MACOM Technology Solutions Holdings (MTSI) AI Stock Analysis

• Market Cap: $12.95B
• Dividend Yield: N/A
• Average Volume (3M): 981.31K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.59
• 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: 847,580
• 30 Day Avg. Volume: 981,312
• 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: 0.74
• Enterprise Value/Revenue: 9.86
• Enterprise Value/Gross Profit: 18.48
• Enterprise Value/Ebitda: 205.43
• 1Y Price Target: $186.89
• Price Target Upside: 5.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 4.2
• Revenue Forecast (FY): $1.10B

• Rating: 61 Neutral
• Price Target: $180.00 ▲(1.17% Upside)

The overall stock score of 61 reflects a mixed outlook for MACOM Technology Solutions Holdings. The most significant factor is the strong technical analysis, indicating bullish momentum. However, financial performance and valuation concerns, particularly the negative profitability and high P/E ratio, weigh heavily on the score. The positive earnings call provides some optimism, highlighting growth and strategic initiatives, but challenges remain in profitability and valuation.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand across key segments, supporting long-term business expansion and market presence.

New Product Launches

A high number of new product launches enhances MACOM's competitive edge and positions it well to capture emerging market opportunities.

Strategic Partnership

The partnership with HRL strengthens MACOM's technology portfolio, potentially leading to advanced product offerings and market differentiation.

Negative Factors

Profitability Challenges

Persistent profitability issues could hinder reinvestment capabilities and long-term financial health, impacting shareholder value.

Rising Operating Expenses

Increasing operating expenses, driven by R&D and employee costs, may pressure margins and require efficient cost management to sustain growth.

Cash Flow Management

Weak cash flow growth can limit MACOM's ability to invest in growth initiatives and manage debt, affecting long-term operational flexibility.

MACOM Technology Solutions Holdings Business Overview & Revenue Model

Company Description

MACOM Technology Solutions Holdings, Inc. (MTSI) is a leading provider of high-performance analog semiconductor solutions for a variety of applications, including telecommunications, data center, industrial, and defense markets. The company specializes in designing and manufacturing a wide range of products such as optical components, RF and microwave devices, and integrated circuits that enable high-speed data transmission and processing. MACOM's innovative technology positions it as a key player in the rapidly evolving landscape of communications and electronic systems.

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: 177.91
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 177.91 is above the 20-day moving average (MA) of 164.69, above the 50-day MA of 146.91, and above the 200-day MA of 127.92, indicating a bullish trend. The MACD of 6.95 indicates Negative momentum. The RSI at 66.69 is Neutral, neither overbought nor oversold. The STOCH value of 93.92 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NVMI	81 Outperform	$9.67B	41.57	23.58%	―	39.37%	40.87%
RMBS	78 Outperform	$10.36B	45.66	19.66%	―	31.05%	30.35%
LSCC	68 Neutral	$9.38B	348.10	3.86%	―	-12.03%	-80.99%
SWKS	64 Neutral	$9.79B	21.40	7.89%	4.13%	-2.18%	-16.84%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MTSI	61 Neutral	$12.95B	―	-4.42%	―	32.58%	-173.04%
QRVO	60 Neutral	$7.92B	37.03	6.30%	―	-7.22%	―

MACOM Technology Solutions Holdings Corporate Events

MACOM Technology Solutions Reports Strong Fiscal 2025 Results

MACOM Technology Solutions Holdings, Inc. is a prominent supplier of semiconductor products, serving industries such as Industrial and Defense, Data Center, and Telecommunications with a broad portfolio that includes RF, Microwave, Analog and Mixed Signal, and Optical semiconductor technologies.

MACOM Technology Solutions Reports Strong FY 2025 Earnings

MACOM Technology Solutions has reported a robust financial performance for the fiscal year 2025, showcasing significant revenue and earnings per share (EPS) growth. The company achieved record revenues in its Data Center and Industrial & Defense segments and successfully launched numerous new products. Despite facing challenges in the Telecom segment and experiencing increases in inventories and operating expenses, the overall sentiment of the earnings call was positive, with the strengths outweighing the negatives.