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 110 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
MRVL had positive earnings in the past year.
MRVL had a positive operating cash flow in the past year.
MRVL had negative earnings in each of the past 5 years.
In the past 5 years MRVL always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -4.38%, MRVL is not doing good in the industry: 66.36% of the companies in the same industry are doing better.
With a Return On Equity value of -6.59%, MRVL is not doing good in the industry: 65.45% of the companies in the same industry are doing better.
| 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
The Gross Margin of MRVL (41.31%) 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
The debt/assets ratio for MRVL is higher compared to a year ago.
2.2 Solvency
MRVL has an Altman-Z score of 4.96. This indicates that MRVL is financially healthy and has little risk of bankruptcy at the moment.
MRVL has a better Altman-Z score (4.96) than 61.82% 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 Debt to FCF ratio of 2.92. This is in the better half of the industry: MRVL outperforms 62.73% 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.
The Debt to Equity ratio of MRVL (0.29) is worse than 61.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.92 | ||
| Altman-Z | 4.96 |
ROIC/WACCN/A
WACC11.29%
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.
MRVL has a worse Current ratio (1.54) than 84.55% of its industry peers.
MRVL has a Quick Ratio of 1.03. This is a normal value and indicates that MRVL is financially healthy and should not expect problems in meeting its short term obligations.
MRVL has a worse Quick ratio (1.03) than 86.36% 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%.
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.
Looking at the last year, MRVL shows a small growth in Revenue. The Revenue has grown by 4.71% in the last 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
MRVL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.11% yearly.
Based on estimates for the next years, MRVL will show a very strong growth in Revenue. The Revenue will grow by 23.59% on average per year.
EPS Next Y82.02%
EPS Next 2Y53.36%
EPS Next 3Y44.24%
EPS Next 5Y36.11%
Revenue Next Year43.23%
Revenue Next 2Y30.14%
Revenue Next 3Y27.14%
Revenue Next 5Y23.59%
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
MRVL is valuated quite expensively with a Price/Earnings ratio of 38.66.
MRVL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.82, MRVL is valued a bit more expensive.
The Price/Forward Earnings ratio is 21.24, 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 62.73% of the companies listed 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 | 38.66 | ||
| Fwd PE | 21.24 |
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 the industry average as 63.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.82 | ||
| EV/EBITDA | 57.22 |
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 44.24% in the coming years.
PEG (NY)0.47
PEG (5Y)2.04
EPS Next 2Y53.36%
EPS Next 3Y44.24%
5. Dividend
5.1 Amount
With a yearly dividend of 0.37%, MRVL is not a good candidate for dividend investing.
The stock price of MRVL dropped by -41.54% 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.
Compared to an average industry Dividend Yield of 2.41, MRVL pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.37, MRVL pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
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-23.45%
EPS Next 2Y53.36%
EPS Next 3Y44.24%
60.69
-1.16 (-1.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners89.12%
Inst Owner Change-1.67%
Ins Owners0.29%
Ins Owner Change0.29%
Market Cap52.56B
Analysts84.44
Price Target105.6 (74%)
Short Float %3.22%
Short Ratio1.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
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)-7.28%
PT rev (3m)-17.76%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)2.41%
EPS NY rev (1m)-0.33%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.37%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.66 | ||
| Fwd PE | 21.24 | ||
| P/S | 9.11 | ||
| P/FCF | 37.82 | ||
| P/OCF | 31.26 | ||
| P/B | 3.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 57.22 |
EPS(TTM)1.57
EY2.59%
EPS(NY)2.86
Fwd EY4.71%
FCF(TTM)1.6
FCFY2.64%
OCF(TTM)1.94
OCFY3.2%
SpS6.66
BVpS15.5
TBVpS-1.47
PEG (NY)0.47
PEG (5Y)2.04
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 | 4.96 |
F-Score5
WACC11.29%
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 Y82.02%
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 Year43.23%
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%