MARVELL TECHNOLOGY INC (MRVL) Stock Fundamental Analysis
NASDAQ:MRVL - Nasdaq - US5738741041 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to MRVL. MRVL was compared to 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 growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year MRVL was profitable.
MRVL had a positive operating cash flow in the past year.
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
The Return On Assets of MRVL (-4.38%) is worse than 64.22% 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 63.30% 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
MRVL has a Gross Margin (41.31%) which is comparable to the rest of the 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.
Compared to 5 years ago, MRVL has more shares outstanding
MRVL has a worse debt/assets ratio than last year.
2.2 Solvency
MRVL has an Altman-Z score of 4.69. This indicates that MRVL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MRVL (4.69) is better than 62.39% of its industry peers.
The Debt to FCF ratio of MRVL is 2.92, which is a good value as it means it would take MRVL, 2.92 years of fcf income to pay off all of its debts.
MRVL has a better Debt to FCF ratio (2.92) than 65.14% of its industry peers.
MRVL has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
MRVL has a worse Debt to Equity ratio (0.29) than 61.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.92 | ||
| Altman-Z | 4.69 |
ROIC/WACCN/A
WACC9.21%
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.
Looking at the Current ratio, with a value of 1.54, MRVL is doing worse than 83.49% of the companies in the same industry.
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 85.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
MRVL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.97%.
The Earnings Per Share has been growing by 18.92% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.71% in the past year.
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 Y82.63%
EPS Next 2Y53.36%
EPS Next 3Y44.24%
EPS Next 5Y36.11%
Revenue Next Year43.44%
Revenue Next 2Y30.14%
Revenue Next 3Y27.14%
Revenue Next 5Y23.59%
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
A Price/Earnings ratio of 37.18 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.
When comparing the Price/Earnings ratio of MRVL to the average of the S&P500 Index (28.88), we can say MRVL is valued slightly more expensively.
The Price/Forward Earnings ratio is 20.36, which indicates a rather expensive current valuation of MRVL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MRVL indicates a somewhat cheap valuation: MRVL is cheaper than 67.89% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MRVL to the average of the S&P500 Index (21.20), we can say MRVL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.18 | ||
| Fwd PE | 20.36 |
4.2 Price Multiples
MRVL's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, MRVL is valued a bit cheaper than 66.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.38 | ||
| EV/EBITDA | 54.18 |
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)0.45
PEG (5Y)1.96
EPS Next 2Y53.36%
EPS Next 3Y44.24%
5. Dividend
5.1 Amount
MRVL has a yearly dividend return of 0.42%, which is pretty low.
The stock price of MRVL dropped by -48.28% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
MRVL's Dividend Yield is a higher than the industry average which is at 2.75.
Compared to an average S&P500 Dividend Yield of 2.45, MRVL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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-23.45%
EPS Next 2Y53.36%
EPS Next 3Y44.24%
58.37
-0.31 (-0.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners89.12%
Inst Owner Change0.35%
Ins Owners0.29%
Ins Owner Change0.34%
Market Cap50.55B
Analysts84.35
Price Target105.6 (80.91%)
Short Float %3.1%
Short Ratio1.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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)-18.65%
PT rev (3m)-13.61%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)15.13%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)2.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.25%
Revenue NY rev (1m)0.56%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.18 | ||
| Fwd PE | 20.36 | ||
| P/S | 8.77 | ||
| P/FCF | 36.38 | ||
| P/OCF | 30.07 | ||
| P/B | 3.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 54.18 |
EPS(TTM)1.57
EY2.69%
EPS(NY)2.87
Fwd EY4.91%
FCF(TTM)1.6
FCFY2.75%
OCF(TTM)1.94
OCFY3.33%
SpS6.66
BVpS15.5
TBVpS-1.47
PEG (NY)0.45
PEG (5Y)1.96
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 | 4.69 |
F-Score5
WACC9.21%
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 Y82.63%
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 Year43.44%
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%