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MTSI, MACOM Technology Solutions Holdings Inc.

Semiconductors asset-light Cyclical

Technology, circuit design and packaging technology defines the performance parameters and differentiation of our products.

We design, develop and manufacture differentiated semiconductor products and solutions for the Industrial and Defense ("I&D"), Data Center and Telecommunications ("Telecom") industries for customers who demand high performance, quality and reliability.

Our products are electronic components that our customers generally incorporate into larger electronic systems, such as wireless basestations, high-capacity optical networks, data center networks, radar, medical systems, satellite networks and test and measurement applications.

Latest annual: FY2025 10-K

MTSI · MACOM Technology Solutions Holdings Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$967M

+32.6% YoY · 13% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $1.1B 5-yr avg $725M

Gross margin 56% 5-yr avg 57%

Operating margin 16.0% 5-yr avg 14.6%

ROIC 9% 5-yr avg 8%

Owner-earnings margin 18% 5-yr avg 21%

Free cash flow margin 18% 5-yr avg 21%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
What moves the needle: Gross margin has run about 51% and operating margin about 10% through the cycle, a wide spread between price and the cost of what it sells — whether that advantage is durable pricing power or a margin that can erode is the question the record is for. The margin is cyclical, swinging between −76% and 20% over the years, so the through-cycle figure carries more than any single year — and the balance sheet at the trough more than the peak. Inventory runs near 19% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. Read this kind of business on process leadership and the capex cycle. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median 4%, above 15% in 0 of 7 years). The steadier read is owner earnings: roughly 20% of revenue reaches owners as cash, though it swings. The cycle and the balance sheet decide this one; the worst year tells more than the median, and the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

56% of revenue comes from outside the United States.

Revenue by geography, FY2025

United States44%$423M
China28%$275M
Other Countries16%$158M
Asia Pacific12%$111M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2012–2025

realized figures from each filing · older years to the left

2012’12	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMApr 2026
											Income statement
$302M	$699M	$570M	$500M	$530M	$607M	$675M	$648M	$730M	$967M	$1.1B	RevenueRevenue
44%	47%	43%	44%	51%	56%	60%	59%	54%	55%	56%	Gross marginGross mgn
15%	27%	28%	31%	23%	20%	19%	20%	19%	16%	15%	SG&A / revenueSG&A/rev
12%	21%	31%	33%	27%	23%	22%	23%	25%	25%	24%	R&D / revenueR&D/rev
$54M	($16M)	($107M)	($380M)	$3M	$81M	$133M	$107M	$74M	$130M	$171M	Operating incomeOp. inc.
17.8%	−2.3%	−18.7%	−76.1%	0.6%	13.3%	19.7%	16.6%	10.1%	13.4%	16.0%	Operating marginOp. mgn
($4M)	($169M)	($140M)	($384M)	($46M)	$38M	$440M	$92M	$77M	($54M)	$177M	Net incomeNet inc.
—	—	—	—	—	12%	—	20%	16%	—	14%	Effective tax rateTax rate
											Cash flow & returns
$30M	$61M	$36M	$21M	$171M	$148M	$177M	$167M	$163M	$235M	$252M	Operating cash flowOp. cash
$13M	$93M	$112M	$104M	$79M	$70M	$57M	$52M	$67M	$63M	$64M	DepreciationDeprec.
$18M	$101M	$32M	$276M	$103M	$5M	($361M)	($15M)	($27M)	$147M	($69M)	Working capital & otherWC & other
$16M	$33M	$53M	$38M	$18M	$18M	$27M	$25M	$22M	$43M	$55M	CapexCapex
5.2%	4.7%	9.3%	7.6%	3.3%	3.0%	3.9%	3.8%	3.1%	4.4%	5.1%	Capex / revenueCapex/rev
$15M	$28M	($17M)	($17M)	$154M	$130M	$150M	$142M	$140M	$193M	$196M	Owner earningsOwner earn.
4.9%	4.0%	−2.9%	−3.5%	29.0%	21.5%	22.3%	21.9%	19.2%	19.9%	18.3%	Owner earnings marginOE mgn
$15M	$28M	($17M)	($17M)	$154M	$130M	$150M	$142M	$140M	$193M	$196M	Free cash flowFCF
4.9%	4.0%	−2.9%	−3.5%	29.0%	21.5%	22.3%	21.9%	19.2%	19.9%	18.3%	Free cash flow marginFCF mgn
—	$270M	$1M	$375K	$0	$0	$0	$88M	$73M	$13M	$0	AcquisitionsAcquis.
$685K	$19M	$7M	$4M	$7M	$23M	$36M	$33M	$14M	$43M	—	BuybacksBuybacks
—	-1%	-7%	-33%	—	9%	10%	7%	4%	—	9%	ROICROIC
-2%	-22%	-21%	-122%	-15%	8%	52%	10%	7%	-4%	12%	Return on equityROE
											Balance sheet
$85M	$214M	$193M	$177M	$333M	$345M	$587M	$515M	$582M	$786M	$665M	Cash & investmentsCash+inv
$54M	$136M	$97M	$70M	$46M	$85M	$102M	$91M	$106M	$149M	$160M	ReceivablesReceiv.
$57M	$136M	$123M	$108M	$92M	$83M	$115M	$136M	$194M	$238M	$252M	InventoryInvent.
$27M	$47M	$42M	$25M	$23M	$29M	$31M	$25M	$43M	$68M	$62M	Accounts payablePayables
$85M	$225M	$178M	$153M	$114M	$139M	$186M	$203M	$257M	$319M	$350M	Operating working capitalOper. WC
$213M	$563M	$459M	$399M	$482M	$522M	$813M	$761M	$903M	$1.2B	$1.1B	Current assetsCur. assets
$56M	$117M	$107M	$75M	$95M	$93M	$97M	$84M	$108M	$325M	$150M	Current liabilitiesCur. liab.
3.8×	4.8×	4.3×	5.3×	5.1×	5.6×	8.4×	9.1×	8.3×	3.7×	7.5×	Current ratioCurr. ratio
$7M	$314M	$314M	$315M	$315M	$314M	$311M	$323M	$332M	$336M	$336M	GoodwillGoodwill
$268M	$1.6B	$1.5B	$1.1B	$1.1B	$1.1B	$1.6B	$1.6B	$1.8B	$2.1B	$2.0B	Total assetsAssets
—	$668M	$665M	$662M	$659M	$492M	$566M	$447M	$448M	$501M	$340M	Total debtDebt
—	$454M	$472M	$485M	$326M	$147M	($21M)	($67M)	($134M)	($285M)	($325M)	Net debt / (cash)Net debt
77.3×	-0.6×	-3.4×	-10.6×	0.1×	3.7×	15.5×	8.7×	14.3×	23.5×	31.1×	Interest coverageInt. cov.
$210M	$777M	$669M	$314M	$300M	$472M	$843M	$948M	$1.1B	$1.3B	$1.4B	Shareholders’ equityEquity
1.2%	5.2%	5.6%	4.8%	6.7%	5.8%	6.1%	5.9%	6.3%	8.2%	7.4%	Stock comp / revenueSBC/rev
—	$4M	—	$345M	—	—	—	—	—	—	$345M	Goodwill written downGW imp.
											Per share
24.8M	60.7M	65.3M	65.7M	66.6M	70.5M	71.2M	71.5M	73.6M	74.0M	77.1M	Shares out (diluted)Shares
$12.21	$11.51	$8.73	$7.61	$7.96	$8.61	$9.49	$9.07	$9.92	$13.07	$13.92	Revenue / shareRev/sh
$-0.15	$-2.79	$-2.14	$-5.84	$-0.69	$0.54	$6.18	$1.28	$1.04	$-0.73	$2.29	EPS (diluted)EPS
$0.59	$0.47	$-0.26	$-0.26	$2.31	$1.85	$2.11	$1.99	$1.91	$2.61	$2.55	Owner earnings / shareOE/sh
$0.59	$0.47	$-0.26	$-0.26	$2.31	$1.85	$2.11	$1.99	$1.91	$2.61	$2.55	Free cash flow / shareFCF/sh
$0.63	$0.54	$0.81	$0.58	$0.26	$0.25	$0.37	$0.35	$0.30	$0.58	$0.72	Cap. spending / shareCapex/sh
$8.50	$12.81	$10.24	$4.78	$4.51	$6.69	$11.84	$13.25	$15.31	$17.94	$18.38	Book value / shareBVPS

The diluted share count moved ×2.45 into 2017 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Per-share growththe realized rate an owner's share compounded

	13-yr	5-yr
Revenue / share	+0.5%/yr	+10.4%/yr
Owner earnings / share	+12.1%/yr	+2.4%/yr
Capital spending / share	−0.7%/yr	+16.9%/yr
Book value / share	+5.9%/yr	+31.8%/yr

The year, in the company's words

the filing →

Verbatim from the 10-K's management discussion. Each sentence is shown only because its subject, direction, and stated figures check out against the filed numbers on this page. The words are the company's; the arithmetic is the record's.

Revenue+32.6%
“In fiscal year 2025, our revenue increased by $237.7 million, or 32.6%, to $967.3 million from $729.6 million for fiscal year 2024. The increase was primarily driven by revenue growth from defense programs and the full year contribution of acquisitions.”
✓ figure matches the filed record

The record, charted

FY2012–2025

Each measure over its full record; the current point and the worst year marked.

Share count

74Mpeak FY2025

ROIC

4%low FY2019

Gross margin

55%low FY2018

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$193Mowner earningsvs.($54M)net incomelow FY2019

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2012FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned a $54M loss into $193M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	($54M)	$77M	$92M	$440M	$38M
Depreciation & amortizationnon-cash charge added back	+$63M	+$67M	+$52M	+$57M	+$70M
Stock-based compensationreal costnon-cash, but a real cost	+$79M	+$46M	+$38M	+$41M	+$35M
Working capital & othertiming of cash in and out, other non-cash items	+$147M	−$27M	−$15M	−$361M	+$5M
Cash from operations	$235M	$163M	$167M	$177M	$148M
Capital expenditurecash put back in to keep running and to grow	−$43M	−$22M	−$25M	−$27M	−$18M
Owner earnings	$193M	$140M	$142M	$150M	$130M
Owner-earnings marginowner earnings ÷ revenue	20%	19%	22%	22%	21%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $79M), owner earnings is nearer $113M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 23.5×

Comfortable

Operating income $130M ÷ interest expense $6M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? +$285M

Net cash

Cash $112M + ST investments $674M − debt $501M

What this means
Cash and short-term investments exceed every dollar of debt by $285M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 198d

Long (60+ days)

DSO 56 + DIO 198 − DPO 56 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital 4%

Below average through the cycle

7-yr median, range -33%–10%; the latest year is left out — large non-operating charges put its operating line well above pretax profit

Industry peers: median 10%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 7 years, so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 19%

High through the cycle

10-yr median margin, range -3%–29%; latest $193M = operating cash $235M − maintenance capex $43M

Industry peers: median 12%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 20% of revenue this year, a 19% median across 10 years. Treating stock comp as the real expense it is (less $79M of SBC) leaves $113M.
Are earnings backed by cash? $235M

Loss, but cash-generative

Net income ($54M) · cash from operations $235M

What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.

How is the cash used?

Where do the earnings go? 23%

Reinvests most of it

Dividends + buybacks $44M ÷ Owner Earnings $193M

What this means
Of $193M Owner Earnings, $44M (23%) went back to shareholders, $635K dividends, $43M buybacks. But the buybacks barely exceed stock issued to employees ($79M SBC), net of dilution, little was truly returned. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 0.67×

Harvesting

Capex $43M ÷ depreciation $63M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 2 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $967M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 3.71×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $501M vs $880M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 6 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · 1 of 10 yrs

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.50/share (latest year $-0.71), the averaged base the calculator's gate runs on, and book value is $17.39/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2012–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 4 of 10

What this means
Lost money in 6 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 0 of 9 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin −1% → 13% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about −1% early to 13% lately, median 10% — pricing power intact or improving.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Owner earnings growth +17%/yr

What this means
Owner earnings grew about 17% a year over the record.
Worst year 2019 · −76.1% op. margin

What this means
Operations went underwater in 2019, understand why before trusting the good years.
Dividend record paid

What this means
Paid a dividend in 1 of the years on record.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Raised, but not as a competitor

The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Apr 3, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$1.1B

Cash & short-term investments$665M
Receivables$160M
Inventory$252M
Other current assets$49M

Current liabilities$150M

Accounts payable$62M
Other current liabilities$88M

Current ratio7.52×all current assets ÷ what's due · Graham looked for 2×

Quick ratio5.84×stricter: inventory excluded

Cash ratio4.44×strictest: cash alone against what's due

Working capital$976Mthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+22.5%the freshest read on whether the business is still growing

Current ratio, recent quarters8.2× → 7.5×

Deeper floors

Tangible book value$1.0Bequity stripped of goodwill & intangibles

Net current asset value$529MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$375M$35M of it operating leases

Deferred revenue$7Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2012–2025

Over the record, the business generated $1.2B of operating cash; how management split it reads as a cash builder, a large share of cash simply built up on the balance sheet.

Reinvested$291M · 24%
Dividends$635K · 0%
Buybacks$186M · 15%
Retained (debt / cash)$732M · 60%

Returned to owners$187M
20% of the owner earnings the business produced over the span, $635K as dividends and $186M as buybacks.
Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span cash and short-term investments rose $580M.
Average price paid for buybacks—
Buybacks ran $186M over the span, but the filings don't tag the share count needed to deduce the average price paid.
Net change in share count211.6%
The diluted count rose from 25M to 77M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record$0.03/sh
Paid in 1 of the years on record. It was never cut over the span.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Acquisitions & goodwill

from the balance sheet & the 10-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$415M20% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equity25%goodwill is this share of book equity; the rest is the company’s own retained and paid-in capital

Cash spent acquiring$444Mover 10 years buying other businesses, against $291M of capital spent building

$349M written down across 2 years (2017, 2019): goodwill the company has already conceded it overpaid for, charged against earnings. That is roughly 79% of the cash it put into acquisitions over the span. A write-down costs no cash (the cash went out when the deal was signed), but it is management marking its own past judgment to market.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 10-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Mr. Daly	$3.2M	$31.4M	$130M
2022	Mr. Daly	$8.3M	$3.1M	$150M
2023	Mr. Daly	$6.0M	$18.5M	$142M
2024	Mr. Daly	$6.0M	$14.8M	$140M
2025	Mr. Daly	$10.1M	$24.3M	$193M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership<1%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$79M
The slice of the business handed to employees in shares this year, 8% of revenue, equal to 61% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why MACOM Technology Solutions Holdings Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2012–2025.

1 of the 4 tests turned up something to look into; the other 3 came back clean.

Look hereDid the share count rise anyway?211.6%
Diluted shares grew 211.6% over 2012–2025, even as the company spent $186M on buybacks. The repurchases were outrun by issuance — to staff, in a raise, or in a deal — and the filing says which; owners' slice still shrank. Read the buyback line beside this one, not on its own.

And these came back clean

Is it less profitable than it was?
Did receivables and inventory outpace sales?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

How much of the revenue rides on one buyer?
≈$490M · 46% of revenue on the largest customers (TTM)
“For fiscal years 2025, 2024 and 2023, no direct customer individually accounted for 10% or more of our revenue and sales to our top 25 direct customers accounted for an aggregate of 45.6%, 47.0% and 51.5% of our revenue, respectively.”verify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Semiconductors

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
VIAVViavi Solutions Inc.	$1.1B	58%	5.6%	5%	8%
SYNASynaptics	$1.1B	43%	4.1%	8%	12%
SMTCSemtech Corporation	$1.0B	60%	11.8%	9%	16%
IPGPIPG Photonics Corporation	$1.0B	46%	17.9%	10%	16%
MTSIMACOM Technology Solutions Holdings Inc.	$967M	52%	11.7%	4%	20%
ICHRIchor Holdings	$948M	15%	5.2%	11%	4%
ALGMAllegro MicroSystems	$890M	55%	8.1%	13%	14%
ALABAstera Labs Inc.	$853M	75%	-27.4%	14%	11%
Group median	—	54%	6.9%	9%	13%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what MACOM Technology Solutions Holdings Inc. has delivered.

Today’s price $

Through the cycle, MACOM Technology Solutions Holdings Inc. earns about $189M on its 19.6% median owner-earnings margin. This year’s 19.9% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($189M) Net of stock comp (−$80M) Steady-state · maintenance capex ($209M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+4%/yr

Owner-earnings growth · ’12→’25+17%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $196M on 76M shares outstanding, per the 10-Q cover, as of 2026-05-04; net cash $325M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($55M) runs well above depreciation ($64M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $209M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh MTSI against another business →

Cite: Owner Scorecard, "MACOM Technology Solutions Holdings Inc. (MTSI), the owner's record," https://ownerscorecard.com/c/MTSI, data as of 2026-07-09.

Manual order: ← MTRX its page in the Manual MTUS →

Industry order: ← MRVL the Semiconductors chapter MU →