Maxim Story

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MXIM -- USA Stock  

USD 65.15  0.99  1.50%

While some millenniums are indifferent towards technology space, it makes sense to summarize Maxim Integrated Products. We will evaluate if Maxim Integrated shares are reasonably priced going into August. Is the stock operations in 2020 sustainable? Here we are going to cover Maxim Integrated perspective on valuation to give you a better outlook on taking a position in this stock.
Published over a month ago
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Will Maxim Integrated (NASDAQ:MXIM) price increase in August 2020?
This firm currently holds 1.05 B in liabilities with Debt to Equity (D/E) ratio of 0.65, which is about average as compared to similar companies. The company currently holds 1.05 B in liabilities with Debt to Equity (D/E) ratio of 0.65, which is about average as compared to similar companies. Maxim Integrated Products has a current ratio of 5.83, suggesting that it is liquid enough and is able to pay its financial obligations when due. Macroaxis provides unbiased advice on Maxim Integrated Products that should be used to complement current analysts and expert consensus on Maxim Integrated. Our investment recommendation engine determines the firm's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon.
We determine the current worth of Maxim Integrated Products using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Maxim Integrated Products based exclusively on its fundamental and basic technical indicators. By analyzing Maxim Integrated's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Maxim Integrated's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Maxim Integrated. We calculate exposure to Maxim Integrated's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Maxim Integrated's related companies.

Maxim Integrated Products Investment Alerts

Maxim investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Maxim Integrated Products performance across your portfolios.Please check all investment alerts for Maxim

Maxim Integrated Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Maxim value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Maxim Integrated competition to find correlations between indicators driving the intrinsic value of Maxim.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Maxim Integrated, but it might be worth checking our own buy vs. sell analysis

Breaking it down

The latest increase in Maxim Integrated Products short term price appreciation may encourage stakeholders to take a closer look at the firm as it closed today at a share price of 67.33 on 4,802,912 in trading volume. The company directors and management have successfully maneuvered the firm at convenient times to take advantage of all market conditions in June. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.35. The current volatility is consistent with the ongoing market swings in June 2020 as well as with Maxim Integrated Products unsystematic, company-specific events.
 2010 2017 2019 2020 (projected)
Consolidated Income571.61 M827.49 M467.32 M483.93 M
Direct Expenses849.13 M813.82 M853.95 M982.98 M

Margins Breakdown

Maxim profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Maxim Integrated itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Maxim Integrated profit margins.
Operating Margin27.21
EBITDA Margin0.38
Gross Margin0.69
Profit Margin0.2

Maxim Integrated Net Income Per Employee is decreasing over the last 4 years. The previous year's value of Maxim Integrated Net Income Per Employee was 56,245. Also, Maxim Integrated Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 4 years.

Another 3 percent hike for Maxim Integrated

Standard deviation is down to 2.36. It may denote a possible volatility pull down. As of the 28th of July, Maxim Integrated secures the Risk Adjusted Performance of 0.2922, mean deviation of 1.74, and Downside Deviation of 2.24. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Maxim Integrated Products, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We have collected data for nineteen technical drivers for Maxim Integrated, which can be compared to its peers in the industry. Please verify Maxim Integrated Products coefficient of variation, as well as the relationship between the treynor ratio and semi variance to decide if Maxim Integrated Products is priced some-what accurately, providing market reflects its recent price of 68.91 per share. Given that Maxim Integrated Products has jensen alpha of 0.392, we recommend you to check Maxim Integrated's last-minute market performance to make sure the company can sustain itself at a future point.

Our Bottom Line On Maxim Integrated Products

While many other companies within the semiconductors industry are still a little expensive, even after the recent corrections, Maxim Integrated may offer a potential longer-term growth to stakeholders. Taking everything into account, as of the 28th of July 2020, we believe that at this point, Maxim Integrated is fairly valued with very small chance of financial distress within the next 2 years. Our overall buy-hold-sell advice on the company is Buy.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Maxim Integrated Products. Please refer to our Terms of Use for any information regarding our disclosure principles.

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