New Lifetime High For M/A-COM Technology Solutions Holdings (MTSI)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
M/A-COM Technology Solutions Holdings
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified M/A-COM Technology Solutions Holdings as such a stock due to the following factors:
- MTSI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.2 million.
- MTSI has traded 10,670 shares today.
- MTSI is trading at a new lifetime high.
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More details on MTSI:
M/A-COM Technology Solutions Holdings, Inc., through its subsidiaries, designs, develops, manufactures, and markets semiconductors and modules for use in wireless and wireline applications across the radio frequency, microwave, and millimeterwave spectrum. Currently there are 6 analysts that rate M/A-COM Technology Solutions Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for M/A-COM Technology Solutions Holdings has been 393,600 shares per day over the past 30 days. M/A-COM Technology has a market cap of $1.6 billion and is part of the technology sector and electronics industry. The stock has a beta of 3.10 and a short float of 8.9% with 2.65 days to cover. Shares are up 7.8% year-to-date as of the close of trading on Friday.
Analysis:
rates M/A-COM Technology Solutions Holdings as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 10.7%. Since the same quarter one year prior, revenues rose by 36.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 101.96% over the past year, a rise that has exceeded that of the S&P 500 Index. Although MTSI had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- M/A-COM TECHNOLOGY SOLUTIONS has improved earnings per share by 13.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, M/A-COM TECHNOLOGY SOLUTIONS swung to a loss, reporting -$0.25 versus $0.39 in the prior year. This year, the market expects an improvement in earnings ($1.64 versus -$0.25).
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, M/A-COM TECHNOLOGY SOLUTIONS's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to $2.08 million or 52.66% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full M/A-COM Technology Solutions Holdings Ratings Report.
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