MRVL  Marvell Technology Group Ltd.

Exchange

NASDAQ

Sector

Technology

Industry

Semiconductors

Market Cap.

7.97B

Vuru Grade

52.47/100

Current Price

$15.70
-0.03 (-0.19%)

Growth Price

$10.53
Overvalued by 32.96%

Stability Price

$9.18
Overvalued by 41.52%

Company Metrics

  • P/E 382.93
  • P/S 3.45
  • P/B 1.98
  • EPS 0.04
  • Cash ROIC 18.04%
  • Cash Ratio 1.86
  • Dividend 0.24 / 1.51%
  • Avg. Vol. 5.31M
  • Shares 507.64M
  • Market Cap. 7.97B

Company Description

Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone ARM-based microprocessor integrated circuits. It offers mobile and wireless products, including communications processors, applications processors, and standalone wireless products, as well as combination devices, which incorporate wireless, Bluetooth, and FM ra... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Cash Dividend On The Way From Marvell Technology Group (MRVL)
Nasdaq - 5 hours ago
Looking at the universe of stocks we cover at Dividend Channel , on 3/31/17, Marvell Technology Group Ltd. (Symbol: MRVL) will trade ex-dividend, for its quarterly dividend of $0.06, payable on 4/20/17.
Marvell Technology Group Ltd. versus Microsemi Corporation Head to Head Compare - CML News
Featured Stock Update: Marvell Technology Group Ltd. (MRVL) - HugoPress
Calculating the fair value of Marvell Technology Group Ltd (MRVL)
Simply Wall St - Mar 27, 2017
I am going to run you through how I calculated the intrinsic value of Marvell Technology Group (NASDAQ:MRVL) by taking the expected future cash flows and discounted them to the value today.
Session Update on Marvell Technology Group Ltd. (NASDAQ:MRVL)
Aiken Advocate - 1 hour ago
Shares of Marvell Technology Group Ltd. (NASDAQ:MRVL) traded in the range of $15.62 - 15.76 during the most recent trading session.
What to Expect From Marvell Technology Group's Q4 and Fiscal 2017 Earnings
Motley Fool - Mar 1, 2017
Marvell Technology Group (NASDAQ:MRVL) stock is up over 21% in the last six months, thanks to strong bottom line beats in the past two quarters.
Marvell Technology Group Ltd. Earnings Rise 77% In Q4 - Nasdaq
Why Marvell Technology Stock Can Run Higher
Motley Fool - Mar 22, 2017
Marvell Technology Group (NASDAQ:MRVL) stock is trading near 52-week highs thanks to the company's terrific performance in the fiscal fourth quarter.
Marvell Technology Group Ltd. Risk Points versus Technology - CML News
Marvell Technology Group Ltd. surged in the Previous Trading Session with the ... - Free Observer
Earnings Analysis & Update for Marvell Technology Group Ltd. (NASDAQ:MRVL)?
Aiken Advocate - 4 hours ago
Marvell Technology Group Ltd. (NASDAQ:MRVL) has a current consensus EPS estimate for the quarter of $0.16 based on Street analyst predictions.
Should Marvell (MRVL) Be on Your Radar Now?
Yahoo Finance - Mar 28, 2017
One such company that looks well positioned for a solid gain, but has been overlooked by investors lately, is Marvell Technology Group Ltd. MRVL. This Semiconductor - Communications industry stock has actually seen estimates rise over the past month ...
Why Marvell Technology (MRVL) Could Shock the Market Soon
Yahoo Finance - Mar 10, 2017
One such company that looks well positioned for a solid gain, but has been overlooked by investors lately, is Marvell Technology Group Ltd. MRVL. This Semiconductor - Communications industry stock has actually seen estimates rise over the past month ...
Risk Malaise Alert in Option Market: Marvell Technology Group Ltd. Implied ...
CML News - Mar 19, 2017
Before we dive into any analysis we simply note that Marvell Technology Group Ltd. (NASDAQ:MRVL) risk is actually priced pretty low by the option market as of right now.
Marvell Technology Group Ltd. (MRVL) Shares Bought by Franklin Resources Inc.
Chaffey Breeze - Mar 27, 2017
Marvell Technology Group logo Franklin Resources Inc. raised its stake in shares of Marvell Technology Group Ltd. (NASDAQ:MRVL) by 7.7% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission.
Most Active Stock Update: Marvell Technology Group Ltd. (MRVL) - HugoPress
Marvell Technology Group Ltd.'s (MRVL) stock price is Worth at $15.90 while ... - Hot Stocks Point
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for MRVL to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate MRVL's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$15.70 Current Price

$10.53 Growth Price (DCF)

Overvalued by 32.96%


Growth Rate Assumed by Market: 33.39%


Future Free Cash Flow Growth Rate: 5.6%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$9.18 Stability Price (EPV)

Overvalued by 41.52%


Discount Rate: 15.0%

$3.18 NCA Price

Overvalued by 79.72%

$15.37 Book Price

Fairly valued


Excellent Cash Return on Invested Capital over the past 5 years

MRVL has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. Annual Reports can be useful in identifying the cause of one-time events and future sustainability.

MRVL has created $18.04 of cash for every $100 invested.
Figures in USD. Fiscal year ends in January
20122013201420152016
Free Cash Flow 668.65M 625.85M 363.80M 649.48M 149.62M
divided by
Invested Capital 2.93B 2.73B 2.83B 2.72B 1.93B
Cash ROIC 22.81% 22.88% 12.85% 23.90% 7.74%

Poor Return on Equity over the past 5 years

MRVL has shown an inability to deliver strong results for shareholders. This could be due to poor management, MRVL operating in a highly competitive industry, or having a weak business in general.

MRVL has only generated $2.94 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in January
20122013201420152016
Net Income 615.09M 306.59M 315.32M 435.35M -811.40M
divided by
Stockholders' Equity 5.01B 4.48B 4.68B 5.15B 4.14B
Return on Equity 12.27% 6.84% 6.74% 8.46% -19.60%

Excellent Business Performance over the past 10 years

MRVL has been able to maintain profitability in good times and bad. This could mean MRVL has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

MRVL has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Free Cash Flow 148.59M 40.72M 607.44M 771.70M 1.10B 668.65M 625.85M 363.80M 649.48M 149.62M

Very Strong Balance Sheet

MRVL has more Cash than its Total Liabilities, resulting in $1.93 Net Cash per share. In other words, if you buy MRVL today, the price you're paying for shares is actually $13.77 because $1.93 of Cash is included in the current share price. This much Cash is very healthy. It can help MRVL sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Cash 596.38M 630.90M 927.41M 1.80B 2.93B 2.25B 1.92B 1.97B 2.53B 2.28B
Current Assets 1.35B 1.50B 1.56B 2.47B 3.71B 3.08B 2.59B 2.84B 3.34B 2.92B
Total Assets 4.53B 4.55B 4.41B 5.17B 6.34B 5.77B 5.26B 5.45B 5.88B 5.44B
Current Liabilities 711.19M 583.21M 409.65M 566.61M 640.69M 589.55M 607.89M 651.31M 637.38M 1.23B
Total Liabilities 1.30B 1.14B 585.13M 752.96M 816.29M 753.60M 777.17M 775.10M 738.30M 1.30B
Stockholder' Equity 3.23B 3.41B 3.83B 4.42B 5.52B 5.01B 4.48B 4.68B 5.15B 4.14B
Current Ratio 1.90 2.58 3.81 4.35 5.79 5.22 4.25 4.36 5.25 2.38
TL-to-TA 0.29 0.25 0.13 0.15 0.13 0.13 0.15 0.14 0.13 0.24

Consistent Reinvestment of Profits over the past 10 years

MRVL has consistently retained profits. This may put MRVL in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, MRVL can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Retained Earnings -576.53M -690.96M -543.71M -190.26M 713.87M 1.33B 1.54B 1.73B 2.05B 1.11B
Retained Earnings Growth - -19.85% 21.31% 65.01% 475.21% 86.16% 15.64% 12.75% 18.04% -45.68%

Competitive Industry over the past 10 years

MRVL is likely operating in an industry with medium to low barriers to entry. This may mean that MRVL doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that MRVL invests heavily in R&D and Sales, General & Administrative expenses.

Only $5.68 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Net Income -20.94M -114.43M 147.24M 353.46M 904.13M 615.09M 306.59M 315.32M 435.35M -811.40M
divided by
Revenue 2.24B 2.89B 2.95B 2.81B 3.61B 3.39B 3.17B 3.40B 3.71B 2.73B
Net Profit Margin -0.94% -3.95% 4.99% 12.59% 25.03% 18.13% 9.68% 9.26% 11.74% -29.77%

Strong Pricing Power over the past 10 years

MRVL has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$53.58 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Gross Profit 1.14B 1.40B 1.52B 1.58B 2.14B 2.38B 1.68B 1.74B 1.86B 1.23B
divided by
Revenue 2.24B 2.89B 2.95B 2.81B 3.61B 3.39B 3.17B 3.40B 3.71B 2.73B
Gross Margin 50.83% 48.26% 51.65% 56.30% 59.21% 70.12% 52.87% 51.13% 50.26% 45.16%

Low Capital Intensity over the past 10 years

MRVL has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that MRVL may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

23.76% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Capital Expenditure 188.73M 136.64M 73.24M 39.81M 90.17M 102.60M 103.19M 84.24M 79.45M 55.73M
divided by
Net Income -20.94M -114.43M 147.24M 353.46M 904.13M 615.09M 306.59M 315.32M 435.35M -811.40M
Capital Expenditure Ratio -901.22% -119.41% 49.74% 11.26% 9.97% 16.68% 33.66% 26.72% 18.25% -6.87%

No Dividend History over the past 10 years

MRVL has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 586.15M 590.31M 630.33M 653.47M 676.88M 623.27M 563.12M 504.41M 520.76M 510.95M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 14.01 6.64 20.83 18.37 13.85 7.17 13.76 14.48 8.76 13.87
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

MRVL has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in January
2007200820092010201120122013201420152016
Shares Outstanding 586.15M 590.31M 630.33M 653.47M 676.88M 623.27M 563.12M 504.41M 520.76M 510.95M
Stock Bought Back - -0.70% -6.35% -3.54% -3.46% 8.60% 10.68% 11.64% -3.14% 1.92%
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