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MRVL

Marvell Technology NasdaqGS:MRVL Stock Report

Last Price

US$43.29

Market Cap

US$36.9b

7D

-6.6%

1Y

-31.9%

Updated

24 Sep, 2022

Data

Company Financials +
MRVL fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance0/6
Financial Health3/6
Dividends0/6

MRVL Stock Overview

Marvell Technology, Inc., together with its subsidiaries, designs, develops, and sells analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits.

Marvell Technology Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Marvell Technology
Historical stock prices
Current Share PriceUS$43.29
52 Week HighUS$93.85
52 Week LowUS$41.07
Beta1.51
1 Month Change-21.42%
3 Month Change-10.22%
1 Year Change-31.95%
3 Year Change74.84%
5 Year Change141.84%
Change since IPO205.80%

Recent News & Updates

Sep 22

Marvell: Down 50% From Its Highs - Don't Miss Buying This Pullback

Summary MRVL had fallen more than 50% from its December 2021 highs, which is justified as it was overvalued. The market correctly anticipated that it could not sustain its growth momentum. However, we believe the digestion in its growth premium has likely bottomed out in July. Therefore, we are confident that Marvell's growth cadence should recover from H1'23. Its profitability margins remained robust, demonstrating its competitiveness. Also, it's expected to continue gaining operating leverage through its data center and automotive segments. We discuss why we believe the recent pullback offers investors another opportunity to add exposure. Thesis We highlighted in our early July article on Marvell Technology, Inc. (MRVL), urging investors to bide their time and not rush in. Interestingly, MRVL formed a robust bottoming process in July before rallying through the summer. Despite the recent pullback from its August highs, our assessment suggests that MRVL has likely bottomed in July. Therefore, the pullback offers investors another opportunity to add exposure after MRVL fell more than 20% from its August highs. Investors should expect Marvell to report slower growth moving ahead as it laps highly challenging comps. However, its cloud and data center-focused segment opportunity should help mitigate the downside volatility from the broad semi downturn. Despite that, we need to caution that MRVL's valuation is more attractive but not undervalued. Notwithstanding, we are confident that its growing EV opportunity within its automotive segment should help boost its margins profile moving forward. Moreover, its growing data center business should continue to help lift its operating leverage. Therefore, we believe MRVL's long-term growth opportunity within the semi space remains robust, thus deserving its growth premium. As such, we revise our rating on MRVL from Hold to Buy. Marvell Is Not Immune To A Broad Semi Downturn MRVL had lost more than 50% of its value from its December highs when it was overvalued by a mile. Therefore, the value compression over the past year is justified, as the market anticipated that even its enterprise/data center/hyperscaler-focused business is unlikely to sustain its growth cadence. The company also experienced weakness in certain legacy products, as CEO Matt Murphy accentuated: I think the overall trends in data center are very, very strong, I'm saying in aggregate. I think underneath the hood, depending on the type of components you supply, [and] your end customer orientation, you're definitely going to see churn, right? I mean, we called it out in ours that we have a legacy portfolio of products that we sell, we said that's down, right? I think there's some inventory burn going on there and some adjustments. (Citi 2022 Global Technology Conference) Marvell Revenue change % and Adjusted EBIT change % consensus estimates (S&P Cap IQ) As seen above, Marvell's revenue growth is expected to moderate further through 2023. Its Q3 guidance, which came in below the previous consensus estimates, corroborated our last article that investors need to anticipate a moderation in its growth cadence. As a result, its adjusted EBIT growth is projected to be impacted, but it is still demonstrating operating leverage. Marvell Adjusted EBIT margins % and Adjusted Gross margins % consensus estimates (S&P Cap IQ) Consequently, Marvell is still expected to post stronger operating margins, lifted by its accretive data center and automotive segment. Hence, we believe its robust profitability profile should continue to support its premium valuation. The company also expects its supply chain dynamics to be more constructive in FY23, given the weakness in the consumer side of things. Marvell remains capacity constrained, despite its robust growth. However, the company highlighted that the capacity benefits should accrue progressively, as it takes time for the capacity to be available. Is MRVL A Buy, Sell, Or Hold? MRVL NTM EBITDA multiples valuation trend (koyfin) MRVL was clearly overvalued in late 2021 as its valuations surged above the two standard deviation zone above its 10Y mean. Therefore, we welcome the massive digestion in its growth premium, as MRVL has fallen close to its 10Y mean. We gleaned that the current zone has supported its valuation in the March 2020 COVID bottom. Furthermore, Marvell has transformed its business significantly, gaining exposure and market share across the enterprise/data center/hyperscaler/automotive space, as demonstrated in its revenue growth. Therefore, we believe the growth premium is justified.

Shareholder Returns

MRVLUS SemiconductorUS Market
7D-6.6%-6.0%-5.2%
1Y-31.9%-29.7%-23.0%

Return vs Industry: MRVL underperformed the US Semiconductor industry which returned -29.7% over the past year.

Return vs Market: MRVL underperformed the US Market which returned -23.1% over the past year.

Price Volatility

Is MRVL's price volatile compared to industry and market?
MRVL volatility
MRVL Average Weekly Movement7.6%
Semiconductor Industry Average Movement8.1%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: MRVL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: MRVL's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19956,712Matt Murphyhttps://www.marvell.com

Marvell Technology, Inc., together with its subsidiaries, designs, develops, and sells analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. It offers a portfolio of Ethernet solutions, including controllers, network adapters, physical transceivers, and switches; single or multiple core processors; ASIC; and printer System-on-a-Chip products and application processors. The company also provides a range of storage products comprising storage controllers for hard disk drives (HDD) and solid-state drives that support various host system interfaces consisting of serial attached SCSI (SAS), serial advanced technology attachment (SATA), peripheral component interconnect express, non-volatile memory express (NVMe), and NVMe over fabrics; and fiber channel products, including host bus adapters, and controllers for server and storage system connectivity.

Marvell Technology Fundamentals Summary

How do Marvell Technology's earnings and revenue compare to its market cap?
MRVL fundamental statistics
Market CapUS$36.91b
Earnings (TTM)-US$217.83m
Revenue (TTM)US$5.52b

6.7x

P/S Ratio

-169.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MRVL income statement (TTM)
RevenueUS$5.52b
Cost of RevenueUS$2.67b
Gross ProfitUS$2.85b
Other ExpensesUS$3.07b
Earnings-US$217.83m

Last Reported Earnings

Jul 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.26
Gross Margin51.66%
Net Profit Margin-3.95%
Debt/Equity Ratio29.6%

How did MRVL perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

-93%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is MRVL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MRVL?

Other financial metrics that can be useful for relative valuation.

MRVL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue7.4x
Enterprise Value/EBITDA24.3x
PEG Ration/a

Price to Sales Ratio vs Peers

How does MRVL's PS Ratio compare to its peers?

MRVL PS Ratio vs Peers
The above table shows the PS ratio for MRVL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average3.3x
NXPI NXP Semiconductors
3.3x4.3%US$40.2b
MCHP Microchip Technology
4.8x3.4%US$34.4b
ON ON Semiconductor
3.6x4.3%US$27.4b
MU Micron Technology
1.7x3.1%US$55.3b
MRVL Marvell Technology
6.7x14.7%US$36.9b

Price-To-Sales vs Peers: MRVL is expensive based on its Price-To-Sales Ratio (6.7x) compared to the peer average (3.3x).


Price to Earnings Ratio vs Industry

How does MRVL's PE Ratio compare vs other companies in the US Semiconductor Industry?

Price-To-Sales vs Industry: MRVL is expensive based on its Price-To-Sales Ratio (6.7x) compared to the US Semiconductor industry average (3.2x)


Price to Sales Ratio vs Fair Ratio

What is MRVL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MRVL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio6.7x
Fair PS Ratio8.1x

Price-To-Sales vs Fair Ratio: MRVL is good value based on its Price-To-Sales Ratio (6.7x) compared to the estimated Fair Price-To-Sales Ratio (8.1x).


Share Price vs Fair Value

What is the Fair Price of MRVL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MRVL ($43.29) is trading below our estimate of fair value ($76.19)

Significantly Below Fair Value: MRVL is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Marvell Technology forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


56.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRVL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: MRVL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MRVL is expected to become profitable in the next 3 years.

Revenue vs Market: MRVL's revenue (14.7% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: MRVL's revenue (14.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MRVL's Return on Equity is forecast to be low in 3 years time (15.9%).


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Past Performance

How has Marvell Technology performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-18.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MRVL is currently unprofitable.

Growing Profit Margin: MRVL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MRVL is unprofitable, and losses have increased over the past 5 years at a rate of 18.9% per year.

Accelerating Growth: Unable to compare MRVL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MRVL is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (49.3%).


Return on Equity

High ROE: MRVL has a negative Return on Equity (-1.4%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Marvell Technology's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MRVL's short term assets ($2.9B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: MRVL's short term assets ($2.9B) do not cover its long term liabilities ($4.5B).


Debt to Equity History and Analysis

Debt Level: MRVL's net debt to equity ratio (25.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if MRVL's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: MRVL's debt is well covered by operating cash flow (24.7%).

Interest Coverage: MRVL's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


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Dividend

What is Marvell Technology current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


0.55%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MRVL's dividend (0.55%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: MRVL's dividend (0.55%) is low compared to the top 25% of dividend payers in the US market (4.57%).


Stability and Growth of Payments

Stable Dividend: MRVL is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: MRVL is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: MRVL is not paying a notable dividend for the US market.


Cash Payout to Shareholders

Cash Flow Coverage: MRVL is not paying a notable dividend for the US market.


Discover strong dividend paying companies

Management

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

5.6yrs

Average management tenure


CEO

Matt Murphy (49 yo)

6.17yrs

Tenure

US$15,510,223

Compensation

Mr. Matthew J. Murphy, also known as Matt, served as Independent Director at eBay Inc. since March 15, 2019 until June 08, 2022. Mr. Murphy has been the President and Chief Executive Officer of Marvell Tec...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD15.51M) is about average for companies of similar size in the US market ($USD13.05M).

Compensation vs Earnings: Matt's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: MRVL's management team is seasoned and experienced (5.6 years average tenure).


Board Members

Experienced Board: MRVL's board of directors are considered experienced (4.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MRVL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NasdaqGS:MRVL Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
02 Sep 22BuyUS$314,096Michael StrachanIndividual6,781US$46.32
28 Dec 21SellUS$13,349Loi NguyenIndividual147US$90.81

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.5%.


Top Shareholders

Top 25 shareholders own 56.07% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
14.07%
FMR LLC
119,962,906$5.2b2.73%0.5%
7.75%
The Vanguard Group, Inc.
66,091,890$2.9b2.34%0.07%
7.54%
BlackRock, Inc.
64,252,457$2.8b-8.82%0.07%
4.28%
T. Rowe Price Group, Inc.
36,482,866$1.6b16.14%0.19%
2.28%
Wellington Management Group LLP
19,432,426$841.2m-15.49%0.16%
2.17%
State Street Global Advisors, Inc.
18,541,982$802.7m-0.48%0.05%
1.81%
Managed Account Advisors LLC
15,456,698$669.1m-4.41%0.19%
1.42%
Brown Advisory Incorporated
12,068,105$522.4m-2.26%0.94%
1.37%
Allianz Asset Management AG
11,663,287$504.9m-9.28%0.46%
1.27%
Goldman Sachs Asset Management, L.P.
10,853,949$469.9m-2.01%0.21%
1.12%
Janus Henderson Group plc
9,570,447$414.3m-7.48%0.24%
1.09%
Columbia Management Investment Advisers, LLC
9,298,553$402.5m-5.12%0.12%
1.09%
Geode Capital Management, LLC
9,275,713$401.5m-18.14%0.05%
0.92%
Merrill Lynch & Co. Inc., Banking Investments
7,801,374$337.7m-0.93%0.18%
0.9%
Union Asset Management Holding AG
7,631,043$330.3m5.77%0.4%
0.87%
Norges Bank Investment Management
7,444,891$322.3m0%0.04%
0.87%
UBS Asset Management
7,410,578$320.8m-4.45%0.06%
0.75%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
6,413,164$277.6m-21.43%0.1%
0.73%
American Century Investment Management Inc
6,254,469$270.8m104.31%0.2%
0.71%
Invesco Ltd.
6,029,843$261.0m-24.87%0.09%
0.69%
BNY Mellon Asset Management
5,860,932$253.7m-1.04%0.06%
0.62%
Northern Trust Global Investments
5,289,366$229.0m1.01%0.05%
0.61%
Legal & General Investment Management Limited
5,226,496$226.3m9.06%0.07%
0.58%
Marshall Wace LLP
4,916,255$212.8m132.29%0.58%
0.57%
Strategic Advisers LLC
4,864,451$210.6m10.84%0.18%

Company Information

Marvell Technology, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Marvell Technology, Inc.
  • Ticker: MRVL
  • Exchange: NasdaqGS
  • Founded: 1995
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Implied Market Cap: US$36.909b
  • Shares outstanding: 852.60m
  • Website: https://www.marvell.com

Number of Employees


Location

  • Marvell Technology, Inc.
  • 1000 North West Street
  • Suite 1200
  • Wilmington
  • Delaware
  • 19801
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRVLNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2000
9MWDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2000
MRVL1 *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 2000
M2RV34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 10 REPR 1 COMBRBRLJan 2022

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/07/30
Annual Earnings2022/01/29


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.