MARVELL TECHNOLOGY INC (MRVL) Stock Fundamental Analysis
NASDAQ:MRVL - Nasdaq - US5738741041 - Common Stock - Currency: USD
MRVL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 109 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 not overvalued while it is showing excellent growth. This is an interesting combination.
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 each of the past 5 years.
Each year in the past 5 years MRVL had a positive operating cash flow.
1.2 Ratios
MRVL has a worse Return On Assets (-4.38%) than 66.97% of its industry peers.
MRVL's Return On Equity of -6.59% is on the low side compared to the rest of the industry. MRVL is outperformed by 65.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.38% | ||
| ROE | -6.59% | ||
| ROIC | N/A |
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
With a Gross Margin value of 41.31%, MRVL perfoms like the industry average, outperforming 44.95% of the companies in the same industry.
In the last couple of years the Gross Margin of MRVL has declined.
The Profit Margin and Operating Margin are not available for MRVL so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 41.31% |
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
MRVL does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, MRVL has about the same amount of shares outstanding.
The number of shares outstanding for MRVL has been increased compared to 5 years ago.
The debt/assets ratio for MRVL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.18 indicates that MRVL is not in any danger for bankruptcy at the moment.
MRVL has a Altman-Z score of 4.18. This is in the better half of the industry: MRVL outperforms 61.47% of its industry peers.
MRVL has a debt to FCF ratio of 2.92. This is a good value and a sign of high solvency as MRVL would need 2.92 years to pay back of all of its debts.
The Debt to FCF ratio of MRVL (2.92) is better than 66.06% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that MRVL is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.29, MRVL is not doing good in the industry: 61.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.92 | ||
| Altman-Z | 4.18 |
ROIC/WACCN/A
WACC10.81%
2.3 Liquidity
MRVL has a Current Ratio of 1.54. This is a normal value and indicates that MRVL is financially healthy and should not expect problems in meeting its short term obligations.
MRVL has a Current ratio of 1.54. This is in the lower half of the industry: MRVL underperforms 79.82% of its industry peers.
A Quick Ratio of 1.03 indicates that MRVL should not have too much problems paying its short term obligations.
MRVL's Quick ratio of 1.03 is on the low side compared to the rest of the industry. MRVL is outperformed by 83.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.97% over the past year.
Measured over the past years, MRVL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.92% on average per year.
MRVL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.71%.
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)3.97%
EPS 3Y0.21%
EPS 5Y18.92%
EPS Q2Q%30.43%
Revenue 1Y (TTM)4.71%
Revenue growth 3Y8.93%
Revenue growth 5Y16.4%
Sales Q2Q%27.4%
3.2 Future
The Earnings Per Share is expected to grow by 36.11% on average over the next years. This is a very strong growth
MRVL is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.59% yearly.
EPS Next Y83.08%
EPS Next 2Y53.36%
EPS Next 3Y44.24%
EPS Next 5Y36.11%
Revenue Next Year43.47%
Revenue Next 2Y30.14%
Revenue Next 3Y27.14%
Revenue Next 5Y23.59%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MRVL is valuated quite expensively with a Price/Earnings ratio of 32.93.
The rest of the industry has a similar Price/Earnings ratio as MRVL.
MRVL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.99, the valuation of MRVL can be described as rather expensive.
Based on the Price/Forward Earnings ratio, MRVL is valued a bit cheaper than the industry average as 74.31% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, MRVL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.93 | ||
| Fwd PE | 17.99 |
4.2 Price Multiples
MRVL's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, MRVL is valued a bit cheaper than 67.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.22 | ||
| EV/EBITDA | 48.35 |
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.
MRVL's earnings are expected to grow with 44.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)1.74
EPS Next 2Y53.36%
EPS Next 3Y44.24%
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, MRVL is not a good candidate for dividend investing.
In the last 3 months the price of MRVL has falen by -58.56%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
MRVL's Dividend Yield is a higher than the industry average which is at 3.10.
Compared to an average S&P500 Dividend Yield of 2.57, MRVL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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
The earnings of MRVL are negative and hence is the payout ratio. MRVL will probably not be able to sustain this dividend level.
DP-23.45%
EPS Next 2Y53.36%
EPS Next 3Y44.24%
51.7
-0.23 (-0.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners89.12%
Inst Owner Change0.01%
Ins Owners0.29%
Ins Owner Change-1.15%
Market Cap44.78B
Analysts84.35
Price Target113.89 (120.29%)
Short Float %2.83%
Short Ratio1.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly Dividend0.24
Dividend Growth(5Y)-0.14%
DP-23.45%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.66%
Min EPS beat(2)-0.25%
Max EPS beat(2)3.57%
EPS beat(4)1
Avg EPS beat(4)-0.74%
Min EPS beat(4)-5.21%
Max EPS beat(4)3.57%
EPS beat(8)4
Avg EPS beat(8)-0.13%
EPS beat(12)4
Avg EPS beat(12)-0.92%
EPS beat(16)8
Avg EPS beat(16)0.72%
Revenue beat(2)1
Avg Revenue beat(2)0.68%
Min Revenue beat(2)-0.74%
Max Revenue beat(2)2.09%
Revenue beat(4)1
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-2.77%
Max Revenue beat(4)2.09%
Revenue beat(8)1
Avg Revenue beat(8)-0.67%
Revenue beat(12)1
Avg Revenue beat(12)-0.98%
Revenue beat(16)3
Avg Revenue beat(16)-0.62%
PT rev (1m)-12.27%
PT rev (3m)-6.83%
EPS NQ rev (1m)0.16%
EPS NQ rev (3m)15.13%
EPS NY rev (1m)2.49%
EPS NY rev (3m)2.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.25%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.93 | ||
| Fwd PE | 17.99 | ||
| P/S | 7.76 | ||
| P/FCF | 32.22 | ||
| P/OCF | 26.63 | ||
| P/B | 3.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 48.35 |
EPS(TTM)1.57
EY3.04%
EPS(NY)2.87
Fwd EY5.56%
FCF(TTM)1.6
FCFY3.1%
OCF(TTM)1.94
OCFY3.75%
SpS6.66
BVpS15.5
TBVpS-1.47
PEG (NY)0.4
PEG (5Y)1.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.38% | ||
| ROE | -6.59% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 41.31% | ||
| FCFM | 24.09% |
ROA(3y)-3.17%
ROA(5y)-2.8%
ROE(3y)-4.64%
ROE(5y)-3.98%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score5
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.92 | ||
| Debt/EBITDA | 3.97 | ||
| Cap/Depr | 21.49% | ||
| Cap/Sales | 5.06% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 169.73% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 4.18 |
F-Score5
WACC10.81%
ROIC/WACCN/A
Cap/Depr(3y)20.72%
Cap/Depr(5y)19.16%
Cap/Sales(3y)5.03%
Cap/Sales(5y)4.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)3.97%
EPS 3Y0.21%
EPS 5Y18.92%
EPS Q2Q%30.43%
EPS Next Y83.08%
EPS Next 2Y53.36%
EPS Next 3Y44.24%
EPS Next 5Y36.11%
Revenue 1Y (TTM)4.71%
Revenue growth 3Y8.93%
Revenue growth 5Y16.4%
Sales Q2Q%27.4%
Revenue Next Year43.47%
Revenue Next 2Y30.14%
Revenue Next 3Y27.14%
Revenue Next 5Y23.59%
EBIT growth 1Y16.08%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year89%
EBIT Next 3Y41.15%
EBIT Next 5Y34.57%
FCF growth 1Y36.2%
FCF growth 3Y30.02%
FCF growth 5Y38.4%
OCF growth 1Y22.67%
OCF growth 3Y27.07%
OCF growth 5Y36.08%