MACOM Technology Solutions Holdings (MTSI) AI Stock Analysis

• Market Cap: $16.13B
• Dividend Yield: N/A
• Average Volume (3M): 1.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.48
• Revenue Growth: 32.58%
• EPS Growth: -173.04%
• Country: US
• Employees: 1,700
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 1.02
• Shares Outstanding: 75,010,895
• 10 Day Avg. Volume: 1,203,573
• 30 Day Avg. Volume: 1,227,302
• PEG Ratio: 1.03
• Price to Book (P/B): 7.10
• Price to Sales (P/S): 9.75
• P/FCF Ratio: 48.89
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 17.12
• Enterprise Value/Gross Profit: 32.09
• Enterprise Value/Ebitda: 356.77
• 1Y Price Target: $205.64
• Price Target Upside: -4.37% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: $229.00 ▲(6.50% Upside)

The score is supported by strong technical uptrend signals and an upbeat earnings call with raised data-center growth outlook, solid margin guidance, and strong bookings/backlog. Offsetting these positives are weak underlying profitability and pressured free-cash-flow trends in the financial statements, plus a valuation profile that is difficult to justify on a negative P/E.

Positive Factors

Technology & Product Roadmap

MACOM's advancing product roadmap (PCIe6/7, >200Gbps per lane photodetectors and 3.2T roadmap) provides durable technical differentiation for hyperscalers and telecom OEMs. These platform-level innovations underpin multi-year content wins, deeper customer integration, and higher-margin system-level share gains.

Robust Gross Margin & Margin Guidance

Sustained ~57% adjusted gross margins and explicit guidance for incremental margin improvement indicate structural pricing power and favorable product mix. High gross margins create headroom for R&D and SG&A while insulating profitability from modest cost inflation and supporting long-term operating leverage as volumes scale.

Strong Demand Visibility & Backlog

A 1.3x book-to-bill and record backlog, combined with a materially raised data-center growth outlook, provide multi-quarter revenue visibility. Durable hyperscaler and defense demand reduces execution risk, supports capacity planning and justifies ongoing investments in scale and specialized manufacturing.

Negative Factors

Profitability & ROE Weakness

Despite high gross margins, negative net margins and ROE show MACOM hasn't converted top-line into sustained bottom-line returns. Persistent operating inefficiencies or mix swings can keep ROIC depressed, limiting retained earnings for reinvestment and forcing dependence on external financing for strategic initiatives.

Cash-Conversion & Working-Capital Pressure

Declining FCF growth and sub‑1.0 operating-cashflow-to-income ratios signal cash-conversion strain. Management cited higher AR and inventory builds and a sequential OCF drop, meaning revenue growth is accompanied by rising working-capital needs that can delay sustainable free cash flow recovery and constrain flexibility.

Near-term Material Cash Outflow

The scheduled ~$161M cash retirement of convertible notes is a sizable near-term liquidity use. Even with a net-cash position, this outflow materially reduces deployable liquidity, tightening near-term capital allocation choices and raising execution risk for ramps or opportunistic investments.

MACOM Technology Solutions Holdings Business Overview & Revenue Model

Company Description

MACOM Technology Solutions Holdings, Inc., together with its subsidiaries, designs and manufactures analog semiconductor solutions for use in wireless and wireline applications across the radio frequency (RF), microwave, millimeter wave, and lightwave spectrum in the United States, China, the Asia Pacific, and internationally. The company offers a portfolio of standard and custom devices, including integrated circuits, multi-chip modules, diodes, amplifiers, switches and switch limiters, passive and active components, and subsystems. Its semiconductor products are electronic components that are incorporated in electronic systems, such as wireless basestations, high-capacity optical networks, radar, and medical systems and test and measurement. The company serves various markets comprising telecommunication that includes carrier infrastructure, which comprise long-haul/metro, 5G, and fiber-to-the-X/passive optical network; industrial and defense, including military and commercial radar, RF jammers, electronic countermeasures, and communication data links, as well as multi-market applications, such as industrial, medical, test and measurement, and scientific applications; and data centers. It sells its products through direct sales force, applications engineering staff, independent sales representatives, resellers, and distributors. The company was founded in 1950 and is headquartered in Lowell, Massachusetts.

How the Company Makes Money

MACOM generates revenue primarily through the sale of its semiconductor products across various sectors, including telecommunications, data centers, and industrial applications. The company's key revenue streams include the sale of optical components, RF devices, and microwave integrated circuits. MACOM benefits from long-term partnerships with leading technology firms and telecommunications companies, which provide consistent demand for its advanced solutions. Additionally, the company often engages in customized product development for its customers, allowing it to capture higher margins. Factors contributing to its earnings include the growing demand for high-speed data communication, the expansion of 5G networks, and advancements in industrial automation.

MACOM Technology Solutions Holdings Financial Statement Overview

Summary

Mixed fundamentals: revenue is growing (TTM +6.67%) and gross margin is strong (53.34%), but profitability is weak with negative net margin (-5.60%) and negative ROE (-4.39%). Cash generation is also pressured with declining free cash flow growth (-4.50%).

Income Statement

The income statement shows mixed results. While there is a positive revenue growth rate of 6.67% in the TTM, the company is experiencing negative net profit margins at -5.60%, indicating profitability challenges. The gross profit margin is relatively healthy at 53.34%, but the negative EBIT margin suggests operational inefficiencies. Overall, the income statement reflects growth but with significant profitability concerns.

Balance Sheet

The balance sheet indicates moderate financial stability. The debt-to-equity ratio is at a manageable 0.43, showing a balanced approach to leveraging. However, the return on equity is negative at -4.39%, highlighting inefficiencies in generating returns for shareholders. The equity ratio is not explicitly calculated, but the overall asset base appears stable. The balance sheet suggests a stable but underperforming financial position.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth at -4.50%, which is concerning. The operating cash flow to net income ratio is 0.72, indicating that operating cash flows are not fully covering net income, which is negative. The free cash flow to net income ratio is 0.70, suggesting some level of cash flow generation despite net losses. Overall, cash flow management appears to be under pressure.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	967.26M	729.58M	648.41M	675.17M	606.92M
Gross Profit	531.44M	371.40M	362.06M	380.59M	310.94M
EBITDA	39.79M	163.91M	179.69M	304.65M	133.49M
Net Income	-54.21M	76.86M	91.58M	439.95M	37.97M
Balance Sheet
Total Assets	2.10B	1.76B	1.55B	1.57B	1.13B
Cash, Cash Equivalents and Short-Term Investments	785.98M	581.89M	514.53M	586.53M	344.90M
Total Debt	537.99M	487.78M	487.33M	600.43M	528.55M
Total Liabilities	776.26M	629.30M	605.64M	729.07M	662.41M
Stockholders Equity	1.33B	1.13B	947.60M	842.75M	471.74M
Cash Flow
Free Cash Flow	192.82M	140.20M	142.22M	150.47M	130.46M
Operating Cash Flow	235.37M	162.64M	166.92M	176.98M	148.41M
Investing Cash Flow	-328.26M	-181.13M	36.34M	-182.86M	-2.58M
Financing Cash Flow	58.10M	-9.06M	-149.02M	-28.91M	-119.09M

MACOM Technology Solutions Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 215.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTSI, the sentiment is Positive. The current price of 215.03 is above the 20-day moving average (MA) of 212.59, above the 50-day MA of 190.44, and above the 200-day MA of 146.78, indicating a bullish trend. The MACD of 11.03 indicates Positive momentum. The RSI at 56.04 is Neutral, neither overbought nor oversold. The STOCH value of 46.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTSI.

MACOM Technology Solutions Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVMI	73 Outperform	$12.69B	54.56	23.58%	―	39.37%	40.87%
LSCC	71 Outperform	$11.19B	414.97	3.86%	―	-12.03%	-80.99%
RMBS	70 Outperform	$10.86B	47.76	18.55%	―	31.05%	30.35%
MTSI	63 Neutral	$16.13B	―	-4.42%	―	32.58%	-173.04%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SWKS	61 Neutral	$8.85B	21.50	7.89%	4.37%	-2.18%	-16.84%
QRVO	61 Neutral	$7.50B	22.27	9.62%	―	-7.22%	―

MACOM Technology Solutions Holdings Corporate Events

MACOM Adds Veteran Semiconductor Executive to Board

On January 12, 2026, MACOM Technology Solutions Holdings appointed veteran semiconductor executive Bryan Ingram as an independent director to its board, with his term running until the 2026 annual meeting of stockholders and an expectation of renomination for a further one-year term. Ingram brings decades of experience managing multi-billion-dollar wireless semiconductor businesses at Broadcom, Avago and Agilent, alongside current and recent board roles at technology and networking companies, and MACOM’s leadership expects his strategic and operational expertise in large-scale semiconductor operations and supply chains to bolster the company’s execution of its growth strategy and efforts to strengthen its market leadership and create shareholder value.

The most recent analyst rating on (MTSI) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on MACOM Technology Solutions Holdings stock, see the MTSI Stock Forecast page.

MACOM Technology Promotes Dennehy to COO Role

On November 25, 2025, MACOM Technology Solutions Holdings announced the promotion of Robert Dennehy to Senior Vice President and Chief Operating Officer. Mr. Dennehy, who has been with the company since 2006, will continue to oversee MACOM’s global operations, manufacturing, supply chain, and operational strategies. His extensive experience within the company positions him to support MACOM’s future growth as it expands its operational scope and complexity.

The most recent analyst rating on (MTSI) stock is a Hold with a $180.00 price target. To see the full list of analyst forecasts on MACOM Technology Solutions Holdings stock, see the MTSI Stock Forecast page.