One-glance verdict
Overvalued
$62.88 our estimate vs market $252.35
Wall Street consensus: $395.33 (528.7% higher than our fair-value estimate)
301% above our estimate, beyond the bull case
Fundamentals snapshot
MACOM Technology Solutions Holdings, Inc.
MTSI · NMS · Technology · Semiconductors
Current price
$252.35
52-week range
$121.97 - $418.90
Market cap
$19.27B
Balance sheet
Healthy
23.50x Strong cushion
Net cash $248.98M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 20.3% last year.
- Reward Returns 17.2% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 8/10 years.
- Risk Stock trades 34.6% above its 5-year average P/E.
What this company does
MACOM Technology Solutions Holdings, Inc.
MACOM makes tiny, high-performance electronic parts called semiconductors that are essential for sending and receiving signals in advanced technology. The company earns money by selling these components to builders of 5G cell towers, data centers (the buildings that power the internet), and military radar systems. This matters because as the world demands faster internet and more powerful defense technology, the need for MACOM's specialized parts is likely to grow.
How the company got here
MACOM started in 1950 as Microwave Associates, a small company making specialized parts for the U.S. Army. Over many decades, it grew by becoming an expert in high-performance electronics and by making a series of acquisitions (buying other companies) to add new technologies. After being part of larger corporations, it became an independent public company again in 2012. Key purchases of other companies brought in critical technology for things like high-speed internet and defense systems, shaping it into the specialized semiconductor firm it is today.
What it actually does
MACOM makes tiny, powerful electronic components called high-performance analog semiconductors. Think of these as the crucial translators that help digital information (like an email or video) travel through the air as radio waves or through fiber optic cables as light. You won't see their products in a store, but they are essential inside complex equipment like 5G cell towers, the hardware that runs cloud data centers, and advanced military radar systems. They specialize in materials like Gallium Nitride (GaN) that can handle more power and speed than typical silicon chips.
Industrial & Defense
This is MACOM's largest and most stable business area, making up a significant portion of its sales. It sells specialized, high-performance components to governments and defense contractors for use in military radar, electronic warfare systems, and secure communication links. Because these programs are often long-term and require very reliable parts, it provides a steady stream of business for the company. This segment also serves industrial customers in areas like medical equipment and scientific testing.
Data Center
This is the company's fastest-growing business and a major focus. MACOM creates the critical components that allow massive data centers—the engines behind the internet and AI—to move information at incredibly high speeds using light. As demand for cloud computing and artificial intelligence explodes, data center operators need to constantly upgrade their networks to be faster, and they pay MACOM for the advanced optical and electronic parts that make this possible. This segment is a key driver of the company's recent growth.
Telecom
This part of the business provides components for telecommunications infrastructure, which includes things like the 4G and 5G wireless base stations that connect your cell phone to the network. It also makes parts for the fiber optic networks that carry internet traffic over long distances. While this is an important market, its sales can go up and down based on the spending cycles of major telecom companies as they build out new networks.
What management is betting on now
Management is heavily focused on the massive growth in data centers, especially the hardware needed to power artificial intelligence. They are investing heavily in research and development (the process of creating new products and technologies) to create next-generation components that can send data even faster, such as for 800G and 1.6T networks. The strategy is to be the go-to provider for the most difficult and highest-performance parts that enable faster communication across data centers, 5G and 6G wireless networks, and advanced defense systems.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$57.14M
FY2025 Q1
$61.32M
FY2025 Q2
$30.53M
FY2025 Q3
$51.55M
FY2025 Q4
$49.42M
FY2026 Q1
$29.99M
FY2026 Q2
$65.47M
FY2026 Q3
$59.20M
Revenue
$342.24M
Net income
$100.71M
Diluted EPS
1.28
Operating cash flow
$79.96M
Free cash flow
$59.20M
Fetching…
Sources
Revenue
$288.95M
Net income
$46.33M
Diluted EPS
0.60
Operating cash flow
$78.66M
Free cash flow
$65.47M
Fetching…
Sources
Revenue
$271.61M
Net income
$48.77M
Diluted EPS
0.64
Operating cash flow
$42.92M
Free cash flow
$29.99M
Fetching…
Sources
Revenue
$261.17M
Net income
$45.12M
Diluted EPS
0.67
Operating cash flow
$69.64M
Free cash flow
$49.42M
Fetching…
Sources
Revenue
$252.08M
Net income
$36.53M
Diluted EPS
0.48
Operating cash flow
$60.39M
Free cash flow
$51.55M
Fetching…
Sources
Revenue
$235.89M
Net income
$31.67M
Diluted EPS
0.42
Operating cash flow
$38.69M
Free cash flow
$30.53M
Fetching…
Sources
Revenue
$218.12M
Net income
$-167.53M
Diluted EPS
-2.30
Operating cash flow
$66.66M
Free cash flow
$61.32M
Fetching…
Sources
Revenue
$200.71M
Net income
$29.41M
Diluted EPS
0.40
Operating cash flow
$62.33M
Free cash flow
$57.14M
Fetching…
Sources
Is it cheap or expensive?
Fair value $62.88 vs current price $252.35
Wall Street consensus is the average analyst price target: $395.33 (528.7% higher than our fair-value estimate).
Our most-likely fair value is $62.88 a share — about 75.1% below today's price of $252.35, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $249.0M - more cash than debt. Interest coverage 23.5x.
Net debt
$-248.98M
Interest coverage
23.50x
MACOM Technology Solutions Holdings, Inc.'s profit covers its interest bill about 23.5 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
MTSI
BASELINE
MACOM Technology Solutions Holdings, Inc.
Total debt $414.05M Interest coverage 23.50x This is the baseline the peer rows are being compared against.
Total debt $681.10M Interest coverage 19.34x -18% vs MTSI Carries about 1.2x less debt cushion than MTSI.
Total debt $1.55B Interest coverage 6.75x -71% vs MTSI Carries about 3.5x less debt cushion than MTSI.
Total debt $5.40B Interest coverage 2.46x -90% vs MTSI Carries about 9.6x less debt cushion than MTSI.
Total debt $10.98B Interest coverage 6.51x -72% vs MTSI Carries about 3.6x less debt cushion than MTSI.
Total debt $9.16B Interest coverage 9.45x -60% vs MTSI Carries about 2.5x less debt cushion than MTSI.
What you should know
The case for and against MTSI
3 Rewards
1 Risk
Rewards
-
Revenue grew 20.3% last year.
-
Returns 17.2% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Stock trades 34.6% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
80.37x
Forward P/E
29.77x
P/B
12.51x
P/S
16.56x
EV/EBITDA
65.50x
PEG ratio
2.05x
Profitability
How much profit each dollar creates
Gross margin
56.5%
Operating margin
23.3%
Net margin
20.7%
ROE
17.2%
ROA
6.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.27x
Current ratio
2.34x
Quick ratio
1.68x
Total debt
$414.05M
Total cash
$663.03M
Growth
How the business has been compounding
Revenue TTM
$1.16B
Revenue 5Y CAGR
12.4%
EPS TTM
3.14
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$271.19M
Free CF TTM
$192.82M
FCF margin
16.6%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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