BROADCOM INC (1AVGO.MI) Stock Fundamental Analysis
BIT:1AVGO - Euronext Milan - US11135F1012 - Common Stock - Currency: EUR
1AVGO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 51 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.
1AVGO had a positive operating cash flow in the past year.
In the past 5 years 1AVGO has always been profitable.
In the past 5 years 1AVGO always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 7.85%, 1AVGO perfoms like the industry average, outperforming 50.98% of the companies in the same industry.
With a decent Return On Equity value of 18.56%, 1AVGO is doing good in the industry, outperforming 68.63% of the companies in the same industry.
With a Return On Invested Capital value of 11.32%, 1AVGO perfoms like the industry average, outperforming 56.86% 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 15.31%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 18.56% | ||
| ROIC | 11.32% |
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 decent Profit Margin value of 22.64%, 1AVGO is doing good in the industry, outperforming 68.63% of the companies in the same industry.
1AVGO's Profit Margin has been stable in the last couple of years.
The Operating Margin of 1AVGO (37.75%) is better than 92.16% of its industry peers.
1AVGO's Operating Margin has improved in the last couple of years.
1AVGO has a better Gross Margin (66.35%) than 88.24% of its industry peers.
In the last couple of years the Gross Margin of 1AVGO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.75% | ||
| PM (TTM) | 22.64% | ||
| GM | 66.35% |
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
Compared to 1 year ago, 1AVGO has an improved debt to assets ratio.
2.2 Solvency
1AVGO has an Altman-Z score of 8.99. This indicates that 1AVGO is financially healthy and has little risk of bankruptcy at the moment.
1AVGO's Altman-Z score of 8.99 is fine compared to the rest of the industry. 1AVGO outperforms 72.55% of its industry peers.
1AVGO has a debt to FCF ratio of 2.96. This is a good value and a sign of high solvency as 1AVGO would need 2.96 years to pay back of all of its debts.
1AVGO has a Debt to FCF ratio (2.96) which is in line with its industry peers.
A Debt/Equity ratio of 0.94 indicates that 1AVGO is somewhat dependend on debt financing.
1AVGO's Debt to Equity ratio of 0.94 is on the low side compared to the rest of the industry. 1AVGO is outperformed by 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 2.96 | ||
| Altman-Z | 8.99 |
ROIC/WACC1.13
WACC10.05%
2.3 Liquidity
1AVGO has a Current Ratio of 1.08. 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 1.08 is on the low side compared to the rest of the industry. 1AVGO is outperformed by 92.16% of its industry peers.
A Quick Ratio of 0.98 indicates that 1AVGO may have some problems paying its short term obligations.
1AVGO has a Quick ratio of 0.98. This is amonst the worse of the industry: 1AVGO underperforms 80.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
1AVGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.10%, 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 33.85%.
The Revenue has been growing by 17.94% on average over the past years. This is quite good.
EPS 1Y (TTM)34.1%
EPS 3Y20.14%
EPS 5Y17.9%
EPS Q2Q%44.16%
Revenue 1Y (TTM)33.85%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%20.16%
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.
Based on estimates for the next years, 1AVGO will show a quite strong growth in Revenue. The Revenue will grow by 19.78% on average per year.
EPS Next Y39.62%
EPS Next 2Y30.4%
EPS Next 3Y26.03%
EPS Next 5Y26.54%
Revenue Next Year21.65%
Revenue Next 2Y20.93%
Revenue Next 3Y18.7%
Revenue Next 5Y19.78%
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.
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 47.16.
Compared to the rest of the industry, the Price/Earnings ratio of 1AVGO indicates a slightly more expensive valuation: 1AVGO is more expensive than 76.47% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of 1AVGO to the average of the S&P500 Index (27.45), we can say 1AVGO is valued expensively.
The Price/Forward Earnings ratio is 33.38, which means the current valuation is very expensive for 1AVGO.
Based on the Price/Forward Earnings ratio, 1AVGO is valued expensively inside the industry as 82.35% of the companies are valued cheaper.
When comparing the Price/Forward Earnings ratio of 1AVGO to the average of the S&P500 Index (21.90), we can say 1AVGO is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.16 | ||
| Fwd PE | 33.38 |
4.2 Price Multiples
1AVGO's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. 1AVGO is more expensive than 88.24% 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 | 57.08 | ||
| EV/EBITDA | 43.52 |
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 a very decent 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 26.02% in the coming years.
PEG (NY)1.19
PEG (5Y)2.63
EPS Next 2Y30.4%
EPS Next 3Y26.03%
5. Dividend
5.1 Amount
1AVGO has a yearly dividend return of 0.87%, which is pretty low.
Compared to an average industry Dividend Yield of 1.15, 1AVGO pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, 1AVGO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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
81.25% 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.
DP81.25%
EPS Next 2Y30.4%
EPS Next 3Y26.03%
BIT:1AVGO (6/30/2025, 7:00:00 PM)
234.4
+5.9 (+2.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79%
Inst Owner ChangeN/A
Ins Owners1.94%
Ins Owner ChangeN/A
Market Cap1102.14B
Analysts83.33
Price Target241.91 (3.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend1.9
Dividend Growth(5Y)16.17%
DP81.25%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.23%
Min EPS beat(2)-0.93%
Max EPS beat(2)5.39%
EPS beat(4)3
Avg EPS beat(4)1.58%
Min EPS beat(4)-0.93%
Max EPS beat(4)5.39%
EPS beat(8)4
Avg EPS beat(8)1%
EPS beat(12)6
Avg EPS beat(12)0.67%
EPS beat(16)8
Avg EPS beat(16)0.63%
Revenue beat(2)1
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-1.89%
Max Revenue beat(2)0.09%
Revenue beat(4)1
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)0.09%
Revenue beat(8)3
Avg Revenue beat(8)-1.03%
Revenue beat(12)3
Avg Revenue beat(12)-1.19%
Revenue beat(16)4
Avg Revenue beat(16)-1.09%
PT rev (1m)13.71%
PT rev (3m)6.42%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-0.17%
EPS NY rev (1m)1.12%
EPS NY rev (3m)0.93%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.16 | ||
| Fwd PE | 33.38 | ||
| P/S | 22.71 | ||
| P/FCF | 57.08 | ||
| P/OCF | 55.76 | ||
| P/B | 18.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 43.52 |
EPS(TTM)4.97
EY2.12%
EPS(NY)7.02
Fwd EY3%
FCF(TTM)4.11
FCFY1.75%
OCF(TTM)4.2
OCFY1.79%
SpS10.32
BVpS12.59
TBVpS-11.69
PEG (NY)1.19
PEG (5Y)2.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.85% | ||
| ROE | 18.56% | ||
| ROCE | 14.95% | ||
| ROIC | 11.32% | ||
| ROICexc | 12.09% | ||
| ROICexgc | 394.45% | ||
| OM | 37.75% | ||
| PM (TTM) | 22.64% | ||
| GM | 66.35% | ||
| FCFM | 39.79% |
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-Score8
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 2.96 | ||
| Debt/EBITDA | 2.12 | ||
| Cap/Depr | 5.68% | ||
| Cap/Sales | 0.94% | ||
| Interest Coverage | 7.36 | ||
| Cash Conversion | 74.93% | ||
| Profit Quality | 175.71% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 8.99 |
F-Score8
WACC10.05%
ROIC/WACC1.13
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)34.1%
EPS 3Y20.14%
EPS 5Y17.9%
EPS Q2Q%44.16%
EPS Next Y39.62%
EPS Next 2Y30.4%
EPS Next 3Y26.03%
EPS Next 5Y26.54%
Revenue 1Y (TTM)33.85%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%20.16%
Revenue Next Year21.65%
Revenue Next 2Y20.93%
Revenue Next 3Y18.7%
Revenue Next 5Y19.78%
EBIT growth 1Y49.25%
EBIT growth 3Y20.65%
EBIT growth 5Y29.07%
EBIT Next Year43.51%
EBIT Next 3Y23.41%
EBIT Next 5Y24.49%
FCF growth 1Y32.87%
FCF growth 3Y13.38%
FCF growth 5Y15.95%
OCF growth 1Y32.43%
OCF growth 3Y13.19%
OCF growth 5Y15.53%