MACOM TECHNOLOGY SOLUTIONS H (MTSI) Stock Fundamental Analysis
USA - NASDAQ:MTSI - US55405Y1001 - Common Stock
135.91 USD
-3.5 (-2.51%)
135.91 USD
0 (0%)
MTSI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 112 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.
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's Return On Assets of -3.49% is on the low side compared to the rest of the industry. MTSI is outperformed by 63.39% of its industry peers.
MTSI has a Return On Equity of -5.53%. This is in the lower half of the industry: MTSI underperforms 62.50% of its industry peers.
With a decent Return On Invested Capital value of 5.14%, MTSI is doing good in the industry, outperforming 64.29% of the companies in the same industry.
MTSI had an Average Return On Invested Capital over the past 3 years of 5.66%. This 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.
MTSI's Operating Margin of 12.97% is fine compared to the rest of the industry. MTSI outperforms 71.43% of its industry peers.
MTSI's Operating Margin has declined in the last couple of years.
MTSI has a better Gross Margin (54.76%) than 73.21% 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.
MTSI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MTSI has been reduced compared to a year ago.
2.2 Solvency
MTSI has an Altman-Z score of 9.36. This indicates that MTSI is financially healthy and has little risk of bankruptcy at the moment.
MTSI's Altman-Z score of 9.36 is fine compared to the rest of the industry. MTSI outperforms 68.75% 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 better Debt to FCF ratio (3.31) than 62.50% of its industry peers.
MTSI has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.45, MTSI is not doing good in the industry: 66.96% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | 9.36 |
ROIC/WACC0.45
WACC11.33%
2.3 Liquidity
MTSI has a Current Ratio of 3.83. This indicates that MTSI is financially healthy and has no problem in meeting its short term obligations.
MTSI's Current ratio of 3.83 is fine compared to the rest of the industry. MTSI outperforms 61.61% of its industry peers.
MTSI has a Quick Ratio of 3.10. This indicates that MTSI is financially healthy and has no problem in meeting its short term obligations.
MTSI's Quick ratio of 3.10 is fine compared to the rest of the industry. MTSI outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.83 | ||
| Quick Ratio | 3.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 36.93% over the past 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 very strong growth in Revenue. The Revenue has grown by 33.50%.
The Revenue has been growing slightly by 7.86% on average over the past years.
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
MTSI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.97% yearly.
Based on estimates for the next years, MTSI will show a quite strong growth in Revenue. The Revenue will grow by 14.63% on average per year.
EPS Next Y38.4%
EPS Next 2Y27.51%
EPS Next 3Y23.15%
EPS Next 5Y20.97%
Revenue Next Year32.54%
Revenue Next 2Y22.78%
Revenue Next 3Y18.39%
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
A Price/Earnings ratio of 41.56 indicates a quite expensive valuation of MTSI.
61.61% of the companies in the same industry are more expensive than MTSI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MTSI to the average of the S&P500 Index (27.57), we can say MTSI is valued expensively.
With a Price/Forward Earnings ratio of 32.68, MTSI can be considered very expensive at the moment.
MTSI's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.09. MTSI is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.56 | ||
| Fwd PE | 32.68 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MTSI.
62.50% 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 | 58.92 | ||
| EV/EBITDA | 52.16 |
4.3 Compensation for Growth
MTSI's 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 23.15% in the coming years.
PEG (NY)1.08
PEG (5Y)N/A
EPS Next 2Y27.51%
EPS Next 3Y23.15%
5. Dividend
5.1 Amount
MTSI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
135.91
-3.5 (-2.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.53%
Inst Owner Change0.09%
Ins Owners0.16%
Ins Owner Change-1.34%
Market Cap10.12B
Revenue(TTM)906.80M
Net Income(TTM)-69916000
Analysts80
Price Target151.79 (11.68%)
Short Float %4.32%
Short Ratio3.05
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)0%
PT rev (3m)5.06%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-0.12%
EPS NY rev (1m)0.11%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.56 | ||
| Fwd PE | 32.68 | ||
| P/S | 11.16 | ||
| P/FCF | 58.92 | ||
| P/OCF | 44.38 | ||
| P/B | 8.01 | ||
| P/tB | 11.89 | ||
| EV/EBITDA | 52.16 |
EPS(TTM)3.27
EY2.41%
EPS(NY)4.16
Fwd EY3.06%
FCF(TTM)2.31
FCFY1.7%
OCF(TTM)3.06
OCFY2.25%
SpS12.18
BVpS16.96
TBVpS11.43
PEG (NY)1.08
PEG (5Y)N/A
Graham Number35.33
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%
ROICexgc growth 3Y-25.63%
ROICexgc 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 | 9.36 |
F-Score6
WACC11.33%
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 Y38.4%
EPS Next 2Y27.51%
EPS Next 3Y23.15%
EPS Next 5Y20.97%
Revenue 1Y (TTM)33.5%
Revenue growth 3Y6.33%
Revenue growth 5Y7.86%
Sales Q2Q%32.33%
Revenue Next Year32.54%
Revenue Next 2Y22.78%
Revenue Next 3Y18.39%
Revenue Next 5Y14.63%
EBIT growth 1Y90.48%
EBIT growth 3Y-3.11%
EBIT growth 5YN/A
EBIT Next Year72.28%
EBIT Next 3Y30.73%
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%