Broadcom Stock Analysis (NASDAQ:AVGO)

Add to My Stocks
$223.2 $1.96 (0.89%) AVGO stock closing price Apr 25, 2017 (Closing)
Watch Robo Advisor Video of AVGO Stock Analysis
Updated on : Apr 25, 2017
previous close
AVGO 223.2 (0%)
NASDAQ 6025.5 (0%)
Closing Price On: Apr 25, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
Compared to the industry
Long Term Growth
5 Year CAGR:
Operating Profit
Operating Margin:
Sector Average:
5 Quarter Net Profit
Net Margins
LTM Margin
Debt/Equity Ratio
Debt/Equity Ratio:
Compared to the industry
Cash Flow
Operating cash flow:
Net Income:
Dividend Yield
AVGO dividend yield:
Recent Growth
Long Term Growth
Cash Flow
FCF Margin
PE Valuation
Operating Margins
Net Margins
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
Industry PS :
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
Return on Equity:
Free Cash Flow Margin:
Double Tap To Exit Full Screen

Broadcom Analysis Video

775 5 2

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.

Comments on this video and Broadcom stock