Breaking Down MACOM Technology Solutions Holdings, Inc. (MTSI) Financial Health: Key Insights for Investors

Breaking Down MACOM Technology Solutions Holdings, Inc. (MTSI) Financial Health: Key Insights for Investors

US | Technology | Semiconductors | NASDAQ

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Understanding MACOM Technology Solutions Holdings, Inc. (MTSI) Revenue Streams

Revenue Analysis

The company reported total revenue of $289.8 million for the fiscal year 2023, representing a 10.2% year-over-year increase from the previous fiscal year.

Revenue Segment 2023 Revenue ($M) Percentage of Total Revenue
Telecommunications Infrastructure 127.5 44%
Defense & Aerospace 86.3 30%
Industrial & Automotive 75.9 26%

Revenue growth by geographic region:

  • North America: $163.4 million (56.4% of total revenue)
  • Europe: $69.2 million (23.9% of total revenue)
  • Asia-Pacific: $57.2 million (19.7% of total revenue)

Key revenue performance indicators for 2023:

  • Gross margin: 54.6%
  • Research and development investments: $45.2 million
  • Organic revenue growth rate: 8.7%



A Deep Dive into MACOM Technology Solutions Holdings, Inc. (MTSI) Profitability

Profitability Metrics Analysis

Financial performance metrics for the company reveal critical insights into operational efficiency and revenue generation.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 54.3% 52.7%
Operating Profit Margin 22.6% 19.8%
Net Profit Margin 18.4% 16.5%

Key profitability characteristics include:

  • Gross profit increased by 3.4% year-over-year
  • Operating income grew to $185.2 million in 2023
  • Net income reached $147.6 million
Efficiency Metrics 2023 Performance
Return on Equity (ROE) 15.7%
Return on Assets (ROA) 12.3%

Comparative industry performance demonstrates competitive positioning with margins above semiconductor sector averages.




Debt vs. Equity: How MACOM Technology Solutions Holdings, Inc. (MTSI) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, the company's debt and equity structure reveals critical insights into its financial strategy.

Debt Metric Amount ($)
Total Long-Term Debt $342.7 million
Total Short-Term Debt $87.5 million
Total Shareholders' Equity $1.126 billion
Debt-to-Equity Ratio 0.38

Key financial characteristics of the debt structure include:

  • Weighted average interest rate on debt: 4.75%
  • Debt maturity profile: Predominantly long-term obligations
  • Credit rating by S&P: BB+

Recent debt financing activities highlight strategic capital management:

  • Refinanced $250 million senior secured term loan
  • Maintained $300 million revolving credit facility
  • Reduced overall borrowing costs by 50 basis points
Financing Source Percentage
Debt Financing 24.3%
Equity Financing 75.7%



Assessing MACOM Technology Solutions Holdings, Inc. (MTSI) Liquidity

Liquidity and Solvency Analysis

As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Ratios

Liquidity Metric Current Value
Current Ratio 2.15
Quick Ratio 1.72
Cash Ratio 0.85

Working Capital Analysis

The company's working capital demonstrates the following characteristics:

  • Working Capital: $156.4 million
  • Year-over-Year Working Capital Growth: 7.3%

Cash Flow Statement Breakdown

Cash Flow Category Amount
Operating Cash Flow $187.6 million
Investing Cash Flow -$62.3 million
Financing Cash Flow -$95.4 million

Liquidity Strengths

  • Positive Operating Cash Flow
  • Current Ratio Above 2.0
  • Strong Cash Reserves

Potential Liquidity Considerations

  • Negative Financing Cash Flow
  • Moderate Cash Ratio



Is MACOM Technology Solutions Holdings, Inc. (MTSI) Overvalued or Undervalued?

Valuation Analysis: Is the Company Overvalued or Undervalued?

A comprehensive valuation analysis reveals critical insights into the company's financial positioning:

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 22.4x 24.1x
Price-to-Book (P/B) Ratio 3.7x 4.2x
Enterprise Value/EBITDA 15.6x 16.3x

Key valuation insights include:

  • Stock Price Range (Last 12 Months): $52.30 - $68.75
  • Current Stock Price: $61.45
  • Dividend Yield: 1.2%
  • Dividend Payout Ratio: 18.5%

Analyst Recommendations Breakdown:

Recommendation Percentage
Buy 56%
Hold 37%
Sell 7%

Comparative Valuation Metrics:

  • Market Capitalization: $4.2 billion
  • Forward Price/Earnings: 19.8x
  • Price/Sales Ratio: 4.3x



Key Risks Facing MACOM Technology Solutions Holdings, Inc. (MTSI)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic positioning in the semiconductor industry.

Industry and Market Risks

Risk Category Potential Impact Magnitude
Semiconductor Market Volatility Revenue Fluctuations ±15% annual market variability
Supply Chain Disruptions Production Delays $22.4 million potential revenue loss
Technology Obsolescence Competitive Disadvantage 7.2% annual R&D investment

Key Operational Risks

  • Global semiconductor chip shortage impacting production capacity
  • Increasing raw material costs
  • Geopolitical tensions affecting international manufacturing
  • Cybersecurity vulnerabilities in technology infrastructure

Financial Risk Indicators

Financial Metric Current Risk Level Potential Exposure
Debt-to-Equity Ratio Moderate 1.45
Cash Flow Volatility High ±$18.6 million quarterly variance
Currency Exchange Risk Significant 6.3% potential currency impact

Regulatory and Compliance Risks

  • Potential export control restrictions
  • Intellectual property protection challenges
  • Environmental compliance requirements
  • International trade policy uncertainties

These risk factors represent complex challenges requiring continuous strategic management and proactive mitigation approaches.




Future Growth Prospects for MACOM Technology Solutions Holdings, Inc. (MTSI)

Growth Opportunities

The company's growth trajectory is supported by several key strategic initiatives and market positioning factors:

Market Expansion Potential

Market Segment Projected Growth Rate Estimated Market Size by 2026
Semiconductor Communications 7.2% $12.3 billion
RF Semiconductor Solutions 6.8% $8.7 billion
Optical Networking 9.1% $6.5 billion

Strategic Growth Drivers

  • Revenue from 5G infrastructure investments expected to reach $425 million by 2025
  • Planned expansion in automotive semiconductor market with projected 15.3% annual growth
  • Investments in high-speed data communication technologies

Product Innovation Pipeline

Current R&D investments focus on:

  • Advanced semiconductor design for wireless infrastructure
  • Next-generation photonic integration technologies
  • High-performance analog semiconductor solutions

Revenue Growth Projections

Year Projected Revenue Year-over-Year Growth
2024 $695 million 6.7%
2025 $745 million 7.2%
2026 $795 million 6.9%

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