BROADCOM INC Stock Analysis, Valuation (NASDAQ:AVGO)
Investors can watch the Amigobulls BROADCOM INC stock analysis video here. Our analyst opinion covering the buy and sell arguments for AVGO stock is shown in the video.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
BROADCOM INC Stock Rating 4.3/5
Amigobulls AVGO stock analysis uses latest quarter 2018 Q2 financial data like BROADCOM INC revenue growth, profit margins and cash flows. We also use relative valuation metrics like PE ratio and price to sales ratio for BROADCOM INC valuation analysis. BROADCOM INC stock rating encapsulates our opinion about the company based on the fundamentals.
Should you buy AVGO stock?
- BROADCOM INC's revenue growth came in at 19.7% in 2018-04.
- The company saw a significant growth in revenue with a 5 year CAGR of 52.8.
- BROADCOM INC's average operating margin of 18.05 was exceptional.
- LTM Net margins were good at 56.3% for BROADCOM INC.
- The price to earnings multiple of 12.3 is attractive when compared with the sector average PE ratio of 25.8.
- BROADCOM INC generates a high return on invested capital of 5.3.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for BROADCOM INC at 42.8.
- The company has a good Free Cash Flow (FCF) margin of 42.4.
Should you sell AVGO stock?
- BROADCOM INC has a debt/equity ratio of 0.55, which is worse than the average in the Computer and Technology sector.
- Cash flow from operations is 0.6221 times net income which is a negative signal.
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Investors can make use of the Amigobulls BROADCOM INC stock analysis to ascertain how AVGO stock fares in fundamental analysis investment criteria. Fundamentals of a company give detailed information which helps in making invesment decisions.
BROADCOM INC revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.