MARVELL TECHNOLOGY INC (MRVL) Stock Fundamental Analysis
NASDAQ:MRVL - Nasdaq - US5738741041 - Common Stock - Currency: USD
Taking everything into account, MRVL scores 5 out of 10 in our fundamental rating. MRVL was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. The financial health of MRVL is average, but there are quite some concerns on its profitability. MRVL is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
MRVL had positive earnings in the past year.
MRVL had a positive operating cash flow in the past year.
In the past 5 years MRVL always reported negative net income.
In the past 5 years MRVL always reported a positive cash flow from operatings.
1.2 Ratios
MRVL has a worse Return On Assets (-2.45%) than 64.55% of its industry peers.
Looking at the Return On Equity, with a value of -3.69%, MRVL is doing worse than 63.64% of the companies in the same industry.
MRVL has a Return On Invested Capital (0.19%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.45% | ||
| ROE | -3.69% | ||
| ROIC | 0.19% |
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
Looking at the Operating Margin, with a value of 0.62%, MRVL is in line with its industry, outperforming 47.27% of the companies in the same industry.
MRVL has a Gross Margin of 43.17%. This is comparable to the rest of the industry: MRVL outperforms 44.55% of its industry peers.
MRVL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.62% | ||
| PM (TTM) | N/A | ||
| GM | 43.17% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MRVL is destroying value.
Compared to 1 year ago, MRVL has about the same amount of shares outstanding.
MRVL has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MRVL is higher compared to a year ago.
2.2 Solvency
MRVL has an Altman-Z score of 5.98. This indicates that MRVL is financially healthy and has little risk of bankruptcy at the moment.
MRVL has a better Altman-Z score (5.98) than 64.55% of its industry peers.
The Debt to FCF ratio of MRVL is 3.09, which is a good value as it means it would take MRVL, 3.09 years of fcf income to pay off all of its debts.
MRVL's Debt to FCF ratio of 3.09 is fine compared to the rest of the industry. MRVL outperforms 60.91% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that MRVL is not too dependend on debt financing.
MRVL has a Debt to Equity ratio of 0.22. This is comparable to the rest of the industry: MRVL outperforms 42.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.09 | ||
| Altman-Z | 5.98 |
ROIC/WACC0.02
WACC11.37%
2.3 Liquidity
A Current Ratio of 1.30 indicates that MRVL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.30, MRVL is doing worse than 87.27% of the companies in the same industry.
A Quick Ratio of 0.94 indicates that MRVL may have some problems paying its short term obligations.
MRVL's Quick ratio of 0.94 is on the low side compared to the rest of the industry. MRVL is outperformed by 89.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
MRVL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.42%, which is quite impressive.
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.
The Revenue has grown by 21.60% 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)35.42%
EPS 3Y0.21%
EPS 5Y18.92%
EPS Q2Q%158.33%
Revenue 1Y (TTM)21.6%
Revenue growth 3Y8.93%
Revenue growth 5Y16.4%
Sales Q2Q%63.26%
3.2 Future
MRVL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.12% yearly.
Based on estimates for the next years, MRVL will show a very strong growth in Revenue. The Revenue will grow by 22.60% on average per year.
EPS Next Y82.01%
EPS Next 2Y53.36%
EPS Next 3Y41.37%
EPS Next 5Y34.12%
Revenue Next Year43.54%
Revenue Next 2Y30.14%
Revenue Next 3Y25.73%
Revenue Next 5Y22.6%
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
Based on the Price/Earnings ratio of 37.29, the valuation of MRVL can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MRVL indicates a somewhat cheap valuation: MRVL is cheaper than 61.82% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MRVL to the average of the S&P500 Index (27.30), we can say MRVL is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 19.69, the valuation of MRVL can be described as rather expensive.
Based on the Price/Forward Earnings ratio, MRVL is valued a bit cheaper than 71.82% of the companies in the same industry.
MRVL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.29 | ||
| Fwd PE | 19.69 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MRVL.
62.73% 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 | 45.84 | ||
| EV/EBITDA | 48.02 |
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 41.37% in the coming years.
PEG (NY)0.45
PEG (5Y)1.97
EPS Next 2Y53.36%
EPS Next 3Y41.37%
5. Dividend
5.1 Amount
MRVL has a yearly dividend return of 0.32%, which is pretty low.
MRVL's Dividend Yield is a higher than the industry average which is at 2.18.
With a Dividend Yield of 0.32, MRVL pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
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
MRVL has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-42.22%
EPS Next 2Y53.36%
EPS Next 3Y41.37%
72.71
-0.65 (-0.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners87.2%
Inst Owner Change0.02%
Ins Owners0.2%
Ins Owner Change0.62%
Market Cap62.81B
Analysts82.98
Price Target93.99 (29.27%)
Short Float %2.72%
Short Ratio1.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
Yearly Dividend0.24
Dividend Growth(5Y)-0.14%
DP-42.22%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.56%
Min EPS beat(2)-0.87%
Max EPS beat(2)-0.25%
EPS beat(4)1
Avg EPS beat(4)0.35%
Min EPS beat(4)-1.06%
Max EPS beat(4)3.57%
EPS beat(8)3
Avg EPS beat(8)-0.7%
EPS beat(12)4
Avg EPS beat(12)-0.94%
EPS beat(16)7
Avg EPS beat(16)0.36%
Revenue beat(2)0
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-1.08%
Max Revenue beat(2)-0.74%
Revenue beat(4)1
Avg Revenue beat(4)-0.01%
Min Revenue beat(4)-1.08%
Max Revenue beat(4)2.09%
Revenue beat(8)1
Avg Revenue beat(8)-0.77%
Revenue beat(12)1
Avg Revenue beat(12)-1.02%
Revenue beat(16)2
Avg Revenue beat(16)-0.77%
PT rev (1m)1.42%
PT rev (3m)-17.47%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-1.02%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.59%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)-0.97%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.29 | ||
| Fwd PE | 19.69 | ||
| P/S | 9.66 | ||
| P/FCF | 45.84 | ||
| P/OCF | 37.17 | ||
| P/B | 4.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 48.02 |
EPS(TTM)1.95
EY2.68%
EPS(NY)3.69
Fwd EY5.08%
FCF(TTM)1.59
FCFY2.18%
OCF(TTM)1.96
OCFY2.69%
SpS7.53
BVpS15.41
TBVpS-0.67
PEG (NY)0.45
PEG (5Y)1.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.45% | ||
| ROE | -3.69% | ||
| ROCE | 0.23% | ||
| ROIC | 0.19% | ||
| ROICexc | 0.2% | ||
| ROICexgc | 1.37% | ||
| OM | 0.62% | ||
| PM (TTM) | N/A | ||
| GM | 43.17% | ||
| FCFM | 21.07% |
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-Score7
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.09 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 23.68% | ||
| Cap/Sales | 4.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 121.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 5.98 |
F-Score7
WACC11.37%
ROIC/WACC0.02
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)35.42%
EPS 3Y0.21%
EPS 5Y18.92%
EPS Q2Q%158.33%
EPS Next Y82.01%
EPS Next 2Y53.36%
EPS Next 3Y41.37%
EPS Next 5Y34.12%
Revenue 1Y (TTM)21.6%
Revenue growth 3Y8.93%
Revenue growth 5Y16.4%
Sales Q2Q%63.26%
Revenue Next Year43.54%
Revenue Next 2Y30.14%
Revenue Next 3Y25.73%
Revenue Next 5Y22.6%
EBIT growth 1Y108.67%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year91.8%
EBIT Next 3Y40.45%
EBIT Next 5Y34.57%
FCF growth 1Y34.19%
FCF growth 3Y30.02%
FCF growth 5Y38.4%
OCF growth 1Y29.73%
OCF growth 3Y27.07%
OCF growth 5Y36.08%