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 (2.7/5)
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?
- The Year Over Year (YoY) revenue growth for Broadcom was 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.
- The price to earnings multiple of 20.7 is attractive when compared with the industry average PE ratio of 26.1.
- The company has a good Free Cash Flow (FCF) margin of 24.8%.
Should you sell AVGO stock?
- Broadcom reported an average operating margin of -2.4% over the Last Twelve Months (LTM).
- Over the last 12 months, Broadcom had an average Net loss of -12%.
- With a debt/equity ratio of 0.62, Broadcom is highly leveraged in comparison to Computer and Technology peers.
- AVGO stock is trading at a PS multiple of 5.7, which is a negative when compared to the Electronics-Semiconductors industry average multiple of 2.7.
- The company has a negative Return on Invested Capital of -0.7%, which is a red flag.
- A negative ROE of -10% indicates that the company is not able to generate profits with the money shareholders have invested.