Marvell (MRVL) Stock Analyzer Report

Marvell Technology Group Ltd.
(MRVL)
Company Overview
Marvell Technology Group Ltd. designs, develops, and markets analog, mixed-signal,
digital signal processing, and embedded and standalone ARM-based microprocessor
integrated circuits. It offers mobile and wireless products comprising communications
and applications processors; thin modems; Wi-Fi and other communication protocols,
including Bluetooth, NFC, and/or FM; and mobile computing products. The company
also provides a range of integrated data storage products, including hard disk drive,
solid-state drive, and hybrid hard disk drive controllers, as well as storage-system
products. In addition, it offers networking products comprising cloud infrastructure
products for home, private, and public cloud networks; and service provider
infrastructure technologies used in the deployment of residential fiber access
infrastructure and mobile Internet infrastructure, as well as products used in the
transition to Internet protocol radio access networks. Further, the company provides
printer-specific standard SoC products, as well as custom printer ASICs; and powerline
products for home networking and advanced metering infrastructure, DSP Switcher and
Strong Moat
Good Financials
$
$
$
$
$
$
$
13.04
3.35
10.37
12.70
13.94
14.56
15.55
Key Statistics
Mkt Cap ($M)
52 Wk High
52 Wk Low
% off 52Wk Low
$35.00
-100.0%
-25.6%
$30.00
-2.6%
6.5%
$25.00
10.5%
$20.00
16.2%
$15.00
$10.00
Company Stats
$
$
$
6,548.43
13.51
6.98
86.8%
Cash Flows
Owner Earnings FCF
5 yr FCF Growth
10 yr FCF Growth
34.9%
18.3%
Shares Outstanding
Shares Float
Insider Ownership
Insider Transactions
Institutional Ownership
Float Short
502.2
374.1
9.50%
-3.1%
68.4%
1.5%
Short Ratio
Piotroski (TTM)
Altman (MRQ)
0.9
7
6.1
Beneish (TTM)
-2.8
Effectiveness
Margins & Profitability
CROIC
Avg
FCF/S
Avg
ROA
Avg
ROE
Avg
17.6%
17.6%
6.8%
Gross
Gross Margin
Operating
Operating Margin
Net Profit
Net Margin
52.9%
8.0%
8.5%
8.0%
Financial Strength (MRQ)

Efficiency
Receivables Turnover (TTM)
Inventory Turnover (TTM)
Days Sales Outstanding (TTM)
8.9
5.4
43.5
Price vs DCF Intrinsic Value
$40.00
Margin of Safety
Under Valued
Well Managed
Valuation
Current Price
NCAV
Total Net Reprod. Cost
Earnings Power Value (EPV)
Discounted Cash Flow (DCF)
Katsenelson Absolute PE
Ben Graham Formula
August 16, 2013

Figures in Millions except per share values
Low Risk
5
4
3
High Growth
2
1
0
Current Ratio(MRQ)
Quick Ratio(MRQ)
LTD/Eq(MRQ)
Tot D/Eq(MRQ)
4.0
3.6
0.0
0.0
$5.00
$0.00
Aug-02
Aug-04
Aug-06
Stock Price
Aug-08
Aug-10
Intrinsic Value
Fundamental Ratios
Aug-12
Buy Price
2012
2013
TTM
P/E
P/E (cash adjusted)
EV/EBITDA
15.80
12.14
10.07
17.19
10.93
7.65
27.13
20.00
12.54
EV/Free Cash Flow

P/S
P/BV
P/Tang BV
P/CF
P/OwnerEarnings
ROE
8.31
2.86
1.94
3.42
10.94
10.81
12.3%
9.73
1.66
1.18
2.23
8.97
15.29
6.8%
12.65
2.12
1.51
2.95
11.92
17.16
6.1%
ROA
ROIC
CROIC
Current Ratio
Total Debt/Equity Ratio
Inventory Turnover
10.7%
20.5%
30.6%
5.22
0.00
4.89
5.8%
10.6%
12.6%
4.25
0.00
4.94
5.2%
8.9%
13.8%
4.00
0.00
5.40
Selected Financial Statements

(In Millions, Except per Share Amounts)
Revenue
Gross Profit
Margin %
R&D
Margin %
Operating Income
Margin %
Net Income
Margin %
Earnings Per Share
Basic
Diluted
$
$
$
$
$
$
$
Weighted Average Diluted Shares

Outstanding
Dividends Per Share
Dividend Yield
Net Cash From Operating Activities
2009
2,951
1,524
51.65%
930
31.52%
175
5.93%
147
4.99%
0.24
0.23
$
$
$
$
$
$
$
2010
2,808
1,581
56.30%
828
29.50%
334
11.90%
353
12.59%
0.57
0.54
$
$
$
$
$
$
$
2011
3,612
2,139
59.21%
898
24.85%
901
24.95%
904
25.03%
1.39
1.34
$
$
$
$
$
$
$
2012
3,393
1,927
56.80%
1,014
29.88%
604
17.81%
615
18.13%
1.01
0.99
$
$
$
$
$
$
$
2013
3,169
1,675
52.87%
1,057
33.37%
295
9.30%
307
9.68%
0.55
0.54
$
$
$
$
$
$
$
TTM/Latest
3,107
1,644
52.92%
1,081
34.78%
244
7.84%
265
8.54%
0.49
0.48
630.33
653.47
676.88
623.27
563.12
505.39
$
0.00%
681 $
$
0.00%
812 $
$
0.00%
1,194 $
$
0.00%
771 $
0.18 $
1.87%
729 $
0.26
1.96%
614
$
$
$
$
391
4,414
175
3,829
342
5,171
186
4,418
358
6,338
176
5,522
384
5,768
164
5,014
387
5,262
169
4,485
385
5,121
156
4,352
(Dollars in Millions)
Net Property, Plants & Equipment

Total Assets
Long-term Debt
Stockholders' Equity
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

(MRVL)
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Color Coding
8/16/2013
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
TTM
Financial Statistics & Ratios

Valuation Ratios
P/E
125.88
69.99
62.15
-862.15
-55.30
34.42
32.63
14.37
15.80
17.19
27.13
P/E (cash adjusted)
117.39
65.33
59.37
-812.84
-49.79
28.12
27.55
11.13
12.14
10.93
20.00
EV/EBITDA
30.50
31.83
38.30
38.57
37.21
9.68
17.95
9.37
10.07
7.65
12.54
EV/Free Cash Flow
63.05
33.45
42.32
28.51
31.86
11.44
19.71
9.22
8.31
9.73
12.65
P/S
6.99
8.10
12.33
4.66
2.19
1.72
4.11
3.60
2.86
1.66
2.12
P/BV
2.61
3.97
6.76
3.23
1.85
1.32
2.61
2.35
1.94
1.18
1.51
P/Tang BV
9.95
10.58
14.97
15.59
6.43
3.28
5.15
3.83
3.42
2.23
2.95
P/CF
22.36
26.58
33.27
-12.88
13.12
8.74
15.87
10.33
10.94
8.97
11.92
P/OwnerEarnings
67.22
35.73
44.21
28.97
33.08
13.59
23.35
11.91
10.81
15.29
17.16
ROE
2.1%
5.7%
10.9%
-0.4%
-3.4%
3.8%
8.0%
16.4%
12.3%
6.8%
6.1%
ROA
1.9%
5.1%
9.4%
-0.3%
-2.5%
3.3%
6.8%
14.3%
10.7%
5.8%
5.2%
ROIC
2.2%
7.2%
14.1%
-3.5%
-3.1%
4.9%
12.3%
32.3%
20.5%
10.6%
8.9%
CROIC
4.6%
14.5%
20.6%
11.2%
5.7%
12.1%
17.6%
39.4%
30.6%
12.6%
13.8%
GPA (Gross Profitability to Assets)
18.0%
23.0%
25.4%
25.1%
30.7%
34.5%
30.6%
33.7%
33.4%
31.8%
32.1%
Book to Market
38.2%
25.2%
14.8%
30.9%
53.9%
75.6%
38.3%
42.5%
51.6%
85.1%
66.0%
Quick Ratio
2.94
4.14
3.87
1.55
1.86
3.05
3.93
5.41
4.62
3.84
3.56
Current Ratio
3.44
4.74
4.51
1.90
2.58
3.81
4.35
5.79
5.22
4.25
4.00
0.00
0.01
0.01
0.13
0.12
0.03
0.00
0.00
0.00
0.00
0.00
Long Term Debt/Equity Ratio

Short Term Debt/Equity Ratio
0.00
0.00
0.00
0.12
0.11
0.03
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.01
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Solvency
Efficiency Ratios
Asset Turnover
0.34
0.44
0.48
0.49
0.64
0.67
0.54
0.57
0.59
0.60
0.61
Cash % of Revenue
27.4%
13.6%
20.9%
25.4%
21.3%
31.4%
39.4%
51.1%
23.1%
23.7%
19.1%
Receivables % of Revenue
16.7%
16.4%
14.7%
14.7%
11.8%
7.5%
12.7%
12.7%
12.0%
10.4%
11.9%
9.9%
8.9%
7.4%
13.0%
12.1%
9.0%
11.1%
7.2%
7.7%
8.5%
8.7%
26.1%
21.5%
18.6%
29.4%
34.2%
31.5%
29.5%
24.9%
29.9%
33.4%
34.8%
Days Sales Outstanding
60.8
59.9
53.6
53.6
43.2
27.5
46.4
46.4
43.8
38.0
43.5
Days Inventory Outstanding
87.7
80.9
99.3
82.1
102.2
79.5
71.8
60.8
88.2
61.2
67.5
115.7
81.4
92.4
81.3
56.3
35.6
82.5
82.3
75.9
70.0
76.7
Cash Conversion Cycle
32.7
59.4
60.5
54.4
89.1
71.4
35.7
25.0
56.1
29.2
34.3
Receivables Turnover
6.01
7.26
7.49
7.80
8.63
10.46
9.70
8.85
7.83
8.59
8.87
Inventory Turnover
4.16
5.27
4.56
4.80
4.49
3.91
4.44
6.05
4.89
4.94
5.40
87.65
69.23
79.96
76.10
81.26
93.40
82.13
60.33
74.65
73.87
67.54
Intangibles % of Book Value
73.7%
62.5%
3.7%
18.0%
12.7%
7.5%
4.1%
2.3%
2.8%
2.0%
1.9%
Inventory % of Revenue
11.2%
10.5%
12.7%
11.1%
14.5%
10.5%
8.6%
6.8%
10.4%
7.9%
8.7%
LT-Debt as % of Invested Capital
0.0%
0.0%
0.0%
12.3%
11.7%
4.0%
0.0%
0.0%
0.0%
0.0%
0.0%
ST-Debt as % of Invested Capital
0.6%
0.7%
0.7%
0.5%
0.1%
0.1%
0.1%
0.0%
0.0%
0.0%
0.0%
LT-Debt as % of Total Debt
0.0%
0.0%
0.0%
95.8%
99.4%
98.6%
0.0%
0.0%
0.0%
0.0%
0.0%
ST-Debt as % of Total Debt
100.0%
100.0%
100.0%
4.2%
0.6%
1.4%
100.0%
100.0%
0.0%
0.0%
0.0%
Total Debt % of Total Assets
0.4%
0.5%
0.5%
9.1%
8.6%
2.8%
0.0%
0.0%
0.0%
0.0%
0.0%
Working Capital % of Price
7.8%
8.1%
5.7%
6.1%
14.5%
22.7%
16.5%
23.6%
25.6%
37.5%
27.9%
SG&A % of Revenue
R&D % of Revenue
Liquidity Ratios
Days Payable Outstanding
Average Age of Inventory (Days)
Capital Structure Ratios
Quality Scores
Piostroski F Score
6.00
7.00
7.00
4.00
5.00
8.00
7.00
8.00
6.00
6.00
7.00
Altman Z Score (Original)
14.31
21.12
27.60
5.31
3.95
6.15
10.34
11.33
9.52
5.73
6.14
Altman Z Score (Revised)
25.07
37.39
49.00
8.96
6.57
10.69
18.82
21.22
17.84
10.93
12.35
Beneish M Score (5 Variable)
-2.65
-2.82
-2.48
-2.87
-3.29
-2.56
-2.87
-2.88
-2.96
-2.80
Beneish M Score (8 Variable)
-2.23
-2.44
-3.05
-2.66
-3.23
-2.42
-2.45
-2.63
-3.03
-2.69

(MRVL)
8/16/2013
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Earnings Quality Check with Accrual Analysis

Earnings growth due to accrual growth is not sustainable. This is like cookie jar accounting where a company borrows earnings from the future to make earnings look good today.
Balance sheet accrual can indicate whether capital is being used properly. A company with high accruals can come from acquiring or merging with companies which expands the asset base. Low
balance sheet accrual companies tend to shrink their balance sheet through spin offs, share repurchases or large write offs. In these situations, it is usually removing bad performing assets or returning
money to shareholders which is always a good use of capital.
High accruals indicate that the company has expanded its asset base rapidly.
Companies with high balance sheet accruals tend to have higher sales growth than low balance sheet accrual companies.
High balance sheet accruals also have a higher ROE.
Remember that maintaining a high sales growth or high ROE is difficult unless you have an entrenched moat. Such companies revert to the mean and disappoint..
Companies with low balance sheet accruals tend to have below average returns on equity. Analysts expect the company to lag.
Color Coding: Green = safe zone, Yellow = ratio is getting into warning zone, Red = Danger zone. Ratios are too high or low. Requires check.
More reading:
http://tinyurl.com/6p394ap
http://tinyurl.com/7ucpoe2
Balance Sheet Accrual Ratio

Cash Flow Accrual Ratio
Sloan Accrual Ratio
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
TTM/MRQ
1.1%
17.0%
12.4%
9.6%
14.6%
11.7%
8.4%
12.3%
6.8%
4.3%
3.8%
-3.4%
-2.3%
-5.2%
-15.1%
-10.6%
9.1%
9.0%
5.5%
10.3%
6.9%
3.8%
14.0%
11.0%
7.5%
-12.5%
-15.1%
-11.4%
0.7%
-11.1%
-8.1%
Earnings
Stock Price
$
$
0.08
10.4
$
$
0.24
16.6
$
$
0.52
32.6
$
$
Total Assets
Cash & Equivalent
Total Liabilities
Short Term Debt
Long Term Debt
Net Operating Assets (NOA)
$
$
$
$
$
$
2,435.5
224.4
244.6
10.7
1,977.2
$
$
$
$
$
$
2,789.0
166.5
291.5
13.2
2,344.2
$
$
$
$
$
$
3,513.3
348.4
467.2
16.6
2,714.2
$
$
$
$
$
$
Net Income
CFO
CFI
$
$
$
45.5 $
149.8 $
(130.7) $
Balance Sheet Aggregate Accrual $

Cash Flow Aggregate Accrual
$
141.7 $
221.5 $
(348.1) $
$
$
367.0
268.3
331.4 $
402.3 $
(367.5) $
$
$
370.1
296.6
(0.02) $
17.8 $
4,527.7
568.0
1,300.5
17.4
394.8
3,071.3
$
$
$
$
$
$
(12.1) $
337.3 $
(544.7) $
$
$
357.1
195.3
$
$
(0.19) $
10.7 $
4,550.6
615.6
1,139.1
2.5
390.8
3,189.1
$
$
$
$
$
$
0.23
8.0
$
$
0.54
17.7
$
$
1.34
19.2
$
$
0.99
15.6
$
$
0.54
9.4
$
$
0.48
13.0
4,414.2
927.4
585.1
1.8
123.4
3,026.8
$
$
$
$
$
$
5,170.9
1,105.4
753.0
1.9
3,314.5
$
$
$
$
$
$
6,338.2
1,847.1
816.3
0.5
3,675.3
$
$
$
$
$
$
5,767.6
784.9
753.6
4,229.1
$
$
$
$
$
$
5,261.8
752.0
777.2
3,732.6
$
$
$
$
$
$
5,121.2
594.4
768.7
3,758.0
615.1 $
771.2 $
(590.1) $
306.6
729.0
178.8
$
$
$
265.3
614.2
68.1
(114.4) $
177.4 $
(185.1) $
147.2 $
680.7 $
(64.7) $
117.8 $
(106.6) $
(162.3) $
(468.7) $
353.5 $
811.5 $
(744.0) $
287.7
286.0
$
$
904.1 $
1,193.5 $
(529.3) $
360.8
239.9
$
$
553.8
433.9
$
$
(496.5) $
(601.3) $
25.4
(417.0)
Piotroski Score
A discrete score between 0-9 which reflects nine criteria used to determine the strength of a firm's financial position. The Piotroski score is used to determine the best value stocks, nine being the best.
The score was named after Chicago Accounting Professor, Joseph Piotroski who devised the scale according to specific criteria found in the financial statements. For every criteria (below) that is met
the company is given one point, if it is not met, then no points are awarded. The points are then added up to determine the best value stocks.
Profitability
* Positive return on assets in the current year (1 point)
* Positive operating cash flow in the current year (1 point)
* Higher return on assets (ROA) in the current period compared to the ROA in the previous year (1 point)
* Cash flow from operations are greater than ROA (1 point)
Leverage, Liquidity and Source of Funds
* Lower ratio of long term debt to in the current period compared value in the previous year (1 point)
* Higher current ratio this year compared to the previous year (1 point)
* No new shares were issued in the last year (1 point)
Operating Efficiency
* A higher gross margin compared to the previous year (1 point)
* A higher asset turnover ratio compared to the previous year (1 point)
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
TTM
Piotroski F Scores
Piotroski 1: Net Income

Piotroski 2: Operating Cash Flow
Piotroski 3: Return on Assets
Piotroski 4: Quality of Earnings
Piotroski 5: LT Debt vs Assets
Piotroski 6: Current Ratio
Piotroski 7: Shares Outstanding
Piotroski 8: Gross Margin
Piotroski 9: Asset Turnover
1
1
1
1
1
1
0
0
0
1
1
1
1
1
1
0
0
1
1
1
1
1
1
0
0
1
1
0
1
0
1
0
0
1
0
1
0
1
0
1
1
1
0
0
1
1
1
1
1
1
1
0
1
1
1
1
1
1
1
1
0
1
0
1
1
1
1
1
1
0
1
1
1
1
0
1
1
0
1
0
1
1
1
0
1
1
0
1
0
1
1
1
0
1
1
0
1
1
1
Altman Z Score
The Z-score formula may be used to predict the probability that a firm will go into bankruptcy within two years.
Z-scores are used to predict corporate defaults and an easy-to-calculate control measure for the financial distress status of companies in academic studies. The Z-score uses multiple corporate income
and balance sheet values to measure the financial health of a company.
The main problem with the Altman Z formula is that the formula is not suited for many industries. Industries that operate with high leverage, such as radio and utilities will show a higher risk of
bankruptcy.
Also, industries with negative working capital, such as many retail and restaurant companies will also exhibit the same high level of bankruptcy.
(Wikipedia http://en.wikipedia.org/wiki/Z-Score_Financial_Analysis_Tool)
Z = 1.2*X1 + 1.4*X2 + 3.3*X3 + 0.6*X4 + 1.0*X5

There is also a revised Altman Z score which is adjusted for non manufacturing corporations. The revised formula is:
Z = 6.56*X1 + 3.26*X2 + 6.72*X3 + 1.05*X4
X1 = Working Capital/Total Assets

X2 = Retained Earnings/Total Assets
X3 = EBITDA/Total Assets
X4 = Market Value of Equity/Total Liabilities
X5 = Net Sales/Total Assets
Annual
Working Capital
Total Assets
Total Liabilities
Retained Earnings
EBITDA
Market Value of Equity
Net Sales
$
$
$
$
$
$
$
Normal Altman Z Score

Revised Altman Z Score
2004
449.4
2,435.5
244.6
(674.8)
63.4
5,728.7
819.8
$
$
$
$
$
$
$
2005
803.0
2,789.0
291.5
(533.1)
169.5
9,915.2
1,224.6
14.31
25.07
21.12
37.39
0.38
0.29
0.06
6.78
0.60
0.36
0.30
0.01
8.52
0.14
$
$
$
$
$
$
$
2006
1,167.1
3,513.3
467.2
(201.8)
379.1
20,593.5
1,670.3
27.60
49.00
$
$
$
$
$
$
$
2007
636.8
4,527.7
1,300.5
(576.5)
24.8
10,427.6
2,237.6
$
$
$
$
$
$
$
5.31
8.96
2008
920.5
4,550.6
1,139.1
(691.0)
(67.7)
6,328.1
2,894.7
$
$
$
$
$
$
$
3.95
6.57
MRQ
2009
1,150.7
4,414.2
585.1
(543.7)
188.8
5,067.8
2,950.6
$
$
$
$
$
$
$
6.15
10.69
2010
1,898.9
5,170.9
753.0
(190.3)
344.8
11,533.8
2,807.7
10.34
18.82
$
$
$
$
$
$
$
2011
3,072.0
6,338.2
816.3
713.9
910.6
12,989.3
3,611.9
11.33
21.22
$
$
$
$
$
$
$
2012
2,489.4
5,767.6
753.6
1,329.0
619.1
9,716.7
3,393.0
$
$
$
$
$
$
$
9.52
17.84
Altman Z Score
X1
X2
X3
X4
X5
2013
1,977.5
5,261.8
777.2
1,536.8
310.2
5,270.8
3,168.6
5.73
10.93
$
$
$
$
$
$
$
Q1
1,839.8
5,121.2
768.7
1,559.7
46.0
6,548.4
734.4
6.14
12.35
Annual
MRQ
Annual
MRQ
5.73
6.14
10.93
12.35
Original Altman Z Score

When Z is 3.0 or more, the firm is most likely safe based on the financial data. However, be careful to double check as fraud, economic downturns and other factors could cause
unexpected reversals.
When Z is 2.7 to 3.0, the company is probably safe from bankruptcy, but this is in the grey area and caution should be taken.
When Z is 1.8 to 2.7, the company is likely to be bankrupt within 2 years. This is the lower portion of the grey area and a dramatic turnaround of the company is needed.
When Z is below 1.8, the company is highly likely to be bankrupt. If a company is generating lower than 1.8, serious studies must be performed to ensure the company can survive.

When Z is 2.6 or more, the firm is most likely safe based on the financial data. However, be careful to double check as fraud, economic downturns and other factors could cause unexpected reversals.
When Z is 1.1 to 2.6, the company is probably safe from bankruptcy, but this is in the grey area and caution should be taken.
When Z is below 1.1, the company is highly likely to be bankrupt. If a company is generating lower than 1.8, serious studies must be performed to ensure the company can survive.
The Beneish Model - M Score Variables

DSRI = Days' Sales in Receivables Index. Measured as the ratio of days' sales in receivables in year t to year t-1. A large increase in DSR could be indicative of revenue inflation.
GMI = Gross Margin Index. Measured as the ratio of gross margin in year t-1 to gross margin in year t. Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more
likely to manipulate earnings.
AQI = Asset Quality Index. Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.AQI is the ratio of asset quality in year t to year t-1.
SGI = Sales Growth Index. Ratio of sales in year t to sales in year t-1. Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to
manipulate in order to keep up appearances.
DEPI = Depreciation Index. Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t. DEPI greater than 1 indicates that assets are being depreciated at a slower
rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
SGAI = Sales, General and Administrative expenses Index. The ratio of SGA expenses in year t relative to year t -1.
LVGI = Leverage Index. The ratio of total debt to total assets in year t relative to yeat t-1. An LVGI >1 indicates an increase in leverage
TATA - Total Accruals to Total Assets. Total accruals calculated as the change in working capital accounts other than cash less depreciation.
The Beneish M Score Formula

The eight variables are then weighted together according to the following:
M = -4.84 + 0.92*DSRI + 0.528*GMI + 0.404*AQI + 0.892*SGI + 0.115*DEPI - 0.172*SGAI + 4.679*TATA - 0.327*LVGI
A score greater than -2.22 indicates a strong likelihood of a firm being a manipulator. In his out of sample tests, Beneish found that he could correctly identify 76% of manipulators, whilst only incorrectly
identifying 17.5% of non-manipulators.
The 5 Variable Version of the Beneish Model

The five variable version excludes SGAI, DEPI and LEVI which were not significant in the original Beneish model.
M = -6.065 + 0.823*DSRI + 0.906*GMI + 0.593*AQI + 0.717*SGI + 0.107*DEPI
A score greater than -2.22 indicates a strong likelihood of a firm being a manipulator.
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
TTM
M Score - 8 Variable
-2.65
-2.23
-2.82
-2.44
-2.48
-3.05
-2.87
-2.66
-3.29
-3.23
-2.56
-2.42
-2.87
-2.45
-2.88
-2.63
-2.96
-3.03
-2.80
-2.69
DSRI
GMI
AQI
SGI
DEPI
SGAI
TATA
LVGI
0.99
1.02
0.85
1.49
1.01
0.90
-0.03
1.02
0.89
0.98
0.86
1.36
1.20
0.84
-0.02
1.23
1.00
1.05
1.21
1.34
1.23
1.74
-0.08
2.58
0.81
1.05
0.96
1.29
0.77
0.93
-0.06
0.88
0.64
0.93
0.97
1.02
0.95
0.75
-0.12
0.56
1.69
0.92
0.82
0.95
1.07
1.23
-0.09
0.91
1.00
0.95
0.78
1.29
1.16
0.65
-0.05
0.92
0.94
1.04
1.12
0.94
1.23
1.06
-0.03
1.01
0.87
1.07
1.09
0.93
0.98
1.11
-0.08
1.13
1.14
1.00
1.02
0.98
0.99
1.02
-0.07
1.04
M Score - 5 Variable
MRQ Edit

(MRVL)
8/16/2013
Enter Ticker
Refresh
Free Cash Flow
2004
2005
$54.6
$175.8
% Change 222.1%
Owner Earnings
2006
$302.8
72.3%
2007
$148.6
-50.9%
2008
$40.7
-72.6%
2009
$602.2
1379.2%
2010
$756.1
25.5%
2011
$1,080.2
42.9%
2012
$668.6
-38.1%
2013
$625.8
-6.4%
TTM
$506.0
-19.1%
Owner Earnings
2004
2005
$85.2
$277.5
% Change 225.6%
2006
$465.8
67.9%
2007
$359.9
-22.7%
2008
$191.3
-46.9%
2009
$373.0
95.0%
2010
$494.0
32.4%
2011
$1,091.1
120.8%
2012
$898.5
-17.6%
2013
$344.7
-61.6%
TTM
$384.0
11.4%
2006
27.9%
23.1%
2007
16.1%
-42.3%
2008
6.6%
-58.9%
2009
12.6%
91.3%
2010
17.6%
39.2%
2011
30.2%
71.7%
2012
26.5%
-12.3%
2013
10.9%
-58.9%
TTM
12.4%
13.6%
2005
3.1%
-4.2%
2006
20.6%
42.2%
2007
11.2%
-45.8%
2008
5.7%
-48.7%
2009
12.1%
111.4%
2010
17.6%
45.2%
2011
39.4%
124.1%
2012
30.6%
-22.3%
2013
12.6%
-58.9%
TTM
13.8%
9.8%
2005
52.5%
-1.7%
2006
2.6%
-16.9%
2007
2.6%
-0.7%
2008
2.7%
3.7%
2009
10.3%
284.4%
2010
5.6%
-46.1%
2011
10.7%
91.6%
2012
9.9%
-7.0%
2013
13.1%
31.7%
TTM
8.0%
-39.0%
2005
7.0
16.7%
2006
53.5%
1.9%
2007
50.8%
-5.0%
2008
48.3%
-5.1%
2009
51.6%
7.0%
2010
56.3%
9.0%
2011
59.2%
5.2%
2012
56.8%
-4.1%
2013
52.9%
-6.9%
TTM
52.9%
0.1%
2006
7.0
0.0%
2007
4.0
-42.9%
2008
5.0
25.0%
2009
8.0
60.0%
2010
7.0
-12.5%
2011
8.0
14.3%
2012
6.0
-25.0%
2013
6.0
0.0%
TTM
7.0
16.7%
2005
11.7%
4.5%
2012
$898.5
-17.6%
2013
$344.7
-61.6%
TTM
$384.0
11.4%
2006
$0.52
121.6%
2007
-$0.02
-103.9%
2008
-$0.19
-839.4%
2009
$0.23
220.5%
2010
$0.54
131.5%
2011
$1.34
147.0%
2012
$0.99
-26.1%
2013
$0.54
-44.8%
TTM
$0.48
-11.7%
2005
56.4
-46.3%
2006
68.0
20.6%
2007
70.2
3.2%
2008
155.4
121.5%
2009
8.4
-94.6%
2010
15.3
81.3%
2011
12.0
-21.2%
2012
14.5
20.9%
2013
8.4
-42.0%
TTM
13.0
54.6%
2005
1.8%
86.1%
2006
1.5%
-17.1%
2007
1.4%
-3.1%
2008
0.6%
-54.8%
2009
11.9%
1747.0%
2010
6.6%
-44.8%
2011
8.3%
26.9%
2012
6.9%
-17.3%
2013
11.9%
72.6%
TTM
7.7%
-35.3%
2004
2005
$0.08
$0.24
% Change 187.8%
2004
105.0
% Change
2004
1.0%
% Change
2004
10.6%
% Change
2005
17.6%
66.1%
2006
26.5%
51.1%
2007
2.3%
-91.3%
2008
-5.1%
-320.1%
2009
12.2%
341.7%
2010
15.4%
25.6%
2011
26.5%
72.5%
2012
21.5%
-18.8%
2013
13.1%
-39.1%
TTM
11.7%
-10.5%
2004
2005
5.6%
11.6%
% Change 108.4%
2006
19.8%
71.5%
2007
-0.5%
-102.7%
2008
-4.0%
-631.3%
2009
5.0%
226.2%
2010
12.6%
152.3%
2011
25.0%
98.8%
2012
18.1%
-27.6%
2013
9.7%
-46.6%
TTM
8.5%
-11.8%
2006
-2.4
-9.4%
2007
-3.1
-25.3%
2008
-2.7
12.8%
2004
14.3
% Change
2005
21.1
47.6%
2006
27.6
30.6%
2007
5.3
-80.7%
2008
3.9
-25.7%
2009
6.1
55.6%
2010
10.3
68.3%
2011
11.3
9.6%
2012
9.5
-16.0%
2013
5.7
-39.9%
TTM
6.1
7.3%
2005
16.4%
-41.7%
2006
12.6%
-23.4%
2007
243.4%
1833.0%
2008
-5.7%
-102.3%
2009
13.8%
341.8%
2010
-3.0%
-121.8%
2011
0.7%
123.1%
2012
0.6%
-7.9%
2013
1.2%
81.3%
TTM
-1.5%
-232.1%
2007
87.3%
-96.9%
2008
48.6%
-44.3%
2009
298.0%
512.6%
2010
2011
2012
2013
TTM
######## ########
8445.4% 738.4% #VALUE! #VALUE! #VALUE!
2008
49.0%
-46.3%
2009
302.3%
517.6%
#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!
Tax Rate
2009
-3.2
-21.4%
2010
-2.4
25.0%
2011
-2.4
-1.0%
2012
-2.6
-7.5%
2013
-3.0
-15.0%
TTM
-2.7
11.1%
Debt to Equity
2004
11.2%
% Change
2011
$1,091.1
120.8%
Original Altman Z Score
Beneish M Score - 8 Variable Version
2004
2005
-2.2
% Change #DIV/0!
2010
$494.0
32.4%
Net Profit Margin
Piotroski F score
2004
6.0
% Change
2009
$373.0
95.0%
Magic Formula Investing -- Return on Capital
Gross Margin
2004
53.4%
% Change
2008
$191.3
-46.9%
FCF Yield
Magic Formula Investing -- Earnings Yield
2004
3.3%
% Change
2007
$359.9
-22.7%
Price / FCF
Cash Return on Invested Capital (CROIC)
2004
2005
4.6%
14.5%
% Change 217.3%
2006
$465.8
67.9%
Diluted EPS
FCF / Sales
2004
2005
10.4%
22.7%
% Change 118.0%
2004
2005
$85.2
$277.5
% Change 225.6%
2004
28.2%
% Change
FCF to Total Debt
2006
15.3%
31.4%
2007
40.3%
162.7%
2008
33.4%
-17.1%
2009
15.3%
-54.2%
2010
17.0%
11.5%
2011
14.8%
-13.3%
2012
15.0%
1.7%
2013
17.3%
15.3%
TTM
17.7%
1.9%
2004
2005
2006
793.0% 2101.4% 2812.5%
% Change 165.0%
33.8%
FCF to Short Term Debt
FCF to Long Term Debt
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
TTM
793.0% 2101.4% 2812.5% 2067.5% 7766.5% ######## ######## ########
% Change 165.0%
33.8%
-26.5%
275.6%
168.8%
22.0%
738.4% #VALUE! #VALUE! #VALUE!
2004
2005
2006
2007
91.2%
% Change #VALUE! #VALUE! #VALUE!
2010
2011
2012
2013
TTM

(MRVL)
8/16/2013
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2 Company
3 Sector
Industry
4
5 Country
68 Earnings Date
65
6
66
67
60
61
55
56
57
58
Price
Market Cap
Change
Volume
Change from Open
Gap
50-Day High
50-Day Low
52-Week High
52-Week Low
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
INTC
STM
QCOM
BRCM
TXN
NVDA
SPRD
Marvell
LSI
Intel
QUALCOMM
Broadcom
Texas
NVIDIA
Spreadtrum
Technology
Technology
Technology
Technology
Technology
Technology
Technology
Technology
Technology
Semiconductor Semiconductor Semiconductor - Semiconductor - Semiconductor - Communication
Semiconductor - Semiconductor Integrated
Integrated
Semiconductor
Specialized
Broad Line
Broad Line
Equipment
Broad Line
Specialized
Circuits
Circuits
- Broad Line
Bermuda
USA
USA
Switzerland
USA
USA
USA
USA
China
22-Aug-2013
24-Jul-2013
17-Jul-2013
24-Jan-2011
24-Jul-2013
23-Jul-2013
22-Jul-2013
8-Aug-2013
6-Aug-2013
$13.04
$6,548.43
-1.06%
4,426,900
-0.23%
-0.83%
-3.48%
23.36%
-3.48%
88.94%
$7.50
$4,112.12
-2.47%
4,375,700
-1.06%
-1.43%
-5.06%
10.62%
-7.41%
25.21%
$22.03
$109,665.34
-2.39%
40,440,200
-1.12%
-1.28%
-13.38%
-1.26%
-14.36%
18.04%
$8.43
$7,494.27
-1.52%
798,900
0.48%
-1.99%
-15.16%
1.08%
-15.16%
65.11%
$66.95
$115,622.64
-0.01%
11,462,800
0.90%
-0.91%
-0.74%
13.44%
-1.36%
18.41%
$26.04
$15,051.12
-1.88%
9,513,300
-0.46%
-1.43%
-26.96%
12.00%
-31.00%
12.00%
$38.65
$42,630.95
-1.33%
8,551,200
-0.05%
-1.28%
-3.35%
14.14%
-3.35%
47.64%
$15.13
$8,856.27
0.67%
18,090,400
1.75%
-1.06%
-2.26%
15.41%
-2.26%
38.12%
$29.83
$489.72
-0.10%
640,900
0.03%
-0.13%
-1.23%
60.11%
-1.23%
108.65%
P/E
Forward P/E
PEG
P/S
P/B
P/Cash
P/Free Cash Flow
Dividend Yield
Payout Ratio
26.61
13.98
2.66
2.11
1.50
3.78
21.12
1.84%
36.00%
39.47
10.52
3.22
1.73
3.61
6.11
16.40
1.60%
0.00%
11.91
11.14
1.08
2.10
2.04
6.32
23.58
4.09%
35.50%
0.00
12.77
0.00
0.89
1.32
4.23
0.00
4.74%
0.00%
17.81
13.59
1.07
4.97
3.08
10.09
24.52
2.09%
28.50%
37.20
9.19
2.66
1.81
1.91
6.07
10.25
1.69%
56.80%
21.47
17.33
2.39
3.47
3.85
13.14
22.12
2.90%
47.80%
16.81
18.27
1.40
2.09
2.12
3.02
0.00
1.98%
24.70%
7.46
10.24
0.33
0.57
1.07
2.43
11.77
1.27%
68.20%
min
min
min
min
min
min
min
max
min
EPS (ttm)
EPS growth this year
EPS growth next year
EPS growth past 5 years
EPS growth next 5 years
Sales growth past 5 years
EPS growth quarter over quarter
Sales growth quarter over quarter
$0.49
-45.50%
10.94%
37.10%
10.00%
1.80%
-31.30%
-7.80%
$0.19
126.70%
10.03%
15.80%
12.25%
5.80%
-60.00%
-10.60%
$1.85
-10.90%
5.50%
12.50%
11.00%
6.80%
-27.80%
-5.10%
($1.38)
-281.90%
700.00%
-19.80%
5.00%
-3.20%
-112.50%
-4.80%
$3.76
13.30%
8.84%
9.40%
16.67%
16.60%
30.40%
35.00%
$0.70
-24.20%
3.39%
27.60%
14.00%
16.20%
-253.60%
6.00%
$1.80
-19.70%
15.25%
-3.80%
9.00%
-1.50%
52.60%
-8.60%
$0.90
-4.30%
13.27%
-7.20%
12.00%
0.90%
-15.80%
-6.40%
$4.00
-27.80%
15.73%
28.50%
22.78%
37.90%
370.70%
60.50%
max
max
max
max
max
max
max
5.00%
5.80%
6.50%
4.60%
9.10%
13.70%
11.60%
18.50%
16.70%
-12.20%
-20.10%
-28.30%
14.50%
18.40%
12.90%
3.70%
5.30%
7.80%
10.20%
18.30%
10.80%
9.20%
12.00%
11.30%
13.50%
25.70%
19.40%
max
max
max
4.00
3.60
0.00
0.00
2.60
2.20
0.00
0.00
2.60
2.20
0.24
0.25
2.10
1.50
0.11
0.17
3.20
2.80
0.00
0.00
2.40
2.00
0.18
0.21
2.90
2.30
0.38
0.47
4.20
3.80
0.00
0.00
1.60
1.00
0.11
0.31
max
max
min
min
39 Gross Margin
40 Operating Margin
41 Profit Margin
52.90%
8.00%
8.50%
50.40%
6.60%
4.40%
59.00%
23.40%
18.10%
32.80%
-5.50%
-14.70%
61.80%
30.60%
28.50%
50.50%
11.80%
5.00%
49.80%
19.50%
16.50%
53.90%
15.00%
13.10%
37.40%
12.80%
12.00%
max
max
max
24
25
26
27
28
29
30
31
Shares Outstanding
Shares Float
Insider Ownership
Insider Transactions
Institutional Ownership
Institutional Transactions
Float Short
Short Ratio
502.18
374.09
9.50%
-3.14%
68.40%
2.99%
1.54%
0.9
548.28
544.72
0.30%
40.84%
79.40%
2.33%
1.92%
2.1
4,978.00
4,978.89
0.10%
11.74%
62.60%
0.83%
4.88%
6.0
889.00
657.35
0.00%
0.00%
2.90%
-0.64%
0.27%
1.4
1,727.00
1,680.90
1.25%
-0.59%
81.10%
1.04%
1.04%
1.3
578.00
527.39
0.80%
34.46%
84.80%
0.35%
2.57%
1.3
1,103.00
1,100.31
0.40%
-1.14%
86.80%
0.12%
2.10%
3.0
585.35
549.98
0.20%
54.71%
78.60%
0.67%
6.96%
4.3
16.42
47.93
41.56%
0.00%
88.50%
0.00%
2.54%
0.7
42
43
44
45
46
46
48
49
50
51
52
53
54
59
62
63
64
Performance (Week)
Performance (Month)
Performance (Quarter)
Performance (Half Year)
Performance (Year)
Performance (Year)
Beta
Average True Range
Volatility (Week)
Volatility (Month)
20-Day Simple Moving Average
Relative Strength Index (14)
Analyst Recom
Average Volume
Relative Volume
1.72%
8.58%
16.01%
38.43%
11.36%
11.36%
1.21
0.31
2.62%
2.36%
3.88%
9.57%
30.29%
61.61
2.80
6,194.82
0.71
-2.22%
-1.45%
5.34%
2.88%
-3.10%
-3.10%
1.66
0.17
2.03%
2.23%
-2.59%
0.87%
6.81%
43.92
2.30
5,092.59
0.85
-1.87%
-7.90%
-7.09%
5.76%
-14.08%
-14.08%
1.01
0.36
1.46%
1.36%
-3.34%
-6.32%
1.17%
28.59
2.70
40,597.22
0.99
-2.88%
-13.80%
-7.36%
0.12%
51.08%
51.08%
1.74
0.18
1.41%
1.59%
-4.00%
-7.53%
6.02%
36.61
2.00
1,233.80
0.64
0.90%
6.86%
2.56%
3.11%
9.68%
9.68%
1.05
1.05
1.08%
1.56%
3.62%
6.80%
5.61%
64.82
2.00
13,648.51
0.83
-0.99%
-22.50%
-28.58%
-24.43%
-24.91%
-24.91%
1.08
0.91
4.22%
2.72%
-7.60%
-17.80%
-21.56%
24.62
2.30
10,128.75
0.95
-2.52%
2.71%
6.36%
16.10%
34.62%
34.62%
1.08
0.57
1.34%
1.35%
-0.92%
4.62%
14.42%
50.43
2.80
7,710.13
1.10
2.93%
3.56%
3.91%
20.17%
3.99%
3.99%
1.38
0.39
4.97%
2.70%
4.57%
5.17%
15.71%
65.58
2.70
8,889.39
2.07
-0.13%
0.71%
54.64%
89.88%
70.85%
70.85%
1.17
0.29
0.54%
0.62%
0.04%
12.20%
46.42%
71.79
2.90
1,638.79
0.39
32 Return on Assets
33 Return on Equity
34 Return on Investment
35
36
37
38
Current Ratio
Quick Ratio
LT Debt/Equity
Total Debt/Equity
max
max
max
min

502.18
(MRVL)
Shares Out.
M.O.S
502.18
Enter Ticker
Fiscal Year
Cash Flow Data
Refresh
CLEAR
Trend
2004
Cash from Operations

Capex
Cash Flow
Owner Earnings FCF
Discount %
8.0%
9.0%
Terminal %
Select FCF
2%
Owner Earnings
50%
Select input with

each list or enter
your own value
8/16/2013
Growth
Current Price
$13.04
Fair Value
2005
Buy Under
Actual M.O.S
52 Wk High
52 Wk Low
$6.97
6%
$13.51
$6.98
2007
2008
2009
2010
13.94
2006
Adjust 2013 FCF
2011
2012
$149.8
($95.2)
$256.3
$85.2
YOY% Change
$221.5
($45.8)
$373.0
$277.5
225.6%
$402.3
($99.5)
$618.9
$465.8
67.9%
$337.3
($188.7)
($809.6)
$359.9
-22.7%
$177.4
($136.6)
$482.2
$191.3
-46.9%
$680.7
($78.4)
$579.9
$373.0
95.0%
$811.5
($55.4)
$726.7
$494.0
32.4%
$1,193.5
($113.3)
$1,258.0
$1,091.1
120.8%
$771.2
($102.6)
$888.2
$898.5
-17.6%
53.4%
7.0%
5.6%
52.5%
13.4%
11.6%
53.5%
21.8%
19.8%
50.8%
3.5%
-0.5%
48.3%
-3.4%
-4.0%
51.6%
5.9%
5.0%
56.3%
11.9%
12.6%
59.2%
25.0%
25.0%
$0.08
28.2%
$0.24
16.4%
$0.52
12.6%
-$0.02
243.4%
-$0.19
-5.7%
$0.23
13.8%
$0.54
-3.0%
4.6%
10.4%
4.2
1.9%
2.1%
14.5%
22.7%
5.3
5.1%
5.7%
20.6%
27.9%
4.6
9.4%
10.9%
11.2%
16.1%
4.8
-0.3%
-0.4%
5.7%
6.6%
4.5
-2.5%
-3.4%
12.1%
12.6%
3.9
3.3%
3.8%
11.2%
0.0%
7.9
7.9
11.7%
0.0%
21.0
21.0
15.3%
0.0%
28.1
28.1
40.3%
10.9%
0.9
20.7
0.9
33.4%
10.3%
0.5
77.7
0.5
2009-2013
5.5%
-2.0%
17.6%
17.6%
6.8%
8.0%
56.3%
11.9%
12.6%
1.8%
23.6%
1.7%
2008-2011
21.9%
78.7%
14.9%
15.1%
5.1%
5.9%
54.0%
8.9%
8.8%
7.7%
0.0%
88.8%
2009-2012
11.2%
34.1%
24.1%
22.0%
8.7%
10.1%
56.5%
14.9%
15.4%
4.8%
61.7%
4.3%
2010-2013
1.2%
-11.3%
24.1%
22.0%
8.7%
10.1%
56.5%
14.9%
15.4%
4.1%
0.2%
-3.5%
2005-2012
26.6%
18.3%
16.0%
20.1%
6.0%
6.8%
53.0%
12.7%
12.1%
15.7%
22.6%
19.5%
2006-2013
5.9%
-4.2%
15.1%
16.8%
6.3%
7.4%
53.2%
10.6%
11.1%
9.6%
0.5%
8.9%
2004-2009
43.8%
34.3%
11.6%
14.4%
2.6%
3.0%
52.1%
6.4%
5.3%
29.2%
23.2%
35.4%
2005-2010
35.2%
12.2%
13.3%
16.8%
4.2%
4.8%
52.1%
8.9%
8.3%
18.1%
18.0%
29.7%
2013
$729.0
($103.2)
$587.4
TTM
-61.6%
$614.2
($108.2)
$553.0
$384.0
11.4%
56.8%
17.8%
18.1%
52.9%
9.3%
9.7%
52.9%
7.8%
8.5%
$1.34
0.7%
$0.99
0.6%
$0.54
1.2%
$0.48
-1.5%
17.6%
17.6%
4.4
6.8%
8.0%
39.4%
30.2%
6.1
14.3%
16.4%
30.6%
26.5%
4.9
10.7%
12.3%
12.6%
10.9%
4.9
5.8%
6.8%
13.8%
12.4%
5.4
5.2%
6.1%
15.3%
3.1%
3.0
208.7
3.0
17.0%
0.0%
254.7
254.7
14.8%
0.0%
2135.1
2135.1
15.0%
0.0%
17.3%
0.0%
17.7%
0.0%
2008-2010
19.3%
60.7%
12.1%
12.6%
3.3%
3.8%
51.6%
5.9%
5.0%
-1.5%
0.0%
113.9%
2009-2011
23.4%
71.0%
17.6%
17.6%
6.8%
8.0%
56.3%
11.9%
12.6%
10.6%
139.1%
32.4%
2010-2012
7.2%
34.9%
30.6%
26.5%
10.7%
12.3%
56.8%
17.8%
18.1%
9.9%
35.1%
-2.5%
2011-2013
-9.8%
-43.8%
30.6%
26.5%
10.7%
12.3%
56.8%
17.8%
18.1%
-6.3%
-36.2%
-21.8%
Median
11.2%
34.9%
17.6%
17.6%
6.8%
8.0%
56.3%
11.9%
12.6%
4.1%
0.2%
4.3%
2006-2011
13.0%
18.6%
14.9%
16.8%
5.1%
5.9%
52.6%
8.9%
8.8%
16.7%
20.5%
24.3%
2007-2012
13.0%
20.1%
14.9%
16.8%
5.1%
5.9%
54.0%
8.9%
8.8%
8.7%
0.0%
18.0%
2008-2013
8.1%
12.5%
15.1%
15.1%
6.3%
7.4%
54.6%
10.6%
11.1%
1.8%
0.0%
32.7%
2004-2013
25.3%
16.8%
17.6%
16.8%
5.5%
6.3%
53.1%
10.6%
10.6%
16.2%
23.4%
19.2%
Median
25.3%
18.3%
14.9%
16.8%
5.1%
5.9%
53.0%
9.4%
8.8%
16.2%
20.5%
24.3%
$344.7
Margins
Gross Margin
Operating Margin
Net Margin
EPS & Tax

Diluted EPS
Tax Rate
Efficiency & Profitability

CROIC
FCF/Sales
Inventory Turnover
Return On Assets (ROA)
Retun On Equity (ROE)
Debt Related
Debt to Equity
Capitalization Ratio
FCF to Total Debt
FCF to Short Term Debt
FCF to Long Term Debt
5 Year Multi-Year Performance

Tang Shareholder Equity
Owner Earnings FCF
CROIC
FCF/Sales
ROA
ROE
Gross Margin
Operating Margin
Net Margin
Revenue Growth
Earnings Growth
Cash from Ops Growth
2008-2012
13.1%
47.2%
17.6%
17.6%
6.8%
8.0%
56.3%
11.9%
12.6%
4.1%
0.0%
44.4%
10 Year Multi-Year Performance

Tang Shareholder Equity
Owner Earnings FCF
CROIC
FCF/Sales
ROA
ROE
Gross Margin
Operating Margin
Net Margin
Revenue Growth
Earnings Growth
Cash from Ops Growth
2004-2011
37.7%
43.9%
13.3%
16.8%
4.2%
4.8%
52.9%
9.4%
8.6%
23.6%
48.9%
34.5%
Projection of future Free Cash Flow

2014
Yearly Growth Input Field
8%
Terminal Growth
2%
$372.23
2024
706.08
2015
2016
$402.01
2025
720.20
Calculation
Total Cash
$
MAX(0,Current Liabilities-Current Assets)
$
Excess Cash
$
Adding some Intangibles
$
Interest Bearing Debt
Present Value
$
Shares Outstanding
Per Share Value
$
Desired Margin of Safety
Purchase Price
$
Current Price
$
Margin of Safety
$434.17
2026
734.61
$465.43
2027
749.30
2018
2019
$498.95
2028
764.28
2020
$534.87
2029
779.57
2021
$573.38
2030
795.16
2022
$610.54
2031
811.06
2023
$650.11
2032
827.29
$692.24
2033
843.83
Sensitivity Matrix: Growth vs Discount Rate

1,732.64
1,732.64
$0.00
6,999.34
502.18
13.94
50%
6.97
13.04
6%
Discount Rates
4% $
6% $
Growth Rates
0%
10%
10%
8%
$
10% $
12% $
7%
13.13 $
14.44 $
8%
12.35 $
13.53 $
15.93
17.64
19.57
14.87
16.40
18.14
$
$
$
$
$
$
9%
11.66
12.73
$
$
10%
11.05 $
12.02 $
11%
10.51
11.39
13.94
$
$
$
13.11
14.35
15.76
12.38
13.50
14.78
15.31
16.88
$
$
$
Sensitivity Matrix: Margin of Safety %

Discount Rates
4%
Growth Rates
Variable Fields
Intangibles% add to DCF
Decay Rate (Yr4E-Yr7E)
Extra Decay (Yr8E-Yr10E)
2017
7%
0.7%
8%
-5.6%
9%
-11.8%
10%
-18.0%
11%
-24.1%
6%
9.7%
3.6%
-2.5%
-8.5%
-14.5%
8%
18.2%
26.1%
33.4%
12.3%
20.5%
28.1%
6.4%
0.5%
9.2%
17.3%
-5.3%
3.4%
11.8%
10%
12%
14.8%
22.7%

502.18
(MRVL)
Shares Out.
M.O.S
Growth
Projection
EPS
Corp Bond
502.18
66%
10.3%
Analyst
Estimate
$0.84
4.10
Current Price
Intrinsic $
Buy Under
$13.04
$15.55
$5.29
8/16/2013
Refresh
Enter Ticker
CLEAR
Actual M.O.S 52 Wk High 52 Wk Low
16%
$13.51
$6.98
5 Yr EPS Growth
2008-2012
0.0%
2009-2013
23.6%
2008-2011
0.0%
2009-2012
61.7%
2010-2013
0.2%
2008-2010
0.0%
2009-2011
139.1%
2010-2012 2011-2013
35.1%
-36.2%
10 Yr EPS Growth
2004-2011
48.9%
2005-2012
22.6%
2006-2013
0.5%
2004-2009
23.2%
2005-2010
18.0%
2006-2011
20.5%
2007-2012
0.0%
2008-2013
0.0%
2004
0.08
2014E
Forecast Method
$
0.95
Linear Regression Method $
0.69
Analyst Estimate
$
0.84
Diltued EPS
2005
0.24
2015E
$
1.04
$
0.77
$
0.93
$
2006
$
0.52
$
$
Graham's Sensitivity Matrix

Growth Sensitivity Increment
EPS Sensivity Increments
10%
10%
2008
(0.19) $
2009
0.23
$0.08
2004
$0.24
$0.23
2005
2006 $(0.02)
2007 2008 2009
$(0.19)
2010
0.54
$0.99
2011
1.34
$0.84 $0.93
$0.54
$0.54
$0.52
0.84
10.25%
4.10
15.55
66%
5.29
$13.04
16%
2010
2011
2012
2013
2014
2015
EPS
Growth
2007
(0.02) $
$1.34
Graham Value Calculation

Normal Earnings
Growth Rate
Corp Bond Rate
Per Share Value
MOS
Purchase Price
Current Price
Actual Discount
8.2%
9.2%
10.3%
11.3%
13.5%
$
$
$
0.67
10.96
11.70
$
$
$
0.76
12.33
13.17
0.84
$
$
13.70
14.63
$
$
$
12.44
13.18
14.81
$
$
$
14.00
14.83
16.66
$
$
15.55
16.48
18.51
$
$
$
0.92
15.07
16.09
$
$
$
1.01
16.45
17.55
$
$
$
17.11
18.12
20.36
$
$
$
18.66
19.77
22.21
Median
0.2%
Median
20.5%
2012
0.99
2013
0.54
TTM
0.48
Current EPS
Exp Growth
25%
(MRVL)
8/16/2013
Enter Ticker
Dividend Yield
Business
Safety
Financial
Safety
Earnings
Safety
1.84%
Average
Excellent
Below Average
10 of 20 pts
20 of 20 pts
9 of 20 pts
Expected PE
Refresh
Katsenelson Absolute PE
Current Price Fair Value Fair Value PE Current PE FV Exp Grth
Determine Business Risk

ROE
Consistency/quality check
ROA
CROIC
Intangibles % of Book Value
Business Risk Factor:
Earnings Predict. Factor:
$14.56
30.30
26.61
25%
10%
2009
3.85%
2010
8.00%
0
6.84%
1
17.60%
1
4.05%
1
2011
16.37%
1
14.26%
1
39.42%
1
2.26%
1
2012
12.27%
0
10.66%
0
30.65%
1
2.82%
1
2013
6.84%
0
5.83%
0
12.60%
0
2.00%
1
TTM
6.09%
0
5.18%
0
13.83%
1
1.89%
1
12.12%
7.48%
12 pts out of 20
2009
3.81
0.03
0.00
298.00%
Above Average 2% Factor

2010
4.35
1
0.00
1
0.00
1
25465.62%
1
2011
5.79
1
0.00
1
0.00
1
213513.31%
1
20 pts out of 20
Determine Earnings Predictability

Gross Margin
Net Margin
Earnings
Cash from Ops
2009
51.65%
4.99%
$0.23
$680.69
2010
56.30%
1
12.59%
1
$0.54
1
$811.51
1
9 pts out of 20
Adjusted Base PE
Business Risk
Premium/Discount Factor:
Financial Risk
Earnings Predictability
Adjusted Fair Value PE
25.00%
1.84%
2012
5.22
1
0.00
1
0.00
1
2013
4.25
1
0.00
1
0.00
1
TTM
4.00
1
0.00
1
0.00
1
Excellent 10% Factor

2011
59.21%
1
25.03%
1
$1.34
1
$1,193.55
1
2012
56.80%
0
18.13%
0
$0.99
0
$771.25
0
2013
52.87%
0
9.68%
0
$0.54
0
$729.04
0
TTM
52.92%
1
8.54%
0
$0.48
0
$614.22
0
Below Average -2% Factor
Katsenelson Absolute PE Valuation Model

Earnings Growth
Dividend Yield
M.O.S
$13.04
3.34%
Determine Financial Risk

Current Ratio
Short Term Debt/Equity Ratio
FCF to Total Debt
Financial Risk Factor:
10
CLEAR
26.61
1.50
=
28.11
x
Average
[1 + (1 - 1)]
1.00
x
Excellent [1 + (1 - 0.9)]
0.90
x
Below Average [1 + (1 - 1.02)]
1.02
=
25%
30.30
P/E
7.00
7.65
8.30
8.95
9.60
10.25
10.90
11.55
12.20
12.85
13.50
14.15
14.80
15.45
16.10
16.75
17.40
17.90
18.40
18.90
19.40
Exp EPS Grwth Rate

0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
16%
17%
18%
19%
20%
19.90
21%
20.40
20.90
21.40
21.90
22%
23%
24%
25%
0.65
0.50
Dividend Yield
0.0%
0.1%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
6.0%
6.5%
10.0%
AVERAGE
8.9%
1
7.7%
2
21.0%
4
3.4%
5
STDEV
4.6%
12
0.0%
4.0%
11.4%
2.1%
AVERAGE STDEV
4.57
0.77
5
0.01
0.01
5
0.00
0.00
5
79759.0% #######
5
20
0.0%
AVERAGE
55.0%
3
13.2%
2
0.69
2
$800.04
2
STDEV
2.9%
0.0%
7.3%
0.40
204.76
Add'l P/E Points

0.0
0.5
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
10.0

(MRVL)
502.18
Shares Out.
Main. Capex
Normalized Income
502.18
$78.99
$500.00
8/16/2013
Discount Rate
R&D Years
SG&A %
9%
25%
$500.00
Enter Ticker
Refresh
CLEAR
Current Price
EPV
Net Reproduction Value
EPV MOS
NCAV
52 Wk High
52 Wk Low
$13.04
$12.70
$10.37
0.0%
$3.35
$13.51
$6.98
Asset Valuation Section
EPV Valuation Section
Data: Asset Valuation
Values for Normalized Income
Shares Outstanding
Balance Sheet Assets
Adjusted Assets
Total Liabilities
Total Equity
Average SGA %
502.2
5,121.2
5,121.2
768.7
4,352.4
8.7%
$
$
$
$
Marketing/Brand Value
275.5
R&D Value
Cash Needed for Business
Non Interest Bearing Debt
Excess Cash
$
$
$
$
$
2,191.5
31.1
709.5
1,669.3
TTM Owner Earnings FCF

Avg Normalized Income
Med Normalized Income
Avg Adj. Income 5 yrs
TTM Adjusted Income
Quarterly numbers based on:
Adjustments:
Assets
4,352.44
1,684.19
7,588.25
6,819.52
5,209.52
$
$
$
$
$
Marketable Securities
Accounts Receivable
Other Receivable
Net Receivables
$
$
$
$
Other Long Term Assets, Total

Total Assets
$12
$8
$6
$4
$2
$0
1,701.6
502.18
Book Value
Net Repro Value
EPV
Cost of Capital Rates

5%
7%
$
$
EPV
8,420.2
6,014.4
Per Share
$
16.77
$
11.98
+ Cash - Debt
$
10,121.8
$
7,716.0
9%
11%
13%
$
$
$
$
Per Share
20.16
15.37
4,677.9
9.32
3,827.4
3,238.5
$
$
7.62
6.45
$
$
6,379.5
12.70
5,529.0
4,940.1
$
$
11.01
9.84
Q1
Cash & Equivalents
Inventories: Work in Progress

Inventories: Purchased Components
Inventories: Finished Goods
Inventories: Other
Inventories -- Total
Prepaid Expenses
Current Defered Income Taxes
Other Current Assets
Total Current Assets
Goodwill, Net
Intangibles, Net
Intangibles
Property/Plant/Equipment - Net
$14
Calculation: EPV
8.67
3.35
15.11
13.58
10.37
Book Value Fixed BV

$
594.4
Inventories: Raw Materials
$
$
$
$
$
9.0%
500.0
79.0
31.1
1,732.6
EPV > Net Repro Value = Moat exists

EPV = Net Repro Value = No Moat
EPV < Net Repro Value = Value Destroyer
$10
Cash - Debt
Shares
Total
Per Share
$ 2,237.55 $
4.46
$
$
$
$
$
384.0
842.2
836.8
802.5
642.8
Data: EPV
Cost of Capital
Normalized Adjusted Income
Average Maintenance Capex
1% of sales
Cash & Equiv
Calculation: Asset Valuation

Tangible BV
Adjusted BV
NCAV
Reprod. Cost of Assets
Reprod. Cost of Assets BV
Total Net Reprod. Cost
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
1,138.2
370.4
370.4
Multiplier
Reproduction
Asset Value
$
594.4
$
$
$
$
1,138.2
370.4
370.4
179.9
90.7
270.7
70.9
8.4
2,452.9
2,032.5
82.4
2,114.9
384.6
168.7
5,121.2
$
$
$
$
$
$
$
$
$
$
$
270.7
70.9
8.4
2,452.9
2,032.5
82.4
2,114.9
384.6
168.7
5,121.2
Adjustments:
Liabilities & Equity
Accounts Payable
Accrued Expenses
Accrued Liabilities
Notes Payable/Short Term Debt
Current Port. of LT Debt/Capital
Leases
Other Current Liabilities
Total Current Liabilities
Long-Term Debt
Capital Lease Obligations
Deferred Income Taxes
Total Other Liabilities
Total Liabilities
Common Stock Equity
Retained Earnings
Total Capitalization
Total Equity
Total Liabilities & Equity
Book Value
$
307.4
$
$
246.4
$
$
$
$
$
$
$
$
$
$
$
$
$
$
553.8
155.6
768.7
4,352.4
1,559.7
4,352.4
4,352.4
5,121.2
Fixed BV
Multiplier
Reproduction
Liability Value
$
307.4
$
$
246.4
$
$
$
553.8
$
$
$
$
155.6
768.7
$
$
$
4,352.4
1,559.7
4,352.4
$
$
4,352.4
5,121.2

(MRVL)
8/16/2013
Enter Ticker
Current Price
NNWC
NNWC %
NCAV
NCAV %
$13.04
$2.74
0.0%
$3.35
0.0%
BV
CLEAR
BV
Multiplier
100%
Net Net Value

$
1,732.64
Refresh

Cash & Equivalents
Marketable Securities
Accounts Receivable
Other Receivable
Receivables
Inventories: Raw Materials
Inventories: Work in Progress
Inventories: Purchased Components
Inventories: Finished Goods
Inventories: Other
Inventories -- Total
Current Assets - Total
Total Assets
Total Liabilities
Shares Outstanding
$
$
$
$
$
$
$
$
$
$
$
$
$
$
594.42
1,138.22
370.35
370.35
179.91
90.75
270.65
2,452.91
5,121.17
768.73
502.18
Total Current Assets

Market Cap & Share Price
Book Value
Net Net Working Capital
Discount to NNWC
Net Current Asset Value
Discount to NCAV
75%
$
277.76
$
$
$
$
135.33
2,452.91
5,121.17
768.73
502.18
Total ($m)
2,452.91 $
$
4,352.44 $
1,377.01 $
Per Share
4.88
13.04
8.67
2.74
0%
3.35
0%
50%
$
6.415B
$
$
$
1,684.19
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Marvell Technology Group Ltd.

Financial Strength (MRQ)

Price vs DCF Intrinsic Value

August 16, 2013

EV/Free Cash Flow

Selected Financial Statements

Weighted Average Diluted Shares

Net Property, Plants & Equipment

Marvell Technology Group Ltd.

Financial Statistics & Ratios

P/E (cash adjusted)

EV/Free Cash Flow

GPA (Gross Profitability to Assets)

Total Debt/Equity Ratio

Long Term Debt/Equity Ratio

Days Sales Outstanding

Days Inventory Outstanding

Cash Conversion Cycle

Intangibles % of Book Value

LT-Debt as % of Invested Capital

ST-Debt as % of Invested Capital

LT-Debt as % of Total Debt

ST-Debt as % of Total Debt

Total Debt % of Total Assets

Working Capital % of Price

Days Payable Outstanding

Average Age of Inventory (Days)

Capital Structure Ratios

Altman Z Score (Original)

Altman Z Score (Revised)

Beneish M Score (5 Variable)

Beneish M Score (8 Variable)

Marvell Technology Group Ltd.

Earnings Quality Check with Accrual Analysis

Balance Sheet Accrual Ratio

Balance Sheet Aggregate Accrual $

Piotroski 1: Net Income

Z = 1.2*X1 + 1.4*X2 + 3.3*X3 + 0.6*X4 + 1.0*X5

Z = 6.56*X1 + 3.26*X2 + 6.72*X3 + 1.05*X4

X1 = Working Capital/Total Assets

Normal Altman Z Score

Revised Altman Z Score

Original Altman Z Score

Revised Altman Z Score

The Beneish Model - M Score Variables

The Beneish M Score Formula

The 5 Variable Version of the Beneish Model

Marvell Technology Group Ltd.

Figures in Millions except per share values

Free Cash Flow

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Original Altman Z Score

Beneish M Score - 8 Variable Version

Net Profit Margin

Magic Formula Investing -- Return on Capital

Magic Formula Investing -- Earnings Yield

Cash Return on Invested Capital (CROIC)

FCF to Total Debt

FCF to Short Term Debt

FCF to Long Term Debt

Marvell Technology Group Ltd.

Enter Competitor Tickers

Marvell Technology Group Ltd.

Cash from Operations

Z = 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + 1.0*X5

Z = 6.56X1 + 3.26X2 + 6.72X3 + 1.05X4