MTSI - MACOM Technology Solutions: Not Walking The Walk

2024-04-01 10:30:00 ET

Summary

• MACOM Technology Solutions has seen stagnant sales and demanding valuation multiples, making it an unattractive investment.
• The company recently acquired the RF business from Wolfspeed, but the deal has not had a significant impact on earnings.
• Despite optimistic news releases, the company's results do not support the high valuation, leading to caution for potential investors.

When MACOM Technology Solutions ( MTSI ) acquired assets on the cheap from Wolfspeed ( WOLF ) in August of last year, I believed that the transaction looked cheap, given a non-demanding sales multiple and the fact that Wolfspeed was a willing seller....

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