0.98 | 2.68%
BROADCOM CORP's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. BROADCOM CORP has strong liquidity. Currently, the Quick Ratio is 1.92 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 16.72% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 2005.0 | 1827.0 |
| EBITDA ($mil) | 305.0 | 250.0 |
| EBIT ($mil) | 208.0 | 168.0 |
| Net Income ($mil) | 191.0 | 88.0 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 2469.0 | 1675.0 |
| Total Assets ($mil) | 11400.0 | 9573.0 |
| Total Debt ($mil) | 1694.0 | 1196.0 |
| Equity ($mil) | 8032.0 | 6881.0 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 54.81 | 53.31 |
| EBITDA Margin | 15.21 | 13.68 |
| Operating Margin | 10.37 | 9.2 |
| Sales Turnover | 0.72 | 0.77 |
| Return on Assets | 7.21 | 8.22 |
| Return on Equity | 10.23 | 11.43 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 2.33 | 2.57 |
| Debt/Capital | 0.17 | 0.15 |
| Interest Expense | 8.0 | 6.0 |
| Interest Coverage | 26.0 | 28.0 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 571.0 | 551.0 |
| Div / share | 0.11 | 0.1 |
| EPS | 0.33 | 0.15 |
| Book value / share | 14.07 | 12.49 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 7468006.0 | 7221957.0 |
BUY. BROADCOM CORP's P/E ratio indicates a premium compared to an average of 22.37 for the Semiconductors & Semiconductor Equipment industry and a premium compared to the S&P 500 average of 18.47. To use another comparison, its price-to-book ratio of 2.54 indicates valuation on par with the S&P 500 average of 2.36 and a discount versus the industry average of 3.14. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BRCM 25.20 | Peers 22.37 | BRCM 10.51 | Peers 21.64 | |||||||||||||||||||||
|
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. |
Discount. 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 significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| BRCM 11.45 | Peers 21.50 | BRCM 0.19 | Peers 2.37 | |||||||||||||||||||||
|
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 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. BRCM trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| BRCM 2.54 | Peers 3.14 | BRCM 2.15 | Peers -27.97 | |||||||||||||||||||||
|
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 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. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| BRCM 2.50 | Peers 3.43 | BRCM 10.59 | Peers 3.28 | |||||||||||||||||||||
|
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. |
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. BRCM has a sales growth rate that significantly exceeds its peers. |
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