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
|Historical stock prices|
|Current Share Price||US$43.29|
|52 Week High||US$93.85|
|52 Week Low||US$41.07|
|1 Month Change||-21.42%|
|3 Month Change||-10.22%|
|1 Year Change||-31.95%|
|3 Year Change||74.84%|
|5 Year Change||141.84%|
|Change since IPO||205.80%|
Recent News & Updates
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.
|MRVL||US Semiconductor||US Market|
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.
|MRVL Average Weekly Movement||7.6%|
|Semiconductor Industry Average Movement||8.1%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.8%|
|10% least volatile stocks in US Market||2.8%|
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
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
|MRVL fundamental statistics|
Is MRVL overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|MRVL income statement (TTM)|
|Cost of Revenue||US$2.67b|
Last Reported Earnings
Jul 30, 2022
Next Earnings Date
|Earnings per share (EPS)||-0.26|
|Net Profit Margin||-3.95%|
How did MRVL perform over the long term?See historical performance and comparison
0.6%Current Dividend Yield
Is MRVL undervalued compared to its fair value, analyst forecasts and its price relative to the market?
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
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.
|What is MRVL's n/a Ratio?|
Price to Sales Ratio vs Peers
How does MRVL's PS Ratio compare to its peers?
|MRVL PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
NXPI NXP Semiconductors
MCHP Microchip Technology
ON ON Semiconductor
MU Micron Technology
MRVL Marvell Technology
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.
|Current PS Ratio||6.7x|
|Fair PS Ratio||8.1x|
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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How is Marvell Technology forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?
Future Growth Score4/6
Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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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How has Marvell Technology performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
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.
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How is Marvell Technology's financial position?
Financial Health Score3/6
Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
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 ($4.5B).
Debt to Equity History and Analysis
Debt Level: MRVL's net debt to equity ratio (25.7%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if MRVL's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: MRVL's debt is well covered by operating cash flow (24.7%).
Interest Coverage: MRVL's interest payments on its debt are not well covered by EBIT (1.9x coverage).
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What is Marvell Technology current dividend yield, its reliability and sustainability?
Dividend Score 0/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MRVL's dividend (0.55%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).
High Dividend: MRVL's dividend (0.55%) is low compared to the top 25% of dividend payers in the US market (4.57%).
Stability and Growth of Payments
Stable Dividend: MRVL is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: MRVL is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Earnings Payout to Shareholders
Earnings Coverage: MRVL is not paying a notable dividend for the US market.
Cash Payout to Shareholders
Cash Flow Coverage: MRVL is not paying a notable dividend for the US market.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Matt Murphy (49 yo)
Mr. Matthew J. Murphy, also known as Matt, served as Independent Director at eBay Inc. since March 15, 2019 until June 08, 2022. Mr. Murphy has been the President and Chief Executive Officer of Marvell Tec...
CEO Compensation Analysis
Compensation vs Market: Matt's total compensation ($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.
Experienced Management: MRVL's management team is seasoned and experienced (5.6 years average tenure).
Experienced Board: MRVL's board of directors are considered experienced (4.2 years average tenure).
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
|02 Sep 22||BuyUS$314,096||Michael Strachan||Individual||6,781||US$46.32|
|28 Dec 21||SellUS$13,349||Loi Nguyen||Individual||147||US$90.81|
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.5%.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Marvell Technology, Inc.'s employee growth, exchange listings and data sources
- 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
- Marvell Technology, Inc.
- 1000 North West Street
- Suite 1200
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|MRVL||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Jun 2000|
|9MW||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Jun 2000|
|MRVL1 *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Jun 2000|
|M2RV34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 10 REPR 1 COM||BR||BRL||Jan 2022|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/24 00:00|
|End of Day Share Price||2022/09/23 00:00|
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.