BROADCOM INC (1AVGO.MI) Stock Fundamental Analysis
Europe - BIT:1AVGO - US11135F1012 - Common Stock
305.3 EUR
+16.8 (+5.82%)
We assign a fundamental rating of 6 out of 10 to 1AVGO. 1AVGO was compared to 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.
1AVGO had a positive operating cash flow in the past year.
In the past 5 years 1AVGO has always been profitable.
Each year in the past 5 years 1AVGO had a positive operating cash flow.
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 has a better Return On Invested Capital (12.26%) than 61.54% of its industry peers.
1AVGO had an Average Return On Invested Capital over the past 3 years of 14.76%. This is in line with the industry average of 14.69%.
| 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
With an excellent Profit Margin value of 31.59%, 1AVGO belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
1AVGO's Profit Margin has been stable in the last couple of years.
1AVGO has a better Operating Margin (39.20%) than 92.31% of its industry peers.
In the last couple of years the Operating Margin of 1AVGO has grown nicely.
The Gross Margin of 1AVGO (67.03%) is better than 90.77% of its industry peers.
1AVGO's Gross Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for 1AVGO has been increased compared to 5 years ago.
1AVGO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 11.76 indicates that 1AVGO is not in any danger for bankruptcy at the moment.
1AVGO has a Altman-Z score of 11.76. This is in the better half of the industry: 1AVGO outperforms 80.00% of its industry peers.
1AVGO has a debt to FCF ratio of 2.58. This is a good value and a sign of high solvency as 1AVGO would need 2.58 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.58, 1AVGO is in line with its industry, outperforming 58.46% of the companies in the same industry.
A Debt/Equity ratio of 0.86 indicates that 1AVGO is somewhat dependend on debt financing.
1AVGO's Debt to Equity ratio of 0.86 is on the low side compared to the rest of the industry. 1AVGO is outperformed by 87.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 11.76 |
ROIC/WACC1.07
WACC11.49%
2.3 Liquidity
1AVGO has a Current Ratio of 1.50. This is a normal value and indicates that 1AVGO is financially healthy and should not expect problems in meeting 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 78.46% of its industry peers.
A Quick Ratio of 1.37 indicates that 1AVGO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.37, 1AVGO is doing worse than 72.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.52% over the past year.
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.
1AVGO shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.01%.
Measured over the past years, 1AVGO shows a quite strong growth in Revenue. The Revenue has been growing by 17.94% on average per year.
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
The Earnings Per Share is expected to grow by 33.02% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 24.71% on average over the next years. This is a very strong growth
EPS Next Y39.77%
EPS Next 2Y38.82%
EPS Next 3Y33.99%
EPS Next 5Y33.02%
Revenue Next Year22.83%
Revenue Next 2Y28.67%
Revenue Next 3Y27.37%
Revenue Next 5Y24.71%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 56.12, the valuation of 1AVGO can be described as expensive.
Based on the Price/Earnings ratio, 1AVGO is valued a bit more expensive than the industry average as 70.77% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of 1AVGO to the average of the S&P500 Index (27.35), we can say 1AVGO is valued expensively.
1AVGO is valuated quite expensively with a Price/Forward Earnings ratio of 37.75.
1AVGO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1AVGO is more expensive than 72.31% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1AVGO to the average of the S&P500 Index (22.86), we can say 1AVGO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.12 | ||
| Fwd PE | 37.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1AVGO is valued expensively inside the industry as 80.00% of the companies are valued cheaper.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1AVGO is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.91 | ||
| EV/EBITDA | 52.73 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1AVGO has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1AVGO's earnings are expected to grow with 33.99% in the coming years.
PEG (NY)1.41
PEG (5Y)3.13
EPS Next 2Y38.82%
EPS Next 3Y33.99%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, 1AVGO is not a good candidate for dividend investing.
1AVGO's Dividend Yield is comparable with the industry average which is at 1.13.
Compared to an average S&P500 Dividend Yield of 2.44, 1AVGO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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 2Y38.82%
EPS Next 3Y33.99%
BIT:1AVGO (10/13/2025, 7:00:00 PM)
305.3
+16.8 (+5.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.37%
Inst Owner ChangeN/A
Ins Owners1.93%
Ins Owner ChangeN/A
Market Cap1441.74B
Analysts84.53
Price Target313.81 (2.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend1.92
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)21.92%
PT rev (3m)29.72%
EPS NQ rev (1m)1.33%
EPS NQ rev (3m)3.31%
EPS NY rev (1m)0.91%
EPS NY rev (3m)0.95%
Revenue NQ rev (1m)0.2%
Revenue NQ rev (3m)2.75%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.12 | ||
| Fwd PE | 37.75 | ||
| P/S | 27.83 | ||
| P/FCF | 66.91 | ||
| P/OCF | 65.57 | ||
| P/B | 22.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 52.73 |
EPS(TTM)5.44
EY1.78%
EPS(NY)8.09
Fwd EY2.65%
FCF(TTM)4.56
FCFY1.49%
OCF(TTM)4.66
OCFY1.53%
SpS10.97
BVpS13.41
TBVpS-10.78
PEG (NY)1.41
PEG (5Y)3.13
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%
ROICexcg growth 3Y52.32%
ROICexcg 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 | 11.76 |
F-Score9
WACC11.49%
ROIC/WACC1.07
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 Y39.77%
EPS Next 2Y38.82%
EPS Next 3Y33.99%
EPS Next 5Y33.02%
Revenue 1Y (TTM)28.01%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%22.03%
Revenue Next Year22.83%
Revenue Next 2Y28.67%
Revenue Next 3Y27.37%
Revenue Next 5Y24.71%
EBIT growth 1Y61.92%
EBIT growth 3Y20.65%
EBIT growth 5Y29.07%
EBIT Next Year44.66%
EBIT Next 3Y32.44%
EBIT Next 5Y30.88%
FCF growth 1Y43.52%
FCF growth 3Y13.38%
FCF growth 5Y15.95%
OCF growth 1Y42.59%
OCF growth 3Y13.19%
OCF growth 5Y15.53%