MARVELL TECHNOLOGY INC (MRVL) Stock Fundamental Analysis
NASDAQ:MRVL - Nasdaq - US5738741041 - Common Stock - Currency: USD
Taking everything into account, MRVL scores 5 out of 10 in our fundamental rating. MRVL was compared to 110 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 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.
In the past year MRVL had a positive cash flow from operations.
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
MRVL has a worse Return On Assets (-2.45%) than 64.55% of its industry peers.
The Return On Equity of MRVL (-3.69%) is worse than 63.64% of its industry peers.
MRVL has a Return On Invested Capital of 0.19%. This is comparable to the rest of the industry: MRVL outperforms 46.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.45% | ||
| ROE | -3.69% | ||
| ROIC | 0.19% |
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 0.62%. This is comparable to the rest of the industry: MRVL outperforms 47.27% of its industry peers.
MRVL has a Gross Margin (43.17%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of MRVL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.62% | ||
| PM (TTM) | N/A | ||
| GM | 43.17% |
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.
The debt/assets ratio for MRVL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.87 indicates that MRVL is not in any danger for bankruptcy at the moment.
MRVL's Altman-Z score of 5.87 is fine compared to the rest of the industry. MRVL outperforms 64.55% of its industry peers.
The Debt to FCF ratio of MRVL is 3.09, which is a good value as it means it would take MRVL, 3.09 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.09, MRVL is doing good in the industry, outperforming 60.91% of the companies in the same industry.
MRVL has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
MRVL has a Debt to Equity ratio of 0.22. This is comparable to the rest of the industry: MRVL outperforms 42.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.09 | ||
| Altman-Z | 5.87 |
ROIC/WACC0.02
WACC11.37%
2.3 Liquidity
MRVL has a Current Ratio of 1.30. This is a normal value and indicates that MRVL is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MRVL (1.30) is worse than 87.27% of its industry peers.
MRVL has a Quick Ratio of 1.30. This is a bad value and indicates that MRVL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.94, MRVL is doing worse than 88.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
MRVL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.42%, 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 21.60%.
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)35.42%
EPS 3Y0.21%
EPS 5Y18.92%
EPS Q2Q%158.33%
Revenue 1Y (TTM)21.6%
Revenue growth 3Y8.93%
Revenue growth 5Y16.4%
Sales Q2Q%63.26%
3.2 Future
MRVL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.12% yearly.
Based on estimates for the next years, MRVL will show a very strong growth in Revenue. The Revenue will grow by 22.60% on average per year.
EPS Next Y82.13%
EPS Next 2Y53.36%
EPS Next 3Y41.37%
EPS Next 5Y34.12%
Revenue Next Year43.61%
Revenue Next 2Y30.14%
Revenue Next 3Y25.73%
Revenue Next 5Y22.6%
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.
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
A Price/Earnings ratio of 37.57 indicates a quite expensive valuation of MRVL.
Based on the Price/Earnings ratio, MRVL is valued a bit cheaper than the industry average as 60.91% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.69, MRVL is valued a bit more expensive.
A Price/Forward Earnings ratio of 19.84 indicates a rather expensive valuation of MRVL.
Based on the Price/Forward Earnings ratio, MRVL is valued a bit cheaper than 71.82% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MRVL to the average of the S&P500 Index (37.36), we can say MRVL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.57 | ||
| Fwd PE | 19.84 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MRVL.
MRVL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MRVL is cheaper than 62.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.11 | ||
| EV/EBITDA | 47.08 |
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.
A more expensive valuation may be justified as MRVL's earnings are expected to grow with 41.37% in the coming years.
PEG (NY)0.46
PEG (5Y)1.99
EPS Next 2Y53.36%
EPS Next 3Y41.37%
5. Dividend
5.1 Amount
With a yearly dividend of 0.33%, MRVL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.21, MRVL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, MRVL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
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
The earnings of MRVL are negative and hence is the payout ratio. MRVL will probably not be able to sustain this dividend level.
DP-42.22%
EPS Next 2Y53.36%
EPS Next 3Y41.37%
73.27
+1.28 (+1.78%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners87.2%
Inst Owner Change0.38%
Ins Owners0.2%
Ins Owner Change0.73%
Market Cap63.17B
Analysts82.98
Price Target92.44 (26.16%)
Short Float %2.92%
Short Ratio1.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
Yearly Dividend0.24
Dividend Growth(5Y)-0.14%
DP-42.22%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.56%
Min EPS beat(2)-0.87%
Max EPS beat(2)-0.25%
EPS beat(4)1
Avg EPS beat(4)0.35%
Min EPS beat(4)-1.06%
Max EPS beat(4)3.57%
EPS beat(8)3
Avg EPS beat(8)-0.7%
EPS beat(12)4
Avg EPS beat(12)-0.94%
EPS beat(16)7
Avg EPS beat(16)0.36%
Revenue beat(2)0
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-1.08%
Max Revenue beat(2)-0.74%
Revenue beat(4)1
Avg Revenue beat(4)-0.01%
Min Revenue beat(4)-1.08%
Max Revenue beat(4)2.09%
Revenue beat(8)1
Avg Revenue beat(8)-0.77%
Revenue beat(12)1
Avg Revenue beat(12)-1.02%
Revenue beat(16)2
Avg Revenue beat(16)-0.77%
PT rev (1m)-0.26%
PT rev (3m)-18.83%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)-1.06%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.57 | ||
| Fwd PE | 19.84 | ||
| P/S | 9.72 | ||
| P/FCF | 46.11 | ||
| P/OCF | 37.39 | ||
| P/B | 4.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 47.08 |
EPS(TTM)1.95
EY2.66%
EPS(NY)3.69
Fwd EY5.04%
FCF(TTM)1.59
FCFY2.17%
OCF(TTM)1.96
OCFY2.67%
SpS7.54
BVpS15.44
TBVpS-0.67
PEG (NY)0.46
PEG (5Y)1.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.45% | ||
| ROE | -3.69% | ||
| ROCE | 0.23% | ||
| ROIC | 0.19% | ||
| ROICexc | 0.2% | ||
| ROICexgc | 1.37% | ||
| OM | 0.62% | ||
| PM (TTM) | N/A | ||
| GM | 43.17% | ||
| FCFM | 21.07% |
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-Score7
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.09 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 23.68% | ||
| Cap/Sales | 4.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 121.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 5.87 |
F-Score7
WACC11.37%
ROIC/WACC0.02
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)35.42%
EPS 3Y0.21%
EPS 5Y18.92%
EPS Q2Q%158.33%
EPS Next Y82.13%
EPS Next 2Y53.36%
EPS Next 3Y41.37%
EPS Next 5Y34.12%
Revenue 1Y (TTM)21.6%
Revenue growth 3Y8.93%
Revenue growth 5Y16.4%
Sales Q2Q%63.26%
Revenue Next Year43.61%
Revenue Next 2Y30.14%
Revenue Next 3Y25.73%
Revenue Next 5Y22.6%
EBIT growth 1Y108.67%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year91.8%
EBIT Next 3Y40.45%
EBIT Next 5Y34.57%
FCF growth 1Y34.19%
FCF growth 3Y30.02%
FCF growth 5Y38.4%
OCF growth 1Y29.73%
OCF growth 3Y27.07%
OCF growth 5Y36.08%