NasdaqGS:MRVL

Stock Analysis Report

Executive Summary

Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Marvell Technology Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MRVL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.0%

MRVL

-10.5%

US Semiconductor

-7.6%

US Market


1 Year Return

12.1%

MRVL

26.2%

US Semiconductor

10.2%

US Market

Return vs Industry: MRVL underperformed the US Semiconductor industry which returned 26.2% over the past year.

Return vs Market: MRVL exceeded the US Market which returned 10.2% over the past year.


Shareholder returns

MRVLIndustryMarket
7 Day-11.0%-10.5%-7.6%
30 Day-15.1%-6.7%-4.5%
90 Day-15.2%3.0%-0.6%
1 Year13.2%12.1%28.6%26.2%12.5%10.2%
3 Year46.3%41.1%75.2%65.8%37.1%28.3%
5 Year46.6%35.4%128.0%106.4%60.8%43.2%

Price Volatility Vs. Market

How volatile is Marvell Technology Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Marvell Technology Group undervalued compared to its fair value and its price relative to the market?

2.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MRVL ($22.36) is trading below our estimate of fair value ($22.88)

Significantly Below Fair Value: MRVL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MRVL is unprofitable, so we can't compare its PE Ratio to the Semiconductor industry average.

PE vs Market: MRVL is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MRVL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MRVL is good value based on its PB Ratio (2.1x) compared to the US Semiconductor industry average (2.8x).


Next Steps

Future Growth

How is Marvell Technology Group forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

112.5%

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 (1.7%).

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's is expected to become profitable in the next 3 years.

Revenue vs Market: MRVL's revenue (13.1% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: MRVL's revenue (13.1% 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 (13.1%).


Next Steps

Past Performance

How has Marvell Technology Group performed over the past 5 years?

-4.0%

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 -4% 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 (-28.7%).


Return on Equity

High ROE: MRVL has a negative Return on Equity (-6.27%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Marvell Technology Group's financial position?


Financial Position Analysis

Short Term Liabilities: MRVL's short term assets ($1.9B) exceed its short term liabilities ($654.5M).

Long Term Liabilities: MRVL's short term assets ($1.9B) do not cover its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: MRVL's debt to equity ratio (28.4%) is considered satisfactory.

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


Balance Sheet

Inventory Level: MRVL has a low level of unsold assets or inventory.

Debt Coverage by Assets: MRVL's debt is not covered by short term assets (assets are 0.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MRVL has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: MRVL has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

1.07%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.5%markettop25%4.0%industryaverage2.1%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: MRVL's dividend (1.07%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: MRVL's dividend (1.07%) is low compared to the top 25% of dividend payers in the US market (3.96%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MRVL has been paying a dividend for less than 10 years.

Growing Dividend: MRVL has only been paying a dividend for 8 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: MRVL is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: MRVL's dividends in 3 years are forecast to be well covered by earnings (19.3% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Matt Murphy (46yo)

3.6yrs

Tenure

US$7,166,310

Compensation

Mr. Matthew J. Murphy, also known as Matt, serves as Independent Director at eBay Inc. since March 01, 2019. Mr. Murphy has been the President and Chief Executive Officer of Marvell Technology Group Ltd. s ...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD7.17M) is below average for companies of similar size in the US market ($USD10.78M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Matthew Murphy
President3.6yrsUS$7.17m0.020% $3.1m
Jean Hu
Chief Financial Officer3.5yrsUS$2.82m0.013% $2.0m
Mitchell Gaynor
Chief Administration & Legal Officer and Secretary2.8yrsUS$1.99m0.0083% $1.2m
Syed Ali
0.7yrsUS$248.35k0.67% $101.0m
Raghib Hussain
Chief Strategy Officer2.1yrsUS$4.04m0.11% $16.3m
Bethany Mayer
Director1.8yrsUS$297.14k0.0017% $254.9k
Sehat Sutardja
Co-Founder25.1yrsUS$377.92kno data
Weili Dai
Co-Founder25.1yrsUS$36.26kno data
Andrew Micallef
Executive VP & COO3.7yrsUS$2.11m0.013% $2.0m
Willem Meintjes
Chief Accounting Officer1.7yrsno data0.0043% $640.4k

3.1yrs

Average Tenure

56.5yo

Average Age

Experienced Management: MRVL's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Matthew Murphy
President3.6yrsUS$7.17m0.020% $3.1m
Bethany Mayer
Director1.8yrsUS$297.14k0.0017% $254.9k
Robert Switz
Independent Director3.8yrsUS$299.49k0.0068% $1.0m
Richard Hill
Independent Chairman3.8yrsUS$357.59k0.0097% $1.5m
William Brown
Independent Director3.2yrsUS$287.59k0.0015% $225.0k
Donna Morris
Independent Director1.8yrsUS$305.71k0.0023% $350.9k
Brad Buss
Independent Director1.6yrsUS$255.63k0.0082% $1.2m
Edward Frank
Independent Director1.6yrsUS$252.71k0.0044% $661.4k
Oleg Khaykin
Independent Director3.8yrsUS$302.59k0.0035% $521.9k
Michael Strachan
Independent Director3.8yrsUS$297.62k0.0074% $1.1m

3.4yrs

Average Tenure

58.5yo

Average Age

Experienced Board: MRVL's board of directors are considered experienced (3.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21%.


Top Shareholders

Company Information

Marvell Technology Group Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Marvell Technology Group Ltd.
  • Ticker: MRVL
  • Exchange: NasdaqGS
  • Founded: 1995
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$14.997b
  • Shares outstanding: 670.70m
  • Website: https://www.marvell.com

Number of Employees


Location

  • Marvell Technology Group Ltd.
  • Canon's Court
  • 22 Victoria Street
  • Hamilton
  • HM 12
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRVLNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2000
MVLDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2000
0UBILSE (London Stock Exchange)YesCommon StockGBUSDJun 2000
MRVL NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 2000

Biography

Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. It offers a range of storage products, including hard disk drive (HDD) and solid-state drive controllers, as well as preamplifiers; supports a variety of host system interfaces consisting of serial attached SCSI (SAS), serial advanced technology attachment (SATA), peripheral component interconnect express, and non-volatile memory express; and develops software-enabled silicon solutions comprising SATA port multipliers, bridges, SATA, SAS, and non-volatile memory express redundant array of independent disks controllers and converged storage processors for enterprises, data centers, and cloud computing businesses. The company also provides networking products, which comprise Ethernet solutions consisting of Ethernet switches, Ethernet physical-layer transceivers, embedded communication processors, and Ethernet adapters and controllers. In addition, it offers a portfolio of connectivity solutions, including Wi-Fi and Wi-Fi/Bluetooth integrated system-on-a-chip (SoC) products, which are integrated into various end devices, such as enterprise access points, home gateways and voice assistants, multimedia devices, gaming products, printers, automotive infotainment and telematics units, and smart industrial devices. Further, the company provides printer SoC products and application processors. It has operations in the United States, China, Malaysia, the Philippines, Thailand, Singapore, India, Israel, Japan, South Korea, Taiwan, and Vietnam. Marvell Technology Group Ltd. has a strategic partnership with Arm for the design and development of Marvell ThunderX server processor technology. The company was founded in 1995 and is headquartered in Hamilton, Bermuda. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 01:11
End of Day Share Price2020/02/26 00:00
Earnings2019/11/02
Annual Earnings2019/02/02


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.