Marvell Technology, Inc. (NASDAQ: MRVL)

Sector: Technology Industry: Semiconductors CIK: 0001835632
P/B 5.14
P/E 29.21
P/S 9.27
Market Cap 72.27 Bn
ROIC (Qtr) 5.44
Div Yield % 0.28
Rev 1y % (Qtr) 36.83
Total Debt (Qtr) 4.47 Bn
Debt/Equity (Qtr) 0.32

About

Marvell Technology, Inc., known by its ticker symbol MRVL, is a prominent player in the data infrastructure semiconductor solutions industry. The company specializes in supplying high-performance standard and semi-custom products, with a particular strength in developing and scaling complex System-on-a-Chip (SoC) architectures that integrate analog, mixed-signal, and digital signal processing functionality. Marvell operates as a fabless semiconductor supplier, with its main business activities spanning the data center core to the network edge. The...

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Analysis

Pros

  • Strong operating cash flow of 1.89B provides robust 0.42x coverage of total debt 4.47B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 2.71B provide 5.43x coverage of short-term debt 499.50M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 1.60B exceeds capital expenditure of 286.50M by 5.60x, indicating strong organic growth funding capability.
  • Strong operating cash flow of 1.89B provides 2.47x coverage of SG&A expenses 764.80M, showing efficient operational cost management.
  • Operating cash flow of 1.89B fully covers other non-current liabilities 816.30M by 2.32x, showing strong long-term stability.

Cons

  • Operating cash flow of 1.89B barely covers its investment activities of 2.15B, with a coverage ratio of 0.88, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 1.89B provides thin coverage of dividend payments of (206.20M) with a -9.17 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of 2.15B provide weak support for R&D spending of 2.04B, which is 1.05x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 2.71B provide limited coverage of acquisition spending of 2.48B, which is 1.10x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 1.89B shows concerning coverage of stock compensation expenses of 595.40M, with a 3.18 ratio indicating potential earnings quality issues.

Peer Comparison

Companies in the Semiconductors
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NVDA Nvidia Corp 4,276.26 Bn 43.11 22.85 10.48 Bn
2 AVGO Broadcom Inc. 1,690.87 Bn 89.31 28.22 64.23 Bn
3 TSM Taiwan Semiconductor Manufacturing Co Ltd 1,514.32 Bn 29.36 12.71 31.18 Bn
4 AMD Advanced Micro Devices Inc 343.27 Bn 103.83 10.72 3.87 Bn
5 MU Micron Technology Inc 269.16 Bn 31.52 7.20 15.28 Bn
6 INTC Intel Corp 249.55 Bn 1,260.33 4.67 46.55 Bn
7 QCOM Qualcomm Inc/De 195.62 Bn 35.30 4.42 14.81 Bn
8 TXN Texas Instruments Inc 163.92 Bn 32.50 9.49 14.05 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 3.50 3.95
EV to Cash from Ops. 39.94 -331.60
EV to Debt 16.90 86.14
EV to EBIT 24.66 -55.96
EV to EBITDA 30.78 20.88
EV to Free Cash Flow [EV/FCF] 47.07 -4.09
EV to Market Cap 1.04 0.80
EV to Revenue 9.69 18.79
Price to Book Value [P/B] 5.14 5.23
Price to Earnings [P/E] 29.21 12.47

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 12.00 2.29
Dividend Payout Ratio % 8.30 8.00
Dividend per Basic Share 0.24 0.62
FCF Dividend Payout Ratio % 12.80 10.38
Interest Coverage 15.49 8.19

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 5.13 -155.77
Cash and Equivalents Growth (1y) % 212.69 44.44
Dividend Growth (1y) % 0.00 5.30
EBIAT Growth (1y) % 313.79 34.22
EBITDA Growth (1y) % 509.79 47.50
EBIT Growth (1y) % 409.56 30.14
EBT Growth (1y) % 342.41 47.04
EPS Growth (1y) % 270.00 36.18
FCF Growth (1y) % 13.64 252.76
Gross Profit Growth (1y) % 85.55 43.92

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.36 0.49
Cash Payout Ratio 0.09 0.09
Cash Ratio 0.99 2.23
Current Ratio 2.01 5.43
Debt to Equity Ratio 0.32 0.34
Interest Cover Ratio 15.49 8.19
Times Interest Earned 15.49 8.19

Profitability

Metric Value Industry Percentile
EBITDA Margin % 56.00 -112.44
EBIT Margin % 39.30 -92.10
EBT Margin % 36.76 -132.39
Gross Margin % 50.70 47.63
Net Profit Margin % 31.70 -133.41