On the stock market since 1994, it operates in the world of technology. It has 7,100 employees. Now — the numbers.
This is an established company with proven profits.
No real growth (3% a year).
If every debt were paid off today, $1.3B would still be left in the vault — a solid cushion for hard times.
The stock trades near its peak today. For long-term holders the ride has paid off so far — though past performance guarantees nothing about the future.
The net profit margin is 31% — still a thick cushion, though costs have been eating into it lately.
There is $2.3B in the vault; even if every debt were paid off, $1.3B would remain.
It met or beat analyst expectations in 8 of the last 8 quarters — consistency is a promise kept.
Over the last 3 years, sales grew only 2% a year on average. At this size, speeding back up is not easy.
The price action doesn’t yet back an upward turn.
On our five-subject report card, MXIM sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: MXIM is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.