MACOM Technology Solutions Holdings, Inc. (MTSI) on Decifer

Decifer ranks MTSI number 186 of 277 tracked names on durable business quality.

Why it ranks here

• Its returns on invested money are modest, around 7%.
• Revenue is growing about 33% a year, profits are expected to grow 38%, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• And it returns cash to shareholders.
• Our durability check found pressure on this name, which costs it a few points.
• Revenue growing about 33% with expected profit growth of 38% is a strong combination, held back by durability pressure, momentum of 4 out of 35, and the absence of a worldview catalyst.

The current read

The evidence on MTSI lines up on the supportive side: a live market force supports this name through its theme connection. One signal disagrees: the longer-term story is intact, but price is not rewarding it: semiconductor stocks are down 7.3% this week. The drop is large enough to signal near-term caution, worth watching but not the weight of the evidence.

Themes

• Semiconductors & AI Compute: MACOM Technology Solutions Holdings, Inc. operates in semiconductors. That places it inside the Semiconductors & AI Compute story.

Read the full MTSI research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.