BROADCOM CORP'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. Even though sales decreased, the net income has increased, representing an increase to the bottom line. BROADCOM CORP is extremely liquid. Currently, the Quick Ratio is 3.12 which clearly shows the ability to cover any short-term cash needs. BRCM managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has increased by 15.84% 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 ($mil)||2187.0||2260.0|
|Net Income ($mil)||429.0||98.0|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||3464.0||3322.0|
|Total Assets ($mil)||13235.0||12215.0|
|Total Debt ($mil)||1594.0||1593.0|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||56.84||56.24|
|Return on Assets||10.68||3.52|
|Return on Equity||14.15||4.98|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||609.0||592.0|
|Div / share||0.14||0.12|
|Book value / share||16.4||14.57|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||7228870.0||5331776.0|
BUY. BROADCOM CORP's P/E ratio indicates a premium compared to an average of 22.01 for the Semiconductors & Semiconductor Equipment industry and a premium compared to the S&P 500 average of 20.88. To use another comparison, its price-to-book ratio of 3.32 indicates a premium versus the S&P 500 average of 2.48 and a discount versus the industry average of 4.49. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. The valuation analysis reveals that, BROADCOM CORP seems to be trading at a premium to investment alternatives within the industry.
|BRCM 23.70||Peers 22.01||BRCM 17.58||Peers 16.48|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
BRCM is trading at a valuation on par with 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.
BRCM is trading at a valuation on par to its peers.
|BRCM 18.35||Peers 16.56||BRCM 0.15||Peers 1.62|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
BRCM is trading at a premium 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.
BRCM trades at a significant discount to its peers.
|BRCM 3.32||Peers 4.49||BRCM 215.06||Peers 31.32|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
BRCM is trading at a significant discount to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
BRCM is expected to have an earnings growth rate that significantly exceeds its peers.
|BRCM 3.91||Peers 3.78||BRCM 1.61||Peers 8.21|
Average. 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.
BRCM is trading at a valuation on par with its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
BRCM significantly trails its peers on the basis of sales growth
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