BROADCOM INC (1YD.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:1YD - US11135F1012 - Common Stock
268.2 EUR
-4.3 (-1.58%)
We assign a fundamental rating of 6 out of 10 to 1YD. 1YD was compared to 69 industry peers in the Semiconductors & Semiconductor Equipment industry. While 1YD belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1YD is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make 1YD suitable 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.
- Each year in the past 5 years 1YD has been profitable.
- 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 66.67% of its industry peers.
- 1YD has a better Return On Equity (28.45%) than 75.36% of its industry peers.
- 1YD has a Return On Invested Capital (10.66%) which is comparable to the rest of the industry.
- 1YD had an Average Return On Invested Capital over the past 3 years of 10.89%. This 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 94.20% 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 92.75% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1YD has grown nicely.
- The Gross Margin of 1YD (67.89%) is better than 89.86% 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.
- 1YD has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for 1YD has been increased compared to 5 years ago.
- 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 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.
- 1YD has a Debt to FCF ratio of 2.42. This is comparable to the rest of the industry: 1YD outperforms 53.62% of its industry peers.
- A Debt/Equity ratio of 0.76 indicates that 1YD is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.76, 1YD is not doing good in the industry: 84.06% of the companies in the same industry are doing better.
- 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/WACC0.99
WACC10.72%
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 has a worse Current ratio (1.71) than 79.71% 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 Quick ratio of 1.58. This is in the lower half of the industry: 1YD underperforms 68.12% of its industry peers.
| 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.
- 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.
- 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
- Based on estimates for the next years, 1YD will show a very strong growth in Earnings Per Share. The EPS will grow by 28.32% on average per year.
- 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
- 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 46.16.
- 1YD's Price/Earnings ratio is in line with the industry average.
- 1YD is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 30.54, 1YD can be considered very expensive at the moment.
- 1YD's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. 1YD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.16 | ||
| Fwd PE | 30.54 |
4.2 Price Multiples
- 78.26% of the companies in the same industry are cheaper than 1YD, based on the Enterprise Value to EBITDA ratio.
- 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 | 55.26 | ||
| EV/EBITDA | 44.66 |
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.
- 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)0.9
PEG (5Y)1.83
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.
- 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
- 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.
- 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 4 / 10 to BROADCOM INC (1YD.DE). This can be considered as Fairly Valued.
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.