AVAGO TECHNOLOGIES LTD's gross profit margin for the third quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. AVAGO TECHNOLOGIES LTD is extremely liquid. Currently, the Quick Ratio is 2.27 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 38.18% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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|Income Statement||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||1735.0||1269.0|
|Net Income ($mil)||240.0||-164.0|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||1354.0||1277.0|
|Total Assets ($mil)||9988.0||10262.0|
|Total Debt ($mil)||3961.0||5518.0|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||63.4||60.84|
|Return on Assets||10.71||2.92|
|Return on Equity||24.71||11.1|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||274.91||252.69|
|Div / share||0.4||0.29|
|Book value / share||15.57||12.26|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3709936.0||3552112.0|
BUY. AVAGO TECHNOLOGIES LTD's P/E ratio indicates a premium compared to an average of 24.97 for the Semiconductors & Semiconductor Equipment industry and a premium compared to the S&P 500 average of 21.21. For additional comparison, its price-to-book ratio of 7.49 indicates a significant premium versus the S&P 500 average of 2.68 and a significant premium versus the industry average of 4.50. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, AVAGO TECHNOLOGIES LTD proves to trade at a premium to investment alternatives within the industry.
|AVGO 31.03||Peers 24.97||AVGO 14.97||Peers 15.14|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
AVGO is trading at a premium to its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
AVGO is trading at a valuation on par to its peers.
|AVGO 12.22||Peers 17.88||AVGO 0.05||Peers 0.73|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
AVGO is trading at a significant discount to its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
AVGO trades at a significant discount to its peers.
|AVGO 7.49||Peers 4.50||AVGO 180.59||Peers 47.09|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
AVGO is trading at a significant premium to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
AVGO is expected to have an earnings growth rate that significantly exceeds its peers.
|AVGO 4.88||Peers 3.94||AVGO 92.39||Peers 12.62|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
AVGO is trading at a premium to its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
AVGO has a sales growth rate that significantly exceeds its peers.
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