NasdaqGS:MXIM

Stock Analysis Report

Executive Summary

Maxim Integrated Products, Inc. designs, develops, manufactures, and markets a range of linear and mixed-signal integrated circuits in the United States, China, the rest of Asia, Europe, and internationally.

Rewards

PE ratio (20.5x) is below the Semiconductor industry average (31.3x)

Earnings are forecast to grow 8.73% per year

Earnings grew by 51.1% over the past year

Pays a high and reliable dividend of 3.32%

Risk Analysis

Has a high level of debt



Snowflake Analysis

Outstanding track record established dividend payer.


Similar Companies

NVIDIA

NasdaqGS:NVDA

Share Price & News

How has Maxim Integrated Products's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MXIM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.5%

MXIM

3.3%

US Semiconductor

0.8%

US Market


1 Year Return

6.8%

MXIM

38.4%

US Semiconductor

17.8%

US Market

Return vs Industry: MXIM underperformed the US Semiconductor industry which returned 38.4% over the past year.

Return vs Market: MXIM underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

MXIMIndustryMarket
7 Day2.5%3.3%0.8%
30 Day-2.1%1.1%1.8%
90 Day-3.2%8.0%4.1%
1 Year10.6%6.8%41.2%38.4%20.4%17.8%
3 Year64.5%49.8%84.0%73.8%45.9%36.4%
5 Year120.7%88.0%136.0%112.9%68.1%49.6%

Price Volatility Vs. Market

How volatile is Maxim Integrated Products's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Maxim Integrated Products undervalued compared to its fair value and its price relative to the market?

20.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MXIM ($57.88) is trading above our estimate of fair value ($52.52)

Significantly Below Fair Value: MXIM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MXIM is good value based on its PE Ratio (20.5x) compared to the Semiconductor industry average (31.3x).

PE vs Market: MXIM is poor value based on its PE Ratio (20.5x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: MXIM is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: MXIM is overvalued based on its PB Ratio (8.8x) compared to the US Semiconductor industry average (3x).


Next Steps

Future Growth

How is Maxim Integrated Products forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

8.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MXIM's forecast earnings growth (8.7% per year) is above the savings rate (1.7%).

Earnings vs Market: MXIM's earnings (8.7% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: MXIM's earnings are forecast to grow, but not significantly.

Revenue vs Market: MXIM's revenue (6.5% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: MXIM's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MXIM's Return on Equity is forecast to be very high in 3 years time (48.2%).


Next Steps

Past Performance

How has Maxim Integrated Products performed over the past 5 years?

27.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MXIM has high quality earnings.

Growing Profit Margin: MXIM's current net profit margins (34.9%) are higher than last year (20.1%).


Past Earnings Growth Analysis

Earnings Trend: MXIM's earnings have grown significantly by 27.5% per year over the past 5 years.

Accelerating Growth: MXIM's earnings growth over the past year (51.1%) exceeds its 5-year average (27.5% per year).

Earnings vs Industry: MXIM earnings growth over the past year (51.1%) exceeded the Semiconductor industry -15.8%.


Return on Equity

High ROE: MXIM's Return on Equity (43.2%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Maxim Integrated Products's financial position?


Financial Position Analysis

Short Term Liabilities: MXIM's short term assets ($2.4B) exceed its short term liabilities ($342.5M).

Long Term Liabilities: MXIM's short term assets ($2.4B) exceed its long term liabilities ($1.6B).


Debt to Equity History and Analysis

Debt Level: MXIM's debt to equity ratio (55.7%) is considered high.

Reducing Debt: MXIM's debt to equity ratio has increased from 41.6% to 55.7% over the past 5 years.

Debt Coverage: MXIM's debt is well covered by operating cash flow (81.6%).

Interest Coverage: MXIM earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: MXIM has a high level of physical assets or inventory.

Debt Coverage by Assets: MXIM's debt is covered by short term assets (assets are 2.4x debt).


Next Steps

Dividend

What is Maxim Integrated Products's current dividend yield, its reliability and sustainability?

3.32%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years3.3%

Current dividend yield vs market & industry

Notable Dividend: MXIM's dividend (3.32%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: MXIM's dividend (3.32%) is low compared to the top 25% of dividend payers in the US market (3.72%).


Stability and Growth of Payments

Stable Dividend: MXIM's dividends per share have been stable in the past 10 years.

Growing Dividend: MXIM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.7%), MXIM's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MXIM's dividends in 3 years are forecast to be covered by earnings (71.9% payout ratio).


Next Steps

Management

What is the CEO of Maxim Integrated Products's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average management tenure


CEO

Tunç Doluca (61yo)

12.9yrs

Tenure

US$9,143,785

Compensation

Mr. Tunç Doluca has been the President and the Chief Executive Officer of Maxim Integrated Products, Inc. since January 1, 2007. Mr. Doluca served as Group President of Maxim Integrated Products Inc., sinc ...


CEO Compensation Analysis

Compensation vs Market: Tunç's total compensation ($USD9.14M) is about average for companies of similar size in the US market ($USD10.94M).

Compensation vs Earnings: Tunç's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.9yrs

Average Tenure

58.5yo

Average Age

Experienced Management: MXIM's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

11.3yrs

Average Tenure

65yo

Average Age

Experienced Board: MXIM's board of directors are seasoned and experienced ( 11.3 years average tenure).


Insider Trading

Insider Buying: MXIM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$121,86526 Nov 19
Jon Imperato
EntityIndividual
Shares2,204
Max PriceUS$55.29
SellUS$299,05013 Sep 19
Edwin Medlin
EntityIndividual
Role
Chief Administrative Officer
Senior VP and Chief Legal
Shares5,000
Max PriceUS$59.81
SellUS$1,190,00013 Sep 19
Bruce Kiddoo
EntityIndividual
Shares20,000
Max PriceUS$60.00
SellUS$579,25912 Sep 19
David Loftus
EntityIndividual
Role
Head of Sales
Vice President of Worldwide Sales & Marketing
Shares10,000
Max PriceUS$57.93
SellUS$628,50412 Sep 19
Vivek Jain
EntityIndividual
Role
Chief Technology Officer
Senior Vice President of Technology & Manufacturing Group
Shares10,852
Max PriceUS$57.92
SellUS$80,42811 Sep 19
James Bergman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,400
Max PriceUS$57.45
SellUS$572,12509 Sep 19
Bruce Kiddoo
EntityIndividual
Shares10,000
Max PriceUS$57.21
SellUS$136,57904 Sep 19
Robert Grady
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$54.63
SellUS$453,91726 Aug 19
William Watkins
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,310
Max PriceUS$54.62
SellUS$696,55023 Aug 19
Vivek Jain
EntityIndividual
Role
Chief Technology Officer
Senior Vice President of Technology & Manufacturing Group
Shares12,683
Max PriceUS$54.92
SellUS$210,82519 Aug 19
Robert Grady
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$52.71
SellUS$292,60912 Jun 19
Bruce Kiddoo
EntityIndividual
Shares5,000
Max PriceUS$58.52
SellUS$257,26507 May 19
Vivek Jain
EntityIndividual
Role
Chief Technology Officer
Senior Vice President of Technology & Manufacturing Group
Shares4,246
Max PriceUS$60.59
SellUS$732,56919 Mar 19
David Loftus
EntityIndividual
Role
Head of Sales
Vice President of Worldwide Sales & Marketing
Shares13,614
Max PriceUS$53.81
SellUS$23,86206 Mar 19
Sumeet Gagneja
EntityIndividual
Shares430
Max PriceUS$55.49
SellUS$220,99708 Feb 19
James Bergman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,910
Max PriceUS$56.52
SellUS$273,36905 Feb 19
Joseph Bronson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$54.67
SellUS$49,57317 Dec 18
Bryan Preeshl
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Quality
Shares924
Max PriceUS$53.65

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Tunç Doluca (61yo)

    President

    • Tenure: 12.9yrs
    • Compensation: US$9.14m
  • Ed Medlin (62yo)

    Senior VP and Chief Legal

    • Tenure: 0.4yrs
    • Compensation: US$2.35m
  • David Loftus (58yo)

    Vice President of Worldwide Sales & Marketing

    • Tenure: 4.1yrs
    • Compensation: US$3.08m
  • Chris Neil (53yo)

    Senior Vice President of New Ventures

    • Tenure: 8.3yrs
    • Compensation: US$1.47m
  • Laura Owen (63yo)

    Chief Human Resources Officer

    • Tenure: 2.9yrs
  • Brian White (54yo)

    CFO, Chief Accounting Officer & Senior VP

    • Tenure: 0.3yrs
  • Vivek Jain (59yo)

    Senior Vice President of Technology & Manufacturing Group

    • Tenure: 10.5yrs
    • Compensation: US$2.35m
  • Bryan Preeshl (57yo)

    Senior Vice President of Quality

    • Tenure: 3.9yrs
    • Compensation: US$1.55m
  • Kathy Ta

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Dave Dwelley

    VP & Chief Technical Officer

    • Tenure: 2.9yrs

Board Members

  • Bob Grady (62yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$301.29k
  • Mercedes Johnson (65yo)

    Independent Director

    • Tenure: 0.3yrs
  • Tunç Doluca (61yo)

    President

    • Tenure: 12.9yrs
    • Compensation: US$9.14m
  • Bill Watkins (66yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$288.29k
  • Bill Sullivan (69yo)

    Independent Chairman

    • Tenure: 3.6yrs
    • Compensation: US$347.79k
  • Joe Bronson (71yo)

    Independent Director

    • Tenure: 12.1yrs
    • Compensation: US$309.29k
  • Jim Bergman (77yo)

    Independent Director

    • Tenure: 31.9yrs
    • Compensation: US$308.29k
  • Tracy Accardi (59yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$286.29k
  • MaryAnn Wright (57yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$281.29k

Company Information

Maxim Integrated Products, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Maxim Integrated Products, Inc.
  • Ticker: MXIM
  • Exchange: NasdaqGS
  • Founded: 1983
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$15.373b
  • Shares outstanding: 270.61m
  • Website: https://www.maximintegrated.com

Number of Employees


Location

  • Maxim Integrated Products, Inc.
  • 160 Rio Robles
  • San Jose
  • California
  • 95134
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MXIMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDFeb 1988
MXIDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1988
MXIMWBAG (Wiener Boerse AG)YesCommon StockATEURFeb 1988
MXIETLX (Eurotlx)YesCommon StockITEURFeb 1988

Biography

Maxim Integrated Products, Inc. designs, develops, manufactures, and markets a range of linear and mixed-signal integrated circuits in the United States, China, the rest of Asia, Europe, and internationall ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 23:36
End of Day Share Price2019/12/11 00:00
Earnings2019/09/28
Annual Earnings2019/06/29


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.