80.23 USD
-2.87 (-3.45%)
80.31 USD
+0.08 (+0.1%)
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. Both the profitability and the financial health of MRVL get a neutral evaluation. Nothing too spectacular is happening here. MRVL is growing strongly while it is still valued neutral. This is a good combination! This makes MRVL very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- MRVL had positive earnings in the past year.
- In the past year MRVL had a positive cash flow from operations.
- MRVL had negative earnings in each of the past 5 years.
- MRVL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 11.47%, MRVL belongs to the best of the industry, outperforming 84.07% of the companies in the same industry.
- MRVL has a better Return On Equity (17.60%) than 82.30% of its industry peers.
- MRVL has a better Return On Invested Capital (4.81%) than 62.83% of its industry peers.
| 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
- MRVL's Profit Margin of 31.75% is amongst the best of the industry. MRVL outperforms 91.15% of its industry peers.
- Looking at the Operating Margin, with a value of 14.72%, MRVL is in the better half of the industry, outperforming 71.68% of the companies in the same industry.
- MRVL has a Gross Margin of 50.69%. This is in the better half of the industry: MRVL outperforms 64.60% of its industry peers.
- In the last couple of years the Gross Margin of MRVL has declined.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MRVL is destroying value.
- MRVL has about the same amout of shares outstanding than it did 1 year ago.
- MRVL has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, MRVL has a worse debt to assets ratio.
2.2 Solvency
- MRVL has an Altman-Z score of 6.38. 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 6.38, MRVL is in the better half of the industry, outperforming 61.95% of the companies in the same industry.
- MRVL has a debt to FCF ratio of 2.83. This is a good value and a sign of high solvency as MRVL would need 2.83 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.83, MRVL is in the better half of the industry, outperforming 64.60% of the companies in the same industry.
- A Debt/Equity ratio of 0.28 indicates that MRVL is not too dependend on debt financing.
- MRVL has a Debt to Equity ratio (0.28) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 6.38 |
ROIC/WACC0.45
WACC10.71%
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.
- Looking at the Current ratio, with a value of 2.01, MRVL is doing worse than 74.34% of the companies in the same industry.
- A Quick Ratio of 1.64 indicates that MRVL should not have too much problems paying its short term obligations.
- MRVL has a Quick ratio of 1.64. This is in the lower half of the industry: MRVL underperforms 69.03% of its industry peers.
| 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.
- MRVL shows a strong growth in Revenue. In the last year, the Revenue has grown by 44.95%.
- 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
- Based on estimates for the next years, MRVL will show a very strong growth in Earnings Per Share. The EPS will grow by 41.91% on average per year.
- The Revenue is expected to grow by 24.79% on average over the next years. This is a very strong growth
EPS Next Y83.87%
EPS Next 2Y52.61%
EPS Next 3Y46%
EPS Next 5Y41.91%
Revenue Next Year42.51%
Revenue Next 2Y31.85%
Revenue Next 3Y30.13%
Revenue Next 5Y24.79%
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 30.28, 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.
- When comparing the Price/Earnings ratio of MRVL to the average of the S&P500 Index (27.21), we can say MRVL is valued inline with the index average.
- The Price/Forward Earnings ratio is 21.94, which indicates a rather expensive current valuation of MRVL.
- 84.07% of the companies in the same industry are more expensive than MRVL, based on the Price/Forward Earnings ratio.
- MRVL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.28 | ||
| Fwd PE | 21.94 |
4.2 Price Multiples
- 69.03% of the companies in the same industry are more expensive than MRVL, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MRVL indicates a somewhat cheap valuation: MRVL is cheaper than 76.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.15 | ||
| EV/EBITDA | 29.52 |
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 46.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)1.6
EPS Next 2Y52.61%
EPS Next 3Y46%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.30%, MRVL is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.51, 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 | 0.3% |
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 pays out 8.33% of its income as dividend. This is a sustainable payout ratio.
DP8.33%
EPS Next 2Y52.61%
EPS Next 3Y46%
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%.