BROADCOM INC (1YD.DE) Stock Fundamental Analysis
FRA:1YD - Deutsche Boerse Ag - US11135F1012 - Common Stock - Currency: EUR
Taking everything into account, 1YD scores 5 out of 10 in our fundamental rating. 1YD was compared to 58 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and the financial health of 1YD get a neutral evaluation. Nothing too spectacular is happening here. 1YD is valued quite expensive, but it does show an excellent growth.
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.
In the past 5 years 1YD has always been profitable.
1YD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1YD (3.56%) is worse than 70.69% of its industry peers.
1YD has a worse Return On Equity (8.71%) than 62.07% of its industry peers.
With a Return On Invested Capital value of 7.96%, 1YD perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1YD is in line with the industry average of 16.14%.
The last Return On Invested Capital (7.96%) for 1YD is well below the 3 year average (14.76%), which needs to be investigated, but indicates that 1YD had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 8.71% | ||
| ROIC | 7.96% |
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
1YD has a Profit Margin of 11.43%. This is in the lower half of the industry: 1YD underperforms 60.34% of its industry peers.
In the last couple of years the Profit Margin of 1YD has remained more or less at the same level.
1YD has a better Operating Margin (29.57%) than 77.59% of its industry peers.
1YD's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 63.53%, 1YD belongs to the best of the industry, outperforming 87.93% of the companies in the same industry.
1YD's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.57% | ||
| PM (TTM) | 11.43% | ||
| GM | 63.53% |
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 1YD is still creating some value.
Compared to 1 year ago, 1YD has more shares outstanding
Compared to 5 years ago, 1YD has more shares outstanding
1YD has a better debt/assets ratio than last year.
2.2 Solvency
1YD has an Altman-Z score of 5.97. This indicates that 1YD is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.97, 1YD is doing good in the industry, outperforming 60.34% of the companies in the same industry.
The Debt to FCF ratio of 1YD is 3.48, which is a good value as it means it would take 1YD, 3.48 years of fcf income to pay off all of its debts.
1YD has a Debt to FCF ratio of 3.48. This is comparable to the rest of the industry: 1YD outperforms 46.55% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that 1YD is somewhat dependend on debt financing.
1YD has a worse Debt to Equity ratio (0.98) than 84.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 3.48 | ||
| Altman-Z | 5.97 |
ROIC/WACC0.7
WACC11.43%
2.3 Liquidity
1YD has a Current Ratio of 1.17. 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 Current ratio, with a value of 1.17, 1YD is doing worse than 89.66% of the companies in the same industry.
1YD has a Quick Ratio of 1.07. This is a normal value and indicates that 1YD is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.07, 1YD is not doing good in the industry: 70.69% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.82% over the past year.
1YD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.90% yearly.
The Revenue has grown by 43.99% in the past year. This is a very strong growth!
Measured over the past years, 1YD shows a quite strong growth in Revenue. The Revenue has been growing by 17.94% on average per year.
EPS 1Y (TTM)24.82%
EPS 3Y20.14%
EPS 5Y17.9%
EPS Q2Q%45.59%
Revenue 1Y (TTM)43.99%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%24.71%
3.2 Future
1YD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.06% yearly.
Based on estimates for the next years, 1YD will show a quite strong growth in Revenue. The Revenue will grow by 18.03% on average per year.
EPS Next Y31.55%
EPS Next 2Y25.28%
EPS Next 3Y22.95%
EPS Next 5Y24.06%
Revenue Next Year18.99%
Revenue Next 2Y17.59%
Revenue Next 3Y17.03%
Revenue Next 5Y18.03%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 34.64, the valuation of 1YD can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of 1YD indicates a slightly more expensive valuation: 1YD is more expensive than 72.41% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, 1YD is valued at the same level.
The Price/Forward Earnings ratio is 24.33, which indicates a rather expensive current valuation of 1YD.
1YD's Price/Forward Earnings ratio is in line with the industry average.
1YD is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.64 | ||
| Fwd PE | 24.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1YD is valued expensively inside the industry as 86.21% of the companies are valued cheaper.
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 | 44.9 | ||
| EV/EBITDA | 36.81 |
4.3 Compensation for Growth
1YD's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 22.95% in the coming years.
PEG (NY)1.1
PEG (5Y)1.93
EPS Next 2Y25.28%
EPS Next 3Y22.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.32%, 1YD has a reasonable but not impressive dividend return.
1YD's Dividend Yield is a higher than the industry average which is at 1.50.
Compared to an average S&P500 Dividend Yield of 2.33, 1YD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
5.2 History
The dividend of 1YD is nicely growing with an annual growth rate of 16.17%!
Dividend Growth(5Y)16.17%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
1YD pays out 166.48% of its income as dividend. This is not a sustainable payout ratio.
1YD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP166.48%
EPS Next 2Y25.28%
EPS Next 3Y22.95%
FRA:1YD (3/7/2025, 7:00:00 PM)
170.76
+1.5 (+0.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners78.95%
Inst Owner ChangeN/A
Ins Owners2.12%
Ins Owner ChangeN/A
Market Cap802.90B
Analysts83.04
Price Target239.48 (40.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend2.05
Dividend Growth(5Y)16.17%
DP166.48%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.93%
Min EPS beat(2)0.77%
Max EPS beat(2)1.09%
EPS beat(4)3
Avg EPS beat(4)1.41%
Min EPS beat(4)-0.91%
Max EPS beat(4)4.69%
EPS beat(8)5
Avg EPS beat(8)0.52%
EPS beat(12)7
Avg EPS beat(12)0.62%
EPS beat(16)8
Avg EPS beat(16)0.33%
Revenue beat(2)0
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-2.22%
Max Revenue beat(2)-1.11%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)1.79%
Revenue beat(8)2
Avg Revenue beat(8)-1.24%
Revenue beat(12)3
Avg Revenue beat(12)-1.05%
Revenue beat(16)3
Avg Revenue beat(16)-1.09%
PT rev (1m)0.99%
PT rev (3m)26.29%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)1.87%
EPS NY rev (1m)0.13%
EPS NY rev (3m)1.59%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.64 | ||
| Fwd PE | 24.33 | ||
| P/S | 16.9 | ||
| P/FCF | 44.9 | ||
| P/OCF | 43.67 | ||
| P/B | 12.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 36.81 |
EPS(TTM)4.93
EY2.89%
EPS(NY)7.02
Fwd EY4.11%
FCF(TTM)3.8
FCFY2.23%
OCF(TTM)3.91
OCFY2.29%
SpS10.1
BVpS13.26
TBVpS-13.86
PEG (NY)1.1
PEG (5Y)1.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.56% | ||
| ROE | 8.71% | ||
| ROCE | 10.24% | ||
| ROIC | 7.96% | ||
| ROICexc | 8.49% | ||
| ROICexgc | 1036.3% | ||
| OM | 29.57% | ||
| PM (TTM) | 11.43% | ||
| GM | 63.53% | ||
| FCFM | 37.64% |
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%
ROICexcg growth 3Y52.32%
ROICexcg 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-Score5
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 3.48 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 5.47% | ||
| Cap/Sales | 1.06% | ||
| Interest Coverage | 4.69 | ||
| Cash Conversion | 79.03% | ||
| Profit Quality | 329.33% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 5.97 |
F-Score5
WACC11.43%
ROIC/WACC0.7
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)24.82%
EPS 3Y20.14%
EPS 5Y17.9%
EPS Q2Q%45.59%
EPS Next Y31.55%
EPS Next 2Y25.28%
EPS Next 3Y22.95%
EPS Next 5Y24.06%
Revenue 1Y (TTM)43.99%
Revenue growth 3Y23.39%
Revenue growth 5Y17.94%
Sales Q2Q%24.71%
Revenue Next Year18.99%
Revenue Next 2Y17.59%
Revenue Next 3Y17.03%
Revenue Next 5Y18.03%
EBIT growth 1Y-7.32%
EBIT growth 3Y20.65%
EBIT growth 5Y29.07%
EBIT Next Year37.54%
EBIT Next 3Y23.19%
EBIT Next 5Y22.34%
FCF growth 1Y10.1%
FCF growth 3Y13.38%
FCF growth 5Y15.95%
OCF growth 1Y10.38%
OCF growth 3Y13.19%
OCF growth 5Y15.53%