Broadcom Inc.

Technology
Semiconductors
www.broadcom.com

Earnings Score
Moat Score
Safety Score

Market Cap $969.17B
PE 164
Debt $71.12B
Cash $9.35B
EV $1.03T
FCF $19.41B

Earnings

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Sales & Net Margins

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Earnings	$5.90B
EBIT	$13.46B
ROE	9%
ROA	8%
FCF	$19.41B
Equity	$67.68B
Growth Stability	48%
PE	164.41
PEG	4.34
PB	14.32
P/FCF	49.92
P/S	18.79
Price/Cash	0.01
Debt/Equity	1.05
Debt/FCF	3.66
Net Margins	11%
Gross Margins	63%
Op. Margins	26%
Earnings CAGR	14%
Sales Growth YoY	51%
Sales Growth QoQ	8%
Sales CAGR	14%
FCF CAGR	18%
Equity CAGR	8%
Earnings Stability	-0.02
Earnings Growth YoY	23%
Earnings Growth QoQ	-331%
Earnings CAGR 5Y	38%

Sales CAGR 5Y	18%
FCF CAGR 5Y	16%
Equity CAGR 5Y	22%
Earnings CAGR 3Y	21%
Sales CAGR 3Y	21%
FCF CAGR 3Y	12%
Equity CAGR 3Y	66%
Market Cap	$969.17B
Revenue	$51.57B
Dividend Yield	1%
Payout Ratio	166%
Assets	$165.65B
Total Debt	$71.12B
Cash	$9.35B
Shares Outstanding	4.43B
EV	1.03T
Earnings Score	6%
Moat Score	88%
Safety Score	63%
Final Score	52%
Working Capital	2.9B
Current Ratio	1.17
Gross Profit	$32.51B
Shares Growth 3y	5%
Equity Growth QoQ	3%
Equity Growth YoY	182%

Assets & ROA

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Stockholders Equity & ROE

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Broadcom Inc. designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software. It provides set-top box system-on-chips (SoCs); cable, digital subscriber line, and passive optical networking central office/consumer premise equipment SoCs; wireless local area network access point SoCs; Ethernet switching and routing custom silicon solutions; embedded processors and controllers; serializer/deserializer application specific integrated circuits; optical and copper, and physical layer devices; and fiber optic components and RF semiconductor devices.

SEC Filings

Direct access to Broadcom Inc. (AVGO) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Nov 03
- 10-Q Aug 04
- 10-Q May 05
- 10-Q Feb 04
2023
- 10-K Oct 29
- 10-Q Jul 30
- 10-Q Apr 30
- 10-Q Jan 29
2022
- 10-K Oct 30
- 10-Q Jul 31
- 10-Q May 01
- 10-Q Jan 30

Sector Comparison

How does Broadcom Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Broadcom Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 14%

Stability -2%

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Broadcom Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Broadcom Inc..

Years

Calculation mode

= $671B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$19B	$23B	$27B	$32B	$37B	$44B	$52B	$61B	$72B	$84B	$99B	$995B
DCF		$21B	$22B	$24B	$25B	$27B	$29B	$31B	$33B	$36B	$38B	$384B
Value	$671B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	10/2016	10/2017	11/2018	11/2019	10/2020	10/2021	10/2022	10/2023	11/2024	TTM
Net Margins	-14%	10%	59%	12%	11%	23%	34%	39%	11%	11%
ROA	-	4%	10%	5%	6%	11%	19%	22%	8%	8%
ROE	-	7%	46%	11%	11%	26%	49%	59%	9%	9%

Good Net Margins (11.43%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	10/2016	10/2017	11/2018	11/2019	10/2020	10/2021	10/2022	10/2023	11/2024	TTM
Debt over FCF	-	3.25	2.14	3.87	3.65	3.14	2.55	2.41	3.66	3.66
Debt over Equity	-	0.77	0.66	1.44	1.77	1.67	1.83	1.77	1.05	1.05
Growth Stability	-	-	-	67%	48%	100%	100%	100%	56%	48%

Neutral Debt/FCF ratio (3.66)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (1.05)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (48%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	10/2016	10/2017	11/2018	11/2019	10/2020	10/2021	10/2022	10/2023	11/2024	CAGR 5Y
Revenue YoY growth	-	33%	18%	8%	6%	15%	21%	8%	44%	18%
Earnings YoY growth	-	-191%	625%	-78%	-1%	142%	74%	25%	-58%	38%
Equity YoY growth	-	6%	15%	-6%	-4%	5%	-9%	6%	182%	22%
FCF YoY growth	-	104%	50%	12%	25%	15%	22%	8%	10%	16%