Stock in Focus: MaxLinear, Inc. (MXL)

Company Profile:

MaxLinear, Inc. provides radiofrequency (RF), high-performance analog, and mixed-signal communications systems-on-chip solutions (SoCs) for the connected home, wired and wireless infrastructure, and industrial and multi-market applications worldwide. Its products integrate various portions of a high-speed communication system, including RF, high-performance analog, mixed-signal, digital signal processing, security engines, data compression, networking layers, and power management. The company offers broadband radio transceiver front ends, data converters, embedded systems and software architecture, and architecture and system design for highly integrated end-to-end communication platform solutions. Its products are used in various electronic devices, such as cable data over cable service interface specifications (DOCSIS), fiber and DSL broadband modems and gateways; Wi-Fi and wireline routers for home networking; radio transceivers and modems for 4G/5G base-station and backhaul infrastructure; and fiber-optic modules for data center, metro, and long-haul transport networks, as well as power management and interface products. It serves electronics distributors, module makers, original equipment manufacturers (OEMs), and original design manufacturers (ODMs) through a direct sales force, third-party sales representatives, and a network of distributors. The company was incorporated in 2003 and is headquartered in Carlsbad, California.

Recent News:

The company will release its financial results for the second quarter 2022 after the close of market on Wednesday, July 27, 2022. It will host a corresponding conference call at 1:30 p.m. Pacific Time, 4:30 p.m. Eastern Time.

On June 27, 2022, the company announced the next-generation MODEM development within its MxL852xx product line. This fully integrated System on Chip (SoC) is designed for wireless transport networks. Wireless transport is expected to account for 65% of global backhaul links from 2021 to 2027 (GSMA/ABI, 2021), while the cumulative revenues for the wireless transmission market over the five years from 2022 to 2026 are expected to grow to $17.2B.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects:

Price to Book Value – P/BV, a ratio used to compare book value to its current market price, to gauge whether a stock is valued properly.

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Price to Earnings – PE, the ratio for valuing a company that measures its current share price relative to its earnings per share (EPS).

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Discounted cash flow – DCF, a valuation method used to estimate the value of an investment based on its expected future cash flows.

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Return on Assets – ROA, indicates how profitable a company is in relation to its total assets, how efficiently uses assets to generate a profit.

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Return on Equity – ROE, a measure of financial performance calculated by dividing net income by equity. a gauge of profitability and efficiency.

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Debt to Equity – evaluate financial leverage, reflects the ability of equity to cover outstanding debts in the event of a business downturn.

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Conclusion:

MXL receives outperform rating in price to bookd value, price to earnings, discounted cash flow and debt to equity. Technical indicators signal the bullish signs, as there is a bullish crossover in the both the MACD and the stochastic oscillator . The RSI stands at 47.9 with positive bias. We rate MaxLinear, Inc. (MXL) a STRONG BUY.