Marvell Technology Group (MRVL) Marked As Today's Post-Market Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

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 $99.7 million.
  • MRVL is down 2.2% today from today's close.

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More details on MRVL:

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 1.7%. MRVL has a PE ratio of 21. Currently there are 11 analysts that rate Marvell Technology Group a buy, 3 analysts rate it a sell, and 11 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 $7.5 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.14 and a short float of 2.2% with 1.09 days to cover. Shares are down 0.1% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Marvell Technology Group as a hold. 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 and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

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 4.70, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for MARVELL TECHNOLOGY GROUP LTD is rather high; currently it is at 55.03%. 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 1.94% significantly trails the industry average.
  • Net operating cash flow has significantly decreased to $58.87 million or 74.96% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MARVELL TECHNOLOGY GROUP LTD's return on equity is significantly below that of the industry average and is below that of the S&P 500.

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