This week we saw the MACOM Technology Solutions Holdings, Inc. (NASDAQ:MTSI) share price climb by 14%. But over the last three years we’ve seen a quite serious decline. Tragically, the share price declined 57% in that time. So it is really good to see an improvement. After all, could be that the fall was overdone.
Check out our latest analysis for MACOM Technology Solutions Holdings
Given that MACOM Technology Solutions Holdings didn’t make a profit in the last twelve months, we’ll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That’s because it’s hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last three years MACOM Technology Solutions Holdings saw its revenue shrink by 9.5% per year. That is not a good result. The share price decline of 25% compound, over three years, is understandable given the company doesn’t have profits to boast of, and revenue is moving in the wrong direction. Of course, it’s the future that will determine whether today’s price is a good one. We’d be pretty wary of this one until it makes a profit, because we don’t specialize in finding turnaround situations.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
NasdaqGS:MTSI Income Statement April 7th 2020
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. If you are thinking of buying or selling MACOM Technology Solutions Holdings stock, you should check out this free report showing analyst profit forecasts.
A Different Perspective
It’s nice to see that MACOM Technology Solutions Holdings shareholders have received a total shareholder return of 21% over the last year. Notably the five-year annualised TSR loss of 9.7% per year compares very unfavourably with the recent share price performance. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It’s always interesting to track share price performance over the longer term. But to understand MACOM Technology Solutions Holdings better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we’ve spotted with MACOM Technology Solutions Holdings .
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.