WBAG:MXIM

Stock Analysis Report

Maxim Integrated Products

Executive Summary

Maxim Integrated Products, Inc. designs, develops, manufactures, and markets a range of linear and mixed-signal integrated circuits in the United States, China, the rest of Asia, Europe, and internationally.

Rewards

PE ratio (22x) is below the Semiconductor industry average (30.9x)

Earnings are forecast to grow 8.46% per year

Earnings grew by 9.7% over the past year

Pays a high and reliable dividend of 3.02%

Risk Analysis

Has a high level of debt



Snowflake Analysis

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has Maxim Integrated Products's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MXIM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

MXIM

4.6%

AT Semiconductor

1.9%

AT Market


1 Year Return

19.9%

MXIM

62.3%

AT Semiconductor

5.1%

AT Market

Return vs Industry: MXIM underperformed the Austrian Semiconductor industry which returned 62.3% over the past year.

Return vs Market: MXIM exceeded the Austrian Market which returned 5.1% over the past year.


Shareholder returns

MXIMIndustryMarket
7 Day2.6%4.6%1.9%
30 Day7.2%8.3%0.6%
90 Day13.3%17.0%0.02%
1 Year24.2%19.9%64.9%62.3%8.8%5.1%
3 Yearn/a105.4%98.3%27.7%16.2%
5 Yearn/a174.1%156.0%56.9%35.2%

Price Volatility Vs. Market

How volatile is Maxim Integrated Products's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Maxim Integrated Products undervalued compared to its fair value and its price relative to the market?

22.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MXIM (€59.5) is trading above our estimate of fair value (€53.58)

Significantly Below Fair Value: MXIM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MXIM is good value based on its PE Ratio (22x) compared to the Semiconductor industry average (30.9x).

PE vs Market: MXIM is poor value based on its PE Ratio (22x) compared to the Austrian market (14.2x).


Price to Earnings Growth Ratio

PEG Ratio: MXIM is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: MXIM is overvalued based on its PB Ratio (9.9x) compared to the XE Semiconductor industry average (2.9x).


Next Steps

Future Growth

How is Maxim Integrated Products forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MXIM's forecast earnings growth (8.5% per year) is above the savings rate (-0.1%).

Earnings vs Market: MXIM's earnings (8.5% per year) are forecast to grow slower than the Austrian market (9.9% per year).

High Growth Earnings: MXIM's earnings are forecast to grow, but not significantly.

Revenue vs Market: MXIM's revenue (6.9% per year) is forecast to grow faster than the Austrian market (2.7% per year).

High Growth Revenue: MXIM's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MXIM's Return on Equity is forecast to be very high in 3 years time (52.9%).


Next Steps

Past Performance

How has Maxim Integrated Products performed over the past 5 years?

29.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MXIM has high quality earnings.

Growing Profit Margin: MXIM's current net profit margins (35.9%) are higher than last year (28.6%).


Past Earnings Growth Analysis

Earnings Trend: MXIM's earnings have grown significantly by 29.3% per year over the past 5 years.

Accelerating Growth: MXIM's earnings growth over the past year (9.7%) is below its 5-year average (29.3% per year).

Earnings vs Industry: MXIM earnings growth over the past year (9.7%) exceeded the Semiconductor industry -19%.


Return on Equity

High ROE: MXIM's Return on Equity (45.4%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Maxim Integrated Products's financial position?


Financial Position Analysis

Short Term Liabilities: MXIM's short term assets ($2.4B) exceed its short term liabilities ($360.5M).

Long Term Liabilities: MXIM's short term assets ($2.4B) exceed its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: MXIM's debt to equity ratio (57.5%) is considered high.

Reducing Debt: MXIM's debt to equity ratio has increased from 44.6% to 57.5% over the past 5 years.

Debt Coverage: MXIM's debt is well covered by operating cash flow (82.9%).

Interest Coverage: MXIM earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: MXIM has a high level of physical assets or inventory.

Debt Coverage by Assets: MXIM's debt is covered by short term assets (assets are 2.4x debt).


Next Steps

Dividend

What is Maxim Integrated Products's current dividend yield, its reliability and sustainability?

3.02%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Maxim Integrated Products before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.0%marketbottom25%1.6%markettop25%4.5%industryaverage1.1%forecastin3Years3.1%

Current dividend yield vs market & industry

Notable Dividend: MXIM's dividend (3.02%) is higher than the bottom 25% of dividend payers in the Austrian market (1.58%).

High Dividend: MXIM's dividend (3.02%) is low compared to the top 25% of dividend payers in the Austrian market (4.47%).


Stability and Growth of Payments

Stable Dividend: MXIM's dividends per share have been stable in the past 10 years.

Growing Dividend: MXIM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (65.8%), MXIM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MXIM's dividends in 3 years are forecast to be covered by earnings (71.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Tunç Doluca (61yo)

13.1yrs

Tenure

US$9,143,785

Compensation

Mr. Tunç Doluca has been the President and the Chief Executive Officer of Maxim Integrated Products, Inc. since January 1, 2007. Mr. Doluca served as Group President of Maxim Integrated Products Inc., sinc ...


CEO Compensation Analysis

Compensation vs Market: Tunç's total compensation ($USD9.14M) is above average for companies of similar size in the Austrian market ($USD3.59M).

Compensation vs Earnings: Tunç's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Tunç Doluca
President13.1yrsUS$9.14m0.54% $85.9m
Vivek Jain
Senior Vice President of Technology & Manufacturing Group10.7yrsUS$2.35m0.0041% $645.9k
Edwin Medlin
Senior VP and Chief Legal0.6yrsUS$2.35m0.0096% $1.5m
Bryan Preeshl
Senior Vice President of Quality4.1yrsUS$1.55m0.011% $1.8m
Brian White
CFO, Chief Accounting Officer & Senior VP0.5yrsno data0.039% $6.2m
Kathy Ta
Vice President of Investor Relations0yrsno datano data
Laura Owen
Chief Human Resources Officer3.1yrsno datano data
Christopher Neil
Senior Vice President of New Ventures8.4yrsUS$1.47m0.033% $5.2m
David Dwelley
VP & Chief Technical Officer3.1yrsno datano data
Paresh Maniar
Executive Director of Investor Relations15.3yrsno datano data

4.1yrs

Average Tenure

59yo

Average Age

Experienced Management: MXIM's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tunç Doluca
President13.1yrsUS$9.14m0.54% $85.9m
Robert Grady
Independent Director11.5yrsUS$301.29k0.017% $2.7m
Mercedes Johnson
Independent Director0.4yrsno datano data
William Watkins
Independent Director11.5yrsUS$288.29k0.0020% $322.2k
William Sullivan
Independent Chairman3.8yrsUS$347.79k0.0073% $1.1m
Joseph Bronson
Independent Director12.3yrsUS$309.29k0.0063% $999.7k
James Bergman
Independent Director32.1yrsUS$308.29k0.030% $4.7m
Mary Wright
Independent Director3.5yrsUS$281.29k0.0048% $754.9k
Tracy Accardi
Independent Director3.5yrsUS$286.29k0.0046% $731.2k

11.5yrs

Average Tenure

65yo

Average Age

Experienced Board: MXIM's board of directors are seasoned and experienced ( 11.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MXIM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Maxim Integrated Products, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Maxim Integrated Products, Inc.
  • Ticker: MXIM
  • Exchange: WBAG
  • Founded: 1983
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$17.123b
  • Listing Market Cap: US$15.792b
  • Shares outstanding: 269.39m
  • Website: https://www.maximintegrated.com

Number of Employees


Location

  • Maxim Integrated Products, Inc.
  • 160 Rio Robles
  • San Jose
  • California
  • 95134
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MXIMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1988
MXIDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1988
MXIMWBAG (Wiener Boerse AG)YesCommon StockATEURFeb 1988
MXIETLX (Eurotlx)YesCommon StockITEURFeb 1988
M1XI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 COMBRBRLJan 2020

Biography

Maxim Integrated Products, Inc. designs, develops, manufactures, and markets a range of linear and mixed-signal integrated circuits in the United States, China, the rest of Asia, Europe, and internationally. The company also provides a range of high-frequency process technologies and capabilities for use in custom designs. It serves automotive, communications and data center, computing, consumer, and industrial markets. The company markets its products through a direct-sales and applications organization, as well as through its own and other unaffiliated distribution channels. Maxim Integrated Products, Inc. was founded in 1983 and is headquartered in San Jose, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/15 23:08
End of Day Share Price2020/02/14 00:00
Earnings2019/12/28
Annual Earnings2019/06/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.