MACOM TECHNOLOGY SOLUTIONS H (MTSI) Stock Fundamental Analysis
NASDAQ:MTSI - Nasdaq - US55405Y1001 - Common Stock - Currency: USD
Taking everything into account, MTSI scores 4 out of 10 in our fundamental rating. MTSI was compared to 107 industry peers in the Semiconductors & Semiconductor Equipment industry. MTSI has an average financial health and profitability rating. MTSI is valied quite expensively at the moment, while it does show a decent growth rate.
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
The Return On Assets of MTSI (-5.60%) is worse than 69.44% of its industry peers.
Looking at the Return On Equity, with a value of -8.97%, MTSI is doing worse than 69.44% of the companies in the same industry.
MTSI's Return On Invested Capital of 3.78% is in line compared to the rest of the industry. MTSI outperforms 59.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MTSI is significantly below the industry average of 11.67%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.6% | ||
| ROE | -8.97% | ||
| ROIC | 3.78% |
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 10.14%, MTSI is doing good in the industry, outperforming 62.96% of the companies in the same industry.
In the last couple of years the Operating Margin of MTSI has declined.
Looking at the Gross Margin, with a value of 53.58%, MTSI is in the better half of the industry, outperforming 71.30% of the companies in the same industry.
MTSI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.14% | ||
| PM (TTM) | N/A | ||
| GM | 53.58% |
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
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
An Altman-Z score of 8.53 indicates that MTSI is not in any danger for bankruptcy at the moment.
MTSI's Altman-Z score of 8.53 is fine compared to the rest of the industry. MTSI outperforms 75.00% of its industry peers.
The Debt to FCF ratio of MTSI is 3.12, which is a good value as it means it would take MTSI, 3.12 years of fcf income to pay off all of its debts.
MTSI has a Debt to FCF ratio of 3.12. This is in the better half of the industry: MTSI outperforms 65.74% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that MTSI is not too dependend on debt financing.
MTSI's Debt to Equity ratio of 0.47 is on the low side compared to the rest of the industry. MTSI is outperformed by 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.12 | ||
| Altman-Z | 8.53 |
ROIC/WACC0.33
WACC11.5%
2.3 Liquidity
MTSI has a Current Ratio of 3.61. This indicates that MTSI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.61, MTSI is in the better half of the industry, outperforming 62.04% of the companies in the same industry.
MTSI has a Quick Ratio of 2.88. This indicates that MTSI is financially healthy and has no problem in meeting its short term obligations.
MTSI has a better Quick ratio (2.88) than 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.61 | ||
| Quick Ratio | 2.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.24% 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.
MTSI shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.40%.
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)12.24%
EPS 3Y5.96%
EPS 5YN/A
EPS Q2Q%36.68%
Revenue 1Y (TTM)26.4%
Revenue growth 3Y6.33%
Revenue growth 5Y7.86%
Sales Q2Q%38.8%
3.2 Future
Based on estimates for the next years, MTSI will show a small growth in Earnings Per Share. The EPS will grow by 1.98% on average per year.
The Revenue is expected to grow by 15.34% on average over the next years. This is quite good.
EPS Next Y37.32%
EPS Next 2Y27.25%
EPS Next 3Y1.98%
EPS Next 5YN/A
Revenue Next Year27.51%
Revenue Next 2Y19.16%
Revenue Next 3Y15.34%
Revenue Next 5YN/A
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 decreasing.
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
With a Price/Earnings ratio of 43.56, MTSI can be considered very expensive at the moment.
MTSI's Price/Earnings is on the same level as the industry average.
MTSI's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 29.62.
The Price/Forward Earnings ratio is 29.13, which means the current valuation is very expensive for MTSI.
MTSI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MTSI is cheaper than 62.04% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, MTSI is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.56 | ||
| Fwd PE | 29.13 |
4.2 Price Multiples
MTSI's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MTSI indicates a somewhat cheap valuation: MTSI is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.82 | ||
| EV/EBITDA | 55.44 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.17
PEG (5Y)N/A
EPS Next 2Y27.25%
EPS Next 3Y1.98%
5. Dividend
5.1 Amount
MTSI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
120.65
-3.36 (-2.71%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners84.97%
Inst Owner Change-93.48%
Ins Owners16.19%
Ins Owner Change-0.83%
Market Cap8.97B
Analysts78
Price Target151.12 (25.25%)
Short Float %3.49%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)-1.83%
Min EPS beat(2)-2.48%
Max EPS beat(2)-1.19%
EPS beat(4)0
Avg EPS beat(4)-1.77%
Min EPS beat(4)-2.48%
Max EPS beat(4)-1.19%
EPS beat(8)0
Avg EPS beat(8)-1.4%
EPS beat(12)3
Avg EPS beat(12)-0.57%
EPS beat(16)7
Avg EPS beat(16)0.48%
Revenue beat(2)0
Avg Revenue beat(2)-1.16%
Min Revenue beat(2)-1.81%
Max Revenue beat(2)-0.51%
Revenue beat(4)0
Avg Revenue beat(4)-1.51%
Min Revenue beat(4)-1.91%
Max Revenue beat(4)-0.51%
Revenue beat(8)1
Avg Revenue beat(8)-1.19%
Revenue beat(12)1
Avg Revenue beat(12)-1.24%
Revenue beat(16)1
Avg Revenue beat(16)-1.36%
PT rev (1m)0.47%
PT rev (3m)26.27%
EPS NQ rev (1m)2.56%
EPS NQ rev (3m)10.45%
EPS NY rev (1m)0.53%
EPS NY rev (3m)1.93%
Revenue NQ rev (1m)3.85%
Revenue NQ rev (3m)12.36%
Revenue NY rev (1m)2.55%
Revenue NY rev (3m)5.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.56 | ||
| Fwd PE | 29.13 | ||
| P/S | 11.35 | ||
| P/FCF | 51.82 | ||
| P/OCF | 45.71 | ||
| P/B | 7.79 | ||
| P/tB | 12.35 | ||
| EV/EBITDA | 55.44 |
EPS(TTM)2.77
EY2.3%
EPS(NY)4.14
Fwd EY3.43%
FCF(TTM)2.33
FCFY1.93%
OCF(TTM)2.64
OCFY2.19%
SpS10.63
BVpS15.48
TBVpS9.77
PEG (NY)1.17
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.6% | ||
| ROE | -8.97% | ||
| ROCE | 5.1% | ||
| ROIC | 3.78% | ||
| ROICexc | 6.1% | ||
| ROICexgc | 10.08% | ||
| OM | 10.14% | ||
| PM (TTM) | N/A | ||
| GM | 53.58% | ||
| FCFM | 21.89% |
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 Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.12 | ||
| Debt/EBITDA | 3.62 | ||
| Cap/Depr | 33.54% | ||
| Cap/Sales | 2.93% | ||
| Interest Coverage | 20.04 | ||
| Cash Conversion | 131.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.61 | ||
| Quick Ratio | 2.88 | ||
| Altman-Z | 8.53 |
F-Score5
WACC11.5%
ROIC/WACC0.33
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)12.24%
EPS 3Y5.96%
EPS 5YN/A
EPS Q2Q%36.68%
EPS Next Y37.32%
EPS Next 2Y27.25%
EPS Next 3Y1.98%
EPS Next 5YN/A
Revenue 1Y (TTM)26.4%
Revenue growth 3Y6.33%
Revenue growth 5Y7.86%
Sales Q2Q%38.8%
Revenue Next Year27.51%
Revenue Next 2Y19.16%
Revenue Next 3Y15.34%
Revenue Next 5YN/A
EBIT growth 1Y0.47%
EBIT growth 3Y-3.11%
EBIT growth 5YN/A
EBIT Next Year73.88%
EBIT Next 3Y25.21%
EBIT Next 5YN/A
FCF growth 1Y15.23%
FCF growth 3Y2.44%
FCF growth 5YN/A
OCF growth 1Y8.28%
OCF growth 3Y3.1%
OCF growth 5Y51.03%