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 69 industry peers in the Semiconductors & Semiconductor Equipment industry. 1YD has an excellent profitability rating, but there are some minor concerns on its financial health. 1YD is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes 1YD very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- 1YD had positive earnings in the past year.
- In the past year 1YD had a positive cash flow from operations.
- Each year in the past 5 years 1YD has been profitable.
- Each year in the past 5 years 1YD had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 13.52%, 1YD is doing good in the industry, outperforming 69.12% of the companies in the same industry.
- 1YD's Return On Equity of 28.45% is fine compared to the rest of the industry. 1YD outperforms 76.47% of its industry peers.
- 1YD has a Return On Invested Capital of 10.66%. This is comparable to the rest of the industry: 1YD outperforms 55.88% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1YD is below the industry average of 14.31%.
| 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.
- In the last couple of years the Profit Margin of 1YD has grown nicely.
- With an excellent Operating Margin value of 40.94%, 1YD belongs to the best of the industry, outperforming 92.65% of the companies in the same industry.
- 1YD's Operating Margin has improved in the last couple of years.
- 1YD has a better Gross Margin (67.89%) than 91.18% of its industry peers.
- 1YD's Gross Margin has improved in the last couple of years.
| 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
- 1YD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, 1YD has more shares outstanding
- 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
- An Altman-Z score of 11.15 indicates that 1YD is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 11.15, 1YD is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of 1YD (2.42) 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 has a worse Debt to Equity ratio (0.76) than 85.29% of its industry peers.
- Even though the debt/equity ratio score it not favorable for 1YD, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 2.42 | ||
| Altman-Z | 11.15 |
ROIC/WACC1
WACC10.62%
2.3 Liquidity
- A Current Ratio of 1.71 indicates that 1YD should not have too much problems paying its short term obligations.
- 1YD has a worse Current ratio (1.71) than 77.94% of its industry peers.
- A Quick Ratio of 1.58 indicates that 1YD should not have too much problems paying its short term obligations.
- 1YD has a worse Quick ratio (1.58) than 64.71% of its industry peers.
| 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.
- 1YD shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.23% yearly.
- 1YD shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.87%.
- Measured over the past years, 1YD 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
- The Earnings Per Share is expected to grow by 28.32% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 29.08% on average over the next years. This is a very strong growth
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.
- 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 46.90, which means the current valuation is very expensive for 1YD.
- The rest of the industry has a similar Price/Earnings ratio as 1YD.
- The average S&P500 Price/Earnings ratio is at 27.21. 1YD is valued rather expensively when compared to this.
- 1YD is valuated quite expensively with a Price/Forward Earnings ratio of 31.03.
- The rest of the industry has a similar Price/Forward Earnings ratio as 1YD.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, 1YD is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.9 | ||
| Fwd PE | 31.03 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1YD is valued a bit more expensive than the industry average as 76.47% of the companies are valued more cheaply.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1YD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.14 | ||
| EV/EBITDA | 44.66 |
4.3 Compensation for Growth
- 1YD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- 1YD has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as 1YD's earnings are expected to grow with 37.31% in the coming years.
PEG (NY)0.92
PEG (5Y)1.86
EPS Next 2Y44.47%
EPS Next 3Y37.31%
5. Dividend
5.1 Amount
- 1YD has a yearly dividend return of 0.80%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.74, 1YD pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.80, 1YD pays less dividend than the S&P500 average, which is at 1.81.
| 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
- 1YD pays out 48.18% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of 1YD 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 / 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 51.18% in the next year.