Maxlinear, Inc (NASDAQ: MXL)

Sector: Technology Industry: Semiconductors CIK: 0001288469
P/B 3.22
P/E -8.33
P/S 3.53
Market Cap 1.50 Bn
ROIC (Qtr) -26.19
Div Yield % 0.00
Rev 1y % (Qtr) 55.93
Total Debt (Qtr) 135.59 Mn
Debt/Equity (Qtr) 0.29

About

MaxLinear, Inc., often referred to as MXL, operates in the semiconductor industry, specializing in the design of communication systems-on-chip (SoCs) solutions for various sectors. These sectors include broadband, mobile and wireline infrastructure, data centers, and industrial and multi-market applications. The company's solutions are designed to address the challenges faced by providers of systems and RF transceivers, such as the need for high-speed data transmission, low power consumption, and compact designs. MXL's primary business activities...

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Analysis

Pros

  • Strong tangible asset base of 437.48M provides 3.23x coverage of total debt 135.59M, indicating robust asset backing and low credit risk.
  • Robust tangible asset base of 437.48M provides 4.35x coverage of working capital 100.58M, indicating strong operational backing.
  • Cash reserves of 113.24M provide solid 4.67x coverage of other non-current liabilities 24.26M, indicating strong liquidity.
  • Cash reserves of 113.24M exceed inventory value of 86.33M by 1.31x, indicating strong liquidity and inventory management.
  • Cash position of 113.24M represents healthy 1.13x of working capital 100.58M, demonstrating strong operational liquidity.

Cons

  • Operating cash flow of (18.62M) barely covers its investment activities of (19.11M), with a coverage ratio of 0.97, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (19.11M) provide weak support for R&D spending of 208.19M, which is -0.09x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (18.62M) shows concerning coverage of stock compensation expenses of 86.79M, with a -0.21 ratio indicating potential earnings quality issues.
  • Free cash flow of (29.71M) provides weak coverage of capital expenditures of 11.08M, with a -2.68 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (153.45M) show weak coverage of depreciation charges of 44.92M, with a -3.42 ratio indicating high capital intensity and potential reinvestment needs.

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 1.89 3.95
EV to Cash from Ops. -81.90 -331.60
EV to Debt 11.25 86.14
EV to EBIT -9.94 -55.96
EV to EBITDA -14.09 20.88
EV to Free Cash Flow [EV/FCF] -51.35 -4.09
EV to Market Cap 1.02 0.80
EV to Revenue 3.60 18.79
Price to Book Value [P/B] 3.22 5.23
Price to Earnings [P/E] -8.33 12.47

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 2.29
Dividend Payout Ratio % 0.00 8.00
Dividend per Basic Share 0.00 0.62
FCF Dividend Payout Ratio % 0.00 10.38
Interest Coverage -14.66 8.19

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 33.88 -155.77
Cash and Equivalents Growth (1y) % -24.24 44.44
Dividend Growth (1y) % 0.00 5.30
EBIAT Growth (1y) % 21.99 34.22
EBITDA Growth (1y) % 34.35 47.50
EBIT Growth (1y) % 33.15 30.14
EBT Growth (1y) % 31.85 47.04
EPS Growth (1y) % 23.44 36.18
FCF Growth (1y) % 41.51 252.76
Gross Profit Growth (1y) % 12.46 43.92

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.52 0.49
Cash Payout Ratio 0.00 0.09
Cash Ratio 0.62 2.23
Current Ratio 1.55 5.43
Debt to Equity Ratio 0.29 0.34
Interest Cover Ratio -14.66 8.19
Times Interest Earned -14.66 8.19

Profitability

Metric Value Industry Percentile
EBITDA Margin % -25.60 -112.44
EBIT Margin % -36.24 -92.10
EBT Margin % -38.72 -132.39
Gross Margin % 56.30 47.63
Net Profit Margin % -42.40 -133.41