MACOM Technology Solutions Holdings (MTSI) AI Stock Analysis

• Market Cap: $19.39B
• Dividend Yield: N/A
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 121.6
• Beta (1Y): 1.47
• 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: 75,011,970
• 10 Day Avg. Volume: 896,178
• 30 Day Avg. Volume: 1,220,271
• 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: 1.02
• Enterprise Value/Revenue: 19.44
• Enterprise Value/Gross Profit: 35.69
• Enterprise Value/Ebitda: 75.62
• 1Y Price Target: $250.85
• Price Target Upside: -2.97% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 4.47
• Revenue Forecast (FY): $1.17B

• Rating: 73 Outperform
• Price Target: $254.00 ▼(-1.76% Downside)
• Action: Upgraded Date: 02/06/26
• Date: Action: Upgraded 02/06/26

The score is driven primarily by solid current fundamentals (healthy margins, improving results, manageable leverage) and strong technical momentum (price above all key moving averages with supportive MACD/RSI). Offsetting these positives, valuation is a notable constraint given the very high P/E, and cash-flow conversion/working-capital needs remain a key near-term risk despite upbeat guidance.

Positive Factors

High and improving gross margins

MACOM's reported adjusted gross margin (~57.6%) and management guidance for sequential improvement (25–50 bps; Q2 guide 57–59%) indicate durable product-level pricing power and cost structure advantage in optical and RF. Sustained high margins support reinvestment and long-term profitability even through cycles.

Strong liquidity and manageable leverage

A large cash balance (~$768M) and net cash cushion provide strategic flexibility to fund R&D, targeted capex ($50–$55M FY guide), M&A or retire liabilities. Combined with manageable leverage (debt-to-equity ~0.39), this strengthens balance-sheet resilience across cycles and reduces refinancing risk.

Robust backlog and technology roadmap

A 1.3x book‑to‑bill and record backlog give multi-quarter revenue visibility and support a raised data‑center growth outlook (35–40% YoY). Combined with new PCIe6/PCIe7 and GaN product progress, MACOM has structural demand and a differentiated roadmap to capture hyperscaler and defense spend.

Negative Factors

Weaker cash conversion

FFlow softness and OCF lagging earnings signal structural working‑capital pressure or timing mismatches as revenue ramps. Persistently weaker cash conversion can constrain reinvestment, lengthen payback on R&D/capex and elevate reliance on liquidity for operations over coming quarters.

Near‑term sizeable cash outflow (convertible notes)

A scheduled $161M cash retirement materially draws down near‑term liquidity despite a healthy cash balance. This one‑time outflow can tighten cash available for working capital or opportunistic investments, forcing prioritization of debt repayment over share returns or higher discretionary spending.

Supply‑chain and mix/margin risks

Material shortages and supply‑chain stress can slow ramps, increase unit costs and delay customer deliveries. Coupled with mix shifts into data‑center optical products that may carry different margins, these structural supply and mix risks could pressure margin sustainability and execution over multiple quarters.

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

Profitability and margins are healthy in TTM (gross margin ~54%, net margin ~15.9%) with modest revenue growth (+5.53%), but results have been volatile across prior years and recent cash conversion is weaker (FCF down ~19% and OCF running below net income). Leverage is manageable (debt-to-equity ~0.39), yet negative ROE in TTM/FY2025 tempers balance-sheet quality.

Income Statement

TTM (Trailing-Twelve-Months) revenue is $1.02B with moderate growth (+5.53%) and healthy profitability (gross margin ~54%, net margin ~15.9%). Results have improved meaningfully versus FY2025, which showed a net loss and negative net margin, but profitability has been volatile across the cycle (including an unusually high FY2022 net margin). Overall, the income profile is solid today with improving momentum, but the historical swings temper the score.

Balance Sheet

Leverage looks manageable with debt-to-equity around 0.39 in TTM (Trailing-Twelve-Months), improving from higher levels earlier in the period (notably FY2021). Equity has grown over time, supporting the capital base. However, return on equity is negative in both TTM and FY2025, signaling weaker recent bottom-line efficiency despite the healthier TTM profit level, which keeps the balance sheet score in the low-70s rather than higher.

Cash Flow

TTM (Trailing-Twelve-Months) operating cash flow ($212M) and free cash flow ($133M) are positive, but free cash flow declined (-19.1% growth). Cash generation is running below earnings quality benchmarks, with free cash flow at ~63% of net income in TTM and operating cash flow coverage below 1.0, suggesting working-capital or non-cash timing headwinds. FY2023–FY2024 showed stronger conversion, so the current softness appears more recent but still a key watch item.

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

• Technical Analysis Sentiment: Positive
• Last Price: 258.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 258.54 is above the 20-day moving average (MA) of 239.99, above the 50-day MA of 212.70, and above the 200-day MA of 158.15, indicating a bullish trend. The MACD of 10.84 indicates Positive momentum. The RSI at 70.57 is Negative, neither overbought nor oversold. The STOCH value of 73.27 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	74 Outperform	$14.25B	56.14	23.08%	―	39.37%	40.87%
MTSI	73 Outperform	$19.39B	121.55	12.95%	―	32.58%	-173.04%
LSCC	73 Outperform	$13.78B	4,620.18	0.43%	―	-12.03%	-80.99%
RMBS	65 Neutral	$10.74B	47.16	18.55%	―	31.05%	30.35%
SWKS	64 Neutral	$8.86B	22.90	6.49%	4.37%	-2.18%	-16.84%
QRVO	64 Neutral	$7.59B	22.54	9.62%	―	-7.22%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.