MACOM Technology Solutions Holdings (MTSI) AI Stock Analysis

• Market Cap: $13.07B
• Dividend Yield: N/A
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• Revenue Growth: 32.58%
• EPS Growth: -173.04%
• Country: US
• Employees: 1,700
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.94
• Shares Outstanding: 74,932,976
• 10 Day Avg. Volume: 1,237,161
• 30 Day Avg. Volume: 1,114,781
• 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: 0.73
• Enterprise Value/Revenue: 9.86
• Enterprise Value/Gross Profit: 18.48
• Enterprise Value/Ebitda: 205.43
• 1Y Price Target: $191.12
• Price Target Upside: 9.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 4.2
• Revenue Forecast (FY): $1.12B

• Rating: 64 Neutral
• Price Target: $199.00 ▲(13.59% Upside)

MACOM Technology Solutions Holdings receives a moderate score of 64. The company's strong technical indicators and positive earnings call sentiment are offset by significant valuation concerns due to unprofitability and a negative P/E ratio. Financial performance is mixed, with growth overshadowed by profitability and cash flow challenges. The recent executive promotion adds a positive note to the company's strategic outlook.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for MACOM's products and successful market penetration, supporting long-term business expansion.

New Product Launches

The introduction of numerous new products enhances MACOM's competitive edge and diversifies its revenue streams, fostering sustainable growth.

Leadership Stability

Dennehy's promotion ensures continuity and strategic focus in operations, leveraging his extensive experience to drive operational efficiency and growth.

Negative Factors

Profitability Concerns

Persistent profitability issues, reflected in negative margins, could hinder MACOM's ability to reinvest in growth and maintain financial health.

Rising Operating Expenses

Increasing operating expenses, driven by R&D and employee costs, may pressure margins and limit flexibility in managing financial resources.

Cash Flow Management

Declining free cash flow growth suggests challenges in cash generation, potentially affecting MACOM's ability to fund operations and growth initiatives.

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

MACOM Technology Solutions Holdings shows a mixed financial performance. Positive revenue growth is overshadowed by significant profitability concerns, with negative net income and EBIT margins. The balance sheet is stable with a reasonable debt-to-equity ratio, but inefficiencies are highlighted by a negative return on equity. Cash flow management is under pressure with declining free cash flow growth, indicating a need for improvement in financial health.

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: 175.19
• 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 175.19 is below the 20-day moving average (MA) of 176.54, above the 50-day MA of 160.56, and above the 200-day MA of 132.11, indicating a neutral trend. The MACD of 3.92 indicates Positive momentum. The RSI at 52.54 is Neutral, neither overbought nor oversold. The STOCH value of 30.21 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	81 Outperform	$9.85B	43.65	23.58%	―	39.37%	40.87%
RMBS	78 Outperform	$10.38B	45.21	19.66%	―	31.05%	30.35%
LSCC	71 Outperform	$10.30B	388.18	3.86%	―	-12.03%	-80.99%
QRVO	71 Outperform	$7.91B	37.33	6.30%	―	-7.22%	―
SWKS	70 Outperform	$9.62B	21.03	7.89%	4.32%	-2.18%	-16.84%
MTSI	64 Neutral	$13.07B	-216.15	-4.42%	―	32.58%	-173.04%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

MACOM Technology Solutions Holdings Corporate Events

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.