BROADCOM INC (1AVGO.MI) Stock Fundamental Analysis
Europe - BIT:1AVGO - US11135F1012 - Common Stock
294 EUR
-15.2 (-4.92%)
We assign a fundamental rating of 6 out of 10 to 1AVGO. 1AVGO was compared to 62 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 expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year 1AVGO was profitable.
In the past year 1AVGO had a positive cash flow from operations.
In the past 5 years 1AVGO has always been profitable.
Each year in the past 5 years 1AVGO had a positive operating cash flow.
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 78.33% of the companies in the same industry.
1AVGO has a better Return On Equity (25.84%) than 76.67% of its industry peers.
With a decent Return On Invested Capital value of 12.26%, 1AVGO is doing good in the industry, outperforming 65.00% 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 14.29%.
| 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
Looking at the Profit Margin, with a value of 31.59%, 1AVGO belongs to the top of the industry, outperforming 88.33% of the companies in the same industry.
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 91.67% of the companies in the same industry.
In the last couple of years the Operating Margin of 1AVGO has grown nicely.
1AVGO has a Gross Margin of 67.03%. This is amongst the best in the industry. 1AVGO outperforms 90.00% 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.
1AVGO has more shares outstanding than it did 1 year ago.
The number of shares outstanding for 1AVGO has been increased compared to 5 years ago.
Compared to 1 year ago, 1AVGO has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 11.35 indicates that 1AVGO is not in any danger for bankruptcy at the moment.
1AVGO's Altman-Z score of 11.35 is fine compared to the rest of the industry. 1AVGO outperforms 78.33% 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.
With a Debt to FCF ratio value of 2.58, 1AVGO perfoms like the industry average, outperforming 58.33% of the companies in the same 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 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 11.35 |
ROIC/WACC1.04
WACC11.75%
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 80.00% of its industry peers.
A Quick Ratio of 1.37 indicates that 1AVGO should not have too much problems paying its short term obligations.
1AVGO has a Quick ratio of 1.37. This is in the lower half of the industry: 1AVGO underperforms 70.00% 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!
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
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.
Based on estimates for the next years, 1AVGO will show a very strong growth in Revenue. The Revenue will grow by 27.33% on average per year.
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
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
1AVGO is valuated quite expensively with a Price/Earnings ratio of 54.04.
Compared to the rest of the industry, the Price/Earnings ratio of 1AVGO indicates a slightly more expensive valuation: 1AVGO is more expensive than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.06. 1AVGO is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 35.98, which means the current valuation is very expensive for 1AVGO.
1AVGO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1AVGO is more expensive than 68.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 32.73. 1AVGO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.04 | ||
| Fwd PE | 35.98 |
4.2 Price Multiples
80.00% of the companies in the same industry are cheaper than 1AVGO, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1AVGO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.38 | ||
| EV/EBITDA | 50.81 |
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)1.34
PEG (5Y)3.02
EPS Next 2Y39.49%
EPS Next 3Y36.83%
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 a higher than the industry average which is at 1.31.
With a Dividend Yield of 0.66, 1AVGO pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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
57.20% of the earnings are spent on dividend by 1AVGO. 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 (11/7/2025, 7:00:00 PM)
294
-15.2 (-4.92%)
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 Cap1.39T
Revenue(TTM)59.93B
Net Income(TTM)18.93B
Analysts84.81
Price Target333.41 (13.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend1.92
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)6.25%
PT rev (3m)29.13%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)3.69%
EPS NY rev (1m)0.31%
EPS NY rev (3m)1.26%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)2.78%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.04 | ||
| Fwd PE | 35.98 | ||
| P/S | 26.78 | ||
| P/FCF | 64.38 | ||
| P/OCF | 63.1 | ||
| P/B | 21.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 50.81 |
EPS(TTM)5.44
EY1.85%
EPS(NY)8.17
Fwd EY2.78%
FCF(TTM)4.57
FCFY1.55%
OCF(TTM)4.66
OCFY1.58%
SpS10.98
BVpS13.42
TBVpS-10.78
PEG (NY)1.34
PEG (5Y)3.02
Graham Number40.53
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 | 11.35 |
F-Score9
WACC11.75%
ROIC/WACC1.04
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 54.04 and the Price/Book (PB) ratio is 21.9.
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%.