MARVELL TECHNOLOGY INC (MRVL) Stock Fundamental Analysis
USA - NASDAQ:MRVL - US5738741041 - Common Stock
83.45 USD
-3 (-3.47%)
83.4 USD
-0.05 (-0.06%)
We assign a fundamental rating of 5 out of 10 to MRVL. MRVL was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. While MRVL seems to be doing ok healthwise, there are quite some concerns on its profitability. MRVL is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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
Looking at the Return On Assets, with a value of -0.50%, MRVL is in line with its industry, outperforming 46.43% of the companies in the same industry.
With a Return On Equity value of -0.77%, MRVL perfoms like the industry average, outperforming 46.43% of the companies in the same industry.
With a Return On Invested Capital value of 1.89%, MRVL perfoms like the industry average, outperforming 54.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.5% | ||
| ROE | -0.77% | ||
| ROIC | 1.89% |
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
MRVL has a Operating Margin (6.02%) which is in line with its industry peers.
With a Gross Margin value of 44.64%, MRVL perfoms like the industry average, outperforming 50.89% of the companies in the same industry.
In the last couple of years the Gross Margin of MRVL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.02% | ||
| PM (TTM) | N/A | ||
| GM | 44.64% |
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
The debt/assets ratio for MRVL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.73 indicates that MRVL is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 6.73, MRVL is doing good in the industry, outperforming 65.18% of the companies in the same industry.
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 63.39% of its industry peers.
MRVL has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.30, MRVL is in line with its industry, outperforming 41.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.92 | ||
| Altman-Z | 6.73 |
ROIC/WACC0.18
WACC10.59%
2.3 Liquidity
A Current Ratio of 1.88 indicates that MRVL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.88, MRVL is doing worse than 75.00% of the companies in the same industry.
MRVL has a Quick Ratio of 1.44. This is a normal value and indicates that MRVL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.44, MRVL is doing worse than 74.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 64.54% over the past year.
MRVL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.92% yearly.
MRVL shows a strong growth in Revenue. In the last year, the Revenue has grown by 37.05%.
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)64.54%
EPS 3Y0.21%
EPS 5Y18.92%
EPS Q2Q%123.33%
Revenue 1Y (TTM)37.05%
Revenue growth 3Y8.93%
Revenue growth 5Y16.4%
Sales Q2Q%57.6%
3.2 Future
MRVL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.15% yearly.
Based on estimates for the next years, MRVL will show a very strong growth in Revenue. The Revenue will grow by 22.76% on average per year.
EPS Next Y82.15%
EPS Next 2Y47.51%
EPS Next 3Y39.42%
EPS Next 5Y35.15%
Revenue Next Year41.63%
Revenue Next 2Y28.19%
Revenue Next 3Y24.94%
Revenue Next 5Y22.76%
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.
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
With a Price/Earnings ratio of 35.97, MRVL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of MRVL indicates a somewhat cheap valuation: MRVL is cheaper than 66.07% of the companies listed in the same industry.
MRVL is valuated rather expensively when we compare the Price/Earnings ratio to 25.56, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 24.43 indicates a rather expensive valuation of MRVL.
MRVL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MRVL is cheaper than 65.18% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.62, MRVL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.97 | ||
| Fwd PE | 24.43 |
4.2 Price Multiples
MRVL's Enterprise Value to EBITDA is on the same level as the industry average.
MRVL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MRVL is cheaper than 65.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.02 | ||
| EV/EBITDA | 44.18 |
4.3 Compensation for Growth
The 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 39.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)1.9
EPS Next 2Y47.51%
EPS Next 3Y39.42%
5. Dividend
5.1 Amount
With a yearly dividend of 0.27%, MRVL is not a good candidate for dividend investing.
MRVL's Dividend Yield is a higher than the industry average which is at 2.22.
With a Dividend Yield of 0.27, MRVL pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
5.2 History
The dividend of MRVL decreases each year by -0.14%.
MRVL has been paying a dividend for at least 10 years, so it has 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-200.48%
EPS Next 2Y47.51%
EPS Next 3Y39.42%
83.45
-3 (-3.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners85.57%
Inst Owner Change0.08%
Ins Owners0.18%
Ins Owner Change2.5%
Market Cap71.94B
Revenue(TTM)7.23B
Net Income(TTM)-103.40M
Analysts79.17
Price Target91.51 (9.66%)
Short Float %4.23%
Short Ratio1.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.27% |
Yearly Dividend0.24
Dividend Growth(5Y)-0.14%
DP-200.48%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.3%
Min EPS beat(2)-0.87%
Max EPS beat(2)0.27%
EPS beat(4)2
Avg EPS beat(4)0.68%
Min EPS beat(4)-0.87%
Max EPS beat(4)3.57%
EPS beat(8)3
Avg EPS beat(8)-0.71%
EPS beat(12)5
Avg EPS beat(12)-0.84%
EPS beat(16)7
Avg EPS beat(16)-0.04%
Revenue beat(2)0
Avg Revenue beat(2)-1.59%
Min Revenue beat(2)-2.09%
Max Revenue beat(2)-1.08%
Revenue beat(4)1
Avg Revenue beat(4)-0.46%
Min Revenue beat(4)-2.09%
Max Revenue beat(4)2.09%
Revenue beat(8)1
Avg Revenue beat(8)-0.9%
Revenue beat(12)1
Avg Revenue beat(12)-1.03%
Revenue beat(16)2
Avg Revenue beat(16)-0.76%
PT rev (1m)3.11%
PT rev (3m)-1.27%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)1.68%
EPS NY rev (1m)0.13%
EPS NY rev (3m)0.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.5%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.97 | ||
| Fwd PE | 24.43 | ||
| P/S | 9.94 | ||
| P/FCF | 47.02 | ||
| P/OCF | 39 | ||
| P/B | 5.36 | ||
| P/tB | 472.37 | ||
| EV/EBITDA | 44.18 |
EPS(TTM)2.32
EY2.78%
EPS(NY)3.42
Fwd EY4.09%
FCF(TTM)1.77
FCFY2.13%
OCF(TTM)2.14
OCFY2.56%
SpS8.39
BVpS15.57
TBVpS0.18
PEG (NY)0.44
PEG (5Y)1.9
Graham Number28.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.5% | ||
| ROE | -0.77% | ||
| ROCE | 2.39% | ||
| ROIC | 1.89% | ||
| ROICexc | 2.03% | ||
| ROICexgc | 9.31% | ||
| OM | 6.02% | ||
| PM (TTM) | N/A | ||
| GM | 44.64% | ||
| FCFM | 21.15% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score8
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.92 | ||
| Debt/EBITDA | 2.25 | ||
| Cap/Depr | 23.75% | ||
| Cap/Sales | 4.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.79% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 6.73 |
F-Score8
WACC10.59%
ROIC/WACC0.18
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)64.54%
EPS 3Y0.21%
EPS 5Y18.92%
EPS Q2Q%123.33%
EPS Next Y82.15%
EPS Next 2Y47.51%
EPS Next 3Y39.42%
EPS Next 5Y35.15%
Revenue 1Y (TTM)37.05%
Revenue growth 3Y8.93%
Revenue growth 5Y16.4%
Sales Q2Q%57.6%
Revenue Next Year41.63%
Revenue Next 2Y28.19%
Revenue Next 3Y24.94%
Revenue Next 5Y22.76%
EBIT growth 1Y210.2%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year90.07%
EBIT Next 3Y36.52%
EBIT Next 5Y34.57%
FCF growth 1Y99.78%
FCF growth 3Y30.02%
FCF growth 5Y38.4%
OCF growth 1Y70.28%
OCF growth 3Y27.07%
OCF growth 5Y36.08%
MARVELL TECHNOLOGY INC / MRVL FAQ
What is the fundamental rating for MRVL stock?
ChartMill assigns a fundamental rating of 5 / 10 to MRVL.
What is the valuation status of MARVELL TECHNOLOGY INC (MRVL) stock?
ChartMill assigns a valuation rating of 5 / 10 to MARVELL TECHNOLOGY INC (MRVL). This can be considered as Fairly Valued.
What is the profitability of MRVL stock?
MARVELL TECHNOLOGY INC (MRVL) has a profitability rating of 3 / 10.
How financially healthy is MARVELL TECHNOLOGY INC?
The financial health rating of MARVELL TECHNOLOGY INC (MRVL) is 5 / 10.
Is the dividend of MARVELL TECHNOLOGY INC sustainable?
The dividend rating of MARVELL TECHNOLOGY INC (MRVL) is 3 / 10 and the dividend payout ratio is -200.48%.