Mellanox Technologies Stock Analysis, Valuation (NASDAQ:MLNX)

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$86.5 $0.35 (0.4%) MLNX stock closing price Jun 22, 2018 (Closing)

Take a look at Amigobulls Mellanox Technologies stock analysis video. This video puts forward our latest analysis highlighting the pros and cons for MLNX stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Mellanox Technologies, Ltd. Stock Rating 2.8/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for MLNX stock analysis. Mellanox Technologies valuation forms a crucial part of our stock analysis. Our Mellanox Technologies stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy MLNX stock?

  • The Year Over Year (YoY) revenue growth for Mellanox Technologies was 33.1% in 2018-03.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 13.3.
  • Net margins stood at a healthy 3.3% (average) for Mellanox Technologies in the Trailing Twelve Months.
  • With its debt/equity ratio of 0.03, Mellanox Technologies has a lower debt burden when compared to the -sectordesc- average.
  • The company has a healthy free cash flow margin of 19.2.

Should you sell MLNX stock?

  • The MLNX stock currently trades at a PE of 53.1, which is expensive, compared to the sector average of 26.1.
  • The company is trading at a price to sales multiple of 4.8, which is higher in comparison to the Computer and Technology sector average of 2.9, making MLNX stock expensive.

Comments on this video and Mellanox Technologies stock

Investors can use Amigobulls Mellanox Technologies stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

Mellanox Technologies revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.