MACOM Technology Solutions Holdings, Inc. (MTSI) stock analysis

P/E below its 5-year median

MACOM Technology Solutions's P/E of 57.0 is below its own 5-year median of 73.7.

P/E above the industry

MACOM Technology Solutions's P/E of 57.0 is above the Electronic Components and Accessories median of 35.0.

EV/EBITDA below its 5-year median

MACOM Technology Solutions's EV/EBITDA of 49.8 is below its 5-year median of 56.0.

P/B above the industry

MACOM Technology Solutions's price-to-book of 11.06 is above the Electronic Components and Accessories median of 3.36.

Trading above fair value

The share price of $245.76 is above our fair value estimate of $167.28.

Margin of safety under 20%

The price is 46.9% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 27.0% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 49.9% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 37.3% over the last twelve months; the Electronic Components and Accessories median is 17.6%.

Guidance issued

The latest outlook (fiscal first quarter adjusted earnings per diluted share, Nov 5, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 58.0% over the last twelve months, against 54.7% a year earlier.

Return on equity over 15%

Return on equity was 22.2% over the last twelve months and averaged 20.5% over five years.

Return on capital over 10%

Return on invested capital was 23.0%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

MACOM Technology Solutions's return on equity of 22.2% is above the Electronic Components and Accessories median of 5.0%.

Earnings grew over 5 years

Net income grew 54.6% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 25.3% over the last twelve months, against a 5-year average of 21.9%.

Net margin above the industry

MACOM Technology Solutions's net margin of 25.3% is above the Electronic Components and Accessories median of 3.0%.

Low debt

Debt is 20.1% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 104% five years ago to 20.1%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 105% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.53 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 19.46; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

MACOM Technology Solutions has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.