MARVELL TECHNOLOGY INC (MRVL) Stock Fundamental Analysis
USA - NASDAQ:MRVL - US5738741041 - Common Stock
88.89 USD
+2.67 (+3.1%)
89.99 USD
+1.1 (+1.24%)
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. 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.
In the past 5 years MRVL always reported negative net income.
Each year in the past 5 years MRVL had a positive operating cash flow.
1.2 Ratios
MRVL's Return On Assets of -0.50% is in line compared to the rest of the industry. MRVL outperforms 48.21% of its industry peers.
MRVL has a Return On Equity (-0.77%) which is in line with its industry peers.
MRVL's Return On Invested Capital of 1.89% is in line compared to the rest of the industry. MRVL outperforms 53.57% of its industry peers.
| 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 of 6.02%. This is comparable to the rest of the industry: MRVL outperforms 57.14% of its industry peers.
The Gross Margin of MRVL (44.64%) is comparable to the rest of the industry.
MRVL's Gross Margin has declined in the last couple of years.
| 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
MRVL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
Compared to 1 year ago, MRVL has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.90 indicates that MRVL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.90, MRVL is in the better half of the industry, outperforming 64.29% 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.
MRVL has a better Debt to FCF ratio (2.92) than 64.29% 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 40.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.92 | ||
| Altman-Z | 6.9 |
ROIC/WACC0.17
WACC11.44%
2.3 Liquidity
A Current Ratio of 1.88 indicates that MRVL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.88, MRVL is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
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.
MRVL's Quick ratio of 1.44 is on the low side compared to the rest of the industry. MRVL is outperformed by 72.32% of its industry peers.
| 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.
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 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
The Earnings Per Share is expected to grow by 35.15% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 22.76% on average over the next years. This is a very strong growth
EPS Next Y81.91%
EPS Next 2Y47.22%
EPS Next 3Y39.65%
EPS Next 5Y35.15%
Revenue Next Year41.61%
Revenue Next 2Y28.09%
Revenue Next 3Y25.03%
Revenue Next 5Y22.76%
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
The Price/Earnings ratio is 38.31, which means the current valuation is very expensive for MRVL.
Based on the Price/Earnings ratio, MRVL is valued a bit cheaper than 65.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of MRVL to the average of the S&P500 Index (27.53), we can say MRVL is valued slightly more expensively.
MRVL is valuated quite expensively with a Price/Forward Earnings ratio of 26.12.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MRVL indicates a somewhat cheap valuation: MRVL is cheaper than 68.75% of the companies listed in the same industry.
MRVL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.31 | ||
| Fwd PE | 26.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MRVL is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, MRVL is valued a bit cheaper than 65.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.08 | ||
| EV/EBITDA | 45.37 |
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.
A more expensive valuation may be justified as MRVL's earnings are expected to grow with 39.65% in the coming years.
PEG (NY)0.47
PEG (5Y)2.02
EPS Next 2Y47.22%
EPS Next 3Y39.65%
5. Dividend
5.1 Amount
MRVL has a yearly dividend return of 0.26%, which is pretty low.
Compared to an average industry Dividend Yield of 2.15, MRVL pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.26, MRVL pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
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-200.48%
EPS Next 2Y47.22%
EPS Next 3Y39.65%
88.89
+2.67 (+3.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners85.57%
Inst Owner Change-0.43%
Ins Owners0.18%
Ins Owner Change0.94%
Market Cap76.63B
Analysts79.17
Price Target88.76 (-0.15%)
Short Float %3.61%
Short Ratio1.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
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)0.46%
PT rev (3m)-5.57%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)0.78%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-2.5%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.31 | ||
| Fwd PE | 26.12 | ||
| P/S | 10.59 | ||
| P/FCF | 50.08 | ||
| P/OCF | 41.54 | ||
| P/B | 5.71 | ||
| P/tB | 503.16 | ||
| EV/EBITDA | 45.37 |
EPS(TTM)2.32
EY2.61%
EPS(NY)3.4
Fwd EY3.83%
FCF(TTM)1.77
FCFY2%
OCF(TTM)2.14
OCFY2.41%
SpS8.39
BVpS15.57
TBVpS0.18
PEG (NY)0.47
PEG (5Y)2.02
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
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-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 | 6.9 |
F-Score8
WACC11.44%
ROIC/WACC0.17
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 Y81.91%
EPS Next 2Y47.22%
EPS Next 3Y39.65%
EPS Next 5Y35.15%
Revenue 1Y (TTM)37.05%
Revenue growth 3Y8.93%
Revenue growth 5Y16.4%
Sales Q2Q%57.6%
Revenue Next Year41.61%
Revenue Next 2Y28.09%
Revenue Next 3Y25.03%
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%