Broadcom Stock Analysis (NASDAQ:AVGO)
Broadcom Analysis Video
View Broadcom stock analysis video. This is our AVGO analyst opinion covering the buy and sell arguments for AVGO stock.
Broadcom Ltd Stock Rating (2.8/5)
Our Broadcom stock opinion is based on fundamentals of the company. This Broadcom stock analysis is based on latest Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy AVGO stock?
- Broadcom's revenue growth came in at 133.7% in 2017 Q1.
- Long term revenue growth has been strong with a 5 year compounded annual growth of 46%.
- The company has an operating cash flow which is 5.7 times the net income. We see this as a positive signal.
- AVGO stock is trading at an earnings multiple of 20.1 which is better than the industry average of 25.8.
- The company has a healthy free cash flow margin of 24.8%.
Should you sell AVGO stock?
- Broadcom reported an average operating margin of -2.4% over the Last Twelve Months (LTM).
- Broadcom registered an average TTM Net loss of -12%.
- Broadcom is debt laden and has a high debt/equity ratio of 0.62.
- The company is trading at a price to sales multiple of 5.5, which is overvalued in comparison to the Electronics-Semiconductors industry average multiple of 2.6.
- The company has a negative Return on Invested Capital of -0.7%, which is a red flag.
- Broadcom has a negative ROE (Return On Equity) of -10%, indicating the company is not profitable.