MACOM TECHNOLOGY SOLUTIONS H (MTSI)
US55405Y1001 - Common Stock
Taking everything into account, MTSI scores 5 out of 10 in our fundamental rating. MTSI was compared to 108 industry peers in the Semiconductors & Semiconductor Equipment industry. MTSI has an excellent financial health rating, but there are some minor concerns on its profitability. MTSI is quite expensive at the moment. It does show a decent growth rate.
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.
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
Looking at the Return On Assets, with a value of 4.38%, MTSI is in the better half of the industry, outperforming 62.04% of the companies in the same industry.
The Return On Equity of MTSI (6.82%) is better than 61.11% of its industry peers.
The Return On Invested Capital of MTSI (3.66%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for MTSI is significantly below the industry average of 11.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 6.82% | ||
| ROIC | 3.66% |
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 of 10.53% is fine compared to the rest of the industry. MTSI outperforms 62.96% of its industry peers.
MTSI's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.10%, MTSI is in the better half of the industry, outperforming 64.81% 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 53.97%. This is in the better half of the industry: MTSI outperforms 74.07% of its industry peers.
In the last couple of years the Gross Margin of MTSI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.1% | ||
| PM (TTM) | 10.53% | ||
| GM | 53.97% |
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
MTSI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MTSI has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MTSI has more shares outstanding
Compared to 1 year ago, MTSI has an improved debt to assets ratio.
2.2 Solvency
MTSI has an Altman-Z score of 10.47. This indicates that MTSI is financially healthy and has little risk of bankruptcy at the moment.
MTSI's Altman-Z score of 10.47 is amongst the best of the industry. MTSI outperforms 80.56% of its industry peers.
MTSI has a debt to FCF ratio of 3.49. This is a good value and a sign of high solvency as MTSI would need 3.49 years to pay back of all of its debts.
The Debt to FCF ratio of MTSI (3.49) is better than 65.74% of its industry peers.
MTSI has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MTSI (0.43) is worse than 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 10.47 |
ROIC/WACC0.25
WACC14.61%
2.3 Liquidity
A Current Ratio of 8.35 indicates that MTSI has no problem at all paying its short term obligations.
MTSI's Current ratio of 8.35 is amongst the best of the industry. MTSI outperforms 94.44% of its industry peers.
A Quick Ratio of 6.55 indicates that MTSI has no problem at all paying its short term obligations.
MTSI has a better Quick ratio (6.55) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.35 | ||
| Quick Ratio | 6.55 |
3. Growth
3.1 Past
The earnings per share for MTSI have decreased by -5.26% in the last 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.
Looking at the last year, MTSI shows a quite strong growth in Revenue. The Revenue has grown by 12.52% in the last year.
MTSI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.86% yearly.
EPS 1Y (TTM)-5.26%
EPS 3Y5.96%
EPS 5YN/A
EPS Q2Q%30.36%
Revenue 1Y (TTM)12.52%
Revenue growth 3Y6.33%
Revenue growth 5Y7.86%
Sales Q2Q%33.47%
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 15.16% yearly.
MTSI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.87% yearly.
EPS Next Y36.59%
EPS Next 2Y25.92%
EPS Next 3Y15.16%
EPS Next 5YN/A
Revenue Next Year24.34%
Revenue Next 2Y17.46%
Revenue Next 3Y13.87%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 54.32, the valuation of MTSI can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MTSI is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.48, MTSI is valued quite expensively.
The Price/Forward Earnings ratio is 39.80, which means the current valuation is very expensive for 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 23.95. MTSI is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.32 | ||
| Fwd PE | 39.8 |
4.2 Price Multiples
MTSI's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, MTSI is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.82 | ||
| EV/EBITDA | 67.12 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MTSI has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MTSI's earnings are expected to grow with 15.16% in the coming years.
PEG (NY)1.48
PEG (5Y)N/A
EPS Next 2Y25.92%
EPS Next 3Y15.16%
5. Dividend
5.1 Amount
No dividends for MTSI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MACOM TECHNOLOGY SOLUTIONS H
NASDAQ:MTSI (12/6/2024, 8:02:49 PM)
After market: 139.07 0 (0%)139.07
+1.13 (+0.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
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Market Cap10.07B
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| Dividend Yield | N/A |
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.32 | ||
| Fwd PE | 39.8 | ||
| P/S | |||
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PEG (NY)1.48
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.38% | ||
| ROE | 6.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.1% | ||
| PM (TTM) | 10.53% | ||
| GM | 53.97% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
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ROCE(5y)
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ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 8.35 | ||
| Quick Ratio | 6.55 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
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Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-5.26%
EPS 3Y5.96%
EPS 5Y
EPS Q2Q%
EPS Next Y36.59%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.52%
Revenue growth 3Y6.33%
Revenue growth 5Y
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