NasdaqGS:MTSI

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

MACOM Technology Solutions Holdings

Executive Summary

MACOM Technology Solutions Holdings, Inc., together with its subsidiaries, designs and manufactures analog radio frequency (RF), microwave, millimeterwave, and lightwave spectrum products in the United States, China, the Asia Pacific, and internationally. More Details


Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has MACOM Technology Solutions Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MTSI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.8%

MTSI

1.8%

US Semiconductor

-0.8%

US Market


1 Year Return

48.9%

MTSI

41.5%

US Semiconductor

13.8%

US Market

Return vs Industry: MTSI exceeded the US Semiconductor industry which returned 41.5% over the past year.

Return vs Market: MTSI exceeded the US Market which returned 13.8% over the past year.


Shareholder returns

MTSIIndustryMarket
7 Day-1.8%1.8%-0.8%
30 Day-12.3%-3.2%-5.7%
90 Day-6.8%12.4%8.6%
1 Year48.9%48.9%44.2%41.5%16.4%13.8%
3 Year-29.6%-29.6%80.9%71.4%36.9%27.8%
5 Year8.8%8.8%240.4%206.9%85.0%64.2%

Price Volatility Vs. Market

How volatile is MACOM Technology Solutions Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MACOM Technology Solutions Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTSI ($32) is trading below our estimate of fair value ($113.95)

Significantly Below Fair Value: MTSI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MTSI is unprofitable, so we can't compare its PE Ratio to the US Semiconductor industry average.

PE vs Market: MTSI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MTSI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MTSI is overvalued based on its PB Ratio (7.8x) compared to the US Semiconductor industry average (3.1x).


Next Steps

Future Growth

How is MACOM Technology Solutions Holdings forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

135.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTSI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: MTSI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MTSI's is expected to become profitable in the next 3 years.

Revenue vs Market: MTSI's revenue (10.8% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: MTSI's revenue (10.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MTSI's Return on Equity is forecast to be high in 3 years time (30.1%)


Next Steps

Past Performance

How has MACOM Technology Solutions Holdings performed over the past 5 years?

-49.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTSI is currently unprofitable.

Growing Profit Margin: MTSI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MTSI is unprofitable, and losses have increased over the past 5 years at a rate of 49.6% per year.

Accelerating Growth: Unable to compare MTSI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MTSI is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (7.5%).


Return on Equity

High ROE: MTSI has a negative Return on Equity (-19.41%), as it is currently unprofitable.


Next Steps

Financial Health

How is MACOM Technology Solutions Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: MTSI's short term assets ($450.3M) exceed its short term liabilities ($95.0M).

Long Term Liabilities: MTSI's short term assets ($450.3M) do not cover its long term liabilities ($752.8M).


Debt to Equity History and Analysis

Debt Level: MTSI's debt to equity ratio (241.4%) is considered high.

Reducing Debt: MTSI's debt to equity ratio has increased from 95% to 241.4% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable MTSI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MTSI is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 11.6% per year.


Next Steps

Dividend

What is MACOM Technology Solutions Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MTSI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MTSI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MTSI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MTSI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MTSI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Steve Daly (54 yo)

1.33yrs

Tenure

US$8,240,241

Compensation

Mr. Stephen G. Daly, also known as Steve, has been an Independent Director of MACOM Technology Solutions Holdings, Inc. since March 2015. Mr. Daly served as the Chairman of the Board of Hittite Microwave C ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD8.24M) is above average for companies of similar size in the US market ($USD4.61M).

Compensation vs Earnings: Steve's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Daly
President1.33yrsUS$8.24m0.017%
$ 363.0k
John Kober
CFO & Senior VP1.33yrsUS$1.60m0.0032%
$ 68.7k
Robert Dennehy
Senior Vice President of Operations6.92yrsUS$2.24m0.053%
$ 1.1m
Douglas Carlson
Senior Vice President of Technology1yrUS$1.71m0.022%
$ 474.3k
Donghyun Hwang
Senior Vice President of Global Sales5.67yrsUS$1.53m0.031%
$ 656.2k
Conor Hegarty
Vice President of Finance & Business Operationsno dataUS$651.92k0.0074%
$ 159.0k
John Ocampo
Chairman of the Board11.5yrsUS$303.71k29.58%
$ 633.1m
Stephen Ferranti
Vice President of Investor Relationsno datano datano data
Ambra Roth
Senior VP2.33yrsno data0.016%
$ 337.5k
Jessen Wehrwein
Vice President of Corporate Communications7.75yrsno datano data
Walter Baker
Senior Vice President of Strategy5.92yrsno datano data
John Kennedy
Senior VP and GM of Aerospace & Defense Solutions3.92yrsno datano data

3.9yrs

Average Tenure

53.5yo

Average Age

Experienced Management: MTSI's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Daly
President1.33yrsUS$8.24m0.017%
$ 363.0k
John Ocampo
Chairman of the Board11.5yrsUS$303.71k29.58%
$ 633.1m
Toshihiro Takada
President & Representative Director of MACOM Technology Solutions K.K.4.67yrsno datano data
Susan Ocampo
Director4.25yrsUS$45.00kno data
Geoffrey Ribar
Independent Director3.5yrsUS$194.06k0.026%
$ 561.2k
Charles Bland
Independent Director4.25yrsUS$194.99k0.058%
$ 1.2m
Gil Van Lunsen
Independent Director10.08yrsUS$199.99k0.049%
$ 1.1m
Peter Chung
Independent Director9.75yrsUS$194.99k0.049%
$ 1.1m

5.1yrs

Average Tenure

61yo

Average Age

Experienced Board: MTSI's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MTSI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

MACOM Technology Solutions Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MACOM Technology Solutions Holdings, Inc.
  • Ticker: MTSI
  • Exchange: NasdaqGS
  • Founded: 1950
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$2.140b
  • Shares outstanding: 66.89m
  • Website: https://www.macom.com

Number of Employees


Location

  • MACOM Technology Solutions Holdings, Inc.
  • 100 Chelmsford Street
  • Lowell
  • Massachusetts
  • 1851
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTSINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 2012
1MADB (Deutsche Boerse AG)YesCommon StockDEEURMar 2012

Biography

MACOM Technology Solutions Holdings, Inc., together with its subsidiaries, designs and manufactures analog radio frequency (RF), microwave, millimeterwave, and lightwave spectrum products in the United Sta ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/28 04:51
End of Day Share Price2020/09/25 00:00
Earnings2020/07/03
Annual Earnings2019/09/27


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.