To The Moon

Earnings Calendar (02Jun25)

The interesting earnings this week include Crowdstrike, NIO, Asana, Broadcom and Campbell’s.

Revenue:

• Revenue grew from $6,824M (2015) to $51,574M (2024).

• Growth: Revenue increased significantly from $6,824M to $51,574M, a compound annual growth rate (CAGR) of about 28.3%.

Operating Margin:

• Operating Margin grew from 25.9% (2015) to 29.1% (2024).

• Trend: The operating margin varied widely, dropping to a low of 4.4% in 2016, peaking at 45.9% in 2023, then slightly declining to 29.1% in 2024. Overall, it improved from 2015, but with significant volatility.

Earnings Per Share (EPS):

• EPS grew from $0.49 (2015) to $1.23 (2024)

• Trend: EPS was highly volatile, peaking at $3.30 in 2023. It saw extreme growth and sharp declines, indicating volatile profitability per share.

Free Cash Flow (FCF):

• The EV/FCF ratio is 57.4, and the FCF grew by 28.7% annually (10-year CAGR). This suggests strong cash flow generation, supporting the company’s ability to fund operations and growth despite profit fluctuations.

Net Assets (Assets - Debt):

• However, Assets growth was 31.8% annually (10-year CAGR), and Debt/Assets is low at 0.4, indicating a healthy balance sheet with assets growing faster than debt.

In conclusion, I prefer to remain a spectator instead of an investor in Broadcom. While it has strong fundamentals, I prefer the stock with a good Margin of Safety (MOS) with a target price of $600.

@TigerStars

$S&P 500(.SPX)$

$Broadcom(AVGO)$