BROADCOM CORP's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. BROADCOM CORP is extremely liquid. Currently, the Quick Ratio is 2.66 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 10.72% 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||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||2096.0||2041.0|
|Net Income ($mil)||386.0||-1.0|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||3184.0||3133.0|
|Total Assets ($mil)||12990.0||11971.0|
|Total Debt ($mil)||1594.0||1395.0|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||58.73||57.03|
|Return on Assets||8.33||5.41|
|Return on Equity||11.27||7.47|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||607.0||591.0|
|Div / share||0.14||0.12|
|Book value / share||15.82||14.68|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1.0065723E7||6256110.0|
BUY. BROADCOM CORP's P/E ratio indicates a premium compared to an average of 23.57 for the Semiconductors & Semiconductor Equipment industry and a premium compared to the S&P 500 average of 20.51. To use another comparison, its price-to-book ratio of 3.13 indicates a premium versus the S&P 500 average of 2.73 and a discount versus the industry average of 4.47. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average.
|BRCM 27.94||Peers 23.57||BRCM 16.02||Peers 15.87|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
BRCM 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.
BRCM is trading at a valuation on par to its peers.
|BRCM 16.43||Peers 16.44||BRCM 0.18||Peers 0.75|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
BRCM is trading at a valuation on par with 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 3.13||Peers 4.47||BRCM 58.03||Peers 40.77|
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 3.51||Peers 3.69||BRCM 3.91||Peers 14.64|
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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