Macom Technology Solutions (MTSI)
NASDAQ:MTSI
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MACOM Technology Solutions Holdings
(NASDAQ:MTSI)
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Rating:66Neutral
Price Target:
$236.00
▼(-3.69% Downside)
Action:DowngradedDate:03/10/26
The score is driven mainly by solid current profitability and manageable leverage, reinforced by upbeat guidance and a raised data-center growth outlook with strong backlog. Offsetting these positives are weaker recent cash-flow conversion and a relatively stretched valuation (high P/E), while technical indicators show the stock is in a near-term pullback/oversold condition.
Positive Factors
High Gross Margins
Sustained ~57% gross margins reflect MACOM's exposure to high-value RF and optical components where engineering differentiation and limited competition support structural pricing power. Management expects sequential margin improvement through FY26, underpinning durable profitability across end markets.
Negative Factors
Weak Cash Conversion
Free‑cash‑flow decline and operating cash flow trailing earnings indicate working‑capital and timing pressures. Over the medium term, weaker cash conversion can constrain organic reinvestment, slow deleveraging, and increase sensitivity to customer payment and inventory cycles during ramps.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margins
Sustained ~57% gross margins reflect MACOM's exposure to high-value RF and optical components where engineering differentiation and limited competition support structural pricing power. Management expects sequential margin improvement through FY26, underpinning durable profitability across end markets.
Read all positive factors
MACOM Technology Solutions Holdings (MTSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.38B
Dividend YieldN/A
Average Volume (3M)1.17M
Price to Earnings (P/E)67.1
Beta (1Y)1.47
Revenue Growth32.58%
EPS Growth-173.04%
CountryUS
Employees1,700
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)1.02
Shares Outstanding75,011,970
10 Day Avg. Volume1,127,723
30 Day Avg. Volume1,166,034
Financial Highlights & Ratios
PEG Ratio1.03
Price to Book (P/B)7.10
Price to Sales (P/S)9.75
P/FCF Ratio48.89
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue17.23
Enterprise Value/Gross Profit31.64
Enterprise Value/Ebitda67.03
Forecast
1Y Price Target
$255.08Price Target Upside4.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)4.47
Revenue Forecast (FY)$1.17B
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 light...
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 compone...
MACOM Technology Solutions Holdings Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presented a materially positive operational and financial picture: strong revenue growth (+24.5% YoY), record adjusted EPS (> $1.00), robust backlog and bookings (1.3 book‑to‑bill), upgraded data center growth outlook (35–40% YoY), healthy liquidity (~$768M cash) and incremental margin improvement guidance. Offsets include a sequential decline in operating cash flow, working capital build (higher AR and inventory), a near‑term $161M convertible note cash payout, supply chain/material constraints, and cautious telecom demand. Overall, the positive growth drivers, improved profitability and strong balance sheet outweigh the near‑term execution and timing challenges.Positive Updates
Strong Quarterly Revenue Growth
Fiscal Q1 revenue of $271.6M, up 4% sequentially and up 24.5% year‑over‑year, driven by growth across all three end markets (Industrial & Defense $117.7M, Data Center $85.8M, Telecom $68.1M).
Negative Updates
Sequential Cash Flow Decline
Fiscal Q1 operating cash flow of ~$42.9M, down $26.7M sequentially (primarily timing of employee payments and working capital changes), though Q2 cash flow is expected to exceed $60M.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Quarterly Revenue Growth
Fiscal Q1 revenue of $271.6M, up 4% sequentially and up 24.5% year‑over‑year, driven by growth across all three end markets (Industrial & Defense $117.7M, Data Center $85.8M, Telecom $68.1M).
Read all positive updates
Company Guidance
MACOM guided fiscal Q2 revenue of $281–$289 million, adjusted gross margin of 57–59%, and adjusted EPS of $1.05–$1.09 on 77.7 million fully diluted shares, with sequential revenue growth expected across all end markets (data center up low‑ to mid‑teens sequentially; telecom and industrial & defense up low single digits) and a raised FY26 data‑center growth outlook of 35–40% year‑over‑year. Management also expects sequential quarterly gross‑margin improvement of ~25–50 basis points through FY26, an adjusted tax rate of ~3%, Q2 cash flow from operations in excess of $60 million, and full‑year CapEx of $50–$55 million; recent Q1 metrics cited alongside that guidance included revenue $271.6M, adjusted EPS $1.02 (76.7M shares), adjusted gross profit $156.5M (57.6% of revenue), adjusted operating income $74M, cash & short‑term investments $768M (net cash > $268M), book‑to‑bill 1.3x, backlog at record levels, and a planned mid‑March $161M retirement of 2021 convertible notes.MACOM Technology Solutions Holdings Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.02B | 967.26M | 729.58M | 648.41M | 675.17M | 606.92M |
| Gross Profit | 555.94M | 531.44M | 371.40M | 362.06M | 380.59M | 310.94M |
| EBITDA | 262.39M | 39.79M | 163.91M | 179.69M | 304.65M | 133.49M |
| Net Income | 162.09M | -54.21M | 76.86M | 91.58M | 439.95M | 37.97M |
Balance Sheet | ||||||
| Total Assets | 2.11B | 2.10B | 1.76B | 1.55B | 1.57B | 1.13B |
| Cash, Cash Equivalents and Short-Term Investments | 768.49M | 785.98M | 581.89M | 514.53M | 586.53M | 344.90M |
| Total Debt | 567.67M | 537.99M | 487.78M | 487.33M | 600.43M | 528.55M |
| Total Liabilities | 752.41M | 776.26M | 629.30M | 605.64M | 729.07M | 662.41M |
| Stockholders Equity | 1.35B | 1.33B | 1.13B | 947.60M | 842.75M | 471.74M |
Cash Flow | ||||||
| Free Cash Flow | 132.74M | 192.82M | 140.20M | 142.22M | 150.47M | 130.46M |
| Operating Cash Flow | 211.63M | 235.37M | 162.64M | 166.92M | 176.98M | 148.41M |
| Investing Cash Flow | -309.27M | -328.26M | -181.13M | 36.34M | -182.86M | -2.58M |
| Financing Cash Flow | -16.22M | 58.10M | -9.06M | -149.02M | -28.91M | -119.09M |
MACOM Technology Solutions Holdings Technical Analysis
Positive
245.04
Price Trends
230.06
Positive
200.43
Positive
166.80
Positive
Market Momentum
0.57
Negative
60.10
Neutral
89.84
Negative
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 245.04 is above the 20-day moving average (MA) of 229.30, above the 50-day MA of 230.06, and above the 200-day MA of 166.80, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 60.10 is Neutral, neither overbought nor oversold. The STOCH value of 89.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MTSI.
MACOM Technology Solutions Holdings Risk Analysis
MACOM Technology Solutions Holdings disclosed 48 risk factors in its most recent earnings report. MACOM Technology Solutions Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
MACOM Technology Solutions Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $15.30B | 38.14 | 22.70% | ― | 39.37% | 40.87% | |
73 Outperform | $13.78B | 3,496.18 | 0.44% | ― | -12.03% | -80.99% | |
66 Neutral | $18.38B | 67.11 | 12.60% | ― | 32.58% | -173.04% | |
65 Neutral | $10.34B | 42.96 | 18.29% | ― | 31.05% | 30.35% | |
64 Neutral | $8.45B | 30.39 | 6.83% | 4.37% | -2.18% | -16.84% | |
64 Neutral | $7.49B | 12.18 | 9.71% | ― | -7.22% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
MTSI
MACOM Technology Solutions Holdings
228.50
126.60
124.24%
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MACOM Technology Solutions Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
MACOM Shareholders Back Board, Pay and Auditor at Meeting
Positive
Mar 9, 2026
On March 5, 2026, MACOM held its 2026 Annual Meeting of Stockholders in Chelmsford, Massachusetts, where shareholders elected all nominated directors to serve until the 2027 annual meeting and approved, on an advisory basis, executive compensation...
Business Operations and StrategyExecutive/Board Changes
MACOM Adds Veteran Semiconductor Executive to Board
Positive
Jan 12, 2026
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 reno...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.