# MACOM Technology Solutions Holdings, Inc (MTSI) — Stock CV

MACOM Technology Solutions Holdings, Inc is a $25.3B technology company. Revenue grew 28.4% over the last year, it keeps 21¢ of every dollar of sales as profit, and it holds more cash than debt. It trades at 104.6× earnings — around the middle of its own history.

> MACOM Technology Solutions Holdings Inc is a provider of analog, digital, and mixed-signal semiconductor solutions to original equipment manufacturers and distributors. These solutions are found in systems for industrial, medical, scientific, and test and measurement markets.

## Identity

- **Ticker**: MTSI
- **Sector**: Technology
- **Industry**: Semiconductors & Related Devices
- **Headquarters**: LOWELL, MA
- **Employees**: 2 000
- **Website**: https://www.macom.com
- **Market cap**: $25.3B
- **Last price**: $331.06
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $1.16B
- **Net income**: $241M
- **Free cash flow**: $204M
- **Net cash**: $446M
- **P/E**: 104.6
- **Revenue growth (YoY)**: 28.4%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 17 |
| Growth | 45 |
| Profitability | 65 |
| Health | 75 |
| Quality | 68 |
| Moat | 38 |

## Qualifications (beginner checklist) — 6 of 10 passed

- [x] Revenue growing — +28.4% YoY
- [x] Profitable — $241M TTM
- [ ] Profit growing — -170.5% YoY
- [x] Generates cash — $204M TTM
- [x] Debt under control — more cash than debt
- [x] Established company — $25.3B market cap
- [ ] Not printing shares — +11.1% shares over ~5y
- [x] Proven track record — 5/10 profitable years
- [ ] Financially stable — health score 50/100
- [ ] Valuation not extreme — P/E 104.6

## Experience (career milestones)

- **FY2023** — Became debt-free: cash now exceeds total debt
- **2023** — It was announced MACOM had entered into a definitive agreement to acquire the RF business of Wolfspeed
- **FY2022** — Best year on record: $440M net income
- **FY2020** — Positive free cash flow every year since: 6-year streak
- **2017** — MACOM acquired Applied Micro Circuits Corporation
- **FY2016** — First recorded profitable year: $1.43M net income
- **2015** — MACOM acquired Aeroflex's diode business, Aeroflex Metelics from Cobham for $38 million in cash
- **2014** — The company's acquisition of BinOptics in 2014 allows it to use self-aligning etched facet technology to ensure an…
- **2011** — MACOM acquired Optomai Inc., a semiconductor company that developed integrated circuits and modules for…
- **2010** — MACOM acquired Mimix Broadband, a fabless supplier of GaAs semiconductors
- **Mar 30, 2009** — The company acquired all of the outstanding stock of M/A-COM Technology Solutions Inc., the…
- **2003** — XMA Corporation, located in Manchester, New Hampshire, purchased from MACOM the Omni Spectra line of…
- **2001** — Tyco acquired Com-Net Ericsson and placed the company under the administration of MACOM
- **1999** — AMP itself was acquired by Tyco Electronics

## Strengths

- High gross margin (56.5%)
- Strongly profitable — 20.7% net margin
- Revenue growing 28.4% year over year
- Strong cash conversion — FCF is 17.5% of revenue
- Net cash position after subtracting debt from cash

## Watch-outs

- Loss-making in 5 of the recent years

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $607M | $38.0M | $130M |
| FY2022 | $675M | $440M | $150M |
| FY2023 | $648M | $91.6M | $142M |
| FY2024 | $730M | $76.9M | $140M |
| FY2025 | $967M | -$54.2M | $193M |

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Source: https://stockcv.com/MTSI — derived from company filings; may be delayed or incomplete. Information, not investment advice.