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Broadcom (AVGO) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NasdaqGS•Technology•Semiconductors
A
ExcellentMetricSide Score: 91/100
ProfitabilityProfit30/30
GrowthGrowth25/25
Balance SheetBalance19/25
Cash QualityCash17/20
Price & Volume
Market Cap $1.71T

Broadcom Inc. designs, develops, and supplies various semiconductor devices and infrastructure software solutions internationally. The company operates in two segments: Semiconductor Solutions and Infrastructure Software. The company offers networking connectivity, such as custom silicon solutions, ethernet switching & routing, ethernet NIC controllers, physical layer devices, and fiber optic components; wireless device connectivity, including RF semiconductor devices, connectivity solutions, custom touch controllers, and inductive charging ASICS; servers and storage system solutions, such as PCIE switches, SAS & raid products, fibre channel products, and HDD & SSD solutions; broadband solutions, includes set-top box, and broadband access; and industrial. The company also offers a private cloud software portfolio, including the VMware Cloud Foundation, Edge, vSphere foundation, telco cloud platform, private AI, live recovery, application networking and security, application development and data services; mainframe software, such as AIOPS & automation, database & data management, DEVX & DEVOPS, cybersecurity & compliance management, beyond code programs, foundational & open mainframe solutions; cybersecurity, such as endpoint, network, information, application security, and identity & access management; enterprise software; and fc san management. Its products are used in various applications in enterprise and data center networking, including artificial intelligence networking and connectivity, home connectivity, set-top boxes, broadband access, telecommunication equipment, wireless device and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays. Broadcom Inc. was founded in 1961 and is headquartered in Palo Alto, California.

Moat Signals

Competitive analysis based on 33 quarters of fundamental data

Pricing Power

Strong Moat

Operating margins are expanding at ~39.3%, suggesting durable pricing power and cost discipline.

Competitive Advantage

Moderate Moat

ROE averages 21.1% but has fluctuated — the competitive advantage may be cyclical or emerging.

Cash Generation

Strong Moat

Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.

Demand Durability

Strong Moat

TTM revenue has grown consistently (7 of 7 quarters up), with ~61.2% growth over the period. Strong demand durability.

Risk Signals

Data-driven red flags and warnings across 33 quarters

Low Risk

Margin Pressure

Healthy

Margins are stable or improving at ~42.9% — no sign of cost or pricing stress.

Earnings Quality

Healthy

FCF covers net income by 0.7x on average — earnings are well-supported by cash generation.

Leverage Risk

Healthy

D/E ratio is 0.7 — conservative capital structure with low financial risk.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Healthy

Free cash flow is consistently positive — the business self-funds without external capital reliance.

Share Dilution

Healthy

Share count is stable — no significant dilution or buyback activity.

Metrics at a Glance

as of May 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$75.47B
32.3%
Q. Revenue
$22.19B
TTM EBITDA
$41.50B
38.4%
TTM Op. Income
$32.75B
59.7%
Q. Op. Income
$10.79B
TTM Net Income
$29.32B
127.0%
Q. Net Income
$9.31B
EPS
$1.96
Shares Out.
$4.75B
0.8%
$75.47B in TTM revenue grew 32.3% YoY, reaching $22.19B last quarter. TTM EBITDA of $41.50B and TTM operating income of $32.75B shows growth is flowing through. Net income of $29.32B TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
69.5%
2.2%
EBITDA Margin
58.4%
Op. Margin
48.6%
25.2%
Net Margin
42.0%
26.8%
Op. margin of 48.6% is up 9.8% YoY — cost efficiency is improving. Net margin at 42.0% and gross margin of 69.5% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
58.4x
P/S Ratio
22.7x
P/B Ratio
19.5x
At 58.4x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 22.7x and P/B of 19.5x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$179.16B
Cash
$19.63B
Long-Term Debt
$62.66B
Book Value
$87.69B
D/E Ratio
0.7
Debt/EBITDA
4.8
With $179.16B in assets and $62.66B in long-term debt, the D/E of 0.7and book value of $87.69B — shows a conservative capital structure — the company has a strong financial cushion to weather downturns.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$10.49B
Free Cash Flow
$10.26B
60.1%
FCF Margin
13.6%
FCF / Net Income
1.1
FCF of $10.26B on $10.49B in operating cash flow. The FCF / Net Income ratio of 0.4x indicates partial cash conversion — earnings quality needs attention.

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