EPS(TTM)5.41
EY1.56%
EPS(NY)8.22
Fwd EY2.37%
FCF(TTM)4.54
FCFY1.31%
OCF(TTM)4.63
OCFY1.33%
SpS10.9
BVpS13.33
TBVpS-10.71
PEG (NY)1.6
PEG (5Y)3.58
Graham Number40.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.43% | ||
| ROE | 25.84% | ||
| ROCE | 15.78% | ||
| ROIC | 12.26% | ||
| ROICexc | 13.21% | ||
| ROICexgc | 301.66% | ||
| OM | 39.2% | ||
| PM (TTM) | 31.59% | ||
| GM | 67.03% | ||
| FCFM | 41.6% |
ROA(3y)12.74%
ROA(5y)10.05%
ROE(3y)38.95%
ROE(5y)30.76%
ROIC(3y)14.76%
ROIC(5y)11.78%
ROICexc(3y)18.03%
ROICexc(5y)14.28%
ROICexgc(3y)580.38%
ROICexgc(5y)446.38%
ROCE(3y)18.99%
ROCE(5y)15.15%
ROICexgc growth 3Y52.32%
ROICexgc growth 5Y48.04%
ROICexc growth 3Y-10.43%
ROICexc growth 5Y7.73%
OM growth 3Y-2.23%
OM growth 5Y9.44%
PM growth 3Y-21.3%
PM growth 5Y-0.85%
GM growth 3Y1.13%
GM growth 5Y2.71%
F-Score9
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.58 | ||
| Debt/EBITDA | 1.92 | ||
| Cap/Depr | 5.55% | ||
| Cap/Sales | 0.85% | ||
| Interest Coverage | 8.67 | ||
| Cash Conversion | 77.92% | ||
| Profit Quality | 131.68% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 13.31 |
F-Score9
WACC10.47%
ROIC/WACC1.17
Cap/Depr(3y)8.59%
Cap/Depr(5y)7.96%
Cap/Sales(3y)1.2%
Cap/Sales(5y)1.43%
Profit Quality(3y)199.96%
Profit Quality(5y)248.47%
High Growth Momentum
Growth
EPS 1Y (TTM)38.52%
EPS 3Y20.14%
EPS 5Y17.9%
EPS Q2Q%36.29%
EPS Next Y40.13%
EPS Next 2Y40.38%
EPS Next 3Y38.72%
EPS Next 5Y36.03%
Revenue 1Y (TTM)28.01%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%22.03%
Revenue Next Year22.76%
Revenue Next 2Y30.12%
Revenue Next 3Y30.85%
Revenue Next 5Y27.97%
EBIT growth 1Y61.92%
EBIT growth 3Y20.65%
EBIT growth 5Y29.07%
EBIT Next Year45.92%
EBIT Next 3Y36.39%
EBIT Next 5Y33.79%
FCF growth 1Y43.52%
FCF growth 3Y13.38%
FCF growth 5Y15.95%
OCF growth 1Y42.59%
OCF growth 3Y13.19%
OCF growth 5Y15.53%
BROADCOM INC / 1AVGO.MI FAQ
Can you provide the ChartMill fundamental rating for BROADCOM INC?
ChartMill assigns a fundamental rating of 6 / 10 to 1AVGO.MI.
What is the valuation status for 1AVGO stock?
ChartMill assigns a valuation rating of 2 / 10 to BROADCOM INC (1AVGO.MI). This can be considered as Overvalued.
What is the profitability of 1AVGO stock?
BROADCOM INC (1AVGO.MI) has a profitability rating of 8 / 10.
What is the valuation of BROADCOM INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BROADCOM INC (1AVGO.MI) is 64.09 and the Price/Book (PB) ratio is 26.
Is the dividend of BROADCOM INC sustainable?
The dividend rating of BROADCOM INC (1AVGO.MI) is 4 / 10 and the dividend payout ratio is 57.2%.