📊 MTSI Key Takeaways
Is MACOM Technology Solutions Holdings, Inc. (MTSI) a Good Investment?
MTCI demonstrates strong fundamental health with exceptional gross margins of 56.4%, robust free cash flow generation of $95.5M, and exceptional liquidity (7.52x current ratio). The conservative capital structure (0.24x debt-to-equity) and strong interest coverage (18.3x) indicate financial resilience, though the 170% YoY EPS decline despite stable net income and modest ROE of 6.7% warrant further investigation into capital efficiency.
MACOM posts strong fundamentals with 32.6% YoY revenue growth, resilient 55.9% gross margin, mid‑teens operating margin, and positive free cash flow backed by low leverage and ample liquidity. While ROE/ROA are muted and EPS fell sharply due to dilution/non‑operating effects, cash generation and interest coverage support a solid financial footing if margins and growth persist.
Why Buy MACOM Technology Solutions Holdings, Inc. Stock? MTSI Key Strengths
- Exceptional liquidity position (7.52x current ratio, 5.84x quick ratio) providing strong financial flexibility
- High-quality earnings with 56.4% gross margin and 17.0% net margin showing operational strength
- Strong free cash flow generation at $95.5M (17% FCF margin) indicating earnings quality
- Conservative leverage with 0.24x debt-to-equity ratio and 18.3x interest coverage ratio
- Solid operating margin of 16.8% demonstrating pricing power in semiconductor industry
- Robust top-line growth with high gross margin (55.9%)
- Healthy operating profitability and positive FCF (11.0% margin)
- Strong liquidity and modest leverage (3.96x current ratio, 0.25x D/E, 8.4x interest coverage)
MTSI Stock Risks: MACOM Technology Solutions Holdings, Inc. Investment Risks
- EPS declined 170% YoY despite flat net income, suggesting significant share dilution or restructuring charges that require explanation
- Modest return on equity of 6.7% and return on assets of 4.7% indicate capital may not be deployed efficiently despite high profitability
- No revenue growth data available; unable to assess organic growth trajectory in competitive semiconductor sector
- Cash position of $98.5M is modest relative to $2.0B in total assets and $340.2M debt obligations
- Cyclical semiconductor industry exposure creates revenue volatility risk
- EPS volatility/dilution despite flat net income (+0.0% YoY)
- Semiconductor cycle and potential customer/product concentration exposure
- Net margin above operating margin suggests non-operating/tax benefits that may normalize
Key Metrics to Watch
- Year-over-year revenue growth rate and quarterly trends
- Operating margin sustainability and gross margin trajectory
- Free cash flow conversion and capital allocation decisions
- Return on equity improvement and share count management
- Debt reduction progress and cash balance optimization
- Gross margin % trend
- Free cash flow margin
MACOM Technology Solutions Holdings, Inc. (MTSI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 7.52x current ratio provides a solid financial cushion.
MTSI Profit Margin, ROE & Profitability Analysis
MTSI vs Technology Sector: How MACOM Technology Solutions Holdings, Inc. Compares
How MACOM Technology Solutions Holdings, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is MACOM Technology Solutions Holdings, Inc. Stock Overvalued? MTSI Valuation Analysis 2026
Based on fundamental analysis, MACOM Technology Solutions Holdings, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
MACOM Technology Solutions Holdings, Inc. Balance Sheet: MTSI Debt, Cash & Liquidity
MTSI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: MACOM Technology Solutions Holdings, Inc.'s revenue has grown significantly by 59% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.28 reflects profitable operations.
MTSI Revenue Growth, EPS Growth & YoY Performance
MTSI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $235.9M | $31.7M | $0.42 |
| Q1 2026 | $218.1M | $48.8M | $0.64 |
| Q3 2025 | $190.5M | $19.9M | $0.27 |
| Q2 2025 | $181.2M | $15.0M | $0.20 |
| Q1 2025 | $157.1M | $12.5M | $0.17 |
| Q3 2024 | $148.5M | $11.9M | $0.17 |
| Q2 2024 | $169.4M | $15.0M | $0.20 |
| Q1 2024 | $157.1M | $12.5M | $0.17 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
MACOM Technology Solutions Holdings, Inc. Dividends, Buybacks & Capital Allocation
MTSI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for MACOM Technology Solutions Holdings, Inc. (CIK: 0001493594)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MTSI
What is the AI rating for MTSI?
MACOM Technology Solutions Holdings, Inc. (MTSI) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MTSI's key strengths?
Claude: Exceptional liquidity position (7.52x current ratio, 5.84x quick ratio) providing strong financial flexibility. High-quality earnings with 56.4% gross margin and 17.0% net margin showing operational strength. ChatGPT: Robust top-line growth with high gross margin (55.9%). Healthy operating profitability and positive FCF (11.0% margin).
What are the risks of investing in MTSI?
Claude: EPS declined 170% YoY despite flat net income, suggesting significant share dilution or restructuring charges that require explanation. Modest return on equity of 6.7% and return on assets of 4.7% indicate capital may not be deployed efficiently despite high profitability. ChatGPT: EPS volatility/dilution despite flat net income (+0.0% YoY). Semiconductor cycle and potential customer/product concentration exposure.
What is MTSI's revenue and growth?
MACOM Technology Solutions Holdings, Inc. reported revenue of $560.6M.
Does MTSI pay dividends?
MACOM Technology Solutions Holdings, Inc. pays dividends, with $0.6M distributed to shareholders in the trailing twelve months.
Where can I find MTSI SEC filings?
Official SEC filings for MACOM Technology Solutions Holdings, Inc. (CIK: 0001493594) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MTSI's EPS?
MACOM Technology Solutions Holdings, Inc. has a diluted EPS of $1.23.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MTSI a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, MACOM Technology Solutions Holdings, Inc. has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is MTSI stock overvalued or undervalued?
Valuation metrics for MTSI: ROE of 6.7% (sector avg: 22%), net margin of 17.0% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy MTSI stock in 2026?
Our dual AI analysis gives MACOM Technology Solutions Holdings, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MTSI's free cash flow?
MACOM Technology Solutions Holdings, Inc.'s operating cash flow is $121.6M, with capital expenditures of $26.1M. FCF margin is 17.0%.
How does MTSI compare to other Technology stocks?
Vs Technology sector averages: Net margin 17.0% (avg: 18%), ROE 6.7% (avg: 22%), current ratio 7.52 (avg: 2.5).