Marvell Technology (MRVL) stock: time to pick it up?

1:43 pm ET, 06 Sep 2018

Marvell Technology Group Ltd. (MRVL) shares are trading at $19.60, down -4.32%. The company is expected to report earnings on September 6 after market close.  What's driving MRVL stock price? What's MRVL stock price forecast, and what developments should investors be aware of when it comes to Marvell?

Marvell Technology is a leading designer, developer and supplier of mixed-signal and digital signal processing integrated circuits. The enterprise and data center sales continue to show strong growth.

The investor sentiment is mixed. The stock fell 13% in the past six months as semiconductor companies are losing the momentum in the stock market. But some investors are very bullish about the company’s prospects in the Internet of Things (IoT), automotive cars, and big data.

The next quarter's results will be released after market close on September 06. Investors will be closely listening to the earnings call for more insights into the Cavium deal. It will help the company transition from storage to the data center business.

What is the technical sentiment towards the MRVL stock? Our analysis shows that:

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is trending negative;
  • The long-term sentiment (9-12 months) is trending positive.

Marvell Technology Group (MRVL) forward P/E ratio is 13.48, and it’s low compared to its industry peers’ P/E ratios.

Marvell Technology Group (MRVL) short share of float is 5.74%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

For the latest price and information on Marvell Technology Group Ltd., please visit Finstead and search for "MRVL price" or "MRVL news".

Marvell Technology Group Ltd. (MRVL) Stock Guide

Updated at: 6:34 am ET, 18 Sep 2020

Before we start: if you're looking for MRVL stock price, you can quickly find it out by visiting Finny and typing "MRVL quote". If you're looking for a quick scoop on MRVL stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "MRVL". You'll get all this info in one place. Or you can just type "MRVL news" to get the latest stock news.

Looking to buy or sell Marvell Technology Group Ltd. (MRVL)? Interested in getting the full scoop on MRVL, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this MRVL stock guide, we'll address key questions about MRVL, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are MRVL earnings?
2. What is MRVL dividend?
3. What is MRVL dividend yield?
4. What is MRVL stock forecast (i.e., prediction)?
5. MRVL buy or sell? What is MRVL Finny Score?
6. What are the reasons to buy MRVL? Why should I buy MRVL stock?
7. What are the reasons to sell MRVL? Why should I sell MRVL stock?
8. What are MRVL key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are MRVL earnings?

MRVL trailing 12-month earnings per share (EPS) is $2.09.

2. What is MRVL dividend?

MRVL forward dividend is $0.24.

3. What is MRVL dividend yield?

MRVL forward dividend yield is 0.62%.

Analyst Predictions

4. What is MRVL stock forecast (i.e., prediction)?

Based on MRVL analyst price targets, MRVL stock forecast is $41.42 (for a year from now). That means the average analyst price target for MRVL stock is $41.42. The prediction is based on 24 analyst estimates.

The low price target for MRVL is $31.00, while the high price target is $50.00.

MRVL analyst rating is Hold.

Analysis

5. MRVL buy or sell? What is MRVL Finny Score?

#{finnyScore:44}Our quantitative analysis shows 4 reasons to buy and 5 reasons to sell MRVL, resulting in Finny Score of 44.

6. What are the reasons to buy MRVL? Why should I buy MRVL stock?

Here are the reasons to buy MRVL stock:

  • Marvell is making a smart move, in our view, by pulling the plug on its money-losing mobile processor business.
  • The company's Wi-Fi chips and processors are used in popular consumer products like gaming systems and Google’s Chromecast.
  • Marvell has a strong balance sheet and has done a nice job of buying back shares in recent quarters.
  • MRVL quarterly revenue growth was 10.80%, higher than the industry and sector average revenue growth (0.39% and 0.89%, respectively). See MRVL revenue growth chart.
  • MRVL profitability is improving. The YoY profit margin change was 21.62 percentage points. See MRVL profitability chart.
  • MRVL forward dividend yield is 0.62%, higher than the industry (0.61%) and sector (0.26%) forward dividend yields. See MRVL forward dividend chart.
  • MRVL cash to debt ratio is 0.52, higher than the average industry (0.33) and sector (0.17) cash to debt ratio. See MRVL cash to debt chart.

7. What are the reasons to sell MRVL? Why should I sell MRVL stock?

Let's look at the reasons to sell MRVL stock (i.e., the bear case):

  • Marvell's hard disk drive chip business is facing secular headwinds because of sluggish PC demand which, in turn, is weighing on HDD demand.
  • Marvell's position in SSD controllers is not as strong as that in HDD controllers.
  • Marvell’s networking chip business has performed worse than industry leader Broadcom in recent years.
  • MRVL stock price ($38.71) is close to the 52-week high ($41.19). Perhaps now is a good time to sell? See MRVL price chart.
  • MRVL forward P/E ratio is 28.61, which is high compared to its industry peers’ P/E ratios. See MRVL forward P/E ratio chart.
  • MRVL Price/Sales ratio is 9.38, which is high compared to its industry peers’ P/S ratios. See MRVL forward Price/Sales ratio chart.
  • MRVL short interest (days to cover the shorts) ratio is 2.14. The stock garners more short interest than the average industry, sector or S&P 500 stock. See MRVL short interest ratio chart.
  • MRVL Enterprise Value/Revenue multiple is 9.55, which is high compared to its industry peers’ Enterprise Value/Revenue multiples. See MRVL Enterprise Value/Revenue chart.

Key Stats

8. What are MRVL key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for MRVL:

Metrics MRVL
Price $38.40
Average Price Target / Upside $41.42 / 7.86%
Average Analyst Rating Hold
Forward Dividend Yield 0.62%
Industry Semiconductors
Sector Technology
Number of Employees 3,749
Market Cap $26.27B
Forward P/E Ratio 28.61
Price/Book Ratio 9.38
Revenue (TTM) $2.8B
YoY Quarterly Revenue Growth 10.80%
Profit Margin 50.67%

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