MACOM TECHNOLOGY SOLUTIONS H (MTSI) Stock Fundamental Analysis
NASDAQ:MTSI - Nasdaq - US55405Y1001 - Common Stock - Currency: USD
Overall MTSI gets a fundamental rating of 4 out of 10. We evaluated MTSI against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. MTSI has only an average score on both its financial health and profitability. While showing a medium growth rate, MTSI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year MTSI was profitable.
In the past year MTSI had a positive cash flow from operations.
MTSI had positive earnings in 4 of the past 5 years.
MTSI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -5.60%, MTSI is not doing good in the industry: 69.09% of the companies in the same industry are doing better.
The Return On Equity of MTSI (-8.97%) is worse than 69.09% of its industry peers.
MTSI has a Return On Invested Capital (3.78%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for MTSI is significantly below the industry average of 11.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.6% | ||
| ROE | -8.97% | ||
| ROIC | 3.78% |
ROA(3y)12.76%
ROA(5y)7.52%
ROE(3y)22.9%
ROE(5y)12.28%
ROIC(3y)5.66%
ROIC(5y)4.74%
1.3 Margins
In the last couple of years the Profit Margin of MTSI has grown nicely.
MTSI has a Operating Margin of 10.14%. This is in the better half of the industry: MTSI outperforms 61.82% of its industry peers.
MTSI's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 53.58%, MTSI is in the better half of the industry, outperforming 71.82% of the companies in the same industry.
In the last couple of years the Gross Margin of MTSI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.14% | ||
| PM (TTM) | N/A | ||
| GM | 53.58% |
OM growth 3Y-8.88%
OM growth 5YN/A
PM growth 3Y18.94%
PM growth 5YN/A
GM growth 3Y-1.42%
GM growth 5Y4.09%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MTSI is destroying value.
MTSI has more shares outstanding than it did 1 year ago.
MTSI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MTSI has an improved debt to assets ratio.
2.2 Solvency
MTSI has an Altman-Z score of 8.09. This indicates that MTSI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.09, MTSI is in the better half of the industry, outperforming 78.18% of the companies in the same industry.
The Debt to FCF ratio of MTSI is 3.12, which is a good value as it means it would take MTSI, 3.12 years of fcf income to pay off all of its debts.
MTSI's Debt to FCF ratio of 3.12 is fine compared to the rest of the industry. MTSI outperforms 64.55% of its industry peers.
MTSI has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.47, MTSI is not doing good in the industry: 71.82% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.12 | ||
| Altman-Z | 8.09 |
ROIC/WACC0.41
WACC9.28%
2.3 Liquidity
MTSI has a Current Ratio of 3.61. This indicates that MTSI is financially healthy and has no problem in meeting its short term obligations.
MTSI's Current ratio of 3.61 is in line compared to the rest of the industry. MTSI outperforms 58.18% of its industry peers.
A Quick Ratio of 2.88 indicates that MTSI has no problem at all paying its short term obligations.
MTSI has a Quick ratio of 2.88. This is comparable to the rest of the industry: MTSI outperforms 58.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.61 | ||
| Quick Ratio | 2.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.24% over the past year.
Measured over the past 5 years, MTSI shows a small growth in Earnings Per Share. The EPS has been growing by 5.96% on average per year.
The Revenue has grown by 26.40% in the past year. This is a very strong growth!
Measured over the past years, MTSI shows a small growth in Revenue. The Revenue has been growing by 7.86% on average per year.
EPS 1Y (TTM)12.24%
EPS 3Y5.96%
EPS 5YN/A
EPS Q2Q%36.68%
Revenue 1Y (TTM)26.4%
Revenue growth 3Y6.33%
Revenue growth 5Y7.86%
Sales Q2Q%38.8%
3.2 Future
Based on estimates for the next years, MTSI will show a small growth in Earnings Per Share. The EPS will grow by 1.98% on average per year.
The Revenue is expected to grow by 15.37% on average over the next years. This is quite good.
EPS Next Y37.32%
EPS Next 2Y27.25%
EPS Next 3Y1.98%
EPS Next 5YN/A
Revenue Next Year27.51%
Revenue Next 2Y19.16%
Revenue Next 3Y15.37%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MTSI is valuated quite expensively with a Price/Earnings ratio of 39.96.
The rest of the industry has a similar Price/Earnings ratio as MTSI.
MTSI is valuated expensively when we compare the Price/Earnings ratio to 24.29, which is the current average of the S&P500 Index.
MTSI is valuated quite expensively with a Price/Forward Earnings ratio of 26.72.
The rest of the industry has a similar Price/Forward Earnings ratio as MTSI.
The average S&P500 Price/Forward Earnings ratio is at 20.42. MTSI is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.96 | ||
| Fwd PE | 26.72 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MTSI.
MTSI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.55 | ||
| EV/EBITDA | 51.98 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.07
PEG (5Y)N/A
EPS Next 2Y27.25%
EPS Next 3Y1.98%
5. Dividend
5.1 Amount
MTSI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
110.69
-3.03 (-2.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners84.97%
Inst Owner Change0.3%
Ins Owners16.19%
Ins Owner Change-0.08%
Market Cap8.23B
Analysts80
Price Target141.42 (27.76%)
Short Float %3.81%
Short Ratio2.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.83%
Min EPS beat(2)-2.48%
Max EPS beat(2)-1.19%
EPS beat(4)0
Avg EPS beat(4)-1.77%
Min EPS beat(4)-2.48%
Max EPS beat(4)-1.19%
EPS beat(8)0
Avg EPS beat(8)-1.4%
EPS beat(12)3
Avg EPS beat(12)-0.57%
EPS beat(16)7
Avg EPS beat(16)0.48%
Revenue beat(2)0
Avg Revenue beat(2)-1.16%
Min Revenue beat(2)-1.81%
Max Revenue beat(2)-0.51%
Revenue beat(4)0
Avg Revenue beat(4)-1.51%
Min Revenue beat(4)-1.91%
Max Revenue beat(4)-0.51%
Revenue beat(8)1
Avg Revenue beat(8)-1.19%
Revenue beat(12)1
Avg Revenue beat(12)-1.24%
Revenue beat(16)1
Avg Revenue beat(16)-1.36%
PT rev (1m)-6.41%
PT rev (3m)-5.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.27%
EPS NY rev (1m)0%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)2.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.96 | ||
| Fwd PE | 26.72 | ||
| P/S | 10.41 | ||
| P/FCF | 47.55 | ||
| P/OCF | 41.94 | ||
| P/B | 7.15 | ||
| P/tB | 11.33 | ||
| EV/EBITDA | 51.98 |
EPS(TTM)2.77
EY2.5%
EPS(NY)4.14
Fwd EY3.74%
FCF(TTM)2.33
FCFY2.1%
OCF(TTM)2.64
OCFY2.38%
SpS10.63
BVpS15.48
TBVpS9.77
PEG (NY)1.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.6% | ||
| ROE | -8.97% | ||
| ROCE | 5.1% | ||
| ROIC | 3.78% | ||
| ROICexc | 6.1% | ||
| ROICexgc | 10.08% | ||
| OM | 10.14% | ||
| PM (TTM) | N/A | ||
| GM | 53.58% | ||
| FCFM | 21.89% |
ROA(3y)12.76%
ROA(5y)7.52%
ROE(3y)22.9%
ROE(5y)12.28%
ROIC(3y)5.66%
ROIC(5y)4.74%
ROICexc(3y)9.02%
ROICexc(5y)7.42%
ROICexgc(3y)15.12%
ROICexgc(5y)13.8%
ROCE(3y)6.93%
ROCE(5y)5.8%
ROICexcg growth 3Y-25.63%
ROICexcg growth 5YN/A
ROICexc growth 3Y-15.93%
ROICexc growth 5YN/A
OM growth 3Y-8.88%
OM growth 5YN/A
PM growth 3Y18.94%
PM growth 5YN/A
GM growth 3Y-1.42%
GM growth 5Y4.09%
F-Score5
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.12 | ||
| Debt/EBITDA | 3.62 | ||
| Cap/Depr | 33.54% | ||
| Cap/Sales | 2.93% | ||
| Interest Coverage | 20.04 | ||
| Cash Conversion | 131.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.61 | ||
| Quick Ratio | 2.88 | ||
| Altman-Z | 8.09 |
F-Score5
WACC9.28%
ROIC/WACC0.41
Cap/Depr(3y)42.34%
Cap/Depr(5y)35.01%
Cap/Sales(3y)3.6%
Cap/Sales(5y)3.42%
Profit Quality(3y)123.95%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.24%
EPS 3Y5.96%
EPS 5YN/A
EPS Q2Q%36.68%
EPS Next Y37.32%
EPS Next 2Y27.25%
EPS Next 3Y1.98%
EPS Next 5YN/A
Revenue 1Y (TTM)26.4%
Revenue growth 3Y6.33%
Revenue growth 5Y7.86%
Sales Q2Q%38.8%
Revenue Next Year27.51%
Revenue Next 2Y19.16%
Revenue Next 3Y15.37%
Revenue Next 5YN/A
EBIT growth 1Y0.47%
EBIT growth 3Y-3.11%
EBIT growth 5YN/A
EBIT Next Year70.6%
EBIT Next 3Y12.75%
EBIT Next 5YN/A
FCF growth 1Y15.23%
FCF growth 3Y2.44%
FCF growth 5YN/A
OCF growth 1Y8.28%
OCF growth 3Y3.1%
OCF growth 5Y51.03%