MICROCHIP TECHNOLOGY INC (1MCHP.MI) Stock Fundamental Analysis
Europe - BIT:1MCHP - US5950171042 - Common Stock
55.51 EUR
-5.03 (-8.31%)
Overall 1MCHP gets a fundamental rating of 4 out of 10. We evaluated 1MCHP against 56 industry peers in the Semiconductors & Semiconductor Equipment industry. While 1MCHP seems to be doing ok healthwise, there are quite some concerns on its profitability. 1MCHP is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1MCHP was profitable.
1MCHP had a positive operating cash flow in the past year.
Of the past 5 years 1MCHP 4 years were profitable.
1MCHP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1MCHP (-0.03%) is worse than 81.48% of its industry peers.
1MCHP's Return On Equity of -0.07% is on the low side compared to the rest of the industry. 1MCHP is outperformed by 79.63% of its industry peers.
The Return On Invested Capital of 1MCHP (1.98%) is worse than 75.93% of its industry peers.
1MCHP had an Average Return On Invested Capital over the past 3 years of 11.32%. This is below the industry average of 14.85%.
The last Return On Invested Capital (1.98%) 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 | -0.03% | ||
| ROE | -0.07% | ||
| ROIC | 1.98% |
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
With a Operating Margin value of 8.53%, 1MCHP is not doing good in the industry: 74.07% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of 1MCHP has declined.
The Gross Margin of 1MCHP (56.07%) is better than 75.93% of its industry peers.
1MCHP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.53% | ||
| PM (TTM) | N/A | ||
| GM | 56.07% |
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.
Compared to 1 year ago, 1MCHP has more shares outstanding
The number of shares outstanding for 1MCHP has been increased compared to 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 3.55 indicates that 1MCHP is not in any danger for bankruptcy at the moment.
1MCHP has a Altman-Z score of 3.55. This is in the lower half of the industry: 1MCHP underperforms 72.22% of its industry peers.
The Debt to FCF ratio of 1MCHP is 7.29, which is on the high side as it means it would take 1MCHP, 7.29 years of fcf income to pay off all of its debts.
1MCHP has a Debt to FCF ratio of 7.29. This is in the lower half of the industry: 1MCHP underperforms 61.11% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that 1MCHP is somewhat dependend on debt financing.
1MCHP has a worse Debt to Equity ratio (0.80) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.29 | ||
| Altman-Z | 3.55 |
ROIC/WACC0.18
WACC10.96%
2.3 Liquidity
1MCHP has a Current Ratio of 2.59. This indicates that 1MCHP is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.59, 1MCHP is in line with its industry, outperforming 55.56% of the companies in the same industry.
1MCHP has a Quick Ratio of 1.47. This is a normal value and indicates that 1MCHP is financially healthy and should not expect problems in meeting its short term obligations.
1MCHP's Quick ratio of 1.47 is in line compared to the rest of the industry. 1MCHP outperforms 42.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.47 |
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%.
The earnings per share for 1MCHP have been decreasing by -14.29% on average. This is quite bad
1MCHP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -42.35%.
The Revenue has been decreasing by -3.55% on average over the past years.
EPS 1Y (TTM)-72.63%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%-49.06%
Revenue 1Y (TTM)-42.35%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%-13.36%
3.2 Future
Based on estimates for the next years, 1MCHP will show a very strong growth in Earnings Per Share. The EPS will grow by 29.71% on average per year.
The Revenue is expected to grow by 10.04% on average over the next years. This is quite good.
EPS Next Y16.65%
EPS Next 2Y43.41%
EPS Next 3Y40.72%
EPS Next 5Y29.71%
Revenue Next Year5.46%
Revenue Next 2Y12.91%
Revenue Next 3Y14.64%
Revenue Next 5Y10.04%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 61.68, 1MCHP can be considered very expensive at the moment.
85.19% of the companies in the same industry are cheaper than 1MCHP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.20. 1MCHP is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 24.10, which indicates a rather expensive current valuation of 1MCHP.
1MCHP's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, 1MCHP is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.68 | ||
| Fwd PE | 24.1 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1MCHP indicates a slightly more expensive valuation: 1MCHP is more expensive than 72.22% of the companies listed in the same industry.
1MCHP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1MCHP is cheaper than 61.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.04 | ||
| EV/EBITDA | 35.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1MCHP does not grow enough to justify the current Price/Earnings ratio.
1MCHP's earnings are expected to grow with 40.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.71
PEG (5Y)N/A
EPS Next 2Y43.41%
EPS Next 3Y40.72%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.75%, 1MCHP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.29, 1MCHP pays a better dividend. On top of this 1MCHP pays more dividend than 96.30% of the companies listed in the same industry.
1MCHP's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
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.
1MCHP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-19912.24%
EPS Next 2Y43.41%
EPS Next 3Y40.72%
BIT:1MCHP (8/13/2025, 7:00:00 PM)
55.51
-5.03 (-8.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners100.81%
Inst Owner ChangeN/A
Ins Owners1.93%
Ins Owner ChangeN/A
Market Cap29.96B
Analysts80
Price Target66.69 (20.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
Yearly Dividend1.56
Dividend Growth(5Y)20.15%
DP-19912.24%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-12.56%
Min EPS beat(2)-27.71%
Max EPS beat(2)2.6%
EPS beat(4)2
Avg EPS beat(4)-5.07%
Min EPS beat(4)-27.71%
Max EPS beat(4)4.85%
EPS beat(8)3
Avg EPS beat(8)-3.08%
EPS beat(12)3
Avg EPS beat(12)-2.3%
EPS beat(16)6
Avg EPS beat(16)-1.31%
Revenue beat(2)0
Avg Revenue beat(2)-2.95%
Min Revenue beat(2)-4.74%
Max Revenue beat(2)-1.17%
Revenue beat(4)0
Avg Revenue beat(4)-2.22%
Min Revenue beat(4)-4.74%
Max Revenue beat(4)-0.95%
Revenue beat(8)0
Avg Revenue beat(8)-2.24%
Revenue beat(12)0
Avg Revenue beat(12)-1.92%
Revenue beat(16)0
Avg Revenue beat(16)-1.75%
PT rev (1m)13.08%
PT rev (3m)26.13%
EPS NQ rev (1m)1.52%
EPS NQ rev (3m)5.41%
EPS NY rev (1m)8.88%
EPS NY rev (3m)11.99%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)1.16%
Revenue NY rev (3m)2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.68 | ||
| Fwd PE | 24.1 | ||
| P/S | 7.9 | ||
| P/FCF | 45.04 | ||
| P/OCF | 38.72 | ||
| P/B | 4.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.21 |
EPS(TTM)0.9
EY1.62%
EPS(NY)2.3
Fwd EY4.15%
FCF(TTM)1.23
FCFY2.22%
OCF(TTM)1.43
OCFY2.58%
SpS7.03
BVpS11.3
TBVpS-3.19
PEG (NY)3.71
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.03% | ||
| ROE | -0.07% | ||
| ROCE | 2.64% | ||
| ROIC | 1.98% | ||
| ROICexc | 2.09% | ||
| ROICexgc | 6.44% | ||
| OM | 8.53% | ||
| PM (TTM) | N/A | ||
| GM | 56.07% | ||
| FCFM | 17.54% |
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%
ROICexcg growth 3Y-44.39%
ROICexcg 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-Score3
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.29 | ||
| Debt/EBITDA | 5 | ||
| Cap/Depr | 16.8% | ||
| Cap/Sales | 2.86% | ||
| Interest Coverage | 1.59 | ||
| Cash Conversion | 79.79% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 3.55 |
F-Score3
WACC10.96%
ROIC/WACC0.18
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 Y16.65%
EPS Next 2Y43.41%
EPS Next 3Y40.72%
EPS Next 5Y29.71%
Revenue 1Y (TTM)-42.35%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%-13.36%
Revenue Next Year5.46%
Revenue Next 2Y12.91%
Revenue Next 3Y14.64%
Revenue Next 5Y10.04%
EBIT growth 1Y-85.32%
EBIT growth 3Y-41.54%
EBIT growth 5Y-11.55%
EBIT Next Year54.31%
EBIT Next 3Y33.49%
EBIT Next 5Y25.08%
FCF growth 1Y-70.39%
FCF growth 3Y-32.16%
FCF growth 5Y-12.16%
OCF growth 1Y-68.95%
OCF growth 3Y-31.89%
OCF growth 5Y-10.27%