Maxlinear, Inc (NASDAQ: MXL)

Sector: Technology Industry: Semiconductors CIK: 0001288469
Market Cap 1.60 Bn
P/B 3.43
P/E -8.89
P/S 3.77
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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Price action

Investment thesis

Bull case

  • 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.

Bear case

  • 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.

Concentration Risk Benchmark Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Semiconductors
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NVDA Nvidia Corp 4,521.08 Bn 45.58 24.16 10.48 Bn
2 TSM Taiwan Semiconductor Manufacturing Co Ltd 1,648.98 Bn 31.97 13.84 31.18 Bn
3 AVGO Broadcom Inc. 1,565.97 Bn 67.71 24.51 65.14 Bn
4 MU Micron Technology Inc 366.37 Bn 30.76 8.66 12.43 Bn
5 AMD Advanced Micro Devices Inc 333.34 Bn 100.83 10.41 3.87 Bn
6 INTC Intel Corp 271.33 Bn 1,370.33 5.08 46.55 Bn
7 QCOM Qualcomm Inc/De 199.55 Bn 36.01 4.51 14.81 Bn
8 TXN Texas Instruments Inc 172.17 Bn 34.14 9.97 14.05 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.01 4.13
EV to Cash from Ops. EV/CFO -87.25 -370.81
EV to Debt EV to Debt 11.98 88.27
EV to EBIT EV/EBIT -10.59 -65.23
EV to EBITDA EV/EBITDA -15.01 22.97
EV to Free Cash Flow [EV/FCF] EV/FCF -54.70 -8.14
EV to Market Cap EV to Market Cap 1.02 0.80
EV to Revenue EV/Rev 3.84 20.31
Price to Book Value [P/B] P/B 3.43 5.16
Price to Earnings [P/E] P/E -8.89 9.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 2.39
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 8.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.63
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 9.91
Interest Coverage Int. cover (Qtr) -14.66 8.38
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 33.88 -155.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -24.24 45.60
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.64
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 21.99 26.23
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 34.35 47.12
EBIT Growth (1y) % EBIT 1y % (Qtr) 33.15 25.83
EBT Growth (1y) % EBT 1y % (Qtr) 31.85 39.93
EPS Growth (1y) % EPS 1y % (Qtr) 23.44 24.64
FCF Growth (1y) % FCF 1y % (Qtr) 41.51 244.42
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 12.46 43.10
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.52 0.49
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.09
Cash Ratio Cash Ratio (Qtr) 0.62 2.23
Current Ratio Curr Ratio (Qtr) 1.55 5.43
Debt to Equity Ratio Debt/Equity (Qtr) 0.29 0.34
Interest Cover Ratio Int Coverage (Qtr) -14.66 8.38
Times Interest Earned Times Interest Earned (Qtr) -14.66 8.38
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -25.60 -112.38
EBIT Margin % EBIT Margin % (Qtr) -36.24 -91.98
EBT Margin % EBT Margin % (Qtr) -38.72 -132.25
Gross Margin % Gross Margin % (Qtr) 56.30 47.73
Net Profit Margin % Net Margin % (Qtr) -42.40 -133.26