MACOM TECHNOLOGY SOLUTIONS H (MTSI) Stock Fundamental Analysis
NASDAQ:MTSI - US55405Y1001 - Common Stock
128.33 USD
+1.64 (+1.29%)
128.63 USD
+0.3 (+0.23%)
Overall MTSI gets a fundamental rating of 5 out of 10. We evaluated MTSI against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and the financial health of MTSI get a neutral evaluation. Nothing too spectacular is happening here. MTSI shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
MTSI had positive earnings in the past year.
MTSI had a positive operating cash flow in the past year.
MTSI had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MTSI had a positive operating cash flow.
1.2 Ratios
MTSI has a worse Return On Assets (-3.49%) than 65.45% of its industry peers.
With a Return On Equity value of -5.53%, MTSI is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
MTSI's Return On Invested Capital of 5.14% is fine compared to the rest of the industry. MTSI outperforms 62.73% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MTSI is significantly below the industry average of 10.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.49% | ||
| ROE | -5.53% | ||
| ROIC | 5.14% |
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
MTSI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.97%, MTSI is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Operating Margin of MTSI has declined.
MTSI has a Gross Margin of 54.76%. This is in the better half of the industry: MTSI outperforms 70.91% of its industry peers.
MTSI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.97% | ||
| PM (TTM) | N/A | ||
| GM | 54.76% |
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.
The number of shares outstanding for MTSI has been increased compared to 1 year ago.
The number of shares outstanding for MTSI has been increased compared to 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 8.60 indicates that MTSI is not in any danger for bankruptcy at the moment.
The Altman-Z score of MTSI (8.60) is better than 73.64% of its industry peers.
The Debt to FCF ratio of MTSI is 3.31, which is a good value as it means it would take MTSI, 3.31 years of fcf income to pay off all of its debts.
MTSI has a Debt to FCF ratio of 3.31. This is in the better half of the industry: MTSI outperforms 60.91% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that MTSI is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.45, MTSI is not doing good in the industry: 70.91% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | 8.6 |
ROIC/WACC0.45
WACC11.48%
2.3 Liquidity
A Current Ratio of 3.83 indicates that MTSI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.83, MTSI is in the better half of the industry, outperforming 62.73% of the companies in the same industry.
A Quick Ratio of 3.10 indicates that MTSI has no problem at all paying its short term obligations.
The Quick ratio of MTSI (3.10) is better than 65.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.83 | ||
| Quick Ratio | 3.1 |
3. Growth
3.1 Past
MTSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.93%, which is quite impressive.
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.
Looking at the last year, MTSI shows a very strong growth in Revenue. The Revenue has grown by 33.50%.
MTSI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.86% yearly.
EPS 1Y (TTM)36.93%
EPS 3Y5.96%
EPS 5YN/A
EPS Q2Q%36.36%
Revenue 1Y (TTM)33.5%
Revenue growth 3Y6.33%
Revenue growth 5Y7.86%
Sales Q2Q%32.33%
3.2 Future
Based on estimates for the next years, MTSI will show a very strong growth in Earnings Per Share. The EPS will grow by 20.97% on average per year.
The Revenue is expected to grow by 14.63% on average over the next years. This is quite good.
EPS Next Y38.24%
EPS Next 2Y27.87%
EPS Next 3Y23.94%
EPS Next 5Y20.97%
Revenue Next Year33.03%
Revenue Next 2Y22.83%
Revenue Next 3Y19.25%
Revenue Next 5Y14.63%
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 39.24, which means the current valuation is very expensive for MTSI.
MTSI's Price/Earnings ratio is in line with the industry average.
MTSI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.08.
MTSI is valuated quite expensively with a Price/Forward Earnings ratio of 30.68.
MTSI's Price/Forward Earnings is on the same level as the industry average.
MTSI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.24 | ||
| Fwd PE | 30.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MTSI is on the same level as its industry peers.
63.64% of the companies in the same industry are more expensive than MTSI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.63 | ||
| EV/EBITDA | 46.93 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as MTSI's earnings are expected to grow with 23.94% in the coming years.
PEG (NY)1.03
PEG (5Y)N/A
EPS Next 2Y27.87%
EPS Next 3Y23.94%
5. Dividend
5.1 Amount
MTSI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
128.33
+1.64 (+1.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners87.85%
Inst Owner Change-0.05%
Ins Owners13.65%
Ins Owner Change-1.01%
Market Cap9.56B
Analysts80
Price Target152.43 (18.78%)
Short Float %3.6%
Short Ratio3.34
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)-1.03%
Min EPS beat(2)-1.57%
Max EPS beat(2)-0.49%
EPS beat(4)0
Avg EPS beat(4)-1.43%
Min EPS beat(4)-2.48%
Max EPS beat(4)-0.49%
EPS beat(8)0
Avg EPS beat(8)-1.39%
EPS beat(12)1
Avg EPS beat(12)-1.04%
EPS beat(16)5
Avg EPS beat(16)-0.3%
Revenue beat(2)1
Avg Revenue beat(2)-0.16%
Min Revenue beat(2)-1.08%
Max Revenue beat(2)0.76%
Revenue beat(4)1
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-1.81%
Max Revenue beat(4)0.76%
Revenue beat(8)2
Avg Revenue beat(8)-0.91%
Revenue beat(12)2
Avg Revenue beat(12)-1.11%
Revenue beat(16)2
Avg Revenue beat(16)-1.18%
PT rev (1m)3.41%
PT rev (3m)9.79%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)0.04%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.21%
Revenue NQ rev (1m)2.58%
Revenue NQ rev (3m)6.62%
Revenue NY rev (1m)1.29%
Revenue NY rev (3m)1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.24 | ||
| Fwd PE | 30.68 | ||
| P/S | 10.54 | ||
| P/FCF | 55.63 | ||
| P/OCF | 41.9 | ||
| P/B | 7.56 | ||
| P/tB | 11.22 | ||
| EV/EBITDA | 46.93 |
EPS(TTM)3.27
EY2.55%
EPS(NY)4.18
Fwd EY3.26%
FCF(TTM)2.31
FCFY1.8%
OCF(TTM)3.06
OCFY2.39%
SpS12.18
BVpS16.96
TBVpS11.43
PEG (NY)1.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.49% | ||
| ROE | -5.53% | ||
| ROCE | 6.88% | ||
| ROIC | 5.14% | ||
| ROICexc | 8.47% | ||
| ROICexgc | 13.31% | ||
| OM | 12.97% | ||
| PM (TTM) | N/A | ||
| GM | 54.76% | ||
| FCFM | 18.94% |
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-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.31 | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | 88.65% | ||
| Cap/Sales | 6.21% | ||
| Interest Coverage | 32.65 | ||
| Cash Conversion | 125.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.83 | ||
| Quick Ratio | 3.1 | ||
| Altman-Z | 8.6 |
F-Score6
WACC11.48%
ROIC/WACC0.45
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)36.93%
EPS 3Y5.96%
EPS 5YN/A
EPS Q2Q%36.36%
EPS Next Y38.24%
EPS Next 2Y27.87%
EPS Next 3Y23.94%
EPS Next 5Y20.97%
Revenue 1Y (TTM)33.5%
Revenue growth 3Y6.33%
Revenue growth 5Y7.86%
Sales Q2Q%32.33%
Revenue Next Year33.03%
Revenue Next 2Y22.83%
Revenue Next 3Y19.25%
Revenue Next 5Y14.63%
EBIT growth 1Y90.48%
EBIT growth 3Y-3.11%
EBIT growth 5YN/A
EBIT Next Year74.71%
EBIT Next 3Y29.7%
EBIT Next 5YN/A
FCF growth 1Y14.53%
FCF growth 3Y2.44%
FCF growth 5YN/A
OCF growth 1Y29.14%
OCF growth 3Y3.1%
OCF growth 5Y51.03%