Marvell Technology, Inc.
Marvell Technology, Inc. Fundamental Analysis
Marvell Technology, Inc. (MRVL) shows moderate financial fundamentals with a PE ratio of 27.85, profit margin of 32.58%, and ROE of 19.38%. The company generates $8.4B in annual revenue with moderate year-over-year growth of 4.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MRVL's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMRVL demonstrates superior asset utilization.
Valuation Score
WeakMRVL trades at a premium to fair value.
Growth Score
WeakMRVL faces weak or negative growth trends.
Financial Health Score
ExcellentMRVL maintains a strong and stable balance sheet.
Profitability Score
ExcellentMRVL achieves industry-leading margins.
Key Financial Metrics
Is MRVL Expensive or Cheap?
P/E Ratio
MRVL trades at 27.85 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MRVL's PEG of 3.33 indicates potential overvaluation.
Price to Book
The market values Marvell Technology, Inc. at 5.20 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.78 times EBITDA. This signals the market has high growth expectations.
How Well Does MRVL Make Money?
Net Profit Margin
For every $100 in sales, Marvell Technology, Inc. keeps $32.58 as profit after all expenses.
Operating Margin
Core operations generate 16.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.38 in profit for every $100 of shareholder equity.
ROA
Marvell Technology, Inc. generates $11.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Marvell Technology, Inc. produces operating cash flow of $1.80B, showing steady but balanced cash generation.
Free Cash Flow
Marvell Technology, Inc. generates strong free cash flow of $1.44B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.64 in free cash annually.
FCF Yield
MRVL converts 1.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.85
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.33
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.35
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.31
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.006
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How MRVL Stacks Against Its Sector Peers
| Metric | MRVL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.85 | 34.43 | Better (Cheaper) |
| ROE | 19.38% | 1135.00% | Weak |
| Net Margin | 32.58% | -134663.00% (disorted) | Strong |
| Debt/Equity | 0.31 | 7.92 | Strong (Low Leverage) |
| Current Ratio | 2.01 | 5.77 | Strong Liquidity |
| ROA | 11.98% | -310462.00% (disorted) | Strong |
MRVL outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Marvell Technology, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
64.10%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-142.90%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
258.36%
Industry Style: Growth, Innovation, High Beta
High Growth