BROADCOM INC (1AVGO.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1AVGO • US11135F1012
282.25 EUR
+5.15 (+1.86%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 6 out of 10 to 1AVGO. 1AVGO was compared to 69 industry peers in the Semiconductors & Semiconductor Equipment industry. 1AVGO has an excellent profitability rating, but there are some minor concerns on its financial health. 1AVGO is valued quite expensive, but it does show an excellent growth. These ratings would make 1AVGO suitable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year 1AVGO was profitable.
- 1AVGO had a positive operating cash flow in the past year.
- Each year in the past 5 years 1AVGO has been profitable.
- 1AVGO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1AVGO's Return On Assets of 13.52% is fine compared to the rest of the industry. 1AVGO outperforms 66.67% of its industry peers.
- 1AVGO's Return On Equity of 28.45% is fine compared to the rest of the industry. 1AVGO outperforms 75.36% of its industry peers.
- 1AVGO's Return On Invested Capital of 10.66% is in line compared to the rest of the industry. 1AVGO outperforms 53.62% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1AVGO is below the industry average of 14.44%.
| 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
- Looking at the Profit Margin, with a value of 36.20%, 1AVGO belongs to the top of the industry, outperforming 94.20% of the companies in the same industry.
- 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 92.75% of the companies in the same industry.
- 1AVGO's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 67.89%, 1AVGO belongs to the best of the industry, outperforming 89.86% 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.
- Compared to 5 years ago, 1AVGO has more shares outstanding
- 1AVGO has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 11.66 indicates that 1AVGO is not in any danger for bankruptcy at the moment.
- The Altman-Z score of 1AVGO (11.66) is better than 69.57% 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.
- With a Debt to FCF ratio value of 2.42, 1AVGO perfoms like the industry average, outperforming 53.62% of the companies in the same industry.
- 1AVGO has a Debt/Equity ratio of 0.76. This is a neutral value indicating 1AVGO is somewhat dependend on debt financing.
- The Debt to Equity ratio of 1AVGO (0.76) is worse than 84.06% 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 | 11.66 |
ROIC/WACC0.99
WACC10.75%
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.
- 1AVGO's Current ratio of 1.71 is on the low side compared to the rest of the industry. 1AVGO is outperformed by 82.61% of its industry peers.
- 1AVGO has a Quick Ratio of 1.58. 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 Quick ratio, with a value of 1.58, 1AVGO is doing worse than 71.01% of the companies in the same industry.
| 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.
- Measured over the past years, 1AVGO shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.23% on average per year.
- Looking at the last year, 1AVGO shows a very strong growth in Revenue. The Revenue has grown by 23.87%.
- Measured over the past years, 1AVGO shows a very strong growth in Revenue. The Revenue has been growing by 21.74% on average per year.
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
- 1AVGO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.32% yearly.
- Based on estimates for the next years, 1AVGO will show a very strong growth in Revenue. The Revenue will grow by 29.08% on average per year.
EPS Next Y51.18%
EPS Next 2Y44.47%
EPS Next 3Y37.31%
EPS Next 5Y28.32%
Revenue Next Year53.44%
Revenue Next 2Y44.88%
Revenue Next 3Y37.37%
Revenue Next 5Y29.08%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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
- The Price/Earnings ratio is 49.34, which means the current valuation is very expensive for 1AVGO.
- The rest of the industry has a similar Price/Earnings ratio as 1AVGO.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, 1AVGO is valued quite expensively.
- A Price/Forward Earnings ratio of 32.63 indicates a quite expensive valuation of 1AVGO.
- 1AVGO's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of 1AVGO to the average of the S&P500 Index (25.57), we can say 1AVGO is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.34 | ||
| Fwd PE | 32.63 |
4.2 Price Multiples
- 79.71% of the companies in the same industry are cheaper than 1AVGO, based on the Enterprise Value to EBITDA ratio.
- 1AVGO's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.03 | ||
| EV/EBITDA | 46.88 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- 1AVGO has a very decent profitability rating, which may justify a higher PE ratio.
- 1AVGO's earnings are expected to grow with 37.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.96
PEG (5Y)1.96
EPS Next 2Y44.47%
EPS Next 3Y37.31%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.79%, 1AVGO is not a good candidate for dividend investing.
- 1AVGO's Dividend Yield is a higher than the industry average which is at 0.72.
- Compared to an average S&P500 Dividend Yield of 1.83, 1AVGO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
- The dividend of 1AVGO is nicely growing with an annual growth rate of 11.45%!
Dividend Growth(5Y)11.45%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 48.18% 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.
DP48.18%
EPS Next 2Y44.47%
EPS Next 3Y37.31%
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 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 7 / 10.
Can you provide the PE and PB ratios for 1AVGO stock?
The Price/Earnings (PE) ratio for BROADCOM INC (1AVGO.MI) is 49.34 and the Price/Book (PB) ratio is 19.54.
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 51.18% in the next year.