ScoreWhy is Broadcom Inc. ?
1
High Management Efficiency with a high ROCE of 18.75%
2
Healthy long term growth as Net Sales has grown by an annual rate of 22.57% and Operating profit at 39.37%
3
With a growth in Net Profit of 87.51%, the company declared Outstanding results in Apr 26
- The company has declared positive results for the last 6 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at USD 33,622 MM
- ROCE(HY) Highest at 37.28%
- DEBT-EQUITY RATIO (HY) Lowest at 51.63 %
4
With ROCE of 21.54%, it has a very expensive valuation with a 11.20 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 49.21%, its profits have risen by 118% ; the PEG ratio of the company is 0.5
5
High Institutional Holdings at 88.12%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 10.21% over the previous quarter.
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Broadcom Inc. should be less than 10%
- Overall Portfolio exposure to Other Electrical Equipment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Broadcom Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Broadcom Inc.
-100.0%
3.61
45.71%
S&P 500
22.93%
1.75
13.09%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
22.57%
EBIT Growth (5y)
39.37%
EBIT to Interest (avg)
6.19
Debt to EBITDA (avg)
2.08
Net Debt to Equity (avg)
0.83
Sales to Capital Employed (avg)
0.40
Tax Ratio
22.77%
Dividend Payout Ratio
49.52%
Pledged Shares
0
Institutional Holding
88.12%
ROCE (avg)
18.75%
ROE (avg)
32.83%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
56
Industry P/E
Price to Book Value
17.82
EV to EBIT
51.98
EV to EBITDA
39.73
EV to Capital Employed
11.20
EV to Sales
21.61
PEG Ratio
0.48
Dividend Yield
0.82%
ROCE (Latest)
21.54%
ROE (Latest)
31.96%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend35What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 33,622 MM
ROCE(HY)
Highest at 37.28%
DEBT-EQUITY RATIO
(HY)
Lowest at 51.63 %
DIVIDEND PER SHARE(HY)
Highest at USD 5.91
NET SALES(Q)
Highest at USD 22,187 MM
INTEREST COVERAGE RATIO(Q)
Highest at 1,679.64
OPERATING PROFIT(Q)
Highest at USD 13,034 MM
PRE-TAX PROFIT(Q)
Highest at USD 10,211 MM
RAW MATERIAL COST(Y)
Fallen by -3.86% (YoY
CASH AND EQV(HY)
Highest at USD 33,802 MM
OPERATING PROFIT MARGIN(Q)
Highest at 58.75 %
NET PROFIT(Q)
Highest at USD 9,384.44 MM
EPS(Q)
Highest at USD 1.91
-4What is not working for the Company
DIVIDEND PAYOUT RATIO(Y)
Lowest at 34.04%
INVENTORY TURNOVER RATIO(HY)
Lowest at 8.17 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.91 times
Here's what is working for Broadcom Inc.
Operating Cash Flow
Highest at USD 33,622 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 22,187 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Interest Coverage Ratio
Highest at 1,679.64
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit
Highest at USD 13,034 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 10,211 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Debt-Equity Ratio
Lowest at 51.63 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Dividend per share
Highest at USD 5.91 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
At USD 22,187 MM has Grown at 47.87%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit Margin
Highest at 58.75 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
At USD 10,211 MM has Grown at 96.4%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 9,384.44 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Profit
At USD 9,384.44 MM has Grown at 84.87%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 1.91
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Cash and Eqv
Highest at USD 33,802 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -3.86% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Broadcom Inc.
Inventory Turnover Ratio
Lowest at 8.17 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 5.91 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Dividend Payout Ratio
Lowest at 34.04%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
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