BROADCOM INC (1YD.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:1YD - US11135F1012 - Common Stock
272.5 EUR
-9.2 (-3.27%)
1YD gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 68 industry peers in the Semiconductors & Semiconductor Equipment industry. 1YD scores excellent on profitability, but there are some minor concerns on its financial health. 1YD is valued quite expensive, but it does show an excellent growth. With these ratings, 1YD could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
- In the past year 1YD was profitable.
- In the past year 1YD had a positive cash flow from operations.
- 1YD had positive earnings in each of the past 5 years.
- In the past 5 years 1YD always reported a positive cash flow from operatings.
1.2 Ratios
- 1YD's Return On Assets of 13.52% is fine compared to the rest of the industry. 1YD outperforms 69.12% of its industry peers.
- With a decent Return On Equity value of 28.45%, 1YD is doing good in the industry, outperforming 76.47% of the companies in the same industry.
- The Return On Invested Capital of 1YD (10.66%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for 1YD is below the industry average of 14.62%.
| 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%, 1YD belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
- 1YD's Profit Margin has improved in the last couple of years.
- 1YD has a better Operating Margin (40.94%) than 92.65% of its industry peers.
- In the last couple of years the Operating Margin of 1YD has grown nicely.
- 1YD has a better Gross Margin (67.89%) than 91.18% of its industry peers.
- In the last couple of years the Gross Margin of 1YD 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 1YD is still creating some value.
- 1YD has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, 1YD has more shares outstanding
- The debt/assets ratio for 1YD has been reduced compared to a year ago.
2.2 Solvency
- 1YD has an Altman-Z score of 11.45. This indicates that 1YD is financially healthy and has little risk of bankruptcy at the moment.
- 1YD's Altman-Z score of 11.45 is fine compared to the rest of the industry. 1YD outperforms 70.59% of its industry peers.
- The Debt to FCF ratio of 1YD is 2.42, which is a good value as it means it would take 1YD, 2.42 years of fcf income to pay off all of its debts.
- 1YD 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 1YD is somewhat dependend on debt financing.
- 1YD's Debt to Equity ratio of 0.76 is on the low side compared to the rest of the industry. 1YD is outperformed by 85.29% of its industry peers.
- Although 1YD 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 | 11.45 |
ROIC/WACC1
WACC10.62%
2.3 Liquidity
- 1YD has a Current Ratio of 1.71. This is a normal value and indicates that 1YD is financially healthy and should not expect problems in meeting its short term obligations.
- 1YD's Current ratio of 1.71 is on the low side compared to the rest of the industry. 1YD is outperformed by 77.94% of its industry peers.
- 1YD has a Quick Ratio of 1.58. This is a normal value and indicates that 1YD 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, 1YD is doing worse than 64.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
- 1YD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.47%, which is quite impressive.
- 1YD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.23% yearly.
- The Revenue has grown by 23.87% in the past year. This is a very strong growth!
- The Revenue has been growing by 21.74% on average over the past years. This is a very strong growth!
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
- 1YD 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, 1YD will show a very strong growth in Revenue. The Revenue will grow by 29.08% on average per year.
EPS Next Y50.6%
EPS Next 2Y43.78%
EPS Next 3Y36.58%
EPS Next 5Y28.32%
Revenue Next Year52.87%
Revenue Next 2Y44.4%
Revenue Next 3Y37.56%
Revenue Next 5Y29.08%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- 1YD is valuated quite expensively with a Price/Earnings ratio of 46.74.
- 1YD's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of 1YD to the average of the S&P500 Index (27.21), we can say 1YD is valued expensively.
- Based on the Price/Forward Earnings ratio of 31.06, the valuation of 1YD can be described as expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as 1YD.
- 1YD is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.74 | ||
| Fwd PE | 31.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1YD is valued a bit more expensive than 76.47% of the companies in the same industry.
- 1YD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.97 | ||
| EV/EBITDA | 45.98 |
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.
- The decent profitability rating of 1YD may justify a higher PE ratio.
- A more expensive valuation may be justified as 1YD's earnings are expected to grow with 36.58% in the coming years.
PEG (NY)0.92
PEG (5Y)1.85
EPS Next 2Y43.78%
EPS Next 3Y36.58%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.80%, 1YD is not a good candidate for dividend investing.
- 1YD's Dividend Yield is a higher than the industry average which is at 0.70.
- Compared to an average S&P500 Dividend Yield of 1.81, 1YD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
5.2 History
- The dividend of 1YD 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 1YD. This is a bit on the high side, but may be sustainable.
- 1YD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP48.18%
EPS Next 2Y43.78%
EPS Next 3Y36.58%
BROADCOM INC / 1YD.DE FAQ
What is the ChartMill fundamental rating of BROADCOM INC (1YD.DE) stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1YD.DE.
What is the valuation status for 1YD stock?
ChartMill assigns a valuation rating of 3 / 10 to BROADCOM INC (1YD.DE). This can be considered as Overvalued.
Can you provide the profitability details for BROADCOM INC?
BROADCOM INC (1YD.DE) has a profitability rating of 7 / 10.
Can you provide the financial health for 1YD stock?
The financial health rating of BROADCOM INC (1YD.DE) is 5 / 10.
Can you provide the expected EPS growth for 1YD stock?
The Earnings per Share (EPS) of BROADCOM INC (1YD.DE) is expected to grow by 50.6% in the next year.