Marvell Technology Current Valuation vs. Profit Margin

MRVL Stock  USD 111.90  2.79  2.56%   
Based on the key profitability measurements obtained from Marvell Technology's financial statements, Marvell Technology Group may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Marvell Technology's ability to earn profits and add value for shareholders. At this time, Marvell Technology's Price To Sales Ratio is quite stable compared to the past year. EV To Sales is expected to rise to 12.06 this year, although the value of Days Sales Outstanding will most likely fall to 65.98. At this time, Marvell Technology's Accumulated Other Comprehensive Income is quite stable compared to the past year. Income Tax Expense is expected to rise to about 183.4 M this year, although the value of Income Before Tax is projected to rise to (720.8 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.50.4164
Fairly Up
Slightly volatile
For Marvell Technology profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Marvell Technology to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Marvell Technology Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Marvell Technology's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Marvell Technology Group over time as well as its relative position and ranking within its peers.
  

Marvell Technology's Revenue Breakdown by Earning Segment

Check out Correlation Analysis.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Marvell Technology. If investors know Marvell will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Marvell Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.70)
Earnings Share
(1.70)
Revenue Per Share
6.106
Quarterly Revenue Growth
(0.05)
Return On Assets
(0.01)
The market value of Marvell Technology is measured differently than its book value, which is the value of Marvell that is recorded on the company's balance sheet. Investors also form their own opinion of Marvell Technology's value that differs from its market value or its book value, called intrinsic value, which is Marvell Technology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Marvell Technology's market value can be influenced by many factors that don't directly affect Marvell Technology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Marvell Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Marvell Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Marvell Technology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Marvell Technology Profit Margin vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Marvell Technology's current stock value. Our valuation model uses many indicators to compare Marvell Technology value to that of its competitors to determine the firm's financial worth.
JavaScript chart by amCharts 3.21.15WKEYMRVL -0.8-0.6-0.4-0.20 020B40B60B80B100B
Marvell Technology Group is rated top company in current valuation category among its peers. It also is considered to be number one stock in profit margin category among its peers . At this time, Marvell Technology's Net Loss is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Marvell Technology by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Marvell Current Valuation vs. Competition

Marvell Technology Group is rated top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Information Technology industry is now estimated at about 94.76 Billion. Marvell Technology totals roughly 94.57 Billion in current valuation claiming about 100% of equities under Information Technology industry.
MRVLMRVL99.8%Nano0.1%Wisekey0.1%100%

Marvell Profit Margin vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Marvell Technology

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
94.57 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Marvell Technology

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
(0.18) %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Marvell Technology Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Marvell Technology, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Marvell Technology will eventually generate negative long term returns. The profitability progress is the general direction of Marvell Technology's change in net profit over the period of time. It can combine multiple indicators of Marvell Technology, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income990 KM
Operating Income-436.6 M-414.8 M
Income Before Tax-758.7 M-720.8 M
Total Other Income Expense Net-322.1 M-306 M
Net Loss-933.4 M-886.7 M
Income Tax Expense174.7 M183.4 M
Net Loss-147.2 M-139.8 M
Net Loss-933.4 M-886.7 M
Non Operating Income Net Other1.3 B1.4 B
Interest Income8.8 M7.6 M
Net Interest Income-202.9 M-192.8 M
Change To Netincome767 M805.4 M
Net Loss(1.08)(0.41)
Income Quality(1.47)(2.95)
Net Income Per E B T 1.23  0.86 

Marvell Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Marvell Technology. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Marvell Technology position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Marvell Technology's important profitability drivers and their relationship over time.

Use Marvell Technology in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Marvell Technology position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Marvell Technology will appreciate offsetting losses from the drop in the long position's value.

Marvell Technology Pair Trading

Marvell Technology Group Pair Trading Analysis

The ability to find closely correlated positions to Marvell Technology could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Marvell Technology when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Marvell Technology - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Marvell Technology Group to buy it.
The correlation of Marvell Technology is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Marvell Technology moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Marvell Technology moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Marvell Technology can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Marvell Technology position

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When determining whether Marvell Technology is a strong investment it is important to analyze Marvell Technology's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Marvell Technology's future performance. For an informed investment choice regarding Marvell Stock, refer to the following important reports:
To fully project Marvell Technology's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Marvell Technology at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Marvell Technology's income statement, its balance sheet, and the statement of cash flows.
Potential Marvell Technology investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Marvell Technology investors may work on each financial statement separately, they are all related. The changes in Marvell Technology's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Marvell Technology's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.