MRVL  Marvell Technology Group Ltd.

Exchange

NASDAQ

Sector

Technology

Industry

Semiconductors

Market Cap.

8.90B

Vuru Grade

44.18/100

Current Price

$17.67
+0.73 (+4.31%)

Growth Price

$3.33
Overvalued by 81.18%

Stability Price

$4.72
Overvalued by 73.27%

Company Metrics

  • P/E 59.7
  • P/S 3.59
  • P/B 2.15
  • EPS 0.30
  • Cash ROIC 10.15%
  • Cash Ratio 3.36
  • Dividend 0.24 / 1.36 %
  • Avg. Vol. 6.98M
  • Shares 503.68M
  • Market Cap. 8.90B

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. Proved Its Mettle in Q1
Motley Fool - May 27, 2017
The designer of storage and networking controller microchips had seen sales sliding lower every quarter since the end of 2014, but investors already embraced management's turnaround plans.
Marvell: Heading To $20 - Seeking Alpha
Marvell Technology Group Ltd. Reports 686% Increase In Q1 Earnings - Nasdaq
Marvell Technology Group Ltd. (NASDAQ:MRVL): An Excellent Turnaround Story
Library For Smart Investors - 21 hours ago
Marvell Technology Group Ltd. (NASDAQ:MRVL) is an attractive stock with good prospects for investors in the near future. The Bermuda, Hamilton based company's stock has gained over 27% year-to-date.
Marvell Technology Group Ltd. (MRVL) Lifted to "B" at TheStreet - BNB Daily (blog)
Marvell Technology Group (NDAQ:MRVL) Gets Oppenheimer Higher Rating ... - Key Gazette
Marvell Technology Group' (MRVL) CEO Matt Murphy on Q1 2018 Results - Earnings ...
Seeking Alpha - May 26, 2017
Good day, ladies and gentlemen. And welcome to the First Quarter 2018 Marvell Technology Group Ltd, Earnings Conference Call.
Risk Malaise Alert in Option Market: Marvell Technology Group Ltd. Implied ...
CML News - May 28, 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 (MRVL) to Report Q1 Earnings: Will it Surprise?
Zacks.com - May 19, 2017
Though macro headwinds and stringent regulations might put the company's financials under pressure in the near term, we believe that the strong demand for Marvell's 4G LTE products could be a growth driver. This will be supported by growth from the ...
Marvell Technology Group Ltd. (MRVL) Upgraded to "Outperform" at CIBC
Sports Perspectives - 17 hours ago
CIBC upgraded shares of Marvell Technology Group Ltd. (NASDAQ:MRVL) from a market perform rating to an outperform rating in a research report released on Friday morning.
Analysts' Activity: Marvell Technology Group Ltd. (NASDAQ:MRVL)
ExpertGazette - May 11, 2017
Marvell Technology Group Ltd. (NASDAQ:MRVL) shares traded 1.35% during the most recent session the stock exchanged hands 5.77M shares versus average trading capacity of 6.14M shares, yielding a market cap of $8.11B.
The Zweig DiMenna Associates LLC Has $11.611 Million Position in Marvell ... - BangaloreWeekly
Zweig-Dimenna Associates Trimmed By $2.85 Million Its Marvell Technology Group ...
Key Gazette - May 26, 2017
Among 6 analysts covering Northern Blizzard Resources (TSE:NBZ), 2 have Buy rating, 1 Sell and 3 Hold. Therefore 33% are positive.
Earnings Growth Research: Noble Corporation plc (NE), Marvell Technology Group ...
USA Commerce Daily - May 26, 2017
Shares of Noble Corporation plc (NYSE:NE) observed rebound of 1.2% since bottoming out at $4.16 on May. 25, 2017. Meanwhile, due to an ongoing pressure which caused a decline of almost -6.44% in the past five days, the stock price is now down ...
Roystone Capital Management LP Has Lifted By $10.30 Million Its Marvell ...
Herald KS - 19 hours ago
Roystone Capital Management Lp increased Marvell Technology Group Ltd (MRVL) stake by 25.22% reported in 2016Q4 SEC filing.
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.

$17.67 Current Price

$3.33 Growth Price (DCF)

Overvalued by 81.18%


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

$4.72 Stability Price (EPV)

Overvalued by 73.27%


Discount Rate: 15.0%

$3.29 NCA Price

Overvalued by 81.36%

$13.82 Book Price

Overvalued by 21.82%


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 $15.59 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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