Broadcom Inc. (AVGO) Stock Analysis

Analysis from 10-K filed 2025-12-18. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 21.7%. FCF margin 43.4%. D/E 0.7x. Source: 10-K filed 2025-12-18.

Metric	Value	Context
ROIC	21.7%	Above industry average
FCF Margin	43.4%	Strong cash generation
Debt/Equity	0.7x	Moderate leverage

ROIC 21.7% — Top 25% of sector peers. FCF margin 43.4% — Top 5%.

Explore Broadcom Inc.: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for AVGO: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: Broadcom Inc. earns 21.7% ROIC, Top 25% in Technology

ROIC TTM 21.7%, sector median 3.6%, Top 25%. DuPont: NOPAT margin 41.7% × asset turnover 0.4x. Gross margin 68.3%. Operating margin 43.4%. Source: 10-K filed 2025-12-18.

Metric	AVGO	Rating	Context
Return on Invested Capital (ROIC)	21.7%	Excellent	Above sector median of 3.6%
Return on Equity (ROE)	37.5%	Excellent	Efficient use of shareholder equity
Gross Margin	68.3%	Excellent	Strong pricing power
Operating Margin	43.4%	Excellent	Efficient operations

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Cash Flow: Broadcom Inc. generates $32.8B FCF at 43.4% margin, positive NaN/8 quarters

FCF TTM $32.8B. FCF margin 43.4%, Top 5%. OCF/Net income 1.1x. Positive FCF in NaN/8 trailing quarters. Source: 10-K filed 2025-12-18.

Metric	AVGO	Rating	Context
Free Cash Flow Margin	43.4%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$32.8B	Good	Positive cash generation
OCF/Net Income	1.1x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Broadcom Inc. at 0.7x leverage

Debt/Equity 0.7x. Total debt $64.9B, cash & investments $19.6B. Source: 10-K filed 2025-12-18.

Metric	AVGO	Rating	Context
Debt to Equity	0.7x	Adequate	Moderate leverage
Net Cash Position	$-45.3B	Warning	Net debt position

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Valuation: Broadcom Inc. trades at 67.4x earnings

P/E 67.4x. EV/Sales 26.9x. FCF yield 1.7%. Dividend yield 0.6%. Source: 10-K filed 2025-12-18.

Metric	AVGO	Rating	Context
P/E Ratio	67.4x	Warning	Premium valuation
EV/Sales	26.9x	Warning	Growth premium priced in
FCF Yield	1.7%	Warning	Lower cash yield
Dividend Yield	0.6%	Adequate	Growth focus over income

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Capital Allocation: Broadcom Inc. returns 1.0% shareholder yield

Total shareholder yield 1.0% (div 0.6% + buyback 0.4%). Capital returned $20.2B TTM. Source: 10-K filed 2025-12-18.

Metric	AVGO	Rating	Context
Total Shareholder Yield	1.0%	Adequate	Dividend + buyback yield combined
Buyback Yield	0.4%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$20.2B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	21.7%	Top 25%	6.1x above
Free Cash Flow Margin	43.4%	Top 5%	5.1x above
Gross Margin	68.3%	Top 50%	1.4x above
Operating Margin	43.4%	Top 5%	9.5x above
Return on Equity (ROE)	37.5%	Top 25%	6.9x above
P/E Ratio	67.4x	N/A	-

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Financial Scorecard

Metric	AVGO	Rating	Sector Context
Return on Invested Capital (ROIC)	21.7%	Excellent	Top 25% of sector (median: 3.6%)
Free Cash Flow Margin	43.4%	Excellent	Top 5% of sector (median: 8.5%)
Gross Margin	68.3%	Excellent	Top 50% of sector (median: 49.9%)
Debt to Equity Ratio	74.0%	Adequate	Elevated but manageable
P/E Ratio (Price-to-Earnings)	67.4x	Warning	High expectations priced in
Free Cash Flow Yield	1.7%	Warning	Growth-focused valuation

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Frequently Asked Questions

Q: What is Broadcom Inc.'s Return on Invested Capital (ROIC)?

Broadcom Inc. (AVGO) has a trailing twelve-month Return on Invested Capital (ROIC) of 21.7%. Sector median 3.6%. Source: 10-K filed 2025-12-18.

Q: What is Broadcom Inc.'s Free Cash Flow Margin?

Broadcom Inc. (AVGO) has a free cash flow margin of 43.4%, generating $32.8 billion in free cash flow over the trailing twelve months. Source: 10-K filed 2025-12-18.

Q: What is Broadcom Inc.'s P/E ratio and how does it compare to peers?

Broadcom Inc. (AVGO) trades at a P/E ratio of 67.4x, which is above the sector median of N/A. EV/Sales 26.9x. FCF yield 1.7%. Source: 10-K filed 2025-12-18.

Q: Does Broadcom Inc. pay a dividend?

Broadcom Inc. (AVGO) currently pays a dividend yield of 0.6%. Total shareholder yield (dividend + buybacks) 1.0%. Source: 10-K filed 2025-12-18.

Q: How much debt does Broadcom Inc. have?

Broadcom Inc. (AVGO) has a debt-to-equity ratio of 0.7x with total debt of $64.9 billion. Net debt $45.3 billion. Source: 10-K filed 2025-12-18.

Q: What is Broadcom Inc.'s revenue and earnings growth?

Broadcom Inc. (AVGO) grew revenue by 32.3% year-over-year. EPS +122.8% YoY. Source: 10-K filed 2025-12-18.

Q: Is Broadcom Inc. buying back stock?

Broadcom Inc. (AVGO) repurchased $8.4 billion of stock over the trailing twelve months. This represents a buyback yield of 0.4%. Source: 10-K filed 2025-12-18.

Q: How does Broadcom Inc. compare to competitors in Technology?

Compared to other companies in Technology, Broadcom Inc. (AVGO) shows: ROIC 21.7%, sector median 3.6% (Top 25%). FCF margin 43.4%, sector median 8.5% (Top 5%). Gross margin 68.3%, 18.4pp above sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.

Q: What warning signs should I watch for with Broadcom Inc.?

No quantitative warning flags fired for Broadcom Inc. (AVGO) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-K filed 2025-12-18.

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Data Source: Data sourced from 10-K filed 2025-12-18. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.