Marvell Technology (NasdaqGS:MRVL) - Share price, News & Analysis

MRVL fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	5/6
Past Performance	0/6
Financial Health	2/6
Dividends	0/6

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.

Rewards

Trading at 7% below our estimate of its fair value

Earnings are forecast to grow 73.17% per year

Risk Analysis

Shareholders have been diluted in the past year

Marvell Technology Competitors

NVIDIA

NasdaqGS:NVDA

US$423.1b

Broadcom

NasdaqGS:AVGO

US$214.9b

Intel

NasdaqGS:INTC

US$171.7b

Texas Instruments

NasdaqGS:TXN

US$156.7b

Price History & Performance

Summary of all time highs, changes and price drops for Marvell Technology
Historical stock prices
Current Share Price	US$54.86
52 Week High	US$93.85
52 Week Low	US$46.51
Beta	1.27
1 Month Change	-6.13%
3 Month Change	-17.75%
1 Year Change	15.20%
3 Year Change	150.27%
5 Year Change	210.47%
Change since IPO	287.53%

Recent News & Updates

May 16

Marvell: Well Positioned For Long-Term Performance

Marvell is a semiconductor company with application-specific expertise in some of the fastest-growing industries. Marvell stands to benefit from the global multi-year strategic shift towards automotive, cloud/data centers, and 5G – also implying exposure to the metaverse story. In the past year, MRVL management not only delivered robust financial performance but also guided the Street with a bullish long-term outlook. In this article, I use a residual earnings framework to value MRVL's fair share price at $75.97/share, implying a 41.3% upside potential.

Apr 29

Marvell Technology (NASDAQ:MRVL) Is Carrying A Fair Bit Of Debt

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Shareholder Returns

	MRVL	US Semiconductor	US Market
7D	-0.7%	-1.2%	-0.5%
1Y	15.2%	-3.7%	-12.3%

Return vs Industry: MRVL exceeded the US Semiconductor industry which returned -1.9% over the past year.

Return vs Market: MRVL exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is MRVL's price volatile compared to industry and market?
MRVL volatility
MRVL Average Weekly Movement	9.1%
Semiconductor Industry Average Movement	8.6%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: MRVL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: MRVL's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1995	6,712	Matt Murphy	https://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 Cap	US$46.67b
Earnings (TTM)	-US$421.03m
Revenue (TTM)	US$4.46b

10.5x

P/S Ratio

-110.8x

P/E Ratio

Is MRVL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MRVL income statement (TTM)
Revenue	US$4.46b
Cost of Revenue	US$2.20b
Gross Profit	US$2.26b
Other Expenses	US$2.68b
Earnings	-US$421.03m

Last Reported Earnings

Jan 29, 2022

Next Earnings Date

May 26, 2022

Earnings per share (EPS)	-0.49
Gross Margin	50.60%
Net Profit Margin	-9.44%
Debt/Equity Ratio	29.0%

How did MRVL perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

-45%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

7.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MRVL ($54.86) is trading below our estimate of fair value ($59)

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 US 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 (3x) compared to the US Semiconductor industry average (3.5x).

Future Growth

How is Marvell Technology forecast to perform in the next 1 to 3 years based on estimates from 29 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

73.2%

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

Revenue vs Market: MRVL's revenue (20.5% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: MRVL's revenue (20.5% per year) is forecast to grow faster 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 (16.3%).

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

-6.3%

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 6.3% 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 (70.4%).

Return on Equity

High ROE: MRVL has a negative Return on Equity (-2.68%), as it is currently unprofitable.

Financial Health

How is Marvell Technology's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

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 ($2.5B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: MRVL's short term assets ($2.5B) do not cover its long term liabilities ($5.0B).

Debt to Equity History and Analysis

Debt Level: MRVL's net debt to equity ratio (25.1%) 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 not well covered by operating cash flow (18%).

Interest Coverage: Insufficient data to determine if MRVL's interest payments on its debt are well covered by EBIT.

Balance Sheet

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
Future Dividend Coverage

0.44%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MRVL's dividend (0.44%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: MRVL's dividend (0.44%) is low compared to the top 25% of dividend payers in the US market (4.11%).

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?

5.3yrs

Average management tenure

CEO

Matt Murphy (48 yo)

5.83yrs

Tenure

US$15,510,223

Compensation

Mr. Matthew J. Murphy, also known as Matt, serves as Independent Director at eBay Inc. since March 15, 2019. Mr. Murphy has been the President and Chief Executive Officer of Marvell Technology, Inc. since...

CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD15.51M) is about average for companies of similar size in the US market ($USD13.34M).

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 (5.3 years average tenure).

Board Members

Experienced Board: MRVL's board of directors are considered experienced (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 6.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/23 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/01/29
Annual Earnings	2022/01/29