MICROCHIP TECHNOLOGY INC (1MCHP.MI) Stock Fundamental Analysis
Europe - BIT:1MCHP - US5950171042 - Common Stock
47.52 EUR
-7.26 (-13.25%)
Overall 1MCHP gets a fundamental rating of 4 out of 10. We evaluated 1MCHP against 62 industry peers in the Semiconductors & Semiconductor Equipment industry. The financial health of 1MCHP is average, but there are quite some concerns on its profitability. While showing a medium growth rate, 1MCHP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year 1MCHP was profitable.
In the past year 1MCHP had a positive cash flow from operations.
Of the past 5 years 1MCHP 4 years were profitable.
In the past 5 years 1MCHP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1MCHP (-1.21%) is worse than 83.08% of its industry peers.
1MCHP has a Return On Equity of -2.63%. This is amonst the worse of the industry: 1MCHP underperforms 81.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.13%, 1MCHP is doing worse than 80.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1MCHP is below the industry average of 14.29%.
The last Return On Invested Capital (1.13%) for 1MCHP is well below the 3 year average (11.32%), which needs to be investigated, but indicates that 1MCHP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.21% | ||
| ROE | -2.63% | ||
| ROIC | 1.13% |
ROA(3y)8.56%
ROA(5y)7.14%
ROE(3y)20.99%
ROE(5y)18.26%
ROIC(3y)11.32%
ROIC(5y)9.76%
1.3 Margins
1MCHP's Operating Margin of 4.91% is on the low side compared to the rest of the industry. 1MCHP is outperformed by 83.08% of its industry peers.
In the last couple of years the Operating Margin of 1MCHP has declined.
1MCHP's Gross Margin of 54.48% is fine compared to the rest of the industry. 1MCHP outperforms 72.31% of its industry peers.
1MCHP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.91% | ||
| PM (TTM) | N/A | ||
| GM | 54.48% |
OM growth 3Y-32.35%
OM growth 5Y-8.3%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.92%
GM growth 5Y-1.82%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1MCHP is creating some value.
1MCHP has more shares outstanding than it did 1 year ago.
1MCHP has more shares outstanding than it did 5 years ago.
The debt/assets ratio for 1MCHP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.61 indicates that 1MCHP is not in any danger for bankruptcy at the moment.
1MCHP's Altman-Z score of 3.61 is in line compared to the rest of the industry. 1MCHP outperforms 41.54% of its industry peers.
1MCHP has a debt to FCF ratio of 7.52. This is a slightly negative value and a sign of low solvency as 1MCHP would need 7.52 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.52, 1MCHP is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.80 indicates that 1MCHP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.80, 1MCHP is not doing good in the industry: 83.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.52 | ||
| Altman-Z | 3.61 |
ROIC/WACC0.1
WACC11.1%
2.3 Liquidity
1MCHP has a Current Ratio of 2.31. This indicates that 1MCHP is financially healthy and has no problem in meeting its short term obligations.
1MCHP's Current ratio of 2.31 is in line compared to the rest of the industry. 1MCHP outperforms 49.23% of its industry peers.
A Quick Ratio of 1.33 indicates that 1MCHP should not have too much problems paying its short term obligations.
The Quick ratio of 1MCHP (1.33) is worse than 72.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
1MCHP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -72.63%.
Measured over the past years, 1MCHP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.29% on average per year.
Looking at the last year, 1MCHP shows a very negative growth in Revenue. The Revenue has decreased by -35.70% in the last year.
1MCHP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.55% yearly.
EPS 1Y (TTM)-72.63%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%-49.06%
Revenue 1Y (TTM)-35.7%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%-13.36%
3.2 Future
1MCHP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.71% yearly.
1MCHP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.04% yearly.
EPS Next Y16.62%
EPS Next 2Y43.36%
EPS Next 3Y38.15%
EPS Next 5Y29.71%
Revenue Next Year5.44%
Revenue Next 2Y12.92%
Revenue Next 3Y14.45%
Revenue Next 5Y10.04%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 53.39, the valuation of 1MCHP can be described as expensive.
Based on the Price/Earnings ratio, 1MCHP is valued a bit more expensive than the industry average as 73.85% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 25.89. 1MCHP is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 20.78, 1MCHP is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as 1MCHP.
1MCHP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.39 | ||
| Fwd PE | 20.78 |
4.2 Price Multiples
70.77% of the companies in the same industry are cheaper than 1MCHP, based on the Enterprise Value to EBITDA ratio.
1MCHP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.29 | ||
| EV/EBITDA | 43.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1MCHP's earnings are expected to grow with 38.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.21
PEG (5Y)N/A
EPS Next 2Y43.36%
EPS Next 3Y38.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.79%, 1MCHP has a reasonable but not impressive dividend return.
1MCHP's Dividend Yield is rather good when compared to the industry average which is at 1.34. 1MCHP pays more dividend than 96.92% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, 1MCHP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
5.2 History
The dividend of 1MCHP is nicely growing with an annual growth rate of 20.15%!
Dividend Growth(5Y)20.15%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
The earnings of 1MCHP are negative and hence is the payout ratio. 1MCHP will probably not be able to sustain this dividend level.
The dividend of 1MCHP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-555.76%
EPS Next 2Y43.36%
EPS Next 3Y38.15%
BIT:1MCHP (11/11/2025, 7:00:00 PM)
47.52
-7.26 (-13.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners104.37%
Inst Owner ChangeN/A
Ins Owners1.93%
Ins Owner ChangeN/A
Market Cap25.65B
Revenue(TTM)4.24B
Net Income(TTM)-180.60M
Analysts79.39
Price Target66.16 (39.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
Yearly Dividend1.55
Dividend Growth(5Y)20.15%
DP-555.76%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.2%
Min EPS beat(2)2.6%
Max EPS beat(2)11.8%
EPS beat(4)3
Avg EPS beat(4)-2.11%
Min EPS beat(4)-27.71%
Max EPS beat(4)11.8%
EPS beat(8)4
Avg EPS beat(8)-1.35%
EPS beat(12)4
Avg EPS beat(12)-1.31%
EPS beat(16)6
Avg EPS beat(16)-0.69%
Revenue beat(2)0
Avg Revenue beat(2)-0.61%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)-0.05%
Revenue beat(4)0
Avg Revenue beat(4)-1.73%
Min Revenue beat(4)-4.74%
Max Revenue beat(4)-0.05%
Revenue beat(8)0
Avg Revenue beat(8)-2%
Revenue beat(12)0
Avg Revenue beat(12)-1.83%
Revenue beat(16)0
Avg Revenue beat(16)-1.7%
PT rev (1m)-0.79%
PT rev (3m)12.19%
EPS NQ rev (1m)0.55%
EPS NQ rev (3m)10.92%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)8.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.93%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.39 | ||
| Fwd PE | 20.78 | ||
| P/S | 7.07 | ||
| P/FCF | 41.29 | ||
| P/OCF | 37.61 | ||
| P/B | 4.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 43.26 |
EPS(TTM)0.89
EY1.87%
EPS(NY)2.29
Fwd EY4.81%
FCF(TTM)1.15
FCFY2.42%
OCF(TTM)1.26
OCFY2.66%
SpS6.72
BVpS10.88
TBVpS-3.38
PEG (NY)3.21
PEG (5Y)N/A
Graham Number14.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.21% | ||
| ROE | -2.63% | ||
| ROCE | 1.51% | ||
| ROIC | 1.13% | ||
| ROICexc | 1.18% | ||
| ROICexgc | 3.69% | ||
| OM | 4.91% | ||
| PM (TTM) | N/A | ||
| GM | 54.48% | ||
| FCFM | 17.13% |
ROA(3y)8.56%
ROA(5y)7.14%
ROE(3y)20.99%
ROE(5y)18.26%
ROIC(3y)11.32%
ROIC(5y)9.76%
ROICexc(3y)11.58%
ROICexc(5y)9.98%
ROICexgc(3y)46.19%
ROICexgc(5y)41.66%
ROCE(3y)15.1%
ROCE(5y)13.02%
ROICexgc growth 3Y-44.39%
ROICexgc growth 5Y-17.88%
ROICexc growth 3Y-40.07%
ROICexc growth 5Y-9.14%
OM growth 3Y-32.35%
OM growth 5Y-8.3%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.92%
GM growth 5Y-1.82%
F-Score4
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.52 | ||
| Debt/EBITDA | 5.8 | ||
| Cap/Depr | 9.69% | ||
| Cap/Sales | 1.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.69% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 3.61 |
F-Score4
WACC11.1%
ROIC/WACC0.1
Cap/Depr(3y)32.64%
Cap/Depr(5y)27.66%
Cap/Sales(3y)4.12%
Cap/Sales(5y)3.9%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-72.63%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%-49.06%
EPS Next Y16.62%
EPS Next 2Y43.36%
EPS Next 3Y38.15%
EPS Next 5Y29.71%
Revenue 1Y (TTM)-35.7%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%-13.36%
Revenue Next Year5.44%
Revenue Next 2Y12.92%
Revenue Next 3Y14.45%
Revenue Next 5Y10.04%
EBIT growth 1Y-88.9%
EBIT growth 3Y-41.54%
EBIT growth 5Y-11.55%
EBIT Next Year72.2%
EBIT Next 3Y31.33%
EBIT Next 5Y25.08%
FCF growth 1Y-78%
FCF growth 3Y-32.16%
FCF growth 5Y-12.16%
OCF growth 1Y-78.89%
OCF growth 3Y-31.89%
OCF growth 5Y-10.27%
MICROCHIP TECHNOLOGY INC / 1MCHP.MI FAQ
Can you provide the ChartMill fundamental rating for MICROCHIP TECHNOLOGY INC?
ChartMill assigns a fundamental rating of 4 / 10 to 1MCHP.MI.
What is the valuation status of MICROCHIP TECHNOLOGY INC (1MCHP.MI) stock?
ChartMill assigns a valuation rating of 2 / 10 to MICROCHIP TECHNOLOGY INC (1MCHP.MI). This can be considered as Overvalued.
What is the profitability of 1MCHP stock?
MICROCHIP TECHNOLOGY INC (1MCHP.MI) has a profitability rating of 3 / 10.
What is the valuation of MICROCHIP TECHNOLOGY INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MICROCHIP TECHNOLOGY INC (1MCHP.MI) is 53.39 and the Price/Book (PB) ratio is 4.37.
Can you provide the dividend sustainability for 1MCHP stock?
The dividend rating of MICROCHIP TECHNOLOGY INC (1MCHP.MI) is 5 / 10 and the dividend payout ratio is -555.76%.