MARVELL TECHNOLOGY INC (MRVL)
US5738741041 - Common Stock
Overall MRVL gets a fundamental rating of 3 out of 10. We evaluated MRVL against 107 industry peers in the Semiconductors & Semiconductor Equipment industry. The financial health of MRVL is average, but there are quite some concerns on its profitability. MRVL has a decent growth rate and is not valued too expensively.
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 reported 4 times negative net income.
MRVL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -4.40%, MRVL is not doing good in the industry: 63.21% of the companies in the same industry are doing better.
MRVL has a worse Return On Equity (-6.29%) than 61.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.4% | ||
| ROE | -6.29% | ||
| ROIC | N/A |
ROA(3y)-2.34%
ROA(5y)0.93%
ROE(3y)-3.34%
ROE(5y)0.99%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 41.64%, MRVL is in line with its industry, outperforming 41.51% of the companies in the same 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 | 41.64% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6%
GM growth 5Y-3.93%
2. Health
2.1 Basic Checks
MRVL does not have a ROIC to compare to the WACC, probably because it is not profitable.
MRVL has more 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 has been reduced compared to a year ago.
2.2 Solvency
MRVL has an Altman-Z score of 5.74. 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 5.74, MRVL is in the better half of the industry, outperforming 65.09% of the companies in the same industry.
The Debt to FCF ratio of MRVL is 4.08, which is a neutral value as it means it would take MRVL, 4.08 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.08, MRVL is in line with its industry, outperforming 58.49% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that MRVL is not too dependend on debt financing.
MRVL has a Debt to Equity ratio (0.27) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 4.08 | ||
| Altman-Z | 5.74 |
ROIC/WACCN/A
WACC11.5%
2.3 Liquidity
MRVL has a Current Ratio of 1.69. 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 (1.69) than 78.30% of its industry peers.
A Quick Ratio of 1.21 indicates that MRVL should not have too much problems paying its short term obligations.
MRVL's Quick ratio of 1.21 is on the low side compared to the rest of the industry. MRVL is outperformed by 77.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The earnings per share for MRVL have decreased strongly by -28.77% in the last year.
MRVL shows a decrease in Revenue. In the last year, the revenue decreased by -6.96%.
MRVL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.96% yearly.
EPS 1Y (TTM)-28.77%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q0%
Revenue 1Y (TTM)-6.96%
Revenue growth 3Y22.87%
Revenue growth 5Y13.96%
Revenue growth Q2Q0.56%
3.2 Future
MRVL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.25% yearly.
MRVL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.69% yearly.
EPS Next Y39.38%
EPS Next 2Y15.73%
EPS Next 3Y27.27%
EPS Next 5Y22.25%
Revenue Next Year20.97%
Revenue Next 2Y9.97%
Revenue Next 3Y17.99%
Revenue Next 5Y15.69%
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 44.69, which means the current valuation is very expensive for MRVL.
MRVL's Price/Earnings ratio is in line with the industry average.
MRVL's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.20.
With a Price/Forward Earnings ratio of 22.86, MRVL is valued on the expensive side.
73.58% of the companies in the same industry are more expensive than MRVL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MRVL to the average of the S&P500 Index (21.63), we can say MRVL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.69 | ||
| Fwd PE | 22.86 |
4.2 Price Multiples
MRVL's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MRVL indicates a somewhat cheap valuation: MRVL is cheaper than 64.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.27 | ||
| EV/EBITDA | 64.15 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MRVL's earnings are expected to grow with 27.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.13
PEG (5Y)N/A
EPS Next 2Y15.73%
EPS Next 3Y27.27%
5. Dividend
5.1 Amount
With a yearly dividend of 0.37%, MRVL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.10, MRVL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, MRVL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
5.2 History
MRVL has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of MRVL decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years2
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-22.16%
EPS Next 2Y15.73%
EPS Next 3Y27.27%
MARVELL TECHNOLOGY INC
NASDAQ:MRVL (4/25/2024, 7:06:12 PM)
Premarket: 68.02 +0.54 (+0.8%)67.48
+2.63 (+4.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap58.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.69 | ||
| Fwd PE | 22.86 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.13
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.4% | ||
| ROE | -6.29% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 41.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-28.77%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y39.38%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.96%
Revenue growth 3Y22.87%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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