Based on the latest analyst predictions, Marvell Technology Group Ltd (NASDAQ:MRVL) is estimated to significantly grow its earnings by 177.89% in the upcoming three years. With the recent EPS being $0.443, expected growth will push the upcoming EPS to $1.23. To assess the reasonability of MRVL’s earnings growth per share, we should look at its most recent growth rate delivered. See our latest analysis for MRVL
Exciting times ahead for MRVL
Marvell Technology Group is poised for extremely high earnings growth in the near future. Expectations from 22 analysts are very high, with earnings expected to rise from today’s level of $0.443 to $1.23 over the next couple of years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 177.89% over the next few years. During the same time profit is predicted to shoot from $224M to $622M in the next couple of years, more than doubling from the most recent level. Though, at the current levels of revenue and profit, margins are certainly underwhelming.
Basis for the growth
The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth is excessive or whether the company continues to go from strength to strength. However, MRVL’s earnings growth in the past couple of years has been negative at -160.58%. Although its past performance is not supportive of a positive growth trend, it could also mean MRVL is growing off a lower base, meaning a higher growth rate is easier to achieve. This sign change in growth could indicate a turnaround initiative.
For MRVL, there are three relevant aspects you should further examine:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is MRVL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MRVL is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of MRVL? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.