MMarketMath

MRVL

Fast growerQuality: Medium (69/100)3 red flags

Marvell Technology · Information Technology · Semiconductors

$229.29

52w 61.44 – 329.88

20y monthly, adjusted

Mkt cap

$200.6B

P/E

77.7

P/FCF

148.5

FCF yield

0.7%

ROE

18.7%

Shldr yield

1.1%

div 0.1% + bb 1.0%

What today's price assumes

At $200.6B, the market is pricing in 35.6% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 30.8% per year — the price asks for acceleration beyond the historical record.

Simple DCF per-share range: $24 · $55 · $79 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Historical multiple lens

At its own median P/OCF of 40.6× across 7 years, MRVL would trade near $81/share (25th–75th percentile: $78–$92); it trades at 114.6× today.

Assumes the historical multiple regime persists — re-ratings can be permanent.

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

+11.4%

Rev 5y

+22.5%

Rev 10y

+20.3%

EPS 5y

EPS 10y

+4.6%

FCF 5y

+14.5%

FCF 10y

+30.8%

Fundamentals

Fiscal 2020–2026, from SEC filings

Revenue

2020: $2.7B
2021: $3.0B
2022: $4.5B
2023: $5.9B
2024: $5.5B
2025: $5.8B
2026: $8.2B
$0$2.5B$5.0B$7.5B
20
22
24
26

Net income

2020: $1.6B
2021: −$277.3M
2022: −$421.0M
2023: −$163.5M
2024: −$933.4M
2025: −$885.0M
2026: $2.7B
$0$1.0B$2.0B
20
22
24
26

Free cash flow

2020: $278.4M
2021: $710.5M
2022: $650.1M
2023: $1.1B
2024: $1.0B
2025: $1.4B
2026: $1.4B
$0$500.0M$1.0B
20
22
24
26

Diluted shares (lower is better)

2020: 676.1M
2021: 668.8M
2022: 796.9M
2023: 851.4M
2024: 861.3M
2025: 865.5M
2026: 869.7M
0250.0M500.0M750.0M
20
22
24
26

Margins

0%25%50%20212223242526
Net marginFCF marginGross margin

Capital returned (dividends + buybacks)

2020: $523.8M
2021: $185.8M
2022: $191.0M
2023: $319.4M
2024: $356.8M
2025: $932.5M
2026: $2.2B
$0$1.0B$2.0B
20
22
24
26

Cash vs long-term debt

$2.0B$4.0B20212223242526
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q1'24: $1.3B
Q2'24: $1.3B
Q3'24: $1.4B
Q4'24: $1.4B
Q1'25: $1.2B
Q2'25: $1.3B
Q3'25: $1.5B
Q4'25: $1.8B
Q1'26: $1.9B
Q2'26: $2.0B
Q3'26: $2.1B
Q4'26: $2.2B
Q1'27: $2.4B
$0$1.0B$2.0B
24
24
25
26
27

Net income by quarter

Q1'24: −$168.9M
Q2'24: −$207.5M
Q3'24: −$164.3M
Q4'24: −$392.7M
Q1'25: −$215.6M
Q2'25: −$193.3M
Q3'25: −$676.3M
Q4'25: $200.2M
Q1'26: $177.9M
Q2'26: $194.8M
Q3'26: $1.9B
Q4'26: $396.1M
Q1'27: $34.5M
$0$1.0B
24
24
25
26
27
QuarterRevenueYoYNet incomeYoYEPSOCF
Q1'27$2.4B+27.6%$34.5M−80.6%0.04$638.8M
Q4'26 *$2.2B+22.1%$396.1M+97.9%0.45$373.7M
Q3'26$2.1B+36.8%$1.9B2.20$582.3M
Q2'26$2.0B+57.6%$194.8M0.22$461.6M
Q1'26$1.9B+63.3%$177.9M0.20$332.9M
Q4'25 *$1.8B+27.4%$200.2M0.23$514.0M
Q3'25$1.5B+6.9%−$676.3M-0.78$536.3M
Q2'25$1.3B−5.1%−$193.3M-0.22$306.4M
Q1'25$1.2B−12.2%−$215.6M-0.25$324.5M
Q4'24 *$1.4B+0.6%−$392.7M-0.45$546.6M
Q3'24$1.4B−7.7%−$164.3M−1335.3%-0.19$503.0M
Q2'24$1.3B−11.6%−$207.5M−4925.6%-0.24$112.5M
Q1'24$1.3B−8.7%−$168.9M-0.20$208.4M

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue+11.4%+22.5%
Operating cash flow+10.7%+16.5%
Free cash flow+8.9%+14.5%
EPS (diluted)+4.6%+4.6%
Equity−2.9%+11.1%
LT debt+0.5%+31.9%
Diluted shares+0.7%+5.4%
Stock price+58.4%+30.7%+34.9%+22.3%

$100, 3 years ago

$397vs $176 in SPY

58.4% vs 20.7%/yr

$100, 5 years ago

$382vs $181 in SPY

30.7% vs 12.6%/yr

$100, 10 years ago

$1,990vs $412 in SPY

34.9% vs 15.2%/yr

$100, 15 years ago

$2,049vs $813 in SPY

22.3% vs 15.0%/yr

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

9.6%

OCF ÷ (equity + debt)

OCF / EV yield

0.8%

MC vs 10× OCF

11.85

≤1 = priced under 10× OCF

Debt / FCF

2.8y

SBC / FCF

42.3%

Owner earnings

$805.6M

OCF − capex − SBC

OE yield

0.4%

Share count 5y

+4.3%

per year; negative = buybacks

Capital intensity

11.4%

net PP&E ÷ revenue

Sales efficiency

$0.12

new PP&E per $1 new revenue, 5y

Growth engine (5y): reinvested 100.7% of operating cash flow at an incremental return of 13.4% — an organically fundable growth rate of about 13.5% per year (growth ≈ reinvestment rate × incremental ROIC).

Checklist

15 of 26 checks pass · 58%. Checks with structurally missing inputs are excluded.

Growth & Consistency

4/6

  • Revenue growth

    22.5% · 5y CAGR ≥ 5%

    pass
  • EPS growth

    · 5y CAGR ≥ 5%

    na
  • FCF growth

    14.5% · 5y CAGR ≥ 5%

    pass
  • Revenue rises consistently

    5 of 6 · up in ≥ 7 of last 10 years

    pass
  • FCF consistently positive

    7 of 7 · positive in ≥ 8 of last 10 years

    pass
  • Profitable every year

    2 of 7 · net income > 0 in ≥ 8 of last 10

    fail
  • Cash flow keeps up with sales

    16.5% vs 22.5% · OCF CAGR ≥ 0.9× revenue CAGR

    fail

Profitability

5/7

  • Net margin

    32.6% · ≥ 8%

    pass
  • Operating margin

    16.1% · ≥ 10%

    pass
  • Gross margin stable or rising

    51.0% vs 50.5% · no drop > 2 pts over 3y

    pass
  • Return on equity

    18.7% · ≥ 12%

    pass
  • Cash ROIC

    9.6% · ≥ 12%

    fail
  • FCF margin

    17.0% · ≥ 5%

    pass
  • Earnings back their cash

    OCF $1.8B vs NI $2.7B · OCF ≥ net income (latest FY)

    fail

Balance Sheet

5/5

  • Debt payable from cash flow

    2.8y · LT debt ≤ 3× FCF

    pass
  • Cash cushion

    66% · cash ≥ 50% of LT debt

    pass
  • Leverage

    0.28 · LT debt ≤ 1.5× equity

    pass
  • Equity positive and compounding

    $14.3B · equity > 0 and grew over ~5y

    pass
  • Interest burden

    14% · interest ≤ 15% of operating income

    pass

Capital Allocation

1/4

  • Share count flat or shrinking

    4.3% · ≤ +0.5%/yr over ~5y

    fail
  • Stock comp restrained

    42% · SBC ≤ 15% of FCF

    fail
  • Distributions funded by FCF

    161% · dividends + buybacks ≤ 100% of FCF

    fail
  • Repurchases are a habit

    6 of 7 · buybacks in ≥ 5 of last 10 years

    pass

Valuation Discipline

0/4

  • FCF yield

    0.7% · ≥ 3%

    fail
  • Earnings multiple

    77.7 · P/E ≤ 25

    fail
  • Price asks less than history delivered

    35.6% vs 30.8% · implied FCF growth ≤ historical FCF CAGR

    fail
  • Shareholder yield

    1.1% · dividends + buybacks ≥ 2% of market cap

    fail

Red flags

Mechanical checks — a flag is a question to investigate, not a verdict

Heavy stock compensation

Stock-based compensation consumes more than 30% of free cash flow.

Shareholder dilution

Diluted share count has grown by more than 2% per year over ~5 years.

Distributions exceed FCF

Dividends plus buybacks exceeded free cash flow in the latest fiscal year.

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
20268,1954,1811,3232,6703.071,7513541,3962052,0405912,6393,97114,308870
20255,7672,382-720-885-1.021,6812851,3972087255979483,93413,427866
20245,5082,294-568-933-1.081,3713361,0342071506109514,05914,831861
20235,9202,988238-164-0.191,2892061,0832041155529113,90815,637851
20224,4622,064-348-421-0.5381916965019104616144,48515,702797
20212,9691,488-258-277-0.41817107711161252427489938,436669
20202,6991,357-2431,5842.34360822781603642426488,679676

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.