83.62 USD
+0.69 (+0.83%)
83.1 USD
-0.52 (-0.62%)
Taking everything into account, MRVL scores 6 out of 10 in our fundamental rating. MRVL was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. MRVL has an average financial health and profitability rating. MRVL is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make MRVL a good candidate for growth investing.
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.
- In the past 5 years MRVL always reported negative net income.
- MRVL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- MRVL has a Return On Assets of 11.47%. This is amongst the best in the industry. MRVL outperforms 84.07% of its industry peers.
- MRVL has a better Return On Equity (17.60%) than 82.30% of its industry peers.
- With a decent Return On Invested Capital value of 4.81%, MRVL is doing good in the industry, outperforming 62.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.47% | ||
| ROE | 17.6% | ||
| ROIC | 4.81% |
ROA(3y)-3.17%
ROA(5y)-2.8%
ROE(3y)-4.64%
ROE(5y)-3.98%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of MRVL (31.75%) is better than 91.15% of its industry peers.
- MRVL has a Operating Margin of 14.72%. This is in the better half of the industry: MRVL outperforms 71.68% of its industry peers.
- MRVL has a better Gross Margin (50.69%) than 64.60% of its industry peers.
- MRVL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.72% | ||
| PM (TTM) | 31.75% | ||
| GM | 50.69% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.69%
GM growth 5Y-3.85%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MRVL is destroying value.
- The number of shares outstanding for MRVL remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, MRVL has more shares outstanding
- Compared to 1 year ago, MRVL has a worse debt to assets ratio.
2.2 Solvency
- MRVL has an Altman-Z score of 6.41. This indicates that MRVL is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.41, MRVL is in the better half of the industry, outperforming 61.95% of the companies in the same industry.
- The Debt to FCF ratio of MRVL is 2.83, which is a good value as it means it would take MRVL, 2.83 years of fcf income to pay off all of its debts.
- MRVL has a better Debt to FCF ratio (2.83) than 64.60% of its industry peers.
- MRVL has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.28, MRVL perfoms like the industry average, outperforming 42.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 6.41 |
ROIC/WACC0.44
WACC10.81%
2.3 Liquidity
- MRVL has a Current Ratio of 2.01. This indicates that MRVL is financially healthy and has no problem in meeting its short term obligations.
- MRVL has a Current ratio of 2.01. This is in the lower half of the industry: MRVL underperforms 75.22% of its industry peers.
- A Quick Ratio of 1.64 indicates that MRVL should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.64, MRVL is not doing good in the industry: 69.91% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
- MRVL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 85.31%, which is quite impressive.
- MRVL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.92% yearly.
- The Revenue has grown by 44.95% in the past year. This is a very strong growth!
- Measured over the past years, MRVL shows a quite strong growth in Revenue. The Revenue has been growing by 16.40% on average per year.
EPS 1Y (TTM)85.31%
EPS 3Y0.21%
EPS 5Y18.92%
EPS Q2Q%76.74%
Revenue 1Y (TTM)44.95%
Revenue growth 3Y8.93%
Revenue growth 5Y16.4%
Sales Q2Q%36.83%
3.2 Future
- The Earnings Per Share is expected to grow by 41.91% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 24.79% on average over the next years. This is a very strong growth
EPS Next Y86.9%
EPS Next 2Y52.49%
EPS Next 3Y45.88%
EPS Next 5Y41.91%
Revenue Next Year42.55%
Revenue Next 2Y32%
Revenue Next 3Y30.48%
Revenue Next 5Y24.79%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- With a Price/Earnings ratio of 31.55, MRVL can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, MRVL is valued cheaply inside the industry as 81.42% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, MRVL is valued at the same level.
- MRVL is valuated rather expensively with a Price/Forward Earnings ratio of 22.90.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MRVL indicates a rather cheap valuation: MRVL is cheaper than 84.07% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. MRVL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.55 | ||
| Fwd PE | 22.9 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MRVL is valued a bit cheaper than the industry average as 69.91% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, MRVL is valued a bit cheaper than the industry average as 76.99% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.97 | ||
| EV/EBITDA | 29.7 |
4.3 Compensation for Growth
- MRVL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as MRVL's earnings are expected to grow with 45.88% in the coming years.
PEG (NY)0.36
PEG (5Y)1.67
EPS Next 2Y52.49%
EPS Next 3Y45.88%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.29%, MRVL is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.49, MRVL pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, MRVL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
5.2 History
- The dividend of MRVL decreases each year by -0.14%.
- MRVL has paid a dividend for at least 10 years, which is a reliable track record.
- MRVL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-0.14%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- 8.33% of the earnings are spent on dividend by MRVL. This is a low number and sustainable payout ratio.
DP8.33%
EPS Next 2Y52.49%
EPS Next 3Y45.88%
MARVELL TECHNOLOGY INC / MRVL FAQ
What is the fundamental rating for MRVL stock?
ChartMill assigns a fundamental rating of 6 / 10 to MRVL.
What is the valuation status for MRVL stock?
ChartMill assigns a valuation rating of 6 / 10 to MARVELL TECHNOLOGY INC (MRVL). This can be considered as Fairly Valued.
Can you provide the profitability details for MARVELL TECHNOLOGY INC?
MARVELL TECHNOLOGY INC (MRVL) has a profitability rating of 5 / 10.
What is the financial health of MARVELL TECHNOLOGY INC (MRVL) stock?
The financial health rating of MARVELL TECHNOLOGY INC (MRVL) is 5 / 10.
Can you provide the dividend sustainability for MRVL stock?
The dividend rating of MARVELL TECHNOLOGY INC (MRVL) is 4 / 10 and the dividend payout ratio is 8.33%.