BROADCOM INC (1AVGO.MI) Stock Fundamental Analysis
BIT:1AVGO - Euronext Milan - US11135F1012 - Common Stock - Currency: EUR
Taking everything into account, 1AVGO scores 5 out of 10 in our fundamental rating. 1AVGO was compared to 58 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and the financial health of 1AVGO get a neutral evaluation. Nothing too spectacular is happening here. 1AVGO is valued quite expensively, but it does show have an excellent growth rating.
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
Looking at the Return On Assets, with a value of 3.56%, 1AVGO is doing worse than 68.97% of the companies in the same industry.
1AVGO's Return On Equity of 8.71% is on the low side compared to the rest of the industry. 1AVGO is outperformed by 60.34% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.96%, 1AVGO is in line with its industry, outperforming 43.10% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1AVGO is in line with the industry average of 16.14%.
The last Return On Invested Capital (7.96%) for 1AVGO is well below the 3 year average (14.76%), which needs to be investigated, but indicates that 1AVGO had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 8.71% | ||
| ROIC | 7.96% |
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 a Profit Margin value of 11.43%, 1AVGO perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
In the last couple of years the Profit Margin of 1AVGO has remained more or less at the same level.
1AVGO's Operating Margin of 29.57% is fine compared to the rest of the industry. 1AVGO outperforms 79.31% of its industry peers.
In the last couple of years the Operating Margin of 1AVGO has grown nicely.
1AVGO has a better Gross Margin (63.53%) than 89.66% of its industry peers.
In the last couple of years the Gross Margin of 1AVGO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.57% | ||
| PM (TTM) | 11.43% | ||
| GM | 63.53% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1AVGO is still creating some value.
The number of shares outstanding for 1AVGO has been increased compared to 1 year ago.
1AVGO has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1AVGO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.97 indicates that 1AVGO is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1AVGO (5.97) is comparable to the rest of the industry.
The Debt to FCF ratio of 1AVGO is 3.48, which is a good value as it means it would take 1AVGO, 3.48 years of fcf income to pay off all of its debts.
1AVGO has a Debt to FCF ratio of 3.48. This is comparable to the rest of the industry: 1AVGO outperforms 48.28% of its industry peers.
1AVGO has a Debt/Equity ratio of 0.98. This is a neutral value indicating 1AVGO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.98, 1AVGO is doing worse than 82.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 3.48 | ||
| Altman-Z | 5.97 |
ROIC/WACC0.7
WACC11.43%
2.3 Liquidity
A Current Ratio of 1.17 indicates that 1AVGO should not have too much problems paying its short term obligations.
1AVGO's Current ratio of 1.17 is on the low side compared to the rest of the industry. 1AVGO is outperformed by 87.93% of its industry peers.
A Quick Ratio of 1.07 indicates that 1AVGO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.07, 1AVGO is doing worse than 68.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
1AVGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.82%, which is quite impressive.
The Earnings Per Share has been growing by 17.90% on average over the past years. This is quite good.
Looking at the last year, 1AVGO shows a very strong growth in Revenue. The Revenue has grown by 43.99%.
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)24.82%
EPS 3Y20.14%
EPS 5Y17.9%
EPS Q2Q%45.59%
Revenue 1Y (TTM)43.99%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%24.71%
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 24.06% on average per year.
1AVGO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.03% yearly.
EPS Next Y31.55%
EPS Next 2Y25.28%
EPS Next 3Y22.95%
EPS Next 5Y24.06%
Revenue Next Year18.99%
Revenue Next 2Y17.59%
Revenue Next 3Y17.03%
Revenue Next 5Y18.03%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
1AVGO is valuated quite expensively with a Price/Earnings ratio of 34.60.
Based on the Price/Earnings ratio, 1AVGO is valued a bit more expensive than the industry average as 67.24% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 29.35. 1AVGO is around the same levels.
1AVGO is valuated rather expensively with a Price/Forward Earnings ratio of 24.31.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1AVGO is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.10. 1AVGO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.6 | ||
| Fwd PE | 24.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1AVGO is valued more expensive than 84.48% of the companies in the same industry.
1AVGO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.85 | ||
| EV/EBITDA | 36.78 |
4.3 Compensation for Growth
1AVGO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 1AVGO may justify a higher PE ratio.
1AVGO's earnings are expected to grow with 22.95% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.1
PEG (5Y)1.93
EPS Next 2Y25.28%
EPS Next 3Y22.95%
5. Dividend
5.1 Amount
1AVGO has a Yearly Dividend Yield of 1.32%. Purely for dividend investing, there may be better candidates out there.
1AVGO's Dividend Yield is a higher than the industry average which is at 1.50.
With a Dividend Yield of 1.32, 1AVGO pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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
166.48% of the earnings are spent on dividend by 1AVGO. This is not a sustainable payout ratio.
The dividend of 1AVGO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP166.48%
EPS Next 2Y25.28%
EPS Next 3Y22.95%
BIT:1AVGO (3/7/2025, 7:00:00 PM)
170.58
+1 (+0.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners78.95%
Inst Owner ChangeN/A
Ins Owners2.12%
Ins Owner ChangeN/A
Market Cap802.06B
Analysts83.04
Price Target238.48 (39.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend2.05
Dividend Growth(5Y)16.17%
DP166.48%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.93%
Min EPS beat(2)0.77%
Max EPS beat(2)1.09%
EPS beat(4)3
Avg EPS beat(4)1.41%
Min EPS beat(4)-0.91%
Max EPS beat(4)4.69%
EPS beat(8)5
Avg EPS beat(8)0.52%
EPS beat(12)7
Avg EPS beat(12)0.62%
EPS beat(16)8
Avg EPS beat(16)0.33%
Revenue beat(2)0
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-2.22%
Max Revenue beat(2)-1.11%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)1.79%
Revenue beat(8)2
Avg Revenue beat(8)-1.24%
Revenue beat(12)3
Avg Revenue beat(12)-1.05%
Revenue beat(16)3
Avg Revenue beat(16)-1.09%
PT rev (1m)-1.06%
PT rev (3m)26.31%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)1.87%
EPS NY rev (1m)0.13%
EPS NY rev (3m)1.59%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.6 | ||
| Fwd PE | 24.31 | ||
| P/S | 16.88 | ||
| P/FCF | 44.85 | ||
| P/OCF | 43.62 | ||
| P/B | 12.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 36.78 |
EPS(TTM)4.93
EY2.89%
EPS(NY)7.02
Fwd EY4.11%
FCF(TTM)3.8
FCFY2.23%
OCF(TTM)3.91
OCFY2.29%
SpS10.1
BVpS13.26
TBVpS-13.86
PEG (NY)1.1
PEG (5Y)1.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 8.71% | ||
| ROCE | 10.24% | ||
| ROIC | 7.96% | ||
| ROICexc | 8.49% | ||
| ROICexgc | 1036.3% | ||
| OM | 29.57% | ||
| PM (TTM) | 11.43% | ||
| GM | 63.53% | ||
| FCFM | 37.64% |
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-Score5
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 3.48 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 5.47% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | 4.69 | ||
| Cash Conversion | 79.03% | ||
| Profit Quality | 329.33% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 5.97 |
F-Score5
WACC11.43%
ROIC/WACC0.7
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)24.82%
EPS 3Y20.14%
EPS 5Y17.9%
EPS Q2Q%45.59%
EPS Next Y31.55%
EPS Next 2Y25.28%
EPS Next 3Y22.95%
EPS Next 5Y24.06%
Revenue 1Y (TTM)43.99%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%24.71%
Revenue Next Year18.99%
Revenue Next 2Y17.59%
Revenue Next 3Y17.03%
Revenue Next 5Y18.03%
EBIT growth 1Y-7.32%
EBIT growth 3Y20.65%
EBIT growth 5Y29.07%
EBIT Next Year37.54%
EBIT Next 3Y23.19%
EBIT Next 5Y22.34%
FCF growth 1Y10.1%
FCF growth 3Y13.38%
FCF growth 5Y15.95%
OCF growth 1Y10.38%
OCF growth 3Y13.19%
OCF growth 5Y15.53%