Trade-Ideas: Marvell Technology Group (MRVL) Is Today’s Post-Market Laggard Stock
Trade-Ideas LLC identified Marvell Technology Group ( MRVL) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Marvell Technology Group as such a stock due to the following factors:
- MRVL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $68.6 million.
- MRVL is down 6.5% today from today’s close.
Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. The stock currently has a dividend yield of 1.6%. MRVL has a PE ratio of 17.6. Currently there are 11 analysts that rate Marvell Technology Group a buy, 3 analysts rate it a sell, and 9 rate it a hold.
The average volume for Marvell Technology Group has been 6.8 million shares per day over the past 30 days. Marvell Technology Group has a market cap of $7.6 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.39 and a short float of 1.6% with 1.35 days to cover. Shares are up 1.8% year-to-date as of the close of trading on Thursday.
TheStreet Quant Ratings rates Marvell Technology Group as a buy. The company’s strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- MRVL has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.63, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has increased to $142.20 million or 41.50% when compared to the same quarter last year. In addition, MARVELL TECHNOLOGY GROUP LTD has also vastly surpassed the industry average cash flow growth rate of -36.34%.
- The gross profit margin for MARVELL TECHNOLOGY GROUP LTD is rather high; currently it is at 54.50%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, MRVL’s net profit margin of 9.52% significantly trails the industry average.
- MARVELL TECHNOLOGY GROUP LTD’s earnings per share declined by 20.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MARVELL TECHNOLOGY GROUP LTD increased its bottom line by earning $0.84 versus $0.64 in the prior year. This year, the market expects an improvement in earnings ($0.99 versus $0.84).