MRVL  Marvell Technology Group Ltd.

Exchange

NASDAQ

Sector

Technology

Industry

Semiconductors

Market Cap.

8.13B

Vuru Grade

52.47/100

Current Price

$16.01
+0.00 (+0.00%)

Growth Price

$10.52
Overvalued by 34.28%

Stability Price

$9.18
Overvalued by 42.67%

Company Metrics

  • P/E 77.72
  • P/S 3.34
  • P/B 1.95
  • EPS 0.21
  • Cash ROIC 18.04%
  • Cash Ratio 1.86
  • Dividend 0.24 / 1.47%
  • Avg. Vol. 4.26M
  • Shares 507.81M
  • Market Cap. 8.13B

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 Fourth ...
PR Newswire (press release) - Feb 8, 2017
SANTA CLARA, Calif., Feb. 8, 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 ...
Cowen Just Issued “Outperform” Rating on Marvell Technology Group Ltd. (MRVL) - Highland Mirror
Marvell Technology Group Ltd. (MRVL) Stock Price Target Moved to $20.00 at ... - The Ledger Gazette
Why Shares of Marvell Technology Group Soared Today
Motley Fool - Jul 20, 2016
What: Shares of semiconductor company Marvell Technology Group (NASDAQ:MRVL) soared on Wednesday following the release of company's fourth-quarter earnings report.
Marvell Technology Group, Ltd. (MRVL) Stock Soars on Q4 Earnings - Investorplace.com
Marvell Technology (MRVL) Stock Rises After Mixed Q4 Results - TheStreet.com
Marvell Technology Group Ltd. Announces Appointment of Karen Rohde as Chief ...
PR Newswire (press release) - Nov 21, 2016
SANTA CLARA, Calif., Nov. 21, 2016 /PRNewswire/ -- Marvell Technology Group Ltd. (NASDAQ: MRVL), a leader in storage, networking, and connectivity semiconductor solutions, today announced that Karen Rohde is joining Marvell as its Chief Human ...
Hedge Funds Are Buying Marvell Technology Group Ltd. (MRVL) - Insider Monkey (blog)
Marvell Technology Group Ltd. Announces Appointment of Matthew J. Murphy as ...
PR Newswire (press release) - Jun 20, 2016
SANTA CLARA, Calif., June 20, 2016 /PRNewswire/ -- Marvell (NASDAQ: MRVL), a world leader in storage, cloud infrastructure, Internet of Things (IoT), connectivity and multimedia semiconductor solutions, today announced the appointment of Matthew J.
Marvell Technology Names New CEO - Wall Street Journal
Maxim Exec Named Marvell CEO - EE Times
Why Shares of Marvell Technology Group Are Up Today
Motley Fool - Nov 18, 2016
Shares of Marvell Technology Group (NASDAQ:MRVL) rose on Friday following the company's third-quarter report. In addition to beating analyst estimates for both revenue and earnings, Marvell announced a $1 billion share repurchase program. At 2:45 p.m. ...
Analyst Upgrades: Tesla Motors Inc, Marvell Technology Group Ltd., and ... - Schaeffers Research (blog)
How Marvell Won Big in Q3 - 24/7 Wall St.
Marvell Technology Group Ltd. Announces Appointment of Jean Hu as Chief ...
PR Newswire (press release) - Aug 18, 2016
She will be a significant asset to the team as we return Marvell to profitable growth," said Matt Murphy, President and CEO, Marvell Technology Group. "I'd also like to thank David Eichler, our interim CFO, for his leadership and continued dedication ...
Trade of the Day: MRVL Stock Looks Set to Soar - Investorplace.com
Marvell Technology Group Ltd. Announces Appointment of Andy Micallef as Chief ...
PR Newswire (press release) - Jun 6, 2016
SANTA CLARA, Calif., June 6, 2016 /PRNewswire/ -- Marvell Technology Group Ltd. (NASDAQ: MRVL), a world leader in storage, cloud infrastructure, Internet of Things (IoT), connectivity and multimedia semiconductor solutions, today announced the ...
Marvell Technology Group Ltd. (MRVL) Ex-Dividend Date Scheduled for December ...
Nasdaq - Nov 16, 2016
Marvell Technology Group Ltd. ( MRVL ) will begin trading ex-dividend on December 02, 2016. A cash dividend payment of $0.06 per share is scheduled to be paid on December 28, 2016.
Marvell Technology Group Ltd. (MRVL) Moves Higher on Volume Spike for February 03
Equities.com - Feb 3, 2017
Marvell Technology Group Ltd. (MRVL) traded on unusually high volume on Feb. 03, as the stock gained 2.14% to close at $15.72.
Option Market: Marvell Technology Group Ltd. Risk Hits An Inflection Point - CML News
UBS Just Issued ” Buy” Rating on Marvell Technology Group Ltd. (MRVL) - Highland Mirror
Marvell Technology Group Ltd. Announces Appointment of Chris Koopmans as EVP ...
PR Newswire (press release) - May 31, 2016
SANTA CLARA, Calif., May 31, 2016 /PRNewswire/ -- Marvell Technology Group Ltd. (NASDAQ: MRVL), a global leader in integrated silicon solutions, today announced the appointment of Chris Koopmans as Executive Vice President of Marketing and Sales, ...
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.

$16.01 Current Price

$10.52 Growth Price (DCF)

Overvalued by 34.28%


Growth Rate Assumed by Market: 34.36%


Future Free Cash Flow Growth Rate: 5.6%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$9.18 Stability Price (EPV)

Overvalued by 42.67%


Discount Rate: 15.0%

$3.18 NCA Price

Overvalued by 80.12%

$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 $14.08 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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