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Maxlinear Inc (MXL)
NASDAQ:MXL
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Maxlinear
(NASDAQ:MXL)45Neutral
Positive Factors
Financial Performance
MaxLinear reported better than expected results and guidance as the company continues to benefit from improving customer orders and new product ramps.
Technology Development
High-speed optical data center connectivity is an area of particular strength with adoption accelerating for the Keystone PAM4 DSP solution.
Negative Factors
Market Competition
There is uncertainty around DeepSeek and competitive threats from next-gen 3nm products from competitors like Marvell.
Maxlinear (MXL) vs. S&P 500 (SPY)
Market Cap
$1.12B
Dividend YieldN/A
Average Volume (3M)2.47M
Price to Earnings (P/E)―
Beta (1Y)2.49
Revenue Growth-48.00%
EPS Growth-227.62%
CountryUS
Employees1,759
SectorTechnology
Sector Strength48
IndustrySemiconductors and Equipment
Share Statistics
EPS (TTM)-2.93
Shares Outstanding84,633,570
10 Day Avg. Volume2,388,760
30 Day Avg. Volume2,469,217
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.11
Price to Cash Flow (P/CF)-10.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$23.36Price Target Upside75.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Maxlinear Business Overview & Revenue Model
Company DescriptionMaxlinear, Inc. is a leading provider of integrated radio-frequency, analog, and mixed-signal semiconductor solutions. The company operates in the semiconductor industry and focuses on delivering products for broadband communications, data center, and connected home markets. Maxlinear's core products include RF transceivers, broadband modems, and power management integrated circuits, which are utilized in a wide range of applications such as cable and satellite broadband access, fiber-to-the-home, wireless infrastructure, and more.
How the Company Makes MoneyMaxlinear generates revenue primarily through the sale of its semiconductor products to original equipment manufacturers (OEMs) and other technology companies that integrate these components into their own products. The company's key revenue streams come from its broad portfolio of RF, analog, and power management solutions, designed to meet the needs of diverse markets like broadband communications and data centers. Maxlinear also benefits from strategic partnerships and collaborations with industry leaders to enhance its product offerings and expand its market reach. Furthermore, the company's research and development efforts play a significant role in maintaining its competitive edge and driving long-term revenue growth.
Maxlinear Financial Statement Overview
Summary
Maxlinear is facing financial headwinds characterized by declining revenues, negative profitability, and weakening cash flow. While the balance sheet shows some stability, operational and liquidity challenges need to be addressed to improve the company's financial health.Income Statement
Maxlinear's income statement shows significant challenges. The gross profit margin has declined, and the net profit margin is negative due to substantial losses in recent years. Revenue growth is negative, indicating a declining trend in sales. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet indicates moderate financial stability. The debt-to-equity ratio is manageable, but there is a notable decrease in stockholders' equity over the years. The equity ratio remains relatively stable, suggesting cautious management of assets and liabilities.55
Neutral
Cash Flow
Cash flow analysis reveals a troubling trajectory. Operating cash flow has turned negative, and free cash flow has decreased significantly, indicating potential liquidity issues. The ratios related to net income are unfavorable due to the company's losses.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.02B | 360.53M | 693.26M | 1.12B | 892.40M | 478.60M | Gross Profit |
| 590.51M | 194.78M | 385.66M | 649.77M | 495.83M | 212.80M | EBIT |
| 140.26M | -223.35M | -38.22M | 180.24M | 65.25M | -97.22M | EBITDA |
| 231.35M | -173.70M | 9.53M | 255.86M | 145.27M | -29.28M | Net Income Common Stockholders |
| 102.99M | -245.20M | -73.15M | 125.04M | 41.97M | -98.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 118.58M | 118.58M | 187.29M | 205.88M | 130.57M | 148.90M | Total Assets |
| 864.64M | 864.64M | 1.08B | 1.18B | 1.05B | 1.02B | Total Debt |
| 139.95M | 139.95M | 157.75M | 155.60M | 330.79M | 384.45M | Net Debt |
| 21.37M | 21.37M | -29.54M | -31.75M | 200.22M | 235.55M | Total Liabilities |
| 305.28M | 348.36M | 393.99M | 503.64M | 561.19M | 631.33M | Stockholders Equity |
| 559.36M | 516.28M | 686.26M | 676.38M | 489.20M | 391.12M |
| Cash Flow | Free Cash Flow | ||||
| 308.67M | -45.30M | 23.56M | 336.29M | 121.48M | 58.31M | Operating Cash Flow |
| 357.71M | -45.30M | 43.37M | 388.73M | 168.23M | 73.59M | Investing Cash Flow |
| -99.87M | -23.45M | -15.94M | -91.76M | -91.76M | -175.29M | Financing Cash Flow |
| -173.34M | 1.29M | -26.36M | -240.40M | -91.90M | 159.65M |
Maxlinear Technical Analysis
Negative
13.32
Price Trends
18.79
Negative
17.27
Negative
16.90
Negative
Market Momentum
-1.47
Positive
33.38
Neutral
8.15
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MXL, the sentiment is Negative. The current price of 13.32 is below the 20-day moving average (MA) of 15.87, below the 50-day MA of 18.79, and below the 200-day MA of 16.90, indicating a bearish trend. The MACD of -1.47 indicates Positive momentum. The RSI at 33.38 is Neutral, neither overbought nor oversold. The STOCH value of 8.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MXL.
Maxlinear Risk Analysis
Maxlinear disclosed 51 risk factors in its most recent earnings report. Maxlinear 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
Maxlinear Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $53.55B | 21.47 | 28.16% | 1.92% | -4.99% | -9.18% | |
67 Neutral | $881.52B | 151.95 | 13.46% | 1.16% | 43.99% | -62.55% | |
67 Neutral | $18.75B | 12.80 | 18.97% | ― | -14.19% | -27.42% | |
63 Neutral | $10.61B | 20.23 | 8.34% | 4.21% | -12.91% | -42.12% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% | |
52 Neutral | $6.47B | 251.47 | 0.77% | ― | 9.51% | ― | |
45 Neutral | $1.12B | ― | -40.78% | ― | -48.00% | -227.62% |
* Technology Sector Average
Performance Comparison
MXL
Maxlinear
13.32
-7.80
-36.93%
AVGO
Broadcom
191.58
52.75
38.00%
NXPI
NXP Semiconductors
216.77
-37.95
-14.90%
ON
ON Semiconductor
46.49
-36.47
-43.96%
SWKS
Skyworks Solutions
67.39
-36.99
-35.44%
QRVO
Qorvo
71.14
-47.65
-40.11%
Maxlinear Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -38.87% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced sentiment with strong revenue growth and design wins in high-speed optical data center connectivity, but also highlights challenges with cash flow, day sales outstanding, and operating losses. The company's strategic investments are positioning it for future growth, though current operational efficiencies and market segment challenges persist.Highlights
Revenue and Growth
Total revenue for the fourth quarter was $92.2 million, up 14% from $81.1 million in the previous quarter. The company exceeded its own internal revenue targets for 2024, showing significant growth and design win traction in optical interconnect markets.
Optical Business Expansion
MaxLinear shipped approximately 1 million units of its Keystone product across multiple customers, contributing to a revenue growth target of $60-70 million for 2025 in the optical segment.
Infrastructure Segment Performance
Infrastructure revenue for the fourth quarter was $27 million, with expectations for further growth in 2025, driven by new product launches and design wins in high-speed optical data center connectivity.
Cost Management and Operational Efficiency
Significant reduction in operating expenses with fourth quarter non-GAAP operating expenses at $61.3 million, positioning the company for a return to profitability in 2025.
Lowlights
Cash Flow and DSO Challenges
Cash flow used in operating activities was approximately $28 million for Q4, with day sales outstanding up to approximately 85 days, indicating ongoing working capital challenges.
Broadband and Industrial Multi-Market Slowdown
Industrial multi-market revenue was $16 million, with expectations of a decline in the first quarter of 2025. Connectivity revenue is expected to be approximately flat for Q1 2025.
Operating Loss
GAAP and non-GAAP loss from operations for Q4 2024 was 45% and 7% of net revenue respectively, reflecting ongoing challenges in achieving profitability.
Company Guidance
During the MaxLinear Fourth Quarter 2024 Earnings Conference Call, the company provided guidance for the first quarter of 2025, including an expected revenue range of $85 million to $105 million. They projected GAAP gross margin to be between 54.5% and 57.5%, and non-GAAP gross margin to range from 57.5% to 60.5% of revenue. Operating expenses on a GAAP basis were anticipated to be between $93 million and $99 million, while non-GAAP operating expenses were expected to fall between $56 million and $62 million. Additionally, the company forecasted GAAP and non-GAAP interest and other expenses to be approximately $1 million to $2 million, with a GAAP tax expense of $2.7 million and no non-GAAP tax expenses. The GAAP and non-GAAP diluted share count was projected to be approximately 85.5 million each. The company expressed confidence in entering a new growth phase in 2025, driven by improved customer orders and new product traction in strategic areas such as optical high-speed interconnects and wireless infrastructure.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.