BROADCOM INC (1AVGO.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1AVGO • US11135F1012
259.35 EUR
-22.9 (-8.11%)
Last: Feb 4, 2026, 07:00 PM
We assign a fundamental rating of 6 out of 10 to 1AVGO. 1AVGO was compared to 63 industry peers in the Semiconductors & Semiconductor Equipment industry. While 1AVGO belongs to the best of the industry regarding profitability, 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
- 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.
- 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 68.25% of its industry peers.
- 1AVGO has a Return On Equity of 28.45%. This is in the better half of the industry: 1AVGO outperforms 76.19% of its industry peers.
- 1AVGO has a Return On Invested Capital (10.66%) which is comparable to the rest of the industry.
- 1AVGO had an Average Return On Invested Capital over the past 3 years of 10.89%. This is below the industry average of 15.01%.
| 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
- With an excellent Profit Margin value of 36.20%, 1AVGO belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
- 1AVGO's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 40.94%, 1AVGO belongs to the best of the industry, outperforming 92.06% of the companies in the same industry.
- 1AVGO's Operating Margin has improved in the last couple of years.
- The Gross Margin of 1AVGO (67.89%) is better than 90.48% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1AVGO is still 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.
- Compared to 1 year ago, 1AVGO has an improved debt to assets ratio.
2.2 Solvency
- 1AVGO has an Altman-Z score of 11.51. This indicates that 1AVGO is financially healthy and has little risk of bankruptcy at the moment.
- 1AVGO's Altman-Z score of 11.51 is fine compared to the rest of the industry. 1AVGO outperforms 71.43% 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.
- 1AVGO has a Debt/Equity ratio of 0.76. This is a neutral value indicating 1AVGO is somewhat dependend on debt financing.
- 1AVGO has a Debt to Equity ratio of 0.76. This is amonst the worse of the industry: 1AVGO underperforms 85.71% 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 | 11.51 |
ROIC/WACC0.99
WACC10.77%
2.3 Liquidity
- A Current Ratio of 1.71 indicates that 1AVGO should not have too much problems paying its short term obligations.
- The Current ratio of 1AVGO (1.71) is worse than 82.54% 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.
- 1AVGO has a Quick ratio of 1.58. This is in the lower half of the industry: 1AVGO underperforms 69.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
- 1AVGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.47%, which is quite impressive.
- 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%.
- 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
- The Earnings Per Share is expected to grow by 28.32% on average over the next years. This is a very strong growth
- 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
- With a Price/Earnings ratio of 44.87, 1AVGO can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of 1AVGO indicates a slightly more expensive valuation: 1AVGO is more expensive than 61.90% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of 1AVGO to the average of the S&P500 Index (28.25), we can say 1AVGO is valued expensively.
- 1AVGO is valuated quite expensively with a Price/Forward Earnings ratio of 29.68.
- 1AVGO's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.50, 1AVGO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.87 | ||
| Fwd PE | 29.68 |
4.2 Price Multiples
- 79.37% 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 | 53.7 | ||
| EV/EBITDA | 46.21 |
4.3 Compensation for Growth
- 1AVGO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent 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 37.31% in the coming years.
PEG (NY)0.88
PEG (5Y)1.78
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 0.78.
- With a Dividend Yield of 0.79, 1AVGO pays less dividend than the S&P500 average, which is at 1.82.
| 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.
- 1AVGO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP48.18%
EPS Next 2Y44.47%
EPS Next 3Y37.31%
BIT:1AVGO (2/4/2026, 7:00:00 PM)
259.35
-22.9 (-8.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)12-11 2025-12-11/amc
Earnings (Next)03-04 2026-03-04/amc
Inst Owners79.09%
Inst Owner ChangeN/A
Ins Owners1.92%
Ins Owner ChangeN/A
Market Cap1.22T
Revenue(TTM)63.89B
Net Income(TTM)23.13B
Analysts85
Price Target398.16 (53.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend1.98
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)5.7%
PT rev (3m)19.42%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)2.49%
EPS NY rev (1m)0.39%
EPS NY rev (3m)9.15%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)5.21%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)12.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.87 | ||
| Fwd PE | 29.68 | ||
| P/S | 22.62 | ||
| P/FCF | 53.7 | ||
| P/OCF | 52.49 | ||
| P/B | 17.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 46.21 |
EPS(TTM)5.78
EY2.23%
EPS(NY)8.74
Fwd EY3.37%
FCF(TTM)4.83
FCFY1.86%
OCF(TTM)4.94
OCFY1.91%
SpS11.46
BVpS14.59
TBVpS-8.75
PEG (NY)0.88
PEG (5Y)1.78
Graham Number43.56
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 | 11.51 |
F-Score9
WACC10.77%
ROIC/WACC0.99
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 Y51.18%
EPS Next 2Y44.47%
EPS Next 3Y37.31%
EPS Next 5Y28.32%
Revenue 1Y (TTM)23.87%
Revenue growth 3Y24.38%
Revenue growth 5Y21.74%
Sales Q2Q%28.18%
Revenue Next Year53.44%
Revenue Next 2Y44.88%
Revenue Next 3Y37.37%
Revenue Next 5Y29.08%
EBIT growth 1Y71.53%
EBIT growth 3Y22.33%
EBIT growth 5Y43.11%
EBIT Next Year53.89%
EBIT Next 3Y35.58%
EBIT Next 5Y32.68%
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 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 44.87 and the Price/Book (PB) ratio is 17.78.
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.