BROADCOM INC (1AVGO.MI) Stock Fundamental Analysis
Europe - BIT:1AVGO - US11135F1012 - Common Stock
307.25 EUR
-4.15 (-1.33%)
Overall 1AVGO gets a fundamental rating of 6 out of 10. We evaluated 1AVGO against 54 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
In the past year 1AVGO was profitable.
1AVGO had a positive operating cash flow in the past year.
1AVGO had positive earnings in each of the past 5 years.
In the past 5 years 1AVGO always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.43%, 1AVGO is in the better half of the industry, outperforming 70.37% of the companies in the same industry.
1AVGO has a better Return On Equity (25.84%) than 75.93% of its industry peers.
With a decent Return On Invested Capital value of 12.26%, 1AVGO is doing good in the industry, outperforming 61.11% 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 15.12%.
| 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
The Profit Margin of 1AVGO (31.59%) is better than 94.44% 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 94.44% of its industry peers.
1AVGO's Operating Margin has improved in the last couple of years.
1AVGO's Gross Margin of 67.03% is amongst the best of the industry. 1AVGO outperforms 90.74% 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
1AVGO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, 1AVGO has more shares outstanding
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
1AVGO has an Altman-Z score of 11.97. This indicates that 1AVGO is financially healthy and has little risk of bankruptcy at the moment.
1AVGO has a Altman-Z score of 11.97. This is amongst the best in the industry. 1AVGO outperforms 90.74% 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.
The Debt to Equity ratio of 1AVGO (0.86) is worse than 85.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 11.97 |
ROIC/WACC1.08
WACC11.37%
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.
Looking at the Current ratio, with a value of 1.50, 1AVGO is doing worse than 75.93% of the companies in the same industry.
A Quick Ratio of 1.37 indicates that 1AVGO should not have too much problems paying its short term obligations.
The Quick ratio of 1AVGO (1.37) is worse than 68.52% of its industry peers.
| 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.
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!
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
1AVGO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.54% yearly.
The Revenue is expected to grow by 19.78% on average over the next years. This is quite good.
EPS Next Y38.51%
EPS Next 2Y30.76%
EPS Next 3Y27.16%
EPS Next 5Y26.54%
Revenue Next Year22.63%
Revenue Next 2Y28.28%
Revenue Next 3Y26.83%
Revenue Next 5Y19.78%
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
With a Price/Earnings ratio of 57.22, 1AVGO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, 1AVGO is valued more expensive than 83.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. 1AVGO is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 43.37, the valuation of 1AVGO can be described as expensive.
81.48% of the companies in the same industry are cheaper than 1AVGO, based on the Price/Forward Earnings ratio.
1AVGO is valuated expensively when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.22 | ||
| Fwd PE | 43.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1AVGO is valued more expensive than 88.89% of the companies in the same industry.
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 | 68.2 | ||
| EV/EBITDA | 53.72 |
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 excellent profitability rating of 1AVGO may justify a higher PE ratio.
A more expensive valuation may be justified as 1AVGO's earnings are expected to grow with 27.16% in the coming years.
PEG (NY)1.49
PEG (5Y)3.2
EPS Next 2Y30.76%
EPS Next 3Y27.16%
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, 1AVGO is not a good candidate for dividend investing.
1AVGO's Dividend Yield is comparable with the industry average which is at 1.36.
With a Dividend Yield of 0.66, 1AVGO pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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 2Y30.76%
EPS Next 3Y27.16%
BIT:1AVGO (9/12/2025, 7:00:00 PM)
307.25
-4.15 (-1.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.07%
Inst Owner ChangeN/A
Ins Owners1.94%
Ins Owner ChangeN/A
Market Cap1450.95B
Analysts84.49
Price Target308.75 (0.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend1.9
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)19.58%
PT rev (3m)43.28%
EPS NQ rev (1m)2.32%
EPS NQ rev (3m)2.06%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)2.58%
Revenue NQ rev (3m)3.02%
Revenue NY rev (1m)0.66%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.22 | ||
| Fwd PE | 43.37 | ||
| P/S | 28.37 | ||
| P/FCF | 68.2 | ||
| P/OCF | 66.84 | ||
| P/B | 23.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 53.72 |
EPS(TTM)5.37
EY1.75%
EPS(NY)7.08
Fwd EY2.31%
FCF(TTM)4.51
FCFY1.47%
OCF(TTM)4.6
OCFY1.5%
SpS10.83
BVpS13.24
TBVpS-10.64
PEG (NY)1.49
PEG (5Y)3.2
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 | 11.97 |
F-Score9
WACC11.37%
ROIC/WACC1.08
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 Y38.51%
EPS Next 2Y30.76%
EPS Next 3Y27.16%
EPS Next 5Y26.54%
Revenue 1Y (TTM)28.01%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%22.03%
Revenue Next Year22.63%
Revenue Next 2Y28.28%
Revenue Next 3Y26.83%
Revenue Next 5Y19.78%
EBIT growth 1Y61.92%
EBIT growth 3Y20.65%
EBIT growth 5Y29.07%
EBIT Next Year43.37%
EBIT Next 3Y25.18%
EBIT Next 5Y24.49%
FCF growth 1Y43.52%
FCF growth 3Y13.38%
FCF growth 5Y15.95%
OCF growth 1Y42.59%
OCF growth 3Y13.19%
OCF growth 5Y15.53%