MACOM TECHNOLOGY SOLUTIONS H (MTSI) Stock Fundamental Analysis
NASDAQ:MTSI - Nasdaq - US55405Y1001 - Common Stock - Currency: USD
Taking everything into account, MTSI scores 5 out of 10 in our fundamental rating. MTSI was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. MTSI has only an average score on both its financial health and profitability. MTSI is valued quite expensively, but it does show have an excellent growth rating.
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.
Of the past 5 years MTSI 4 years were profitable.
MTSI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MTSI (-4.51%) is worse than 67.27% of its industry peers.
With a Return On Equity value of -7.20%, MTSI is not doing good in the industry: 65.45% of the companies in the same industry are doing better.
With a decent Return On Invested Capital value of 4.57%, MTSI is doing good in the industry, outperforming 61.82% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MTSI is below the industry average of 10.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.51% | ||
| ROE | -7.2% | ||
| ROIC | 4.57% |
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.
With a decent Operating Margin value of 11.79%, MTSI is doing good in the industry, outperforming 67.27% of the companies in the same industry.
MTSI's Operating Margin has declined in the last couple of years.
MTSI has a Gross Margin of 54.25%. This is in the better half of the industry: MTSI outperforms 71.82% of its industry peers.
MTSI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.79% | ||
| PM (TTM) | N/A | ||
| GM | 54.25% |
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.
Compared to 1 year ago, MTSI has more shares outstanding
MTSI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MTSI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.39 indicates that MTSI is not in any danger for bankruptcy at the moment.
MTSI has a Altman-Z score of 9.39. This is in the better half of the industry: MTSI outperforms 77.27% of its industry peers.
The Debt to FCF ratio of MTSI is 2.84, which is a good value as it means it would take MTSI, 2.84 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.84, MTSI is in the better half of the industry, outperforming 62.73% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that MTSI is not too dependend on debt financing.
MTSI's Debt to Equity ratio of 0.45 is on the low side compared to the rest of the industry. MTSI is outperformed by 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.84 | ||
| Altman-Z | 9.39 |
ROIC/WACC0.46
WACC9.87%
2.3 Liquidity
MTSI has a Current Ratio of 3.56. This indicates that MTSI is financially healthy and has no problem in meeting its short term obligations.
MTSI has a Current ratio (3.56) which is comparable to the rest of the industry.
A Quick Ratio of 2.86 indicates that MTSI has no problem at all paying its short term obligations.
MTSI's Quick ratio of 2.86 is in line compared to the rest of the industry. MTSI outperforms 57.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.56 | ||
| Quick Ratio | 2.86 |
3. Growth
3.1 Past
MTSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.60%, which is quite impressive.
The Earnings Per Share has been growing slightly by 5.96% on average over the past years.
MTSI shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.63%.
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)33.6%
EPS 3Y5.96%
EPS 5YN/A
EPS Q2Q%44.07%
Revenue 1Y (TTM)32.63%
Revenue growth 3Y6.33%
Revenue growth 5Y7.86%
Sales Q2Q%30.16%
3.2 Future
MTSI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.04% yearly.
MTSI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.00% yearly.
EPS Next Y38.22%
EPS Next 2Y27.55%
EPS Next 3Y19.04%
EPS Next 5YN/A
Revenue Next Year31.33%
Revenue Next 2Y21.62%
Revenue Next 3Y17%
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 accelerating.
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
The Price/Earnings ratio is 45.21, which means the current valuation is very expensive for MTSI.
MTSI's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of MTSI to the average of the S&P500 Index (26.35), we can say MTSI is valued expensively.
A Price/Forward Earnings ratio of 32.92 indicates a quite expensive valuation of MTSI.
MTSI's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.19. MTSI is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.21 | ||
| Fwd PE | 32.92 |
4.2 Price Multiples
MTSI's Enterprise Value to EBITDA ratio is in line with the industry average.
MTSI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.49 | ||
| EV/EBITDA | 56.06 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MTSI's earnings are expected to grow with 19.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)N/A
EPS Next 2Y27.55%
EPS Next 3Y19.04%
5. Dividend
5.1 Amount
No dividends for MTSI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
136.99
+2.67 (+1.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners87.43%
Inst Owner Change1.94%
Ins Owners14.95%
Ins Owner Change-1.18%
Market Cap10.19B
Analysts80
Price Target144.48 (5.47%)
Short Float %4.03%
Short Ratio3.18
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)-0.84%
Min EPS beat(2)-1.19%
Max EPS beat(2)-0.49%
EPS beat(4)0
Avg EPS beat(4)-1.54%
Min EPS beat(4)-2.48%
Max EPS beat(4)-0.49%
EPS beat(8)0
Avg EPS beat(8)-1.41%
EPS beat(12)2
Avg EPS beat(12)-0.74%
EPS beat(16)6
Avg EPS beat(16)0.09%
Revenue beat(2)1
Avg Revenue beat(2)0.12%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)0.76%
Revenue beat(4)1
Avg Revenue beat(4)-0.87%
Min Revenue beat(4)-1.91%
Max Revenue beat(4)0.76%
Revenue beat(8)2
Avg Revenue beat(8)-0.95%
Revenue beat(12)2
Avg Revenue beat(12)-1.11%
Revenue beat(16)2
Avg Revenue beat(16)-1.21%
PT rev (1m)4.07%
PT rev (3m)-4.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.42%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)0.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.2%
Revenue NY rev (1m)0.33%
Revenue NY rev (3m)3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.21 | ||
| Fwd PE | 32.92 | ||
| P/S | 12.06 | ||
| P/FCF | 53.49 | ||
| P/OCF | 47.03 | ||
| P/B | 8.48 | ||
| P/tB | 13 | ||
| EV/EBITDA | 56.06 |
EPS(TTM)3.03
EY2.21%
EPS(NY)4.16
Fwd EY3.04%
FCF(TTM)2.56
FCFY1.87%
OCF(TTM)2.91
OCFY2.13%
SpS11.36
BVpS16.16
TBVpS10.54
PEG (NY)1.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.51% | ||
| ROE | -7.2% | ||
| ROCE | 6.15% | ||
| ROIC | 4.57% | ||
| ROICexc | 7.41% | ||
| ROICexgc | 11.96% | ||
| OM | 11.79% | ||
| PM (TTM) | N/A | ||
| GM | 54.25% | ||
| FCFM | 22.54% |
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 Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.84 | ||
| Debt/EBITDA | 3.25 | ||
| Cap/Depr | 39.3% | ||
| Cap/Sales | 3.09% | ||
| Interest Coverage | 27.53 | ||
| Cash Conversion | 130.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.56 | ||
| Quick Ratio | 2.86 | ||
| Altman-Z | 9.39 |
F-Score5
WACC9.87%
ROIC/WACC0.46
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)33.6%
EPS 3Y5.96%
EPS 5YN/A
EPS Q2Q%44.07%
EPS Next Y38.22%
EPS Next 2Y27.55%
EPS Next 3Y19.04%
EPS Next 5YN/A
Revenue 1Y (TTM)32.63%
Revenue growth 3Y6.33%
Revenue growth 5Y7.86%
Sales Q2Q%30.16%
Revenue Next Year31.33%
Revenue Next 2Y21.62%
Revenue Next 3Y17%
Revenue Next 5YN/A
EBIT growth 1Y67.99%
EBIT growth 3Y-3.11%
EBIT growth 5YN/A
EBIT Next Year71.5%
EBIT Next 3Y25.59%
EBIT Next 5YN/A
FCF growth 1Y34.93%
FCF growth 3Y2.44%
FCF growth 5YN/A
OCF growth 1Y26.64%
OCF growth 3Y3.1%
OCF growth 5Y51.03%