NasdaqGS:MLNX

Stock Analysis Report

Executive Summary

Mellanox Technologies, Ltd., a fabless semiconductor company, designs, manufactures, markets, and sells interconnect products and solutions.

Snowflake

Fundamentals

Excellent balance sheet with solid track record.


Similar Companies

Share Price & News

How has Mellanox Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.7%

NasdaqGS:MLNX

2.0%

US Semiconductor

1.2%

US Market


1 Year Return

44.4%

NasdaqGS:MLNX

10.9%

US Semiconductor

1.7%

US Market

MLNX outperformed the Semiconductor industry which returned 10.9% over the past year.

MLNX outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

MLNXIndustryMarket
7 Day1.7%2.0%1.2%
30 Day2.7%10.8%4.9%
90 Day1.5%17.2%3.7%
1 Year44.4%44.4%13.0%10.9%3.9%1.7%
3 Year177.8%177.8%83.8%73.0%47.2%37.7%
5 Year161.5%161.5%122.5%100.0%60.0%42.4%

Price Volatility Vs. Market

How volatile is Mellanox Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Mellanox Technologies undervalued based on future cash flows and its price relative to the stock market?

13%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Mellanox Technologies's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Mellanox Technologies's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Mellanox Technologies is overvalued based on earnings compared to the US Semiconductor industry average.

Mellanox Technologies is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Mellanox Technologies is poor value based on expected growth next year.


Price Based on Value of Assets

Mellanox Technologies is overvalued based on assets compared to the US Semiconductor industry average.


Next Steps

Future Growth

How is Mellanox Technologies expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

28.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Mellanox Technologies's revenue is expected to grow by 10.6% yearly, however this is not considered high growth (20% yearly).

Mellanox Technologies's earnings are expected to grow significantly at over 20% yearly.

Mellanox Technologies's revenue growth is expected to exceed the United States of America market average.

Mellanox Technologies's earnings growth is expected to exceed the United States of America market average.

Mellanox Technologies's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Mellanox Technologies will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Mellanox Technologies performed over the past 5 years?

45.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Mellanox Technologies has delivered over 20% year on year earnings growth in the past 5 years.

Mellanox Technologies's 1-year earnings growth exceeds its 5-year average (202.5% vs 45.8%)

Mellanox Technologies's earnings growth has exceeded the US Semiconductor industry average in the past year (202.5% vs -6.2%).


Return on Equity

Mellanox Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Mellanox Technologies used its assets more efficiently than the US Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

Mellanox Technologies has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Mellanox Technologies's financial position?


Financial Position Analysis

Mellanox Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Mellanox Technologies's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Mellanox Technologies's level of debt (0.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (0% vs 0.4% today).

Debt is well covered by operating cash flow (5758.3%, greater than 20% of total debt).

Mellanox Technologies earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 171.3x debt.


Next Steps

Dividend

What is Mellanox Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Mellanox Technologies's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Mellanox Technologies's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Mellanox Technologies has not reported any payouts.

Unable to verify if Mellanox Technologies's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Mellanox Technologies has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Mellanox Technologies's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Mellanox Technologies's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Eyal Waldman (58yo)

20.5yrs

Tenure

US$7,897,858

Compensation

Mr. Eyal Waldman is a co-founder of Mellanox and has been the Chief Executive Officer and President of Mellanox Technologies, Ltd. since March 1999. Mr. Waldman co-founded Mellanox Technologies, Ltd. in 19 ...


CEO Compensation Analysis

Eyal's remuneration is about average for companies of similar size in United States of America.

Eyal's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.3yrs

Average Tenure

56.5yo

Average Age

The tenure for the Mellanox Technologies management team is about average.


Board Age and Tenure

3.5yrs

Average Tenure

64yo

Average Age

The tenure for the Mellanox Technologies board of directors is about average.


Insider Trading

Mellanox Technologies individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$819,34509 Sep 19
Marc Sultzbaugh
EntityIndividual
Role
Head of Sales
Senior Vice President of Worldwide Sales
Shares7,500
Max PriceUS$109.25
SellUS$272,50012 Aug 19
Marc Sultzbaugh
EntityIndividual
Role
Head of Sales
Senior Vice President of Worldwide Sales
Shares2,500
Max PriceUS$109.00
BuyUS$2,210,88406 Jun 19
Stephen Sanghi
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$110.54
SellUS$372,324,46712 Mar 19
Starboard Value LP
EntityCompany
Shares3,142,678
Max PriceUS$118.55
BuyUS$13,724,34215 Feb 19
Starboard Value LP
EntityCompany
Shares148,564
Max PriceUS$92.38
SellUS$117,967,64615 Feb 19
Starboard Value LP
EntityCompany
Shares1,205,770
Max PriceUS$101.04
SellUS$31,02214 Feb 19
Eric Johnson
EntityIndividual
Role
Controller
VP & Corporate Controller
Shares373
Max PriceUS$86.37

Ownership Breakdown


Management Team

  • Eyal Waldman (58yo)

    Co-Founder

    • Tenure: 20.5yrs
    • Compensation: US$7.90m
  • Eric Johnson (54yo)

    VP & Corporate Controller

    • Tenure: 3.3yrs
    • Compensation: US$1.42m
  • Marc Sultzbaugh (56yo)

    Senior Vice President of Worldwide Sales

    • Tenure: 6.8yrs
    • Compensation: US$1.79m
  • Michael Kagan (61yo)

    Co-founder & CTO

    • Tenure: 0yrs
    • Compensation: US$1.67m
  • Steen Gundersen

    Vice President of Sales & Marketing

    • Tenure: 4.4yrs
  • Alinka Flaminia (57yo)

    Senior VP & General Counsel

    • Tenure: 3yrs
  • Eyal Babish

    Senior Vice President of Operations & Hardware Engineering

    • Tenure: 0.7yrs
  • Nimrod Gindi

    Vice President of M&A and Head of Investments

    • Tenure: 0yrs
  • Shanye Hudson

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Doug Ahrens (52yo)

    Senior VP & CFO

    • Tenure: 0.7yrs

Board Members

  • Irwin Federman (83yo)

    Non-Executive Chairman & Lead Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$419.82k
  • Amal Johnson (66yo)

    • Tenure: 12.9yrs
    • Compensation: US$406.24k
  • Steve Sanghi (63yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$492.31k
  • Glenda Dorchak (65yo)

    Director

    • Tenure: 10.2yrs
    • Compensation: US$403.70k
  • Jack Lazar (54yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$391.98k
  • Umesh Padval (61yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$493.73k
  • Eyal Waldman (58yo)

    Co-Founder

    • Tenure: 20.5yrs
    • Compensation: US$7.90m
  • Greg Waters (58yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$388.47k
  • Dadi Perlmutter (65yo)

    Outside Director

    • Tenure: 5.3yrs
    • Compensation: US$396.98k
  • Jon Olson (66yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$389.88k

Company Information

Mellanox Technologies, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mellanox Technologies, Ltd.
  • Ticker: MLNX
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$6.107b
  • Shares outstanding: 54.80m
  • Website: https://www.mellanox.com

Number of Employees


Location

  • Mellanox Technologies, Ltd.
  • 350 Oakmead Parkway
  • Suite 100
  • Sunnyvale
  • California
  • 94085
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MLNXNasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDFeb 2007
ZZEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURFeb 2007

Biography

Mellanox Technologies, Ltd., a fabless semiconductor company, designs, manufactures, markets, and sells interconnect products and solutions. Its products facilitate data transmission between servers, stora ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 01:02
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.