BROADCOM INC (1YD.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:1YD - US11135F1012 - Common Stock
276.75 EUR
+1.45 (+0.53%)
Taking everything into account, 1YD scores 6 out of 10 in our fundamental rating. 1YD was compared to 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 shows excellent growth, but is valued quite expensive already. These ratings could make 1YD a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
- In the past year 1YD was profitable.
- 1YD had a positive operating cash flow in the past year.
- 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 has a Return On Assets of 13.52%. This is in the better half of the industry: 1YD outperforms 68.12% of its industry peers.
- 1YD has a better Return On Equity (28.45%) than 76.81% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 10.66%, 1YD is in line with its industry, outperforming 55.07% of the companies in the same industry.
- 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
- 1YD's Profit Margin of 36.20% is amongst the best of the industry. 1YD outperforms 95.65% of its industry peers.
- In the last couple of years the Profit Margin of 1YD has grown nicely.
- 1YD's Operating Margin of 40.94% is amongst the best of the industry. 1YD outperforms 94.20% of its industry peers.
- In the last couple of years the Operating Margin of 1YD has grown nicely.
- 1YD's Gross Margin of 67.89% is amongst the best of the industry. 1YD outperforms 91.30% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1YD is creating some value.
- Compared to 1 year ago, 1YD has more shares outstanding
- The number of shares outstanding for 1YD has been increased compared to 5 years ago.
- Compared to 1 year ago, 1YD has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 11.45 indicates that 1YD is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 11.45, 1YD is doing good in the industry, outperforming 68.12% 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.
- With a Debt to FCF ratio value of 2.42, 1YD perfoms like the industry average, outperforming 55.07% of the companies in the same industry.
- A Debt/Equity ratio of 0.76 indicates that 1YD is somewhat dependend on debt financing.
- The Debt to Equity ratio of 1YD (0.76) is worse than 82.61% 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/WACC0.99
WACC10.73%
2.3 Liquidity
- A Current Ratio of 1.71 indicates that 1YD should not have too much problems paying its short term obligations.
- The Current ratio of 1YD (1.71) is worse than 78.26% of its industry peers.
- A Quick Ratio of 1.58 indicates that 1YD should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.58, 1YD is doing worse than 66.67% 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, 1YD 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, 1YD shows a very strong growth in Revenue. The Revenue has grown by 23.87%.
- 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
- 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, 1YD 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 48.55, 1YD can be considered very expensive at the moment.
- 1YD's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, 1YD is valued quite expensively.
- A Price/Forward Earnings ratio of 32.14 indicates a quite expensive valuation of 1YD.
- 1YD's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of 1YD to the average of the S&P500 Index (25.83), we can say 1YD is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.55 | ||
| Fwd PE | 32.14 |
4.2 Price Multiples
- 1YD's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1YD is more expensive than 76.81% 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 | 58.14 | ||
| EV/EBITDA | 45.96 |
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.
- 1YD's earnings are expected to grow with 37.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.95
PEG (5Y)1.92
EPS Next 2Y44.47%
EPS Next 3Y37.31%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.80%, 1YD is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.74, 1YD pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, 1YD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
5.2 History
- On average, the dividend of 1YD grows each year by 11.45%, which is quite nice.
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 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.