BROADCOM INC (1AVGO.MI) Stock Fundamental Analysis
Europe - BIT:1AVGO - US11135F1012 - Common Stock
295.6 EUR
-11 (-3.59%)
We assign a fundamental rating of 6 out of 10 to 1AVGO. 1AVGO was compared to 63 industry peers in the Semiconductors & Semiconductor Equipment industry. 1AVGO scores excellent on profitability, but there are some minor concerns on its financial health. 1AVGO is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
1AVGO had positive earnings in the past year.
In the past year 1AVGO had a positive cash flow from operations.
Each year in the past 5 years 1AVGO has been profitable.
1AVGO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1AVGO (11.43%) is better than 77.42% of its industry peers.
1AVGO has a better Return On Equity (25.84%) than 75.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.26%, 1AVGO is in the better half of the industry, outperforming 66.13% of the companies in the same industry.
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 14.81%.
| 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's Profit Margin of 31.59% is amongst the best of the industry. 1AVGO outperforms 88.71% of its industry peers.
1AVGO's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 39.20%, 1AVGO belongs to the best of the industry, outperforming 91.94% of the companies in the same industry.
In the last couple of years the Operating Margin of 1AVGO has grown nicely.
Looking at the Gross Margin, with a value of 67.03%, 1AVGO belongs to the top of the industry, outperforming 90.32% of the companies in the same industry.
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
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.
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
An Altman-Z score of 11.49 indicates that 1AVGO is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1AVGO (11.49) is better than 82.26% 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.
Looking at the Debt to FCF ratio, with a value of 2.58, 1AVGO is in line with its industry, outperforming 51.61% of the companies in the same industry.
A Debt/Equity ratio of 0.86 indicates that 1AVGO is somewhat dependend on debt financing.
The Debt to Equity ratio of 1AVGO (0.86) is worse than 87.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 11.49 |
ROIC/WACC1.15
WACC10.68%
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 has a worse Current ratio (1.50) than 80.65% 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.
1AVGO's Quick ratio of 1.37 is on the low side compared to the rest of the industry. 1AVGO is outperformed by 72.58% of its industry peers.
| 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.
The Earnings Per Share has been growing by 17.90% on average over the past years. This is quite good.
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
1AVGO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.03% yearly.
The Revenue is expected to grow by 27.33% on average over the next years. This is a very strong growth
EPS Next Y40.2%
EPS Next 2Y39.49%
EPS Next 3Y36.83%
EPS Next 5Y36.03%
Revenue Next Year22.86%
Revenue Next 2Y29.38%
Revenue Next 3Y29.59%
Revenue Next 5Y27.33%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 54.74, 1AVGO can be considered very expensive at the moment.
69.35% of the companies in the same industry are cheaper than 1AVGO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.89, 1AVGO is valued quite expensively.
Based on the Price/Forward Earnings ratio of 36.45, the valuation of 1AVGO can be described as expensive.
Based on the Price/Forward Earnings ratio, 1AVGO is valued a bit more expensive than the industry average as 67.74% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, 1AVGO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.74 | ||
| Fwd PE | 36.45 |
4.2 Price Multiples
80.65% of the companies in the same industry are cheaper than 1AVGO, based on the Enterprise Value to EBITDA ratio.
1AVGO's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.22 | ||
| EV/EBITDA | 51.45 |
4.3 Compensation for Growth
1AVGO's 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.
1AVGO's earnings are expected to grow with 36.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.36
PEG (5Y)3.06
EPS Next 2Y39.49%
EPS Next 3Y36.83%
5. Dividend
5.1 Amount
1AVGO has a yearly dividend return of 0.69%, which is pretty low.
Compared to an average industry Dividend Yield of 1.18, 1AVGO pays a bit more dividend than its industry peers.
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 | 0.69% |
5.2 History
On average, the dividend of 1AVGO grows each year by 16.17%, which is quite nice.
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.
1AVGO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP57.2%
EPS Next 2Y39.49%
EPS Next 3Y36.83%
BIT:1AVGO (11/14/2025, 7:00:00 PM)
295.6
-11 (-3.59%)
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 Cap1.40T
Revenue(TTM)59.93B
Net Income(TTM)18.93B
Analysts84.81
Price Target331.67 (12.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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)5.69%
PT rev (3m)28.45%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)3.82%
EPS NY rev (1m)0.31%
EPS NY rev (3m)1.26%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)2.87%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.74 | ||
| Fwd PE | 36.45 | ||
| P/S | 27.13 | ||
| P/FCF | 65.22 | ||
| P/OCF | 63.92 | ||
| P/B | 22.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 51.45 |
EPS(TTM)5.4
EY1.83%
EPS(NY)8.11
Fwd EY2.74%
FCF(TTM)4.53
FCFY1.53%
OCF(TTM)4.62
OCFY1.56%
SpS10.89
BVpS13.32
TBVpS-10.7
PEG (NY)1.36
PEG (5Y)3.06
Graham Number40.23
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 | 11.49 |
F-Score9
WACC10.68%
ROIC/WACC1.15
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 Y40.2%
EPS Next 2Y39.49%
EPS Next 3Y36.83%
EPS Next 5Y36.03%
Revenue 1Y (TTM)28.01%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%22.03%
Revenue Next Year22.86%
Revenue Next 2Y29.38%
Revenue Next 3Y29.59%
Revenue Next 5Y27.33%
EBIT growth 1Y61.92%
EBIT growth 3Y20.65%
EBIT growth 5Y29.07%
EBIT Next Year44.66%
EBIT Next 3Y32.44%
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 3 / 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 54.74 and the Price/Book (PB) ratio is 22.19.
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%.