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Marvell (MRVL)
NASDAQ:MRVL
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Marvell
(NASDAQ:MRVL)58Neutral
Positive Factors
AI-Levered Business Growth
Marvell's AI-levered business, including compute and connectivity, showed impressive growth, with about 40% quarter-over-quarter and over 300% annually, contributing significantly to total revenue.
Custom Silicon Business
Marvell's strong ramp of its custom silicon business and growth from electro-optic interconnect products suggest strong revenue growth for fiscal 2026, with AI revenue expected to significantly exceed the original target.
Negative Factors
Investor Expectations
Investors were likely hoping for more upside given recent capex commentary from major customers.
Marvell (MRVL) vs. S&P 500 (SPY)
Market Cap
$62.54B
Dividend Yield0.33%
Average Volume (3M)18.75M
Price to Earnings (P/E)―
Beta (1Y)2.54
Revenue Growth-2.24%
EPS Growth-164.09%
CountryUS
Employees6,577
SectorTechnology
Sector Strength48
IndustrySemiconductors and Equipment
Share Statistics
EPS (TTM)-1.03
Shares Outstanding865,300,000
10 Day Avg. Volume27,642,416
30 Day Avg. Volume18,745,862
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)11.63
Price to Cash Flow (P/CF)29.20
P/FCF Ratio30.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$117.75Price Target Upside66.22% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering30
Marvell Business Overview & Revenue Model
Company DescriptionMarvell Technology, Inc. (MRVL) is a leading semiconductor company that designs and develops a broad range of data infrastructure technology solutions. The company operates primarily in the semiconductor industry, focusing on data storage, networking, and connectivity solutions for a variety of applications including enterprise, cloud, automotive, and industrial markets. Marvell's core products include processors, Ethernet solutions, and storage controllers, which are integral to modern data infrastructure systems.
How the Company Makes MoneyMarvell Technology, Inc. generates revenue through the sale of semiconductor products and solutions that are essential for data storage, networking, and connectivity. The company's key revenue streams come from the sale of integrated circuits, including application processors, Ethernet products, and storage controller chips. Marvell partners with leading OEMs (Original Equipment Manufacturers) and technology companies to embed its semiconductor solutions into a wide range of devices and systems, facilitating data processing and connectivity. Additionally, strategic acquisitions and collaborations enhance Marvell's product offerings and market reach, contributing to its earnings. The company's focus on innovation and addressing the growing demand for efficient data infrastructure solutions drives its revenue generation.
Marvell Financial Statement Overview
Summary
Marvell faces significant profitability challenges with negative net income and declining revenues. Despite this, the company maintains a solid balance sheet with moderate leverage and strong cash flow generation capabilities, providing a cushion for future investments.Income Statement
Marvell's TTM (Trailing-Twelve-Months) financials reveal a challenging period with a net loss and declining revenues. The gross profit margin stands at around 39.6%, indicating competitiveness in managing production costs. However, the net profit margin is negative due to substantial losses, and EBIT and EBITDA margins are also weak. Revenue growth has been negative recently, reflecting a downturn in sales, which is concerning for future profitability.45
Neutral
Balance Sheet
Marvell's balance sheet shows a moderate level of financial stability with a debt-to-equity ratio of 0.31, indicating manageable leverage. The equity ratio of 67.8% reflects a solid capital structure with substantial stockholders' equity. However, the return on equity is negative due to net losses, which could impact long-term shareholder value if not addressed.60
Neutral
Cash Flow
Marvell's cash flow position is relatively strong with a positive free cash flow. The operating cash flow to net income ratio is robust, suggesting efficient cash generation relative to net losses. Additionally, free cash flow growth is positive, highlighting the company's ability to generate cash even during challenging periods. This provides a cushion for future investments and debt obligations.70
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.77B | 5.51B | 5.92B | 4.46B | 2.97B | 2.70B | Gross Profit |
| 2.38B | 2.29B | 2.99B | 2.06B | 1.49B | 1.36B | EBIT |
| -712.20M | -436.60M | 377.30M | -311.81M | -46.15M | 939.34M | EBITDA |
| -24.90M | 850.70M | 1.65B | 901.16M | 388.62M | 1.41B | Net Income Common Stockholders |
| -885.00M | -933.40M | -163.50M | -421.03M | -277.30M | 1.58B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 948.30M | 950.80M | 911.00M | 613.50M | 748.47M | 0.00 | Total Assets |
| 20.20B | 21.23B | 22.52B | 22.11B | 10.76B | 0.00 | Total Debt |
| 4.06B | 4.40B | 4.49B | 4.55B | 1.19B | 0.00 | Net Debt |
| 3.12B | 3.45B | 3.58B | 3.93B | 444.34M | 0.00 | Total Liabilities |
| 6.78B | 6.40B | 6.88B | 6.41B | 2.33B | 2.45B | Stockholders Equity |
| 13.43B | 14.83B | 15.64B | 15.70B | 8.44B | 0.00 |
| Cash Flow | Free Cash Flow | ||||
| 1.39B | 1.02B | 1.07B | 632.25M | 697.78M | 273.66M | Operating Cash Flow |
| 1.68B | 1.37B | 1.29B | 819.37M | 817.29M | 360.30M | Investing Cash Flow |
| -300.70M | -350.50M | -328.40M | -3.75B | -119.64M | 558.85M | Financing Cash Flow |
| -1.38B | -980.20M | -662.90M | 2.79B | -596.78M | -853.95M |
Marvell Technical Analysis
Negative
70.84
Price Trends
108.25
Negative
100.90
Negative
85.43
Negative
Market Momentum
-8.74
Positive
27.60
Positive
13.17
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRVL, the sentiment is Negative. The current price of 70.84 is below the 20-day moving average (MA) of 97.58, below the 50-day MA of 108.25, and below the 200-day MA of 85.43, indicating a bearish trend. The MACD of -8.74 indicates Positive momentum. The RSI at 27.60 is Positive, neither overbought nor oversold. The STOCH value of 13.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MRVL.
Marvell Risk Analysis
Marvell disclosed 29 risk factors in its most recent earnings report. Marvell reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Marvell Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $175.29B | 16.94 | 41.96% | 2.15% | 12.13% | 36.17% | |
75 Outperform | $2.70T | 37.63 | 119.18% | 0.03% | 114.20% | 146.26% | |
74 Outperform | $900.80B | 155.28 | 14.85% | 1.21% | 43.99% | -62.55% | |
73 Outperform | $164.75B | 98.53 | 2.89% | ― | 13.69% | 91.75% | |
71 Outperform | $172.28B | 36.44 | 28.25% | 2.81% | -10.72% | -26.60% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% | |
58 Neutral | $62.54B | ― | -6.26% | 0.33% | -2.24% | -164.09% |
* Technology Sector Average
Performance Comparison
MRVL
Marvell
70.84
-4.35
-5.79%
AMD
Advanced Micro Devices
100.31
-107.08
-51.63%
AVGO
Broadcom
194.96
65.83
50.98%
NVDA
Nvidia
112.69
25.18
28.77%
QCOM
Qualcomm
161.22
-6.00
-3.59%
TXN
Texas Instruments
190.52
22.91
13.67%
Marvell Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -21.41% | Next Earnings Date: May 22, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance and positive outlook for Marvell, driven by record-breaking revenue and growth in the data center segment, particularly in AI and custom silicon programs. While there are challenges in the consumer and industrial segments, the highlights significantly outweigh the lowlights.Highlights
Record-Breaking Revenue and Growth
Marvell delivered record revenue of $1.817 billion for Q4 Fiscal Year 2025, growing 20% sequentially and 27% year-over-year. The data center end market was the primary growth driver.
Data Center Segment Surge
Data center revenue achieved $1.37 billion in Q4, growing 78% year-over-year and 24% sequentially, driven by custom AI silicon programs and strong shipments of Electro-Optics products.
AI Revenue Exceeds Targets
AI revenue for Fiscal Year 2025 exceeded the $1.5 billion target and is expected to significantly surpass the $2.5 billion target in Fiscal Year 2026.
Strong Cash Flow and Stockholder Returns
Marvell reported a record $1.68 billion in operating cash flow and increased capital returns to stockholders through stock repurchases and dividends totaling $933 million.
Custom Silicon Program Success
Marvell successfully ramped highly complex custom silicon programs, contributing significantly to revenue and expecting continued growth in Fiscal Year 2026 and beyond.
Lowlights
Consumer Revenue Decline
Consumer end market revenue was $89 million in Q4, declining 8% sequentially, with expectations of a further 35% sequential decline in the first quarter of Fiscal Year 2026.
Challenges in Industrial Segment
Automotive and industrial end market revenue grew 3% sequentially in Q4, but a decline in the industrial segment is expected to offset growth in automotive in the next quarter.
Company Guidance
In the fourth quarter of fiscal year 2025, Marvell Technology, Inc. reported record revenue of $1.817 billion, surpassing the midpoint of guidance with a 20% sequential and 27% year-over-year increase. The company achieved a record non-GAAP earnings per share of $0.60, reflecting a 40% sequential growth, doubling their top-line growth rate. For the full fiscal year, Marvell generated $5.77 billion in revenue, with data center revenue growing 88% year-over-year. The AI revenue exceeded $1.5 billion, significantly outpacing the target set in April 2024. Marvell is forecasting robust revenue growth of over 60% year-over-year in Q1 of fiscal 2026 and anticipates exceeding a $2.5 billion AI revenue target in fiscal 2026. The company also reported a record $1.68 billion in operating cash flow, returning $933 million to shareholders through stock repurchases and dividends.Marvell Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Marvell and AWS Expand Strategic Partnership for Cloud
Positive
Dec 2, 2024
Marvell Technology and Amazon Web Services (AWS) have expanded their strategic partnership in a multi-generational agreement to enhance cloud infrastructure with advanced data center semiconductors. This collaboration aims to boost efficiency and innovation by leveraging Marvell’s semiconductor solutions, including custom AI products and networking hardware, integrated with AWS’s scalable cloud capabilities. This partnership is expected to accelerate Marvell’s silicon design process and empower AWS to deliver robust AI and cloud services.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.