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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 131.39
MLNX's Cash to Debt is ranked higher than
73% of the 1031 Companies
in the Global Semiconductors industry.

( Industry Median: 5.76 vs. MLNX: 131.39 )
MLNX' s 10-Year Cash to Debt Range
Min: 12.66   Max: No Debt
Current: 131.39

Equity to Asset 0.83
MLNX's Equity to Asset is ranked higher than
88% of the 1014 Companies
in the Global Semiconductors industry.

( Industry Median: 0.64 vs. MLNX: 0.83 )
MLNX' s 10-Year Equity to Asset Range
Min: -3   Max: 0.91
Current: 0.83

-3
0.91
F-Score: 3
Z-Score: 9.12
M-Score: -2.85
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) -5.20
MLNX's Operating margin (%) is ranked lower than
52% of the 1009 Companies
in the Global Semiconductors industry.

( Industry Median: 3.20 vs. MLNX: -5.20 )
MLNX' s 10-Year Operating margin (%) Range
Min: -1275.65   Max: 23.62
Current: -5.2

-1275.65
23.62
Net-margin (%) -5.85
MLNX's Net-margin (%) is ranked higher than
50% of the 1009 Companies
in the Global Semiconductors industry.

( Industry Median: 2.26 vs. MLNX: -5.85 )
MLNX' s 10-Year Net-margin (%) Range
Min: -1232.57   Max: 42.33
Current: -5.85

-1232.57
42.33
ROE (%) -3.43
MLNX's ROE (%) is ranked higher than
53% of the 1005 Companies
in the Global Semiconductors industry.

( Industry Median: 2.60 vs. MLNX: -3.43 )
MLNX' s 10-Year ROE (%) Range
Min: -3.43   Max: 20.09
Current: -3.43

-3.43
20.09
ROA (%) -2.83
MLNX's ROA (%) is ranked higher than
52% of the 1023 Companies
in the Global Semiconductors industry.

( Industry Median: 1.52 vs. MLNX: -2.83 )
MLNX' s 10-Year ROA (%) Range
Min: -51.92   Max: 17.58
Current: -2.83

-51.92
17.58
ROC (Joel Greenblatt) (%) -21.07
MLNX's ROC (Joel Greenblatt) (%) is ranked lower than
57% of the 1019 Companies
in the Global Semiconductors industry.

( Industry Median: 6.17 vs. MLNX: -21.07 )
MLNX' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -303.84   Max: 156.23
Current: -21.07

-303.84
156.23
Revenue Growth (%) 27.30
MLNX's Revenue Growth (%) is ranked higher than
97% of the 736 Companies
in the Global Semiconductors industry.

( Industry Median: -2.20 vs. MLNX: 27.30 )
MLNX' s 10-Year Revenue Growth (%) Range
Min: -11.5   Max: 122.1
Current: 27.3

-11.5
122.1
EBITDA Growth (%) -24.00
MLNX's EBITDA Growth (%) is ranked higher than
54% of the 523 Companies
in the Global Semiconductors industry.

( Industry Median: -7.00 vs. MLNX: -24.00 )
MLNX' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 68.3
Current: -24

0
68.3
» MLNX's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2013

MLNX Guru Trades in Q3 2013

Jeremy Grantham 6,384 sh (New)
Steven Cohen 43,610 sh (New)
Jim Simons 384,783 sh (New)
Ron Baron 113,571 sh (New)
» More
Q4 2013

MLNX Guru Trades in Q4 2013

Paul Tudor Jones 6,841 sh (New)
Stanley Druckenmiller 251,500 sh (New)
Ron Baron 198,869 sh (+75.11%)
Jim Simons Sold Out
Jeremy Grantham Sold Out
Steven Cohen 22,600 sh (-48.18%)
» More
Q1 2014

MLNX Guru Trades in Q1 2014

Stanley Druckenmiller Sold Out
Paul Tudor Jones Sold Out
Ron Baron 191,209 sh (-3.85%)
Steven Cohen 14,486 sh (-35.9%)
» More
Q2 2014

MLNX Guru Trades in Q2 2014

Ron Baron 200,040 sh (+4.62%)
» More
» Details

Insider Trades

Latest Guru Trades with MLNX

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ron Baron 2013-12-31 Add 75.11%0.01%$32.7 - $41.91 $ 41.479%198869
Ron Baron 2013-09-30 New Buy0.02%$34.53 - $53.38 $ 41.47-3%113571
Ron Baron 2013-03-31 Sold Out 0.01%$47.761 - $65.55 $ 41.47-22%0
Ron Baron 2012-12-31 Reduce -51.57%0.02%$58.22 - $107.76 $ 41.47-48%31945
Ron Baron 2012-09-30 Reduce -43.63%0.02%$62.24 - $119.93 $ 41.47-58%65965
Ron Baron 2012-06-30 Reduce -23.98%0.01%$40.98 - $72.98 $ 41.47-28%117014
Ron Baron 2011-09-30 Add 47.17%0.01%$26.48 - $35.6 $ 41.4734%156000
Ron Baron 2011-06-30 New Buy0.02%$24.605 - $32.5 $ 41.4744%106000
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Mellanox Technologies Ltd

Baron Funds Comments on Mellanox Technologies Ltd. - Nov 22, 2013

As mentioned above, Mellanox Technologies Ltd. (MLNX) addresses a key bottleneck in modern computing architectures – the connections among computing servers and between servers and storage and networking equipment. Mellanox interconnect solutions increase data center efficiency by providing the highest throughput and lowest latency, delivering data faster to applications and unlocking system performance capability.

From Ron Baron’s Baron Funds third quarter 2013 letter.


Check out Ron Baron latest stock trades

Baron Funds Comments on Mellanox Technologies Ltd. - Nov 21, 2013

Mellanox Technologies Ltd. (MLNX) is the leading provider of high-speed, low- latency interconnection systems for computing, storage and communications applications. We reinitiated a position in the stock due to its attractive valuation and growth opportunities over the next several years. During the third quarter, its share price declined as expectations for deployments by large Internet customers were pushed out into 2014. We believe Mellanox has a significant technological lead over its competition in addressing a key pain point in modern data center-centric computing – interconnection between the hardware building blocks that make up today's computing systems. (Gilad Shany)

From Ron Baron’s Baron Funds third quarter 2013 report.


Check out Ron Baron latest stock trades

Baron Funds Comments on Mellanox Technologies - Aug 23, 2012

From Baron Funds' second quarter letter:

Mellanox Technologies Ltd. (MLNX), the leading supplier of end-to-end connectivity solutions for servers and storage in modern data centers, rose 69.3% during the second quarter (and is up about 30% more after its stellar second quarter report). Over the last few quarters, Mellanox has experienced an inflection point in the company's growth rate and adoption of its InfiniBand connectivity products. Indeed, the company grew revenues 61% in the first quarter, 111% in the second quarter, and the mid-point of its third quarter guidance calls for 124% growth. We believe this inflection point resulted from connectivity emerging as a key bottleneck for modern cloud-based IT infrastructure and a lack of competition in high-speed connectivity solutions. (Gilad Shany)
Check out Ron Baron latest stock trades

Top Ranked Articles about Mellanox Technologies Ltd

Baron Funds Comments on Mellanox Technologies Ltd.
As mentioned above, Mellanox Technologies Ltd. (MLNX) addresses a key bottleneck in modern computing architectures – the connections among computing servers and between servers and storage and networking equipment. Mellanox interconnect solutions increase data center efficiency by providing the highest throughput and lowest latency, delivering data faster to applications and unlocking system performance capability. Read more...
Baron Funds Comments on Mellanox Technologies Ltd.
Mellanox Technologies Ltd. (MLNX) is the leading provider of high-speed, low- latency interconnection systems for computing, storage and communications applications. We reinitiated a position in the stock due to its attractive valuation and growth opportunities over the next several years. During the third quarter, its share price declined as expectations for deployments by large Internet customers were pushed out into 2014. We believe Mellanox has a significant technological lead over its competition in addressing a key pain point in modern data center-centric computing – interconnection between the hardware building blocks that make up today's computing systems. (Gilad Shany) Read more...

Ratios

vs
industry
vs
history
P/B 2.73
MLNX's P/B is ranked lower than
57% of the 1078 Companies
in the Global Semiconductors industry.

( Industry Median: 1.95 vs. MLNX: 2.73 )
MLNX' s 10-Year P/B Range
Min: 1.02   Max: 9.17
Current: 2.73

1.02
9.17
P/S 4.46
MLNX's P/S is ranked lower than
75% of the 1078 Companies
in the Global Semiconductors industry.

( Industry Median: 1.70 vs. MLNX: 4.46 )
MLNX' s 10-Year P/S Range
Min: 1.96   Max: 13.18
Current: 4.46

1.96
13.18
PFCF 39.88
MLNX's PFCF is ranked higher than
62% of the 1078 Companies
in the Global Semiconductors industry.

( Industry Median: 605.66 vs. MLNX: 39.88 )
MLNX' s 10-Year PFCF Range
Min: 9.34   Max: 322.38
Current: 39.88

9.34
322.38
EV-to-EBIT -64.74
MLNX's EV-to-EBIT is ranked higher than
52% of the 1078 Companies
in the Global Semiconductors industry.

( Industry Median: 52.52 vs. MLNX: -64.74 )
MLNX' s 10-Year EV-to-EBIT Range
Min: 2.1   Max: 133.7
Current: -64.74

2.1
133.7
Shiller P/E 71.19
MLNX's Shiller P/E is ranked higher than
82% of the 1078 Companies
in the Global Semiconductors industry.

( Industry Median: 9999.00 vs. MLNX: 71.19 )
MLNX' s 10-Year Shiller P/E Range
Min: 37.2   Max: 181.57
Current: 71.19

37.2
181.57
Current Ratio 4.64
MLNX's Current Ratio is ranked higher than
85% of the 862 Companies
in the Global Semiconductors industry.

( Industry Median: 2.63 vs. MLNX: 4.64 )
MLNX' s 10-Year Current Ratio Range
Min: 2.72   Max: 16.48
Current: 4.64

2.72
16.48
Quick Ratio 4.25
MLNX's Quick Ratio is ranked higher than
88% of the 862 Companies
in the Global Semiconductors industry.

( Industry Median: 2.02 vs. MLNX: 4.25 )
MLNX' s 10-Year Quick Ratio Range
Min: 2.45   Max: 16.03
Current: 4.25

2.45
16.03

Valuation & Return

vs
industry
vs
history
Price/Net Cash 9.34
MLNX's Price/Net Cash is ranked higher than
85% of the 1078 Companies
in the Global Semiconductors industry.

( Industry Median: 9999.00 vs. MLNX: 9.34 )
MLNX' s 10-Year Price/Net Cash Range
Min: 1.63   Max: 33.64
Current: 9.34

1.63
33.64
Price/Net Current Asset Value 6.91
MLNX's Price/Net Current Asset Value is ranked higher than
82% of the 1078 Companies
in the Global Semiconductors industry.

( Industry Median: 9999.00 vs. MLNX: 6.91 )
MLNX' s 10-Year Price/Net Current Asset Value Range
Min: 1.45   Max: 14.5
Current: 6.91

1.45
14.5
Price/Tangible Book 4.36
MLNX's Price/Tangible Book is ranked lower than
63% of the 1078 Companies
in the Global Semiconductors industry.

( Industry Median: 2.30 vs. MLNX: 4.36 )
MLNX' s 10-Year Price/Tangible Book Range
Min: 1.16   Max: 9.16
Current: 4.36

1.16
9.16
Price/DCF (Projected) 1.45
MLNX's Price/DCF (Projected) is ranked higher than
86% of the 1078 Companies
in the Global Semiconductors industry.

( Industry Median: 9999.00 vs. MLNX: 1.45 )
MLNX' s 10-Year Price/DCF (Projected) Range
Min: 1.37   Max: 3.81
Current: 1.45

1.37
3.81
Price/Median PS Value 0.90
MLNX's Price/Median PS Value is ranked higher than
76% of the 1078 Companies
in the Global Semiconductors industry.

( Industry Median: 1.10 vs. MLNX: 0.90 )
MLNX' s 10-Year Price/Median PS Value Range
Min: 0.48   Max: 1.98
Current: 0.9

0.48
1.98
Earnings Yield (Greenblatt) 0.70
MLNX's Earnings Yield (Greenblatt) is ranked lower than
72% of the 834 Companies
in the Global Semiconductors industry.

( Industry Median: 5.20 vs. MLNX: 0.70 )
MLNX' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.7   Max: 46.8
Current: 0.7

0.7
46.8
Forward Rate of Return (Yacktman) 14.92
MLNX's Forward Rate of Return (Yacktman) is ranked higher than
93% of the 668 Companies
in the Global Semiconductors industry.

( Industry Median: 1.11 vs. MLNX: 14.92 )
MLNX' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -0.2   Max: 40.3
Current: 14.92

-0.2
40.3

Business Description

Industry: Semiconductors » Semiconductors
Compare:INTC, TSM, BRCM, ARMH, ADI » details
Traded in other countries:ZZE.Germany
Mellanox Technologies, Ltd was incorporated under the laws of Israel in March 1999. It is a supplier of semiconductor-based, high-performance connectivity products that facilitate efficient data transmission between servers, communications infrastructure equipment and storage systems. The Company's products are an integral part of a total solution focused on computing, storage and communication applications used in enterprise data center, high-performance computing and embedded systems. It is one of the pioneers of InfiniBand; an industry standard architecture that provides specifications for high-performance interconnects. In addition to supporting InfiniBand, its products also support the industry standard Ethernet interconnect specification, which provide unique product differentiation and connectivity flexibility. It is a fabless semiconductor company that provides high-performance interconnecting products based on semiconductor integrated circuits. It designs, develops and markets adapter and switch ICs, all of which are silicon devices that provide high performance connectivity. The Company also offers adapter cards that incorporate its adapter ICs and switch and gateway systems that incorporate its switch and gateway ICs. These ICs are added to servers, storage and communication infrastructure equipment and embedded systems by either integrating them directly on circuit boards or inserting adapter cards into slots on the circuit board. It introduced Virtual Protocol Interconnect, or VPI, into its adapter ICs and cards. VPI provides the ability for an adapter to automatically sense whether a communications port is connected to an Ethernet fabric or an InfiniBand fabric. The Company provides comprehensive solutions based on InfiniBand, including HCA, switch and gateway ICs, adapter cards, switch and gateway systems and software. It provides complete solutions which are based on and meet the specifications of the InfiniBand standard in addition to products that also support the Ethernet standard. Its InfiniBand products include adapter ICs and cards (InfiniHost product family) and switch ICs (InfiniScale product family) and systems, gateway ICs (BridgeX product family) and gateway systems. EDC, HPC and embedded end-user markets for systems utilizing its products are mainly served by server, storage and communications infrastructure OEMs. The Company has registered 'Mellanox,' 'BridgeX,' 'ConnectX,' 'InfiniBridge,' 'InfiniHost,' 'InfiniPCI,' 'InfiniRISC' and 'InfiniScale' as trademarks in the United States.

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