BROADCOM INC (1YD.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:1YD - US11135F1012 - Common Stock
281.7 EUR
+0.45 (+0.16%)
We assign a fundamental rating of 6 out of 10 to 1YD. 1YD was compared to 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. These ratings would make 1YD suitable for growth investing!
1. Profitability
1.1 Basic Checks
- 1YD had positive earnings in the past year.
- 1YD had a positive operating cash flow in the past year.
- In the past 5 years 1YD has always been profitable.
- 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 69.12% of its industry peers.
- 1YD has a Return On Equity of 28.45%. This is in the better half of the industry: 1YD outperforms 76.47% of its industry peers.
- With a Return On Invested Capital value of 10.66%, 1YD perfoms like the industry average, outperforming 55.88% 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 14.62%.
| 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
- 1YD has a Profit Margin of 36.20%. This is amongst the best in the industry. 1YD outperforms 94.12% of its industry peers.
- 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.
- In the last couple of years the Operating Margin of 1YD has grown nicely.
- The Gross Margin of 1YD (67.89%) is better 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.
- 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
- 1YD has an Altman-Z score of 11.47. This indicates that 1YD is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 11.47, 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.
- With a Debt to FCF ratio value of 2.42, 1YD perfoms like the industry average, outperforming 57.35% of the companies in the same industry.
- A Debt/Equity ratio of 0.76 indicates that 1YD is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.76, 1YD is doing worse than 85.29% of the companies in the same industry.
- 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 | 11.47 |
ROIC/WACC1
WACC10.64%
2.3 Liquidity
- A Current Ratio of 1.71 indicates that 1YD should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.71, 1YD is doing worse than 77.94% of the companies in the same industry.
- 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 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.
- 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.
- 1YD shows a strong growth in Revenue. In the last year, 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
- 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.
- 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
- Based on the Price/Earnings ratio of 48.49, 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 61.76% of the companies listed in the same industry.
- 1YD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.32.
- Based on the Price/Forward Earnings ratio of 32.20, the valuation of 1YD can be described as expensive.
- 1YD's Price/Forward Earnings ratio is in line with the industry average.
- 1YD's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.49 | ||
| Fwd PE | 32.2 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1YD indicates a slightly more expensive valuation: 1YD is more expensive than 76.47% of the companies listed in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as 1YD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.02 | ||
| EV/EBITDA | 46.03 |
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.
- 1YD's earnings are expected to grow with 36.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.96
PEG (5Y)1.92
EPS Next 2Y43.78%
EPS Next 3Y36.58%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.76%, 1YD is not a good candidate for dividend investing.
- 1YD's Dividend Yield is a higher than the industry average which is at 0.72.
- Compared to an average S&P500 Dividend Yield of 1.83, 1YD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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.