MACOM Technology Solutions Holdings, Inc.
MACOM Technology Solutions Holdings, Inc. Fundamental Analysis
MACOM Technology Solutions Holdings, Inc. (MTSI) shows moderate financial fundamentals with a PE ratio of 112.83, profit margin of 15.88%, and ROE of 12.60%. The company generates $1.0B in annual revenue with strong year-over-year growth of 32.58%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 73.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze MTSI's fundamental strength across five key dimensions:
Efficiency Score
WeakMTSI struggles to generate sufficient returns from assets.
Valuation Score
ModerateMTSI shows balanced valuation metrics.
Growth Score
ModerateMTSI shows steady but slowing expansion.
Financial Health Score
ExcellentMTSI maintains a strong and stable balance sheet.
Profitability Score
ModerateMTSI maintains healthy but balanced margins.
Key Financial Metrics
Is MTSI Expensive or Cheap?
P/E Ratio
MTSI trades at 112.83 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MTSI's PEG of 0.29 indicates potential undervaluation.
Price to Book
The market values MACOM Technology Solutions Holdings, Inc. at 13.52 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 68.17 times EBITDA. This signals the market has high growth expectations.
How Well Does MTSI Make Money?
Net Profit Margin
For every $100 in sales, MACOM Technology Solutions Holdings, Inc. keeps $15.88 as profit after all expenses.
Operating Margin
Core operations generate 15.23 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.60 in profit for every $100 of shareholder equity.
ROA
MACOM Technology Solutions Holdings, Inc. generates $7.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MACOM Technology Solutions Holdings, Inc. produces operating cash flow of $212.17M, showing steady but balanced cash generation.
Free Cash Flow
MACOM Technology Solutions Holdings, Inc. generates strong free cash flow of $133.07M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.77 in free cash annually.
FCF Yield
MTSI converts 0.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
112.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
13.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
17.96
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How MTSI Stacks Against Its Sector Peers
| Metric | MTSI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 112.83 | 35.19 | Worse (Expensive) |
| ROE | 12.60% | 1155.00% | Weak |
| Net Margin | 15.88% | -127067.00% (disorted) | Strong |
| Debt/Equity | 0.42 | 0.41 | Neutral |
| Current Ratio | 3.96 | 4.71 | Strong Liquidity |
| ROA | 7.70% | -314918.00% (disorted) | Weak |
MTSI outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MACOM Technology Solutions Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
64.29%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-5.91%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
23.63%
Industry Style: Growth, Innovation, High Beta
High Growth