MICROCHIP TECHNOLOGY INC (1MCHP.MI) Fundamental Analysis & Valuation

BIT:1MCHP • US5950171042

Current stock price

54.91 EUR
-6.11 (-10.01%)
Last:

This 1MCHP.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. 1MCHP.MI Profitability Analysis

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.
1MCHP.MI Yearly Net Income VS EBIT VS OCF VS FCF1MCHP.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

1.2 Ratios

  • Looking at the Return On Assets, with a value of -1.09%, 1MCHP is doing worse than 92.54% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of -2.39%, 1MCHP is doing worse than 92.54% of the companies in the same industry.
  • The Return On Invested Capital of 1MCHP (1.57%) is worse than 88.06% 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 15.39%.
  • The last Return On Invested Capital (1.57%) 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 RankSector Rank
ROA -1.09%
ROE -2.39%
ROIC 1.57%
ROA(3y)8.56%
ROA(5y)7.14%
ROE(3y)20.99%
ROE(5y)18.26%
ROIC(3y)11.32%
ROIC(5y)9.76%
1MCHP.MI Yearly ROA, ROE, ROIC1MCHP.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30

1.3 Margins

  • 1MCHP has a Operating Margin of 6.34%. This is amonst the worse of the industry: 1MCHP underperforms 88.06% of its industry peers.
  • 1MCHP's Operating Margin has declined in the last couple of years.
  • 1MCHP has a better Gross Margin (55.41%) than 73.13% of its industry peers.
  • 1MCHP's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 6.34%
PM (TTM) N/A
GM 55.41%
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%
1MCHP.MI Yearly Profit, Operating, Gross Margins1MCHP.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. 1MCHP.MI Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1MCHP is still creating some value.
  • The number of shares outstanding for 1MCHP has been increased compared to 1 year ago.
  • 1MCHP has more shares outstanding than it did 5 years ago.
  • 1MCHP has a better debt/assets ratio than last year.
1MCHP.MI Yearly Shares Outstanding1MCHP.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
1MCHP.MI Yearly Total Debt VS Total Assets1MCHP.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • 1MCHP has an Altman-Z score of 3.62. This indicates that 1MCHP is financially healthy and has little risk of bankruptcy at the moment.
  • 1MCHP has a worse Altman-Z score (3.62) than 65.67% of its industry peers.
  • 1MCHP has a debt to FCF ratio of 6.54. This is a slightly negative value and a sign of low solvency as 1MCHP would need 6.54 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 6.54, 1MCHP is doing worse than 65.67% of the companies in the same industry.
  • 1MCHP has a Debt/Equity ratio of 0.82. This is a neutral value indicating 1MCHP is somewhat dependend on debt financing.
  • 1MCHP has a worse Debt to Equity ratio (0.82) than 86.57% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.54
Altman-Z 3.62
ROIC/WACC0.14
WACC11.03%
1MCHP.MI Yearly LT Debt VS Equity VS FCF1MCHP.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.3 Liquidity

  • 1MCHP has a Current Ratio of 2.16. This indicates that 1MCHP is financially healthy and has no problem in meeting its short term obligations.
  • 1MCHP has a Current ratio of 2.16. This is in the lower half of the industry: 1MCHP underperforms 62.69% of its industry peers.
  • 1MCHP has a Quick Ratio of 1.16. 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 1.16 is on the low side compared to the rest of the industry. 1MCHP is outperformed by 83.58% of its industry peers.
Industry RankSector Rank
Current Ratio 2.16
Quick Ratio 1.16
1MCHP.MI Yearly Current Assets VS Current Liabilites1MCHP.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. 1MCHP.MI Growth Analysis

3.1 Past

  • The earnings per share for 1MCHP have decreased strongly by -33.52% in the last year.
  • The earnings per share for 1MCHP have been decreasing by -14.29% on average. This is quite bad
  • The Revenue has decreased by -8.08% in the past year.
  • The Revenue has been decreasing by -3.55% on average over the past years.
EPS 1Y (TTM)-33.52%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%120%
Revenue 1Y (TTM)-8.08%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%15.59%

3.2 Future

  • 1MCHP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.12% yearly.
  • Based on estimates for the next years, 1MCHP will show a quite strong growth in Revenue. The Revenue will grow by 13.84% on average per year.
EPS Next Y23.2%
EPS Next 2Y44.89%
EPS Next 3Y42.88%
EPS Next 5Y32.12%
Revenue Next Year6.11%
Revenue Next 2Y14%
Revenue Next 3Y15.44%
Revenue Next 5Y13.84%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
1MCHP.MI Yearly Revenue VS Estimates1MCHP.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
1MCHP.MI Yearly EPS VS Estimates1MCHP.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6

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3

4. 1MCHP.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 54.37, which means the current valuation is very expensive for 1MCHP.
  • 1MCHP's Price/Earnings ratio is a bit more expensive when compared to the industry. 1MCHP is more expensive than 76.12% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.78, 1MCHP is valued quite expensively.
  • With a Price/Forward Earnings ratio of 23.25, 1MCHP is valued on the expensive side.
  • 64.18% of the companies in the same industry are more expensive than 1MCHP, based on the Price/Forward Earnings ratio.
  • 1MCHP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.54, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 54.37
Fwd PE 23.25
1MCHP.MI Price Earnings VS Forward Price Earnings1MCHP.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • 80.60% 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 a bit cheaper when compared to the industry. 1MCHP is cheaper than 70.15% of the companies in the same industry.
Industry RankSector Rank
P/FCF 41.88
EV/EBITDA 40.26
1MCHP.MI Per share data1MCHP.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

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 42.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.34
PEG (5Y)N/A
EPS Next 2Y44.89%
EPS Next 3Y42.88%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. 1MCHP.MI Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.88%, 1MCHP has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.65, 1MCHP pays a better dividend. On top of this 1MCHP pays more dividend than 94.03% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, 1MCHP pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.88%

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-678.74%
EPS Next 2Y44.89%
EPS Next 3Y42.88%
1MCHP.MI Yearly Income VS Free CF VS Dividend1MCHP.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

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1MCHP.MI Fundamentals: All Metrics, Ratios and Statistics

MICROCHIP TECHNOLOGY INC

BIT:1MCHP (3/9/2026, 7:00:00 PM)

54.91

-6.11 (-10.01%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-05
Earnings (Next)05-06
Inst Owners99.68%
Inst Owner ChangeN/A
Ins Owners1.92%
Ins Owner ChangeN/A
Market Cap29.71B
Revenue(TTM)4.37B
Net Income(TTM)-156.60M
Analysts81.82
Price Target75.49 (37.48%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.88%
Yearly Dividend1.57
Dividend Growth(5Y)20.15%
DP-678.74%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.66%
Min EPS beat(2)2.58%
Max EPS beat(2)4.75%
EPS beat(4)4
Avg EPS beat(4)5.43%
Min EPS beat(4)2.58%
Max EPS beat(4)11.8%
EPS beat(8)5
Avg EPS beat(8)-0.47%
EPS beat(12)6
Avg EPS beat(12)-0.53%
EPS beat(16)7
Avg EPS beat(16)-0.18%
Revenue beat(2)0
Avg Revenue beat(2)-1.55%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-1.5%
Revenue beat(4)0
Avg Revenue beat(4)-1.08%
Min Revenue beat(4)-1.6%
Max Revenue beat(4)-0.05%
Revenue beat(8)0
Avg Revenue beat(8)-1.78%
Revenue beat(12)0
Avg Revenue beat(12)-1.89%
Revenue beat(16)0
Avg Revenue beat(16)-1.68%
PT rev (1m)6.21%
PT rev (3m)15.39%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)12.96%
EPS NY rev (1m)1.64%
EPS NY rev (3m)6.7%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)5.49%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)0.7%
Valuation
Industry RankSector Rank
PE 54.37
Fwd PE 23.25
P/S 7.85
P/FCF 41.88
P/OCF 37.69
P/B 5.23
P/tB N/A
EV/EBITDA 40.26
EPS(TTM)1.01
EY1.84%
EPS(NY)2.36
Fwd EY4.3%
FCF(TTM)1.31
FCFY2.39%
OCF(TTM)1.46
OCFY2.65%
SpS6.99
BVpS10.49
TBVpS-3.57
PEG (NY)2.34
PEG (5Y)N/A
Graham Number15.44
Profitability
Industry RankSector Rank
ROA -1.09%
ROE -2.39%
ROCE 2.09%
ROIC 1.57%
ROICexc 1.6%
ROICexgc 4.93%
OM 6.34%
PM (TTM) N/A
GM 55.41%
FCFM 18.75%
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 Turnover0.31
Health
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.54
Debt/EBITDA 5.48
Cap/Depr 12.97%
Cap/Sales 2.08%
Interest Coverage 250
Cash Conversion 92.97%
Profit Quality N/A
Current Ratio 2.16
Quick Ratio 1.16
Altman-Z 3.62
F-Score4
WACC11.03%
ROIC/WACC0.14
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)-33.52%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%120%
EPS Next Y23.2%
EPS Next 2Y44.89%
EPS Next 3Y42.88%
EPS Next 5Y32.12%
Revenue 1Y (TTM)-8.08%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%15.59%
Revenue Next Year6.11%
Revenue Next 2Y14%
Revenue Next 3Y15.44%
Revenue Next 5Y13.84%
EBIT growth 1Y-56.73%
EBIT growth 3Y-41.54%
EBIT growth 5Y-11.55%
EBIT Next Year61.19%
EBIT Next 3Y43.22%
EBIT Next 5Y25.08%
FCF growth 1Y-70.87%
FCF growth 3Y-32.16%
FCF growth 5Y-12.16%
OCF growth 1Y-71.28%
OCF growth 3Y-31.89%
OCF growth 5Y-10.27%

MICROCHIP TECHNOLOGY INC / 1MCHP.MI Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for MICROCHIP TECHNOLOGY INC?

ChartMill assigns a fundamental rating of 3 / 10 to 1MCHP.MI.


What is the valuation status for 1MCHP stock?

ChartMill assigns a valuation rating of 3 / 10 to MICROCHIP TECHNOLOGY INC (1MCHP.MI). This can be considered as Overvalued.


How profitable is MICROCHIP TECHNOLOGY INC (1MCHP.MI) stock?

MICROCHIP TECHNOLOGY INC (1MCHP.MI) has a profitability rating of 3 / 10.


Can you provide the PE and PB ratios for 1MCHP stock?

The Price/Earnings (PE) ratio for MICROCHIP TECHNOLOGY INC (1MCHP.MI) is 54.37 and the Price/Book (PB) ratio is 5.23.


What is the earnings growth outlook for MICROCHIP TECHNOLOGY INC?

The Earnings per Share (EPS) of MICROCHIP TECHNOLOGY INC (1MCHP.MI) is expected to grow by 23.2% in the next year.