MRVL - Embedded Expectations Analysis - 2021 10 05
Marvell Technology Group Ltd. (MRVL:USA) currently trades well above corporate average relative to UAFRS-based (Uniform) earnings, with a 69.7x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about chip demand, gross margins, and the Innovium acquisition.Specifically, management may lack confidence in their ability to satisfy chip demand, achieve their gross margin guidance, and manage their operating expenses and inventory costs. Moreover, they may lack confidence in their ability to sustain data processing unit (DPU) and storage product growth. Furthermore, they may be overstating the potential of the Innovium acquisition and the opportunities from their O-RAN and vRAN platforms. Finally, they may lack confidence in their ability to quickly adapt to market trends and capitalize on automotive business opportunities.
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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