MRVL  Marvell Technology Group Ltd.

Exchange

NASDAQ

Sector

Technology

Industry

Semiconductors

Market Cap.

8.07B

Vuru Grade

44.18/100

Current Price

$16.06
-0.17 (-1.05%)

Growth Price

$3.33
Overvalued by 79.24%

Stability Price

$4.73
Overvalued by 70.52%

Company Metrics

  • P/E 54.26
  • P/S 3.43
  • P/B 2.06
  • EPS 0.3
  • Cash ROIC 10.15%
  • Cash Ratio 3.36
  • Dividend 0.24 / 1.48%
  • Avg. Vol. 7.43M
  • Shares 502.49M
  • Market Cap. 8.07B

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

Marvell Technology Group Ltd. Announces Conference Call to Review Second ...
Markets Insider - Jul 24, 2017
SANTA CLARA, Calif., July 24, 2017 /PRNewswire/ -- Marvell Technology Group Ltd. (NASDAQ: MRVL), a leader in storage, networking, and connectivity semiconductor solutions, today announced it will conduct a conference call following the release of its ...
Buyers and Sellers Alert -: Marvell Technology Group Ltd. (MRVL) - Hot Stocks Point
Marvell Technology Group Ltd. Announces the Appointment of Ms. Gerri Elliott ...
PR Newswire (press release) - Jul 13, 2017
As a former senior executive at IBM, Microsoft and Juniper Networks, she brings to Marvell deep expertise in go-to-market and customer care strategies.
Marvell Technology Group Ltd. - Leicester Post
Marvell Technology Group Ltd. (MRVL) Ex-Dividend Date Scheduled for June 30, 2017
Nasdaq - Jun 29, 2017
Marvell Technology Group Ltd. ( MRVL ) will begin trading ex-dividend on June 30, 2017. A cash dividend payment of $0.06 per share is scheduled to be paid on July 21, 2017.
Marvell Technology (MRVL) Up 4.3% Since Earnings Report: Can It Continue? - Zacks.com
Challenges And Opportunities For The Gap, Inc. (GPS), Marvell Technology Group ... - AllStockNews
Marvell Technology Group Ltd. (NASDAQ:MRVL) Lowered to “Sell” at BidaskClub
StockNewsTimes - 3 hours ago
TheStreet upgraded Marvell Technology Group from a “c” rating to a “b” rating in a research report on Thursday, May 25th.
Marvell Technology Group Ltd. (MRVL) Lowered to “Sell” at BidaskClub - BNB Daily (blog)
B. Riley Reiterates “Buy” Rating for Marvell Technology Group Ltd. (NASDAQ:MRVL) - Markets Daily
Marvell Technology Group Ltd (MRVL) Reaches Active Mover List
Rockville Register - 9 hours ago
Shares of Marvell Technology Group Ltd (MRVL) have seen the needle move -1.05% or -0.17 in the most recent session. The NASDAQ listed company saw a recent bid of $16.06 on 2207124 volume.
Decision Time: Marvell Technology Group Ltd. (NASDAQ:MRVL) Stock Technicals ...
CML News - Jul 15, 2017
Decision Time: Marvell Technology Group Ltd. (NASDAQ:MRVL) now sits in the perhaps the most difficult technical position -- the stock has no urgency in its direction and that has left it at an inflection point.
A look at the intrinsic value of Marvell Technology Group Ltd (MRVL)
Simply Wall St - Jun 26, 2017
How far off is Marvell Technology Group (NASDAQ:MRVL) to its intrinsic value? I am going to take a look now by taking the expected future cash flows and discounted them to the value today.
Neither Hold nor sell rating on Technology Stock: Marvell Technology Group Ltd ...
Street Observer (press release) - Jul 21, 2017
Marvell Technology Group Ltd. (MRVL) stock price traded with no change along with the volume 3.68 million shares in last session.
Trading Options: Marvell Technology Group Ltd. (NASDAQ:MRVL) : Using Covered ...
CML News - Jul 20, 2017
While covered calls are one of the most commonly used option strategies, it turns out we need to be clever in how we treat earnings in order to maximize the strategy in Marvell Technology Group Ltd. (NASDAQ:MRVL) . Even further, if we don't do this ...
BidaskClub Lowers Marvell Technology Group Ltd. (NASDAQ:MRVL) to Hold
Newburgh Gazette - Jul 18, 2017
Marvell Technology Group Ltd. (MRVL) now has P/E (Price to Earnings) ratio of 55.56 while the company's industry has 25.73 P/E and the sector P/E is 18.41.
Marvell Technology Group Ltd. (MRVL) Closed its Previous Trade at $16.48 - TopChronicle
Marvell Technology Group Ltd. (MRVL) Stake Increased by Kennedy Capital ... - BNB Daily (blog)
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.

$16.06 Current Price

$3.33 Growth Price (DCF)

Overvalued by 79.24%


Growth Rate Assumed by Market: 500.00%


Future Free Cash Flow Growth Rate: -1.7%


Discount Rate: 15.0%


MRVL's most recent year of (normalized) free cash flow is negative. This is the base number for forward projections. This means that if you increase the growth rate, the amount of negative FCF grows, thereby decreasing the price.

Show Free Cash Flow numbers

$4.73 Stability Price (EPV)

Overvalued by 70.52%


Discount Rate: 15.0%

$3.30 NCA Price

Overvalued by 79.44%

$13.82 Book Price

Overvalued by 13.98%


Inconsistent Cash Return on Invested Capital over the past 5 years

MRVL has somewhat efficiently invested its financial resources in buildings, projects, and equipment. However, there has been some inconsistency from year-to-year. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

MRVL has created $10.15 of cash for every $100 invested.
Figures in USD. Fiscal year ends in January
20132014201520162017
Free Cash Flow 625.85M 363.80M 649.48M 149.62M -413.25M
divided by
Invested Capital 2.73B 2.83B 2.72B 1.93B 2.48B
Cash ROIC 22.88% 12.85% 23.90% 7.74% -16.64%

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 $0.71 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in January
20132014201520162017
Net Income 306.59M 315.32M 435.35M -811.40M 43.99M
divided by
Stockholders' Equity 4.48B 4.68B 5.15B 4.14B 4.03B
Return on Equity 6.84% 6.74% 8.46% -19.60% 1.09%

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
2008200920102011201220132014201520162017
Free Cash Flow 40.72M 607.44M 771.70M 1.10B 668.65M 625.85M 363.80M 649.48M 149.62M -413.25M

Very Strong Balance Sheet

MRVL has more Cash than its Total Liabilities, resulting in $2.08 Net Cash per share. In other words, if you buy MRVL today, the price you're paying for shares is actually $13.98 because $2.08 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
2008200920102011201220132014201520162017
Cash 630.90M 927.41M 1.80B 2.93B 2.25B 1.92B 1.97B 2.53B 2.28B 1.67B
Current Assets 1.50B 1.56B 2.47B 3.71B 3.08B 2.59B 2.84B 3.34B 2.92B 2.28B
Total Assets 4.55B 4.41B 5.17B 6.34B 5.77B 5.26B 5.45B 5.88B 5.44B 4.65B
Current Liabilities 583.21M 409.65M 566.61M 640.69M 589.55M 607.89M 651.31M 637.38M 1.23B 496.42M
Total Liabilities 1.14B 585.13M 752.96M 816.29M 753.60M 777.17M 775.10M 738.30M 1.30B 621.00M
Stockholder' Equity 3.41B 3.83B 4.42B 5.52B 5.01B 4.48B 4.68B 5.15B 4.14B 4.03B
Current Ratio 2.58 3.81 4.35 5.79 5.22 4.25 4.36 5.25 2.38 4.59
TL-to-TA 0.25 0.13 0.15 0.13 0.13 0.15 0.14 0.13 0.24 0.13

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
2008200920102011201220132014201520162017
Retained Earnings -690.96M -543.71M -190.26M 713.87M 1.33B 1.54B 1.73B 2.05B 1.11B 1.01B
Retained Earnings Growth - 21.31% 65.01% 475.21% 86.16% 15.64% 12.75% 18.04% -45.68% -9.10%

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 $5.96 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in January
2008200920102011201220132014201520162017
Net Income -114.43M 147.24M 353.46M 904.13M 615.09M 306.59M 315.32M 435.35M -811.40M 43.99M
divided by
Revenue 2.89B 2.95B 2.81B 3.61B 3.39B 3.17B 3.40B 3.71B 2.73B 2.32B
Net Profit Margin -3.95% 4.99% 12.59% 25.03% 18.13% 9.68% 9.26% 11.74% -29.77% 1.90%

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.

$54.05 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
2008200920102011201220132014201520162017
Gross Profit 1.40B 1.52B 1.58B 2.14B 2.38B 1.68B 1.74B 1.86B 1.23B 1.29B
divided by
Revenue 2.89B 2.95B 2.81B 3.61B 3.39B 3.17B 3.40B 3.71B 2.73B 2.32B
Gross Margin 48.26% 51.65% 56.30% 59.21% 70.12% 52.87% 51.13% 50.26% 45.16% 55.58%

Medium Capital Intensity over the past 10 years

MRVL has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

36.36% 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
2008200920102011201220132014201520162017
Capital Expenditure 136.64M 73.24M 39.81M 90.17M 102.60M 103.19M 84.24M 79.45M 55.73M 54.82M
divided by
Net Income -114.43M 147.24M 353.46M 904.13M 615.09M 306.59M 315.32M 435.35M -811.40M 43.99M
Capital Expenditure Ratio -119.41% 49.74% 11.26% 9.97% 16.68% 33.66% 26.72% 18.25% -6.87% 124.61%

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
2008200920102011201220132014201520162017
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 590.31M 630.33M 653.47M 676.88M 623.27M 563.12M 504.41M 520.76M 510.95M 517.51M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 6.64 20.83 18.37 13.85 7.17 13.76 14.48 8.76 13.87 15.53
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
2008200920102011201220132014201520162017
Shares Outstanding 590.31M 630.33M 653.47M 676.88M 623.27M 563.12M 504.41M 520.76M 510.95M 517.51M
Stock Bought Back - -6.35% -3.54% -3.46% 8.60% 10.68% 11.64% -3.14% 1.92% -1.27%
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