About Broadcom Inc.
Broadcom Inc. designs, develops, and supplies various semiconductor devices and infrastructure software solutions internationally. The company operates in two segments: Semiconductor Solutions and Infrastructure Software. The company offers networking connectivity, such as custom silicon solutions, ethernet switching & routing, ethernet NIC controllers, physical layer devices, and fiber optic components; wireless device connectivity, including RF semiconductor devices, connectivity solutions, custom touch controllers, and inductive charging ASICS; servers and storage system solutions, such as PCIE switches, SAS & raid products, fibre channel products, and HDD & SSD solutions; broadband solutions, includes set-top box, and broadband access; and industrial. The company also offers a private cloud software portfolio, including the VMware Cloud Foundation, Edge, vSphere foundation, telco cloud platform, private AI, live recovery, application networking and security, application development and data services; mainframe software, such as AIOPS & automation, database & data management, DEVX & DEVOPS, cybersecurity & compliance management, beyond code programs, foundational & open mainframe solutions; cybersecurity, such as endpoint, network, information, application security, and identity & access management; enterprise software; and fc san management. Its products are used in various applications in enterprise and data center networking, including artificial intelligence networking and connectivity, home connectivity, set-top boxes, broadband access, telecommunication equipment, wireless device and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom Inc. was founded in 1961 and is headquartered in Palo Alto, California.
Broadcom Inc. (AVGO) is a Technology company in the Semiconductors industry with a market capitalisation of $1.7T. The stock trades at 46.05x trailing earnings and yields 0.72%.
- Sector
- Technology
- Industry
- Semiconductors
- Market cap
- $1.7T
- P/E ratio
- 46.05
- Forward P/E
- 18.67
- EPS (TTM)
- $7.86
- Revenue (TTM)
- $89.1B
- Free cash flow
- $30.6B
- Profit margin
- 42.9%
- Dividend yield
- 0.72%
- Beta
- 1.46
- Shares outstanding
- 4.8B
Financial health: Strong9.5/10
10 strengths, 0 concerns. No red flags against these benchmarks.
- Debt to equity: 0.83 (Watch, benchmark < 0.5) — Debt of 0.83x equity is moderate against the 0.5x benchmark. It has deteriorated over the last 4 years.
- Net debt vs cash flow: 1.9y (Strong, benchmark < 4 years) — Net debt of $50.9B is 1.9x annual free cash flow — about 2 years of cash flow to repay.
- Current ratio: 1.71 (Strong, benchmark > 1.5) — Short-term assets cover 1.71x short-term liabilities, against Graham's 1.5x floor. It has deteriorated over the last 4 years.
- Return on equity: 44.2% (Strong, benchmark > 15%) — Earns 44.2% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 75.5% (Strong, benchmark > 40%) — Keeps 75.5% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 42.9% (Strong, benchmark > 10%) — Turns 42.9% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $26.9B (Strong, benchmark positive) — Generated $26.9B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 85.5% (Strong, benchmark > 10%) — Revenue changed 85.5% year on year, comfortably past the > 10% mark.
- Earnings growth: 215.3% (Strong, benchmark > 10%) — Earnings changed 215.3% year on year, comfortably past the > 10% mark.
- PEG ratio: 0.36 (Strong, benchmark < 1) — At 0.36, the price looks cheap relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 32.4% (Strong, benchmark < 60%) — Pays out 32.4% of earnings as dividends, leaving room to keep paying.