Fundamental analysis · SEC EDGAR · TTM through 03/05/2026

Fundamental analysis of Broadcom Inc.

AVGO · Nasdaq · Technology

Fundamental quality

EXCELLENT

92

out of 100

Broadcom Inc. fits the profile of a quality compounder: it pairs high return on capital (ROE 33.4%) with wide margins (net margin 38.8%) and a business that keeps growing (23.3% a year). On fundamental quality it scores 92 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Broadcom designs semiconductors (chips for networking, broadband and, increasingly, AI) and, after several acquisitions, is also an enterprise-software giant (VMware).

What will shape its future

  • Demand for its custom AI chips from big-tech customers.
  • Integrating and monetizing its software acquisitions, especially VMware.
  • Its leveraged-acquisition model and concentration in a few large customers.

Breakdown by area

I.Growth
95

EPS growth: 51.7% · Revenue growth: 23.3%

II.Profitability
93

Net margin: 38.8% · ROE: 33.4% · ROIC: 23.4%

III.Financial health
88

Net debt/EBITDA: 1.41x · FCF: 43.4%

Source: SEC EDGAR · TTM through 03/05/2026

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 92%
ROEbeats 73%
Growthbeats 73%
Cash generationbeats 97%
Less debtbeats 37%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Broadcom Inc. strengths

  • Excellent free-cash-flow generation (FCF margin of 43.4%): profit turns into real cash.
  • Expanding margins: net margin has risen from 12% to 36% in recent years.
  • Growing earnings per share (51.7% annualized).
  • Exceptional net margin (38.8%), high even for its sector: the business is clearly profitable.

Broadcom Inc. risks and weaknesses

  • Its net debt has grown over the period.

Broadcom Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
202023,8882,96011,59833,880
202127,4506,73613,32129,336
202233,20311,49516,31227,062
202335,81914,08217,63324,995
202451,5745,89519,41460,499
202563,88723,12626,91450,942

Between 2020 and 2025, revenue went from $23,888M to $63,887M (+167%) and net income went from $2,960M to $23,126M (+681%). Meanwhile, its margins have widened (from 12% to 36%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended May 3, 2026, versus the half-year ended May 4, 2025 (SEC filings):

  • Revenue+38.7%
  • Net income+59.1%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$2.36

per share, yearly

48.2% of earnings

Payout

at least 3 straight years raising it

Growth

That is what we can verify in the SEC filings, whose structured data only starts in 2008 and which many companies begin tagging later. The real streak may be considerably longer.

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Broadcom Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Broadcom Inc. a good company to invest in?

In terms of business quality, Broadcom Inc. scores 92 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Broadcom Inc. a profitable company?

Very. Broadcom Inc. shows a net margin of 38.8% and an ROE of 33.4%, typical of a highly profitable business.

Does Broadcom Inc. have a lot of debt?

Not particularly. Its net debt is 1.41 times its EBITDA, a low level.

Is Broadcom Inc. growing?

Its revenue has grown 23.3% annualized in recent years and its earnings per share 51.7%, and without interruption since 2020.

Does Broadcom Inc. generate cash?

Yes. It converts about 43.4% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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