BROADCOM CORP's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. BROADCOM CORP is extremely liquid. Currently, the Quick Ratio is 2.49 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 8.91% 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 FY14||Q3 FY13|
|Net Sales ($mil)||2260.0||2146.0|
|Net Income ($mil)||98.0||316.0|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||3322.0||2404.0|
|Total Assets ($mil)||12215.0||11345.0|
|Total Debt ($mil)||1593.0||1694.0|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||56.24||55.36|
|Return on Assets||3.52||4.46|
|Return on Equity||4.98||6.4|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||592.0||568.0|
|Div / share||0.12||0.11|
|Book value / share||14.57||13.94|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||5734260.0||6412788.0|
BUY. BROADCOM CORP's P/E ratio indicates a significant premium compared to an average of 30.68 for the Semiconductors & Semiconductor Equipment industry and a significant premium compared to the S&P 500 average of 19.74. To use another comparison, its price-to-book ratio of 2.94 indicates valuation on par with the S&P 500 average of 2.73 and a significant discount versus the industry average of 4.45. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.
|BRCM 58.67||Peers 30.68||BRCM 15.29||Peers 14.39|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
BRCM is trading at a significant 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 12.96||Peers 18.92||BRCM 0.19||Peers 0.69|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
BRCM is trading at a 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.
BRCM trades at a significant discount to its peers.
|BRCM 2.94||Peers 4.45||BRCM -17.05||Peers 52.89|
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.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, BRCM is expected to significantly trail its peers on the basis of its earnings growth rate.
|BRCM 3.04||Peers 4.17||BRCM 0.33||Peers 16.53|
Discount. 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 significant discount to 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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