NasdaqGS:AVGO

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Executive Summary

Broadcom Inc. designs, develops, and supplies a range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. More Details


Snowflake Analysis

Reasonable growth potential average dividend payer.


Similar Companies

Share Price & News

How has Broadcom's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AVGO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

AVGO

-2.1%

US Semiconductor

-0.8%

US Market


1 Year Return

28.8%

AVGO

43.0%

US Semiconductor

18.0%

US Market

Return vs Industry: AVGO underperformed the US Semiconductor industry which returned 46.7% over the past year.

Return vs Market: AVGO exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

AVGOIndustryMarket
7 Day-1.4%-2.1%-0.8%
30 Day6.2%10.5%6.8%
90 Day22.1%17.8%8.9%
1 Year34.9%28.8%45.7%43.0%20.7%18.0%
3 Year65.2%47.6%80.4%70.9%41.5%32.1%
5 Year250.0%203.2%238.2%204.5%84.6%63.8%

Price Volatility Vs. Market

How volatile is Broadcom's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Broadcom undervalued compared to its fair value and its price relative to the market?

66.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AVGO ($373.37) is trading above our estimate of fair value ($303.72)

Significantly Below Fair Value: AVGO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AVGO is poor value based on its PE Ratio (66.8x) compared to the US Semiconductor industry average (40x).

PE vs Market: AVGO is poor value based on its PE Ratio (66.8x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: AVGO is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: AVGO is overvalued based on its PB Ratio (6.4x) compared to the US Semiconductor industry average (3.3x).


Next Steps

Future Growth

How is Broadcom forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

28.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVGO's forecast earnings growth (28.2% per year) is above the savings rate (2.2%).

Earnings vs Market: AVGO's earnings (28.2% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AVGO's revenue (5.5% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: AVGO's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AVGO's Return on Equity is forecast to be very high in 3 years time (43.8%).


Next Steps

Past Performance

How has Broadcom performed over the past 5 years?

28.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVGO has high quality earnings.

Growing Profit Margin: AVGO's current net profit margins (9.6%) are lower than last year (13.5%).


Past Earnings Growth Analysis

Earnings Trend: AVGO's earnings have grown significantly by 28.5% per year over the past 5 years.

Accelerating Growth: AVGO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AVGO had negative earnings growth (-25.8%) over the past year, making it difficult to compare to the Semiconductor industry average (7.5%).


Return on Equity

High ROE: AVGO's Return on Equity (10.5%) is considered low.


Next Steps

Financial Health

How is Broadcom's financial position?


Financial Position Analysis

Short Term Liabilities: AVGO's short term assets ($13.7B) exceed its short term liabilities ($6.7B).

Long Term Liabilities: AVGO's short term assets ($13.7B) do not cover its long term liabilities ($49.0B).


Debt to Equity History and Analysis

Debt Level: AVGO's debt to equity ratio (186.4%) is considered high.

Reducing Debt: AVGO's debt to equity ratio has increased from 88.1% to 186.4% over the past 5 years.

Debt Coverage: AVGO's debt is well covered by operating cash flow (25.5%).

Interest Coverage: AVGO's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Broadcom current dividend yield, its reliability and sustainability?

3.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AVGO's dividend (3.48%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: AVGO's dividend (3.48%) is low compared to the top 25% of dividend payers in the US market (4.67%).


Stability and Growth of Payments

Stable Dividend: AVGO's dividends per share have been stable in the past 10 years.

Growing Dividend: AVGO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (232.7%), AVGO's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AVGO's dividends in 3 years are forecast to be covered by earnings (58.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.0yrs

Average management tenure


CEO

Hock Tan (68 yo)

14.58yrs

Tenure

US$2,366,888

Compensation

Mr. Hock E. Tan is President, Chief Executive Officer and Director at Broadcom Inc. since March 2006. He is President, Chief Executive Officer and Director at Broadcom Corporation and Broadcom Technologies ...


CEO Compensation Analysis

Compensation vs Market: Hock's total compensation ($USD2.37M) is below average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Hock's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Hock Tan
CEO, President & Executive Director14.58yrsUS$2.37m0.057%
$ 86.3m
Thomas Krause
CFO & Secretary4.58yrsUS$17.85m0.00012%
$ 181.2k
Mark Brazeal
Chief Legal Officer3.58yrsUS$13.56m0.0020%
$ 3.0m
Charlie Kawwas
Senior VP & Chief Sales Officer5.33yrsUS$17.93m0.0035%
$ 5.3m
Boon Ooi
Senior Vice President of Global Operations11.75yrsUS$4.93mno data
Kirsten Spears
Chief Accounting Officer4.58yrsno data0.000070%
$ 105.7k
Andy Nallappan
Chief Information Officer & VP of Global Technology & Solutions8.75yrsno datano data
Beatrice Russotto
Director of Investor Relationsno datano datano data
Debbie Streeter
Vice President of Human Resourcesno datano datano data
Frank Ostojic
Senior VP & GM of ASIC Products Division13.75yrsno datano data
Greg Fischer
Senior VP & GM of Broadband Carrier Access Products Divisionno datano datano data
Rich Nelson
Senior VP & GM of Set-Top Box & Cable Modem Products Divisionno datano datano data

7.0yrs

Average Tenure

54yo

Average Age

Experienced Management: AVGO's management team is seasoned and experienced (7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hock Tan
CEO, President & Executive Director14.58yrsUS$2.37m0.057%
$ 86.3m
Justine Page
Independent Director1.33yrsUS$247.92k0.00041%
$ 619.2k
Eddy Hartenstein
Lead Independent Director1.83yrsUS$441.98k0.0088%
$ 13.3m
Henry Samueli
Chairman of the Board1.83yrsUS$3.03m1.51%
$ 2.3b
Raul Fernandez
Independent Director0.75yrno data0.000070%
$ 105.7k
Gayla Delly
Independent Director2.83yrsUS$338.48k0.00045%
$ 679.6k
Harry You
Independent Director1.75yrsUS$358.41k0.00022%
$ 332.3k
Check Kian Low
Independent Director3.83yrsUS$331.60k0.00068%
$ 1.0m
Diane Bryant
Independent Director1.75yrsUS$357.89k0.00025%
$ 377.6k

1.8yrs

Average Tenure

61yo

Average Age

Experienced Board: AVGO's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AVGO insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Broadcom Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Broadcom Inc.
  • Ticker: AVGO
  • Exchange: NasdaqGS
  • Founded: 2018
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$151.029b
  • Shares outstanding: 404.50m
  • Website: https://www.broadcom.com

Number of Employees


Location

  • Broadcom Inc.
  • 1320 Ridder Park Drive
  • San Jose
  • California
  • 95131
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
0YXGLSE (London Stock Exchange)YesCommon StockGBUSDAug 2009
1YDDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2009
AVGO *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNAug 2009
BROAWBAG (Wiener Boerse AG)YesCommon StockATEURAug 2009
AVGONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2009
1YDETLX (Eurotlx)YesCommon StockITEURAug 2009
AVGO34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 0.2 COM USD0.001BRBRLMay 2019
AVGO.PNasdaqGS (Nasdaq Global Select)8% MCNV PFD SR AUSUSDSep 2019

Biography

Broadcom Inc. designs, develops, and supplies a range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 00:54
End of Day Share Price2020/10/22 00:00
Earnings2020/08/02
Annual Earnings2019/11/03


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.