Is the business good?
How good a business is AVGO?
Broadcom earns 19% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
19%
Return on invested capital · cost of capital 9.0% · 10 points above what the capital costs: growth creates value
- Operating margin
- 43%
Operating margin · Semiconductors median 8.5% · 12 months to Q2 2026
- Cash conversion
- 1.12×
Cash conversion · 1.76× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- +1.0%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 17% |
| FY2021 | 31% |
| FY2022 | 43% |
| FY2023 | 45% |
| FY2024 | 26% |
| FY2025 | 40% |
Details›
- Gross margin12 months to Q2 2026
- 68%
- Operating margin12 months to Q2 2026
- 43%
- Net margin12 months to Q2 2026
- 39%
- Free cash flow margin
- 43%
- R&D as % of revenue
- 16%
- Revenue, trailing twelve months
- $75.5B
- Free cash flow, trailing twelve months
- $32.8B
- Net income, trailing twelve months
- $29.3B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 19%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Semiconductors
Ranks #12 of 48 by Smart Score