MARVELL TECHNOLOGY INC (MRVL)
US5738741041 - Common Stock
We assign a fundamental rating of 4 out of 10 to MRVL. MRVL was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. MRVL scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MRVL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MRVL was profitable.
In the past year MRVL had a positive cash flow from operations.
MRVL had negative earnings in 4 of the past 5 years.
In the past 5 years MRVL always reported a positive cash flow from operatings.
1.2 Ratios
MRVL's Return On Assets of -4.76% is on the low side compared to the rest of the industry. MRVL is outperformed by 66.67% of its industry peers.
With a Return On Equity value of -6.80%, MRVL is not doing good in the industry: 67.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.76% | ||
| ROE | -6.8% | ||
| ROIC | N/A |
ROA(3y)-2.34%
ROA(5y)0.93%
ROE(3y)-3.34%
ROE(5y)0.99%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MRVL has a Gross Margin of 44.15%. This is comparable to the rest of the industry: MRVL outperforms 46.30% of its industry peers.
In the last couple of years the Gross Margin of MRVL has declined.
MRVL does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 44.15% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6%
GM growth 5Y-3.93%
2. Health
2.1 Basic Checks
MRVL does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, MRVL has more shares outstanding
MRVL has more shares outstanding than it did 5 years ago.
MRVL has a better debt/assets ratio than last year.
2.2 Solvency
MRVL has an Altman-Z score of 8.16. This indicates that MRVL is financially healthy and has little risk of bankruptcy at the moment.
MRVL has a better Altman-Z score (8.16) than 74.07% of its industry peers.
The Debt to FCF ratio of MRVL is 2.95, which is a good value as it means it would take MRVL, 2.95 years of fcf income to pay off all of its debts.
MRVL's Debt to FCF ratio of 2.95 is fine compared to the rest of the industry. MRVL outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that MRVL is not too dependend on debt financing.
MRVL has a Debt to Equity ratio (0.28) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.95 | ||
| Altman-Z | 8.16 |
ROIC/WACCN/A
WACC14.59%
2.3 Liquidity
A Current Ratio of 1.79 indicates that MRVL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.79, MRVL is not doing good in the industry: 75.93% of the companies in the same industry are doing better.
MRVL has a Quick Ratio of 1.26. This is a normal value and indicates that MRVL is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.26, MRVL is not doing good in the industry: 78.70% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
The earnings per share for MRVL have decreased strongly by -15.57% in the last year.
MRVL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.06% yearly.
The Revenue has decreased by -6.04% in the past year.
The Revenue has been growing by 13.96% on average over the past years. This is quite good.
EPS 1Y (TTM)-15.57%
EPS 3Y17.53%
EPS 5Y5.06%
EPS Q2Q%-9.09%
Revenue 1Y (TTM)-6.04%
Revenue growth 3Y22.87%
Revenue growth 5Y13.96%
Sales Q2Q%-5.07%
3.2 Future
MRVL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.68% yearly.
Based on estimates for the next years, MRVL will show a quite strong growth in Revenue. The Revenue will grow by 19.23% on average per year.
EPS Next Y-2.74%
EPS Next 2Y29.92%
EPS Next 3Y31.54%
EPS Next 5Y33.68%
Revenue Next Year0.53%
Revenue Next 2Y16.61%
Revenue Next 3Y18.14%
Revenue Next 5Y19.23%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 65.91 indicates a quite expensive valuation of MRVL.
Compared to the rest of the industry, the Price/Earnings ratio of MRVL is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.96, MRVL is valued quite expensively.
With a Price/Forward Earnings ratio of 36.46, MRVL can be considered very expensive at the moment.
MRVL's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, MRVL is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.91 | ||
| Fwd PE | 36.46 |
4.2 Price Multiples
MRVL's Enterprise Value to EBITDA is on the same level as the industry average.
62.96% of the companies in the same industry are more expensive than MRVL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.55 | ||
| EV/EBITDA | 84.12 |
4.3 Compensation for Growth
A more expensive valuation may be justified as MRVL's earnings are expected to grow with 31.54% in the coming years.
PEG (NY)N/A
PEG (5Y)13.04
EPS Next 2Y29.92%
EPS Next 3Y31.54%
5. Dividend
5.1 Amount
MRVL has a yearly dividend return of 0.26%, which is pretty low.
Compared to an average industry Dividend Yield of 2.37, MRVL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, MRVL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
5.2 History
The dividend of MRVL decreases each year by -1.30%.
MRVL has been paying a dividend for at least 10 years, so it has a reliable track record.
MRVL has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-1.3%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
MRVL has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-21.47%
EPS Next 2Y29.92%
EPS Next 3Y31.54%
MARVELL TECHNOLOGY INC
NASDAQ:MRVL (11/21/2024, 8:00:01 PM)
Premarket: 93 +0.06 (+0.06%)92.94
+3.08 (+3.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
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Market Cap80.50B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.91 | ||
| Fwd PE | 36.46 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)13.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.76% | ||
| ROE | -6.8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 44.15% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-15.57%
EPS 3Y17.53%
EPS 5Y
EPS Q2Q%
EPS Next Y-2.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.04%
Revenue growth 3Y22.87%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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