NasdaqGS:MTSI

Stock Analysis Report

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.

Snowflake

Fundamentals

Mediocre balance sheet and slightly overvalued.

Risks

  • MACOM Technology Solutions Holdings has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-3.7%

NasdaqGS:MTSI

-0.8%

US Semiconductor

-0.02%

US Market


1 Year Return

-0.09%

NasdaqGS:MTSI

10.2%

US Semiconductor

1.6%

US Market

MTSI underperformed the Semiconductor industry which returned 10.7% over the past year.

MTSI underperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

MTSIIndustryMarket
7 Day-3.7%-0.8%-0.02%
30 Day13.0%5.8%2.7%
90 Day54.1%12.0%1.4%
1 Year-0.09%-0.09%12.3%10.2%3.8%1.6%
3 Year-45.3%-45.3%82.2%71.6%45.2%35.8%
5 Year-1.8%-1.8%122.9%100.2%61.8%44.1%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

MACOM Technology Solutions Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

MACOM Technology Solutions Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

MACOM Technology Solutions Holdings is loss making, we can't compare its value to the US Semiconductor industry average.

MACOM Technology Solutions Holdings is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for MACOM Technology Solutions Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

MACOM Technology Solutions Holdings is overvalued based on assets compared to the US Semiconductor industry average.


Next Steps

Future Growth

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

60.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

MACOM Technology Solutions Holdings's revenue is expected to grow by 0.3% yearly, however this is not considered high growth (20% yearly).

MACOM Technology Solutions Holdings is not considered high growth as it is expected to be loss making for the next 1-3 years.

MACOM Technology Solutions Holdings's revenue growth is positive but not above the United States of America market average.

Unable to compare MACOM Technology Solutions Holdings's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare MACOM Technology Solutions Holdings's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

MACOM Technology Solutions Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

-56.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

MACOM Technology Solutions Holdings does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare MACOM Technology Solutions Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare MACOM Technology Solutions Holdings's 1-year growth to the US Semiconductor industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if MACOM Technology Solutions Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if MACOM Technology Solutions Holdings has efficiently used its assets last year compared to the US Semiconductor industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if MACOM Technology Solutions Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is MACOM Technology Solutions Holdings's financial position?


Financial Position Analysis

MACOM Technology Solutions Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

MACOM Technology Solutions Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

MACOM Technology Solutions Holdings's level of debt (221.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (162% vs 221.7% today).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


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.

Whilst loss making MACOM Technology Solutions Holdings has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making MACOM Technology Solutions Holdings has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 85.4% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate MACOM Technology Solutions Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate MACOM Technology Solutions Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as MACOM Technology Solutions Holdings has not reported any payouts.

Unable to verify if MACOM Technology Solutions Holdings's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as MACOM Technology Solutions Holdings has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of MACOM Technology Solutions Holdings's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of MACOM Technology Solutions Holdings's salary, the management and board of directors tenure and is there insider trading?

0.4yrs

Average management tenure


CEO

Stephen Daly (53yo)

0.3yrs

Tenure

US$192,497

Compensation

Mr. Stephen G. Daly 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 Corporation from Decemb ...


Management Age and Tenure

0.4yrs

Average Tenure

53yo

Average Age

The average tenure for the MACOM Technology Solutions Holdings management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.1yrs

Average Tenure

60yo

Average Age

The tenure for the MACOM Technology Solutions Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$1,329,60023 May 19
John Ocampo
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares100,000
Max PriceUS$13.35
SellUS$14,61104 Mar 19
Preetinder Virk
EntityIndividual
Shares761
Max PriceUS$19.20
SellUS$70,88525 Feb 19
Vivek Rajgarhia
EntityIndividual
Shares3,949
Max PriceUS$17.95
SellUS$68,32014 Feb 19
John Croteau
EntityIndividual
Role
Senior Key Executive
Shares4,000
Max PriceUS$17.08
SellUS$58,18421 Nov 18
Vivek Rajgarhia
EntityIndividual
Shares3,373
Max PriceUS$17.25
SellUS$253,65021 Nov 18
Robert McMullan
EntityIndividual
Shares15,000
Max PriceUS$16.91
SellUS$102,96021 Nov 18
John Croteau
EntityIndividual
Role
Senior Key Executive
Shares6,000
Max PriceUS$17.16
SellUS$103,15421 Nov 18
Alex Behfar
EntityIndividual
Shares6,043
Max PriceUS$17.07

Ownership Breakdown


Management Team

  • John Ocampo (60yo)

    Chairman of the Board

    • Tenure: 10.5yrs
    • Compensation: US$303.71k
  • John Croteau (58yo)

    • Tenure: 0.3yrs
    • Compensation: US$5.08m
  • Stephen Ferranti

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Stephen Daly (53yo)

    President

    • Tenure: 0.3yrs
    • Compensation: US$192.50k
  • John Kober (49yo)

    CFO & Senior VP

    • Tenure: 0.3yrs
  • Robert Dennehy (45yo)

    Senior Vice President of Operations

    • Tenure: 5.9yrs
    • Compensation: US$1.19m
  • Jessen Wehrwein

    Vice President of Corporate Communications

    • Tenure: 6.8yrs
  • Douglas Carlson (57yo)

    Senior Vice President of Technology

    • Tenure: 0yrs
  • Ambra Roth

    VP, General Counsel & Secretary

    • Tenure: 0yrs
  • Conor Hegarty (52yo)

    Vice President of Financial Planning and Analysis

    • Tenure: 0.4yrs

Board Members

  • John Ocampo (60yo)

    Chairman of the Board

    • Tenure: 10.5yrs
    • Compensation: US$303.71k
  • Susan Ocampo (61yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$45.00k
  • Geoff Ribar (60yo)

    Director

    • Tenure: 2.5yrs
    • Compensation: US$185.00k
  • Charles Bland (70yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$195.00k
  • Gil Van Lunsen (76yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: US$207.50k
  • Peter Chung (51yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$195.00k
  • Stephen Daly (53yo)

    President

    • Tenure: 0.3yrs
    • Compensation: US$192.50k
  • Toshi Takada

    President & Representative Director of MACOM Technology Solutions K.K.

    • Tenure: 3.7yrs

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$1.482b
  • Shares outstanding: 66.05m
  • 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 Analysis2019/09/19 00:09
End of Day Share Price2019/09/18 00:00
Earnings2019/06/28
Annual Earnings2018/09/28


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.