MACOM TECHNOLOGY SOLUTIONS H (MTSI) Stock Fundamental Analysis
NASDAQ:MTSI - Nasdaq - US55405Y1001 - Common Stock - Currency: USD
MTSI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. MTSI has only an average score on both its financial health and profitability. MTSI shows excellent growth, but is valued quite expensive already.
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
With a Return On Assets value of -4.51%, MTSI is not doing good in the industry: 67.27% of the companies in the same industry are doing better.
MTSI has a worse Return On Equity (-7.20%) than 65.45% of its industry peers.
MTSI has a Return On Invested Capital of 4.57%. This is in the better half of the industry: MTSI outperforms 61.82% of its industry peers.
MTSI had an Average Return On Invested Capital over the past 3 years of 5.66%. This is below the industry average of 10.58%.
| 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
MTSI's Profit Margin has improved in the last couple of years.
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.
In the last couple of years the Operating Margin of MTSI has declined.
MTSI has a better Gross Margin (54.25%) than 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MTSI is destroying value.
Compared to 1 year ago, MTSI has more shares outstanding
Compared to 5 years ago, MTSI has more shares outstanding
MTSI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.41 indicates that MTSI is not in any danger for bankruptcy at the moment.
MTSI has a better Altman-Z score (9.41) than 75.45% of its industry peers.
MTSI has a debt to FCF ratio of 2.84. This is a good value and a sign of high solvency as MTSI would need 2.84 years to pay back of all of its debts.
MTSI has a Debt to FCF ratio of 2.84. This is in the better half of the industry: MTSI outperforms 62.73% 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: 70.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.84 | ||
| Altman-Z | 9.41 |
ROIC/WACC0.4
WACC11.32%
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.
The Current ratio of MTSI (3.56) is comparable to the rest of the industry.
MTSI has a Quick Ratio of 2.86. This indicates that MTSI is financially healthy and has no problem in meeting its short term obligations.
MTSI has a Quick ratio of 2.86. This is comparable 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.
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.
The Revenue has grown by 32.63% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 7.86% on average over the past years.
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
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
A Price/Earnings ratio of 45.34 indicates a quite expensive valuation of MTSI.
The rest of the industry has a similar Price/Earnings ratio as MTSI.
Compared to an average S&P500 Price/Earnings ratio of 27.30, MTSI is valued quite expensively.
Based on the Price/Forward Earnings ratio of 33.01, the valuation of MTSI can be described as expensive.
MTSI's Price/Forward Earnings is on the same level as the industry average.
MTSI is valuated expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.34 | ||
| Fwd PE | 33.01 |
4.2 Price Multiples
MTSI's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as MTSI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.64 | ||
| EV/EBITDA | 56.23 |
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 19.04% in the coming years.
PEG (NY)1.19
PEG (5Y)N/A
EPS Next 2Y27.55%
EPS Next 3Y19.04%
5. Dividend
5.1 Amount
MTSI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
137.37
-0.67 (-0.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners87.43%
Inst Owner Change0%
Ins Owners14.95%
Ins Owner Change-1.3%
Market Cap10.22B
Analysts80
Price Target144.48 (5.18%)
Short Float %3.74%
Short Ratio3.2
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%
Revenue NY rev (3m)3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.34 | ||
| Fwd PE | 33.01 | ||
| P/S | 12.09 | ||
| P/FCF | 53.64 | ||
| P/OCF | 47.16 | ||
| P/B | 8.5 | ||
| P/tB | 13.04 | ||
| EV/EBITDA | 56.23 |
EPS(TTM)3.03
EY2.21%
EPS(NY)4.16
Fwd EY3.03%
FCF(TTM)2.56
FCFY1.86%
OCF(TTM)2.91
OCFY2.12%
SpS11.36
BVpS16.16
TBVpS10.54
PEG (NY)1.19
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 | 9.41 |
F-Score5
WACC11.32%
ROIC/WACC0.4
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%