BROADCOM INC (1AVGO.MI) Stock Fundamental Analysis
Europe - BIT:1AVGO - US11135F1012 - Common Stock
296.8 EUR
-1.3 (-0.44%)
Overall 1AVGO gets a fundamental rating of 6 out of 10. We evaluated 1AVGO against 63 industry peers in the Semiconductors & Semiconductor Equipment industry. While 1AVGO has a great profitability rating, there are some minor concerns on its financial health. 1AVGO is valued quite expensive, but it does show an excellent growth.
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.
Each year in the past 5 years 1AVGO had a positive operating cash flow.
1.2 Ratios
1AVGO's Return On Assets of 11.43% is fine compared to the rest of the industry. 1AVGO outperforms 74.60% of its industry peers.
Looking at the Return On Equity, with a value of 25.84%, 1AVGO is in the better half of the industry, outperforming 73.02% of the companies in the same industry.
With a decent Return On Invested Capital value of 12.26%, 1AVGO is doing good in the industry, outperforming 61.90% 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 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 has a better Profit Margin (31.59%) than 85.71% of its industry peers.
In the last couple of years the Profit Margin of 1AVGO has remained more or less at the same level.
With an excellent Operating Margin value of 39.20%, 1AVGO belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
In the last couple of years the Operating Margin of 1AVGO has grown nicely.
1AVGO has a better Gross Margin (67.03%) than 90.48% 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
The debt/assets ratio for 1AVGO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 11.48 indicates that 1AVGO is not in any danger for bankruptcy at the moment.
1AVGO has a better Altman-Z score (11.48) than 79.37% 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.
1AVGO has a Debt/Equity ratio of 0.86. This is a neutral value indicating 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 84.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 11.48 |
ROIC/WACC1.15
WACC10.64%
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.
With a Current ratio value of 1.50, 1AVGO is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
A Quick Ratio of 1.37 indicates that 1AVGO should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.37, 1AVGO is not doing good in the industry: 68.25% 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.
1AVGO shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.90% yearly.
Looking at the last year, 1AVGO shows a very strong growth in Revenue. The Revenue has grown by 28.01%.
The Revenue has been growing by 17.94% on average over the past years. This is quite good.
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 27.33% yearly.
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
A Price/Earnings ratio of 54.66 indicates a quite expensive valuation of 1AVGO.
Based on the Price/Earnings ratio, 1AVGO is valued a bit more expensive than the industry average as 68.25% of the companies are valued more cheaply.
1AVGO is valuated expensively when we compare the Price/Earnings ratio to 25.46, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 36.42 indicates a quite expensive valuation of 1AVGO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1AVGO indicates a slightly more expensive valuation: 1AVGO is more expensive than 68.25% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.39. 1AVGO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.66 | ||
| Fwd PE | 36.42 |
4.2 Price Multiples
1AVGO's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1AVGO is more expensive than 79.37% 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 | 65.16 | ||
| EV/EBITDA | 51.4 |
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 36.83% in the coming years.
PEG (NY)1.36
PEG (5Y)3.05
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.
1AVGO's Dividend Yield is a higher than the industry average which is at 1.18.
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
57.20% of the earnings are spent on dividend by 1AVGO. 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 2Y39.49%
EPS Next 3Y36.83%
BIT:1AVGO (11/18/2025, 7:00:00 PM)
296.8
-1.3 (-0.44%)
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 (11.75%)
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 | 54.66 | ||
| Fwd PE | 36.42 | ||
| P/S | 27.11 | ||
| P/FCF | 65.16 | ||
| P/OCF | 63.86 | ||
| P/B | 22.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 51.4 |
EPS(TTM)5.43
EY1.83%
EPS(NY)8.15
Fwd EY2.75%
FCF(TTM)4.55
FCFY1.53%
OCF(TTM)4.65
OCFY1.57%
SpS10.95
BVpS13.39
TBVpS-10.76
PEG (NY)1.36
PEG (5Y)3.05
Graham Number40.44
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 | 11.48 |
F-Score9
WACC10.64%
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 54.66 and the Price/Book (PB) ratio is 22.17.
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%.