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Wednesday, May 17, 2023

Broadcom (AVGO)

 Broadcom Inc. is a semiconductor company based in San Jose, California. They design, develop, and supply various semiconductor devices, focusing on complex digital and mixed-signal devices. Their products are used in a wide range of applications, including networking, home connectivity, telecommunications, smartphones, data centers, and electronic displays.

The company operates in two segments: Semiconductor Solutions and Infrastructure Software. They offer a diverse range of products, such as set-top box system-on-chips (SoCs), wireless local area network access point SoCs, Ethernet switching and routing solutions, embedded processors, optical and copper devices, and RF semiconductor devices.

Broadcom also provides RF front-end modules, Wi-Fi and Bluetooth SoCs, custom touch controllers, charging solutions, storage controllers, and various other components. They serve industries such as enterprise networking, telecommunications, consumer electronics, and power generation.

As of the fiscal year 2022, Broadcom had approximately 20,000 full-time employees. The company officers include Mr. Hock E. Tan (President, CEO, & Executive Director), Ms. Kirsten M. Spears (CFO & Chief Accounting Officer), Mr. Mark D. Brazeal (Chief Legal & Corporate Affairs Officer), and Dr. Charlie B. Kawwas (President of Semiconductor Solutions).

Broadcom has a strong market presence and a robust financial performance. They have a market capitalization of $274.7 billion and are traded on the NASDAQ exchange under the symbol "AVGO." The stock's previous close was $641.44, and the current price is $658.87. The company has a dividend $18.4, yielding approximately 2.88%. The 52-week range for the stock is $415.07 to $658.87.

In terms of financials, Broadcom has a trailing price-to-earnings (P/E) ratio of 22.19 and a forward P/E ratio of 15.03. The company has a trailing annual dividend yield of 0.027 and a payout ratio of 0.5695. The five-year average dividend yield is 3.15%. The profit margins for Broadcom are 37.18%, indicating strong profitability.

Broadcom has a strong governance structure, with low audit, board, and shareholder rights risks. However, it has a relatively high compensation risk. The company has a diverse group of analysts covering its stock, with a mean recommendation of "buy" and a target mean price of $690.91.

Overall, Broadcom is a leading semiconductor company with a wide range of products, strong financial performance, and positive market sentiment.




Here are some key financial measures for Broadcom (AVGO):


1. EPS (Earnings Per Share): The EPS for Broadcom is $29.69. EPS represents the portion of a company's profit allocated to each outstanding share of common stock.

2. Trailing Price to Earnings Ratio: The trailing P/E ratio for Broadcom is 22.1916. It is calculated by dividing the current stock price by the EPS. The P/E ratio indicates the price investors are willing to pay for each dollar of earnings.

3. Price to Book Ratio: The price to book ratio for Broadcom is 11.7868. It compares the market value of a company's stock to its book value, which represents the net asset value of the company.

4. Dividend Yield: The dividend yield for Broadcom is 2.88%. It indicates the annual dividend payout as a percentage of the stock price. Dividend yield is often sought by income-focused investors.

5. Return on Equity (ROE): Broadcom's ROE is 55.274%. ROE measures a company's profitability by calculating the return generated on shareholder equity. It shows how effectively a company utilizes shareholders' investments.

6. Debt to Equity Ratio: Broadcom has a debt to equity ratio of 169.009. This ratio compares the company's total debt to its shareholder equity and indicates the level of financial leverage or risk.

7. Free Cash Flow: Broadcom's free cash flow is $13,501.2 million. Free cash flow represents the cash generated by the company after accounting for capital expenditures necessary to maintain or expand its asset base.

8. Market Capitalization: Broadcom's market capitalization is $274,699 million. Market capitalization is the total market value of a company's outstanding shares and is an indicator of its size and overall market perception.

9. Revenue Growth: Broadcom has achieved a revenue growth of 15.7%. This measure shows the rate at which the company's revenue has increased over a specified period, indicating its business growth.

10. Operating Margin: Broadcom's operating margin is 44.386%. It represents the percentage of revenue remaining after deducting operating expenses. The operating margin indicates the company's operational efficiency and profitability.

11. Forward Price to Earnings Ratio: The forward P/E ratio for Broadcom is 15.029. This ratio uses estimated future earnings and is a valuation measure to assess the company's future earnings potential.

These financial measures provide insights into Broadcom's profitability, valuation, growth, and financial health. Investors and analysts often consider these metrics when evaluating the company and making investment decisions.



                  Financial Measure  Percentile Stock
0                           EPS         95.959596
1                     P/E Ratio         46.875000
2                     P/B Ratio         82.417582
3            Dividend Yield (%)         50.000000
4              Return On Equity         86.363636
5                Debt to Equity         72.289157
6   Free cash Flow (in million)         81.176471
7       Market Cap (in million)         78.000000
8                Revenue Growth         89.690722
9              Operating Margin         91.752577
10                        Total        774.524741


The table provided compares the percentiles of various financial measures of Broadcom (AVGO) to the percentiles of financial measures for stocks in the S&P 100 index:

1. EPS: Broadcom's EPS percentile is 95.96, indicating that its earnings per share is higher than approximately 96% of the stocks in the S&P 100.

2. P/E Ratio: Broadcom's P/E ratio percentile is 46.88, suggesting that its price-to-earnings ratio is higher than about 47% of the stocks in the S&P 100.

3. P/B Ratio: Broadcom's P/B ratio percentile is 82.42, suggesting that its price-to-book ratio is higher than approximately 82% of the stocks in the S&P 100.

4. Dividend Yield: Broadcom's dividend yield percentile is 50.00, indicating that its dividend yield is higher than approximately 50% of the stocks in the S&P 100.

5. Return on Equity: Broadcom's return on equity percentile is 86.36, indicating that its ROE is higher than around 86% of the stocks in the S&P 100.

6. Debt to Equity: Broadcom's debt to equity percentile is 72.29, suggesting that its debt-to-equity ratio is higher than about 72% of the stocks in the S&P 100.

7. Free Cash Flow: Broadcom's free cash flow percentile is 81.18, indicating that its free cash flow is higher than approximately 81% of the stocks in the S&P 100.

8. Market Capitalization: Broadcom's market capitalization percentile is 78.00, suggesting that its market cap is higher than about 78% of the stocks in the S&P 100.

9. Revenue Growth: Broadcom's revenue growth percentile is 89.69, indicating that its revenue growth rate is higher than approximately 89% of the stocks in the S&P 100.

10. Operating Margin: Broadcom's operating margin percentile is 91.75, suggesting that its operating margin is higher than about 92% of the stocks in the S&P 100.

Overall, when compared to the financial measures of stocks in the S&P 100, Broadcom performs favorably in several areas, including EPS, return on equity, revenue growth, and operating margin. However, its valuation measures, such as P/B ratio, are not as favorable when compared to a significant portion of the S&P 100 stocks.

These visual representations provide an overview of how Broadcom (AVGO)'s financial measures rank relative to the S&P 100 stocks. The percentile values indicate the position of each measure compared to the other companies in the S&P 100 index.



The shaded area in the table indicates that Broadcom's financial measures align closely with the percentiles of S&P 100 stocks. This suggests a well-balanced performance in relation to its peers. When various financial measures cluster around the 70th percentile, it indicates that Broadcom's performance is above the average performance of the S&P 100 stocks. A circle can be used as a visual metaphor to represent balance in this context. The circular shape implies that Broadcom's financial measures are distributed evenly above the average, indicating a balanced performance across multiple metrics. This balance suggests that Broadcom is significantly outperforming its peers in most areas, resulting in a well-rounded financial profile.


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