BROADCOM INC (1AVGO.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AVGO - US11135F1012 - Common Stock
339.6 EUR
+14.9 (+4.59%)
We assign a fundamental rating of 6 out of 10 to 1AVGO. 1AVGO was compared to 60 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 expensively, but it does show have an excellent growth rating.
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
1AVGO has a Return On Assets of 11.43%. This is in the better half of the industry: 1AVGO outperforms 75.00% of its industry peers.
Looking at the Return On Equity, with a value of 25.84%, 1AVGO is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.26%, 1AVGO is in the better half of the industry, outperforming 66.67% 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 15.39%.
| 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
1AVGO has a Profit Margin of 31.59%. This is amongst the best in the industry. 1AVGO outperforms 86.67% of its industry peers.
In the last couple of years the Profit Margin of 1AVGO has remained more or less at the same level.
Looking at the Operating Margin, with a value of 39.20%, 1AVGO belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
In the last couple of years the Operating Margin of 1AVGO has grown nicely.
Looking at the Gross Margin, with a value of 67.03%, 1AVGO belongs to the top of the industry, outperforming 90.00% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1AVGO is still 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.
The debt/assets ratio for 1AVGO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 12.43 indicates that 1AVGO is not in any danger for bankruptcy at the moment.
1AVGO's Altman-Z score of 12.43 is amongst the best of the industry. 1AVGO outperforms 90.00% 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.
1AVGO has a Debt to FCF ratio (2.58) which is in line with its industry peers.
A Debt/Equity ratio of 0.86 indicates that 1AVGO is somewhat dependend on debt financing.
1AVGO has a Debt to Equity ratio of 0.86. This is amonst the worse of the industry: 1AVGO underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.58 | ||
| Altman-Z | 12.43 |
ROIC/WACC1.16
WACC10.6%
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.
With a Current ratio value of 1.50, 1AVGO is not doing good in the industry: 71.67% of the companies in the same industry are doing better.
1AVGO has a Quick Ratio of 1.37. 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 1.37, 1AVGO is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
1AVGO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.52%, which is quite impressive.
The Earnings Per Share has been growing by 17.90% on average over the past years. This is quite good.
1AVGO shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.01%.
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.
1AVGO is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 27.33% yearly.
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
The Price/Earnings ratio is 62.31, which means the current valuation is very expensive for 1AVGO.
Based on the Price/Earnings ratio, 1AVGO is valued a bit more expensive than the industry average as 68.33% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 26.15. 1AVGO is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 41.53, which means the current valuation is very expensive for 1AVGO.
Based on the Price/Forward Earnings ratio, 1AVGO is valued a bit more expensive than the industry average as 73.33% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of 1AVGO to the average of the S&P500 Index (36.12), we can say 1AVGO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.31 | ||
| Fwd PE | 41.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1AVGO indicates a slightly more expensive valuation: 1AVGO is more expensive than 78.33% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1AVGO.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 74.31 | ||
| EV/EBITDA | 55.89 |
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.
A more expensive valuation may be justified as 1AVGO's earnings are expected to grow with 36.83% in the coming years.
PEG (NY)1.55
PEG (5Y)3.48
EPS Next 2Y39.49%
EPS Next 3Y36.83%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, 1AVGO is not a good candidate for dividend investing.
1AVGO's Dividend Yield is comparable with the industry average which is at 1.14.
Compared to an average S&P500 Dividend Yield of 2.41, 1AVGO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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.
The dividend of 1AVGO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP57.2%
EPS Next 2Y39.49%
EPS Next 3Y36.83%
BIT:1AVGO (11/26/2025, 7:00:00 PM)
339.6
+14.9 (+4.59%)
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 Cap1.60T
Revenue(TTM)59.93B
Net Income(TTM)18.93B
Analysts84.81
Price Target341.19 (0.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend1.93
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)8.73%
PT rev (3m)32.56%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)4%
EPS NY rev (1m)0%
EPS NY rev (3m)1.22%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)2.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.31 | ||
| Fwd PE | 41.53 | ||
| P/S | 30.91 | ||
| P/FCF | 74.31 | ||
| P/OCF | 72.82 | ||
| P/B | 25.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 55.89 |
EPS(TTM)5.45
EY1.6%
EPS(NY)8.18
Fwd EY2.41%
FCF(TTM)4.57
FCFY1.35%
OCF(TTM)4.66
OCFY1.37%
SpS10.99
BVpS13.43
TBVpS-10.79
PEG (NY)1.55
PEG (5Y)3.48
Graham Number40.59
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 | 12.43 |
F-Score9
WACC10.6%
ROIC/WACC1.16
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 62.31 and the Price/Book (PB) ratio is 25.28.
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%.