MACOM Technology Solutions Holdings Inc. Common Stock (MTSI)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses purchased at a sensible price. MACOM sells analog semiconductors into RF, microwave, millimeter wave, and lightwave markets, technical niches, but the income statement must prove the advantage. The latest filed quarter, fiscal Q3 2026 ended 2026-07-03, was impressive: revenue of $342.2 million, net income of $100.7 million, and diluted EPS of $1.28, versus fiscal Q3 2025 revenue of $252.1 million, net income of $36.5 million, and EPS of $0.48. That is real operating momentum. Yet the annual picture is uneven. FY2025 revenue was $967.3 million but net income was a loss of $54.2 million, after FY2024 net income of $76.9 million and FY2023 net income of $91.6 million. The computed Lynch category is TURNAROUND—loss in the latest year after earlier profits. Financial health is not stretched: debt-to-equity is 0.27 and the Altman Z-Score is 23.97, though ROCE of 6.38% is modest. The trouble is price. At $308.75 on 2026-10-13, the FairStock P/E is 98.33, P/B 15.30, EV/EBITDA 66.81, and FCF yield only 0.5%. The Graham Number is $37.75, leaving a margin of safety of negative 717.88%. Even a PEG of 0.56 cannot make me comfortable when free cash flow is $123.8 million against a $23.6 billion market cap. A FairStock Score of 40/100 captures the tension. I would want several more quarters of profitable growth and much better cash conversion before calling this a bargain.

In plain English: MACOM makes analog semiconductor products for wireless and wireline networks. In the latest filed quarter, sales and profit rose sharply from a year earlier, but the most recent full year ended with a loss. At the current share price, the market values the business very richly compared with its earnings and cash generation, so the price looks expensive unless the turnaround keeps accelerating.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-07-03) · fiscal Q2 2026 10-Q (period ended 2026-04-03) · fiscal Q1 2026 10-Q (period ended 2026-01-02) · fiscal Q3 2025 10-Q (period ended 2025-07-04) · FY2025 10-K (period ended 2025-10-03) · FY2024 10-K (period ended 2024-09-27) · FY2023 10-K (period ended 2023-09-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer