MACOM TECHNOLOGY SOLUTIONS H (MTSI) Stock Fundamental Analysis
USA - NASDAQ:MTSI - US55405Y1001 - Common Stock
131.87 USD
+0.69 (+0.53%)
132 USD
+0.13 (+0.1%)
We assign a fundamental rating of 5 out of 10 to MTSI. MTSI was compared to 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
MTSI had positive earnings in the past year.
In the past year MTSI had a positive cash flow from operations.
Of the past 5 years MTSI 4 years were profitable.
Each year in the past 5 years MTSI had a positive operating cash flow.
1.2 Ratios
MTSI has a worse Return On Assets (-3.49%) than 64.29% of its industry peers.
The Return On Equity of MTSI (-5.53%) is worse than 62.50% of its industry peers.
The Return On Invested Capital of MTSI (5.14%) is better than 64.29% of its industry peers.
MTSI had an Average Return On Invested Capital over the past 3 years of 5.66%. This is significantly below the industry average of 10.87%.
| 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.
Looking at the Gross Margin, with a value of 54.76%, MTSI is in the better half of the industry, outperforming 73.21% of the companies in the same industry.
In the last couple of years the Gross Margin of MTSI has grown nicely.
| 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.
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 8.91. This indicates that MTSI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MTSI (8.91) is better than 71.43% of its industry peers.
MTSI has a debt to FCF ratio of 3.31. This is a good value and a sign of high solvency as MTSI would need 3.31 years to pay back of all of its debts.
MTSI's Debt to FCF ratio of 3.31 is fine compared to the rest of the industry. MTSI outperforms 61.61% 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.
MTSI has a worse Debt to Equity ratio (0.45) than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.31 | ||
| Altman-Z | 8.91 |
ROIC/WACC0.46
WACC11.11%
2.3 Liquidity
A Current Ratio of 3.83 indicates that MTSI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.83, MTSI is in the better half of the industry, outperforming 60.71% of the companies in the same industry.
A Quick Ratio of 3.10 indicates that MTSI has no problem at all paying 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
MTSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.93%, which is quite impressive.
The Earnings Per Share has been growing slightly by 5.96% on average over the past years.
The Revenue has grown by 33.50% in the past year. This is a very strong growth!
Measured over the past years, MTSI shows a small growth in Revenue. The Revenue has been growing by 7.86% on average per year.
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
Based on estimates for the next years, MTSI will show a very strong growth in Earnings Per Share. The EPS will grow by 20.97% on average per year.
The Revenue is expected to grow by 14.63% on average over the next years. This is quite good.
EPS Next Y38.24%
EPS Next 2Y27.87%
EPS Next 3Y23.94%
EPS Next 5Y20.97%
Revenue Next Year32.55%
Revenue Next 2Y22.78%
Revenue Next 3Y18.33%
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
MTSI is valuated quite expensively with a Price/Earnings ratio of 40.33.
Based on the Price/Earnings ratio, MTSI is valued a bit cheaper than 60.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of MTSI to the average of the S&P500 Index (27.20), we can say MTSI is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 31.53, the valuation of MTSI can be described as expensive.
MTSI's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of MTSI to the average of the S&P500 Index (22.70), we can say MTSI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.33 | ||
| Fwd PE | 31.53 |
4.2 Price Multiples
MTSI's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, MTSI is valued a bit cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.16 | ||
| EV/EBITDA | 49.06 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MTSI's earnings are expected to grow with 23.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.05
PEG (5Y)N/A
EPS Next 2Y27.87%
EPS Next 3Y23.94%
5. Dividend
5.1 Amount
No dividends for MTSI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
131.87
+0.69 (+0.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners87.85%
Inst Owner Change-0.05%
Ins Owners13.65%
Ins Owner Change-1.24%
Market Cap9.82B
Analysts80
Price Target151.79 (15.11%)
Short Float %3.91%
Short Ratio3.53
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)0.59%
PT rev (3m)6.26%
EPS NQ rev (1m)-0.46%
EPS NQ rev (3m)-0.04%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.21%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)6.45%
Revenue NY rev (1m)0.92%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.33 | ||
| Fwd PE | 31.53 | ||
| P/S | 10.83 | ||
| P/FCF | 57.16 | ||
| P/OCF | 43.06 | ||
| P/B | 7.77 | ||
| P/tB | 11.53 | ||
| EV/EBITDA | 49.06 |
EPS(TTM)3.27
EY2.48%
EPS(NY)4.18
Fwd EY3.17%
FCF(TTM)2.31
FCFY1.75%
OCF(TTM)3.06
OCFY2.32%
SpS12.18
BVpS16.96
TBVpS11.43
PEG (NY)1.05
PEG (5Y)N/A
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%
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-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 | 8.91 |
F-Score6
WACC11.11%
ROIC/WACC0.46
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 Y38.24%
EPS Next 2Y27.87%
EPS Next 3Y23.94%
EPS Next 5Y20.97%
Revenue 1Y (TTM)33.5%
Revenue growth 3Y6.33%
Revenue growth 5Y7.86%
Sales Q2Q%32.33%
Revenue Next Year32.55%
Revenue Next 2Y22.78%
Revenue Next 3Y18.33%
Revenue Next 5Y14.63%
EBIT growth 1Y90.48%
EBIT growth 3Y-3.11%
EBIT growth 5YN/A
EBIT Next Year74.71%
EBIT Next 3Y29.7%
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%