NasdaqGS:MXIM

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$26.6b

Last Updated

2021/07/27 01:26 UTC

Data Sources

Company Financials +

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, rest of Asia, Europe, and internationally. More Details


Snowflake Analysis

Excellent balance sheet with acceptable track record.


Similar Companies

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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MXIM's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

3.2%

MXIM

3.6%

US Semiconductor

3.3%

US Market


1 Year Return

44.0%

MXIM

54.4%

US Semiconductor

37.8%

US Market

Return vs Industry: MXIM underperformed the US Semiconductor industry which returned 58% over the past year.

Return vs Market: MXIM exceeded the US Market which returned 39.1% over the past year.


Shareholder returns

MXIMIndustryMarket
7 Day3.2%3.6%3.3%
30 Day-3.4%0.6%1.1%
90 Day2.4%3.2%2.9%
1 Year45.0%44.0%56.5%54.4%39.9%37.8%
3 Year75.2%62.7%128.5%117.1%65.8%55.4%
5 Year175.9%141.5%293.7%256.6%124.3%99.4%

Long-Term 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?

33.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MXIM ($99.22) is trading above our estimate of fair value ($83.23)

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


Price To Earnings Ratio

PE vs Industry: MXIM's PE Ratio (33.9x) is in line with the US Semiconductor industry average.

PE vs Market: MXIM is poor value based on its PE Ratio (33.9x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: MXIM is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: MXIM is overvalued based on its PB Ratio (12.4x) compared to the US Semiconductor industry average (4.5x).


Future Growth

How is Maxim Integrated Products forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MXIM's forecast earnings growth (10% per year) is above the savings rate (2%).

Earnings vs Market: MXIM's earnings (10% per year) are forecast to grow slower than the US market (15% per year).

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

Revenue vs Market: MXIM's revenue (6.3% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: MXIM's revenue (6.3% 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 high in 3 years time (27.4%)


Past Performance

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

16.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MXIM has high quality earnings.

Growing Profit Margin: MXIM's current net profit margins (31.8%) are lower than last year (37%).


Past Earnings Growth Analysis

Earnings Trend: MXIM's earnings have grown by 16.6% per year over the past 5 years.

Accelerating Growth: MXIM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MXIM had negative earnings growth (-4.1%) over the past year, making it difficult to compare to the Semiconductor industry average (51.1%).


Return on Equity

High ROE: MXIM's Return on Equity (36.3%) is considered high.


Financial Health

How is Maxim Integrated Products's financial position?


Financial Position Analysis

Short Term Liabilities: MXIM's short term assets ($2.9B) exceed its short term liabilities ($534.5M).

Long Term Liabilities: MXIM's short term assets ($2.9B) exceed its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: MXIM's debt to equity ratio (46.3%) is considered high.

Reducing Debt: MXIM's debt to equity ratio has reduced from 47% to 46.3% over the past 5 years.

Debt Coverage: MXIM's debt is well covered by operating cash flow (86.1%).

Interest Coverage: MXIM's interest payments on its debt are well covered by EBIT (39.9x coverage).


Balance Sheet


Dividend

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

0.52%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MXIM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MXIM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MXIM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MXIM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MXIM is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MXIM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Tunç Doluca (63 yo)

14.5yrs

Tenure

US$7,330,479

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 ($USD7.33M) is below average for companies of similar size in the US market ($USD11.26M).

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


Leadership Team

Experienced Management: MXIM's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: MXIM's board of directors are seasoned and experienced ( 12.9 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 not been meaningfully diluted in the past year.


Top Shareholders

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$26.614b
  • Shares outstanding: 268.36m
  • Website: https://www.maximintegrated.com

Number of Employees


Location

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

Listings


Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/27 01:26
End of Day Share Price2021/07/26 00:00
Earnings2021/03/27
Annual Earnings2020/06/27


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.