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NEW YORK (TheStreet) -- Shares of Maxim Integrated Products (MXIM) - Get Maxim Integrated Products Inc. Report are soaring by 6.71% to $41.03 in midday trading on Wednesday, as it enters talks with chipmaker Texas Instruments (TXN) about a possible acquisition, sources told Bloomberg. 

Maxim has received interest from Analog Devices (ADI) as well, but might not sell unless it receives a high premium.

This year has already set a record for mergers and acquisitions within the semiconductor industry, but Maxim doesn't require scale as much as its smaller competitors that have merged do, Bloomberg reports.

Maxim is profitable enough to succeed independently, CFO Bruce Kiddoo said last week about a possible takeover, Bloomberg notes. The company has the resources to do acquisitions itself, he said. 

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Maxim, based in San Jose, CA, designs, develops, manufactures and markets a range of linear and mixed-signal integrated circuits.

Separately, TheStreet Ratings team rates MAXIM INTEGRATED PRODUCTS as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

We rate MAXIM INTEGRATED PRODUCTS (MXIM) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 5.47, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has remained constant at $117.34 million with no significant change when compared to the same quarter last year. Even though MAXIM INTEGRATED PRODUCTS's cash flow growth was minimal, the firm managed to surpass its industry's average growth rate of -84.30%.
  • Despite the weak revenue results, MXIM has outperformed against the industry average of 13.4%. Since the same quarter one year prior, revenues slightly dropped by 3.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 172.2% when compared to the same quarter one year ago, falling from $99.98 million to -$72.14 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MAXIM INTEGRATED PRODUCTS's return on equity significantly trails that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: MXIM