BROADCOM INC (1AVGO.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AVGO - US11135F1012 - Common Stock
296.2 EUR
+11.55 (+4.06%)
We assign a fundamental rating of 6 out of 10 to 1AVGO. 1AVGO was compared to 65 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. This makes 1AVGO very considerable for growth investing!
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.
1AVGO had positive earnings in each of the past 5 years.
Each year in the past 5 years 1AVGO had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1AVGO (13.52%) is better than 70.77% of its industry peers.
Looking at the Return On Equity, with a value of 28.45%, 1AVGO is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
1AVGO has a Return On Invested Capital (10.66%) which is in line with its industry peers.
1AVGO had an Average Return On Invested Capital over the past 3 years of 10.89%. This is below the industry average of 15.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.52% | ||
| ROE | 28.45% | ||
| ROIC | 10.66% |
ROA(3y)12.13%
ROA(5y)12.05%
ROE(3y)31.95%
ROE(5y)34.21%
ROIC(3y)10.89%
ROIC(5y)10.78%
1.3 Margins
1AVGO has a better Profit Margin (36.20%) than 95.38% of its industry peers.
In the last couple of years the Profit Margin of 1AVGO has grown nicely.
Looking at the Operating Margin, with a value of 40.94%, 1AVGO belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
1AVGO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 67.89%, 1AVGO belongs to the top of the industry, outperforming 90.77% 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 | 40.94% | ||
| PM (TTM) | 36.2% | ||
| GM | 67.89% |
OM growth 3Y-1.65%
OM growth 5Y17.55%
PM growth 3Y2.31%
PM growth 5Y26.56%
GM growth 3Y0.66%
GM growth 5Y3.66%
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.
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
An Altman-Z score of 11.54 indicates that 1AVGO is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1AVGO (11.54) is better than 78.46% of its industry peers.
1AVGO has a debt to FCF ratio of 2.42. This is a good value and a sign of high solvency as 1AVGO would need 2.42 years to pay back of all of its debts.
1AVGO has a Debt to FCF ratio (2.42) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.76 indicates that 1AVGO is somewhat dependend on debt financing.
The Debt to Equity ratio of 1AVGO (0.76) is worse than 81.54% of its industry peers.
Although 1AVGO does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.42 | ||
| Altman-Z | 11.54 |
ROIC/WACC1
WACC10.69%
2.3 Liquidity
1AVGO has a Current Ratio of 1.71. 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 1.71, 1AVGO is doing worse than 76.92% of the companies in the same industry.
A Quick Ratio of 1.58 indicates that 1AVGO should not have too much problems paying its short term obligations.
1AVGO's Quick ratio of 1.58 is on the low side compared to the rest of the industry. 1AVGO is outperformed by 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.47% over the past year.
The Earnings Per Share has been growing by 25.23% on average over the past years. This is a very strong growth
The Revenue has grown by 23.87% in the past year. This is a very strong growth!
1AVGO shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.74% yearly.
EPS 1Y (TTM)40.47%
EPS 3Y21.91%
EPS 5Y25.23%
EPS Q2Q%37.32%
Revenue 1Y (TTM)23.87%
Revenue growth 3Y24.38%
Revenue growth 5Y21.74%
Sales Q2Q%28.18%
3.2 Future
Based on estimates for the next years, 1AVGO will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.36% on average per year.
1AVGO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 24.45% yearly.
EPS Next Y50.6%
EPS Next 2Y43.78%
EPS Next 3Y36.58%
EPS Next 5Y15.36%
Revenue Next Year52.67%
Revenue Next 2Y44.32%
Revenue Next 3Y36.95%
Revenue Next 5Y24.45%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 50.72, 1AVGO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, 1AVGO is valued a bit more expensive than the industry average as 66.15% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.19. 1AVGO is valued rather expensively when compared to this.
1AVGO is valuated quite expensively with a Price/Forward Earnings ratio of 33.67.
1AVGO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1AVGO is more expensive than 63.08% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, 1AVGO is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.72 | ||
| Fwd PE | 33.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1AVGO is valued a bit more expensive than the industry average as 78.46% of the companies are valued more cheaply.
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 | 60.68 | ||
| EV/EBITDA | 46.33 |
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 36.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)1
PEG (5Y)2.01
EPS Next 2Y43.78%
EPS Next 3Y36.58%
5. Dividend
5.1 Amount
1AVGO has a yearly dividend return of 0.75%, which is pretty low.
1AVGO's Dividend Yield is a higher than the industry average which is at 0.81.
Compared to an average S&P500 Dividend Yield of 1.94, 1AVGO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
On average, the dividend of 1AVGO grows each year by 11.45%, which is quite nice.
Dividend Growth(5Y)11.45%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1AVGO pays out 48.18% of its income as dividend. 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.
DP48.18%
EPS Next 2Y43.78%
EPS Next 3Y36.58%
BIT:1AVGO (1/9/2026, 7:00:00 PM)
296.2
+11.55 (+4.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.09%
Inst Owner ChangeN/A
Ins Owners1.92%
Ins Owner ChangeN/A
Market Cap1.40T
Revenue(TTM)63.89B
Net Income(TTM)23.13B
Analysts85.09
Price Target376.68 (27.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend2.01
Dividend Growth(5Y)11.45%
DP48.18%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.58%
Min EPS beat(2)0.5%
Max EPS beat(2)2.65%
EPS beat(4)3
Avg EPS beat(4)1.91%
Min EPS beat(4)-0.93%
Max EPS beat(4)5.39%
EPS beat(8)6
Avg EPS beat(8)1.67%
EPS beat(12)8
Avg EPS beat(12)0.98%
EPS beat(16)10
Avg EPS beat(16)0.95%
Revenue beat(2)1
Avg Revenue beat(2)-0.1%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)0.96%
Revenue beat(4)2
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-1.89%
Max Revenue beat(4)0.96%
Revenue beat(8)4
Avg Revenue beat(8)-0.43%
Revenue beat(12)4
Avg Revenue beat(12)-0.99%
Revenue beat(16)5
Avg Revenue beat(16)-0.91%
PT rev (1m)10.4%
PT rev (3m)20.04%
EPS NQ rev (1m)2.22%
EPS NQ rev (3m)2.35%
EPS NY rev (1m)7.35%
EPS NY rev (3m)9.77%
Revenue NQ rev (1m)4.91%
Revenue NQ rev (3m)4.97%
Revenue NY rev (1m)10.69%
Revenue NY rev (3m)13.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.72 | ||
| Fwd PE | 33.67 | ||
| P/S | 25.56 | ||
| P/FCF | 60.68 | ||
| P/OCF | 59.3 | ||
| P/B | 20.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 46.33 |
EPS(TTM)5.84
EY1.97%
EPS(NY)8.8
Fwd EY2.97%
FCF(TTM)4.88
FCFY1.65%
OCF(TTM)4.99
OCFY1.69%
SpS11.59
BVpS14.74
TBVpS-8.85
PEG (NY)1
PEG (5Y)2.01
Graham Number44.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.52% | ||
| ROE | 28.45% | ||
| ROCE | 17.14% | ||
| ROIC | 10.66% | ||
| ROICexc | 11.93% | ||
| ROICexgc | 257.21% | ||
| OM | 40.94% | ||
| PM (TTM) | 36.2% | ||
| GM | 67.89% | ||
| FCFM | 42.13% |
ROA(3y)12.13%
ROA(5y)12.05%
ROE(3y)31.95%
ROE(5y)34.21%
ROIC(3y)10.89%
ROIC(5y)10.78%
ROICexc(3y)12.9%
ROICexc(5y)12.93%
ROICexgc(3y)453.16%
ROICexgc(5y)376.99%
ROCE(3y)17.51%
ROCE(5y)17.33%
ROICexgc growth 3Y-4.02%
ROICexgc growth 5Y10.23%
ROICexc growth 3Y-10.3%
ROICexc growth 5Y22.21%
OM growth 3Y-1.65%
OM growth 5Y17.55%
PM growth 3Y2.31%
PM growth 5Y26.56%
GM growth 3Y0.66%
GM growth 5Y3.66%
F-Score9
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.42 | ||
| Debt/EBITDA | 1.77 | ||
| Cap/Depr | 7.1% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 9.79 | ||
| Cash Conversion | 78.83% | ||
| Profit Quality | 116.38% | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 11.54 |
F-Score9
WACC10.69%
ROIC/WACC1
Cap/Depr(3y)8.12%
Cap/Depr(5y)8.04%
Cap/Sales(3y)1.1%
Cap/Sales(5y)1.24%
Profit Quality(3y)190.31%
Profit Quality(5y)184.64%
High Growth Momentum
Growth
EPS 1Y (TTM)40.47%
EPS 3Y21.91%
EPS 5Y25.23%
EPS Q2Q%37.32%
EPS Next Y50.6%
EPS Next 2Y43.78%
EPS Next 3Y36.58%
EPS Next 5Y15.36%
Revenue 1Y (TTM)23.87%
Revenue growth 3Y24.38%
Revenue growth 5Y21.74%
Sales Q2Q%28.18%
Revenue Next Year52.67%
Revenue Next 2Y44.32%
Revenue Next 3Y36.95%
Revenue Next 5Y24.45%
EBIT growth 1Y71.53%
EBIT growth 3Y22.33%
EBIT growth 5Y43.11%
EBIT Next Year54.29%
EBIT Next 3Y36.28%
EBIT Next 5Y32.15%
FCF growth 1Y38.63%
FCF growth 3Y18.17%
FCF growth 5Y18.34%
OCF growth 1Y37.95%
OCF growth 3Y18.06%
OCF growth 5Y17.95%
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.
Can you provide the valuation status for BROADCOM INC?
ChartMill assigns a valuation rating of 2 / 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 7 / 10.
Can you provide the PE and PB ratios for 1AVGO stock?
The Price/Earnings (PE) ratio for BROADCOM INC (1AVGO.MI) is 50.72 and the Price/Book (PB) ratio is 20.09.
Can you provide the expected EPS growth for 1AVGO stock?
The Earnings per Share (EPS) of BROADCOM INC (1AVGO.MI) is expected to grow by 50.6% in the next year.