MRVL - Embedded Expectations Analysis - 2021 08 04
Marvell Technology Group Ltd. (MRVL:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with an 85.7x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about lead times to customers, cloud business opportunities, and their ability to maintain rapid growth.Specifically, may lack confidence in their ability to maintain their success in the access, aggregation, and core switching markets. In addition, they may lack confidence in their ability to sustain their annualized run rate in their preampflier business and stabilize lead times to customers. Furthermore, they may be exaggerating the growth opportunities in their cloud business and the potential of their Nokia partnership. Finally, they may have concerns about market softness in the enterprise, campus switching, and PHY businesses and the revenue mix from their networking business.
Marvell Technology Group is a semiconductor provider of application-specific products. The company is focused on the development of System-on-a-Chip devices, utilizing its technology portfolio of intellectual property in the areas of analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits. The company develops integrated hardware platforms along with software that incorporates digital computing technologies. In storage, the company is engaged in fibre channel products and data storage controller solutions spanning cloud, enterprise, edge and personal computing markets. The company's networking products include ethernet solutions, embedded processors and WiFi connectivity solutions.
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