MRVL is on my Watchlist

 Marvell Technology (MRVL)

What am I trading?

Marvell technology Group designs, develops, and sells computer parts and equipment. It's a computer and technology company. It also manufactures and sells storage devices. It has operations in Philippines, China, United States, Israel, India, South Korea, Japan, Taiwan, and Vietnam. The company was founded in 1995 and is headquartered in Bermuda.

Finviz

Marvell Technology Group Ltd. designs, develops, and sells analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. It offers a portfolio of Ethernet solutions, including controllers, network adapters, physical transceivers, and switches; single or multiple core processors; custom application specific integrated circuits; and printer SoC products and application processors. The company also provides a range of storage products comprising storage controllers for hard disk drives (HDD) and solid-state drives that support various host system interfaces consisting of serial attached SCSI (SAS), serial advanced technology attachment (SATA), peripheral component interconnect express, non-volatile memory express (NVMe), and NVMe over fabrics; and fiber channel products, including host bus adapters, and controllers for server and storage system connectivity. It has operations in the United States, China, Malaysia, the Philippines, Thailand, Singapore, India, Israel, Japan, South Korea, Taiwan, and Vietnam. The company was founded in 1995 and is headquartered in Hamilton, Bermuda.

Marvel sells to some big companies. This company makes computer components to control other aspects of technology. It's primary business is design and research.

Some Quick Observations

Basic
Optionable	Yes	I do credit spreads sometimes
Shortable	Yes	I play both sides of the market
Share Price > $5	42.71	No Penny Stocks
Market Cap	27.80B	Must be greater than 300M. We want no Penny Stocks

Valuation
Profitability - Past 5 yrs	22.66	PE Positive
Profitability Q/Q	32.77	PE Positive
Sales Growth past 5 yrs	-5.80%	10% growth the last 5 years
Projected Sales Growth 5 yrs	10.80%
EPS	1.99	A negative EPS tells you exactly how much money the company lost per share of outstanding stock, which is why you'll also see it called "net loss per share." If a company with 100 million shares loses $16 million, then its EPS is negative 16 cents.
Book Value per share	12.61

Financial
Debt to Equity	0.17	A good debt to equity ratio is around 1 to 1.5.
Current Ratio	1.3	a current ratio of 1.5 or above is considered healthy, while a ratio of 1 or below suggests the company would struggle to pay its liabilities and might go bankrupt
Quick Ratio	1.1	A result of 1 is considered to be the normal quick ratio. ... A company that has a quick ratio of less than 1 may not be able to fully pay off its current liabilities in the short term, while a company having a quick ratio higher than 1 can instantly get rid of its current liabilities

Buy it?
Current Price	42.71
Target Price	47.48	Produced by Analysts
Bargain	4.77	A positive number indicates trading under Target Price
Graham Number	-70.00107698	Negative number is a good value
Analysts Ranking	2	1=Buy 5=Sell
Earning	Dec 03 AMC	Next Earning Date

What do the Experts Say?

Interactive Broker Research:

Financial Summary

BRIEF: For the 26 weeks ended 01 August 2020, MarvellTechnology Group Ltd. revenues increased 8% to $1.42B. Netloss increased from $105.8M to $270.9M. Revenues reflectChina segment increase of 10% to $583.3M, United Statessegment increase of 31% to $168.1M. Higher net loss reflects Research and developments increase of 25% to$494.8M (expense), Restructuring related charges increase from $22.3M to $120.6M (expense).

 

Interactive Broker Research:

Zack’s Research:

I don't see any recent upgrades or downgrades. On October 30th Greg Hallium upgraded from a hold to buy. I'm not familiar with this analyst.

Finviz Research:

 

Reuters Stock Reports

News

My Thoughts + Zack’s Summary:

• Marvel is a player in the solid state controller market - should be jot for the future

• Company is focused on design, research, and development and does not do chip manufacturing (lots of extra overhead)

• Marvel is restructuring to increase efficiency

• Marvel is not over leveraged 

• Good Sales growth for the future

• Marvel has strong operating and pre-cut flows. It's positioned well financially.

• Must watch the effects of the covid-19 on sales situation

• Marvel sells the big customers and if their sales are affected so will Marvel's.

• A large portion of the sales are derived outside of the USA so a escalation of more covid cases could disrupt sales.

Conclusion: 

Generally, I like the company.  I plan on buying the dips.  Do your own diligence on this stock.

Last Update 11/09/20  

To be a successful trader - you need to understand what you're buying or selling, be able to do your own research, and formulate your own opinions and decisions! This my research and my opinion.  Please do your own research as well.