馃洔 BROADCOM INC FINANCIAL ANALYSIS 馃洔

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馃洔 BROADCOM INC FINANCIAL ANALYSIS 馃洔


Broadcom Inc. designs, develops, and supplies various semiconductor devices and infrastructure software solutions internationally. The company operates in two segments: Semiconductor Solutions and Infrastructure Software. The company offers networking connectivity, inductive charging ASICS, servers and storage system solutions, broadband solutions, private cloud software portfolio, cybersecurity, etc.

Based on a sample of the last year [05/06/26 TTM], its average margins have been:
- Gross margin: ≈ 68.2%
- Operating margin: ≈ 42.9%
- EBITDA margin: ≈ 54.7%
- Net margin: ≈ 38.3%
- Debt Net / EBITDA: ≈ 3.49x
- FCF margin: ≈ 38.4%
- FCF conversion: ≈ 69.7%
- FCF coverage: ≈ 13.6%

Pros:
- High demand for AI chips
- Margin expansion and financial discipline for a company with high CAPEX spending
- Stable EPS growth

Cons:
- Slowdown of non-AI chips (core business)
- Hesitant guidance on continued growth in the future
- High valuations ratios

According to the last previous report, their normalized annual EPS was ≈ $6.19 USD and its last average ROIC [TTM] was ≈ 21.4%. If an annual Forward PER 50 is set up as a benchmark with an EPS intensity of ± 0.4264x, the potential forward spread target for the next ≈ 12 months could be:
- Optimistic: ≈ $ 441.6 USD
- Neutral: ≈ $ 309.6 USD
- Negative: ≈ $ 177.6 USD
At least, an EPS of $0.877 USD is required for the next quarter, to keep the metrics.

If an annal Forward EV/EBITDA 30 is set, an EBITDA increases of ± 44.5%, a Net Debt increases of ± 15.54%, a Dividends increase of 0.0% and Shares Outstanding increases of ± 0.90%, the potencial spread price target for the next 12 months could be:
- Optimistic: ≈ $ 395.4 USD
- Neutral: ≈ $ 294.5 USD
- Negative: ≈ $ 191.6 USD

If an annual average Forward EV/FCF 50 is set, and FCF rate change of ± 38.3% and Shares Outstanding increases of ± 0.0%, the potencial spread price target for the next 12 months could be:
- Optimistic: ≈ $ 433.1 USD
- Neutral: ≈ $ 310.5 USD
- Pessimistic: ≈ $ 187.74 USD

Finally, the JJPL spread price target for the next 12 months could be:
- Optimistic: ≈ $ 412.5 USD
- Neutral: ≈ $ 304.9 USD
- Pessimistic: ≈ $ 196.6 USD


The best analysis is yours!


J. Joel Padilla
▶️ Telegram: https://t.me/JJPL_Index




Copyright: Joel Padilla 2026



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