Marvell Technology Stock To $68?
Marvell Technology (MRVL) stock has jumped 5.2% during the past day, and is currently trading at $89.39. Our multi-factor assessment suggests that it may be time to reduce exposure to MRVL stock. We are primarily concerned current valuation and a price of $68 may not be out of reach. We believe there is not much to fear in MRVL stock given its overall Strong operating performance and financial condition. But given its Very High valuation, the stock appears Relatively Expensive.
Below is our assessment:
| CONCLUSION | |
|---|---|
| What you pay: | |
| Valuation | Very High |
| What you get: | |
| Growth | Very Strong |
| Profitability | Strong |
| Financial Stability | Very Strong |
| Downturn Resilience | Weak |
| Operating Performance | Strong |
| Stock Opinion | Relatively Expensive |
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Let’s get into details of each of the assessed factors but before that, for quick background: With $76 Bil in market cap, Marvell Technology provides integrated circuits and Ethernet solutions, including controllers, adapters, transceivers, switches, and storage controllers for HDDs and SSDs supporting diverse host system interfaces.
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[1] Valuation Looks Very High
| MRVL | S&P 500 | |
|---|---|---|
| Price-to-Sales Ratio | 9.8 | 3.2 |
| Price-to-Earnings Ratio | 31.0 | 23.4 |
| Price-to-Free Cash Flow Ratio | 48.6 | 20.6 |
This table highlights how MRVL is valued vs broader market. For more details see: MRVL Valuation Ratios
[2] Growth Is Very Strong
- Marvell Technology has seen its top line grow at an average rate of 12.3% over the last 3 years
- Its revenues have grown 45% from $5.4 Bil to $7.8 Bil in the last 12 months
- Also, its quarterly revenues grew 36.8% to $2.1 Bil in the most recent quarter from $1.5 Bil a year ago.
| MRVL | S&P 500 | |
|---|---|---|
| 3-Year Average | 12.3% | 5.6% |
| Latest Twelve Months* | 45.0% | 6.2% |
| Most Recent Quarter (YoY)* | 36.8% | 7.3% |
This table highlights how MRVL is growing vs broader market. For more details see: MRVL Revenue Comparison
[3] Profitability Appears Strong
- MRVL last 12 month operating income was $1.1 Bil representing operating margin of 14.7%
- With cash flow margin of 24.3%, it generated nearly $1.9 Bil in operating cash flow over this period
- For the same period, MRVL generated nearly $2.5 Bil in net income, suggesting net margin of about 31.7%
| MRVL | S&P 500 | |
|---|---|---|
| Current Operating Margin | 14.7% | 18.8% |
| Current OCF Margin | 24.3% | 20.6% |
| Current Net Income Margin | 31.7% | 13.1% |
This table highlights how MRVL profitability vs broader market. For more details see: MRVL Operating Income Comparison
[4] Financial Stability Looks Very Strong
- MRVL Debt was $4.8 Bil at the end of the most recent quarter, while its current Market Cap is $76 Bil. This implies Debt-to-Equity Ratio of 6.2%
- MRVL Cash (including cash equivalents) makes up $2.7 Bil of $22 Bil in total Assets. This yields a Cash-to-Assets Ratio of 12.6%
| MRVL | S&P 500 | |
|---|---|---|
| Current Debt-to-Equity Ratio | 6.2% | 20.6% |
| Current Cash-to-Assets Ratio | 12.6% | 7.2% |
[5] Downturn Resilience Is Weak
MRVL has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
2022 Inflation Shock
- MRVL stock fell 62.1% from a high of $91.51 on 7 December 2021 to $34.68 on 5 January 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 7 November 2024
- Since then, the stock increased to a high of $126.06 on 23 January 2025 , and currently trades at $89.39
| MRVL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -62.1% | -25.4% |
| Time to Full Recovery | 672 days | 464 days |
2020 Covid Pandemic
- MRVL stock fell 39.5% from a high of $28.49 on 17 January 2020 to $17.25 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 20 May 2020
| MRVL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -39.5% | -33.9% |
| Time to Full Recovery | 63 days | 148 days |
2008 Global Financial Crisis
- MRVL stock fell 77.1% from a high of $20.88 on 10 January 2007 to $4.78 on 20 November 2008 vs. a peak-to-trough decline of 56.8% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 4 January 2010
| MRVL | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -77.1% | -56.8% |
| Time to Full Recovery | 410 days | 1,480 days |
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read MRVL Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
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