MICROCHIP TECHNOLOGY INC (1MCHP.MI) Stock Fundamental Analysis

BIT:1MCHP • US5950171042

65.8 EUR
+2.7 (+4.28%)
Last: Feb 2, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

3

Overall 1MCHP gets a fundamental rating of 3 out of 10. We evaluated 1MCHP against 64 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and financial health of 1MCHP have multiple concerns. 1MCHP is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

3

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.
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

  • 1MCHP has a worse Return On Assets (-1.09%) than 90.00% of its industry peers.
  • 1MCHP's Return On Equity of -2.39% is on the low side compared to the rest of the industry. 1MCHP is outperformed by 90.00% of its industry peers.
  • With a Return On Invested Capital value of 1.57%, 1MCHP is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
  • Measured over the past 3 years, the Average Return On Invested Capital for 1MCHP is below the industry average of 15.14%.
  • The 3 year average ROIC (11.32%) for 1MCHP is well above the current ROIC(1.57%). The reason for the recent decline needs to be investigated.
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 worse Operating Margin (6.34%) than 84.29% of its industry peers.
  • In the last couple of years the Operating Margin of 1MCHP has declined.
  • With a decent Gross Margin value of 55.41%, 1MCHP is doing good in the industry, outperforming 75.71% of the companies in the same industry.
  • In the last couple of years the Gross Margin of 1MCHP has declined.
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. Health

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.
  • 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.
  • 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

  • An Altman-Z score of 4.23 indicates that 1MCHP is not in any danger for bankruptcy at the moment.
  • 1MCHP has a Altman-Z score (4.23) which is comparable to the rest of the industry.
  • 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.
  • The Debt to FCF ratio of 1MCHP (6.54) is worse than 62.86% of its industry peers.
  • A Debt/Equity ratio of 0.82 indicates that 1MCHP is somewhat dependend on debt financing.
  • The Debt to Equity ratio of 1MCHP (0.82) is worse than 85.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.54
Altman-Z 4.23
ROIC/WACC0.15
WACC10.43%
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.
  • Looking at the Current ratio, with a value of 2.16, 1MCHP is doing worse than 60.00% of the companies in the same industry.
  • 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.
  • With a Quick ratio value of 1.16, 1MCHP is not doing good in the industry: 81.43% of the companies in the same industry are doing better.
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. Growth

3.1 Past

  • 1MCHP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.52%.
  • 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.
  • The Revenue has decreased by -8.08% in the past year.
  • 1MCHP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.55% yearly.
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.
  • 1MCHP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.84% yearly.
EPS Next Y21.21%
EPS Next 2Y42.77%
EPS Next 3Y42.44%
EPS Next 5Y32.12%
Revenue Next Year5.37%
Revenue Next 2Y12.33%
Revenue Next 3Y14.62%
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 66.46, the valuation of 1MCHP can be described as expensive.
  • 1MCHP's Price/Earnings ratio is a bit more expensive when compared to the industry. 1MCHP is more expensive than 75.71% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.07, 1MCHP is valued quite expensively.
  • Based on the Price/Forward Earnings ratio of 29.46, the valuation of 1MCHP can be described as expensive.
  • The rest of the industry has a similar Price/Forward Earnings ratio as 1MCHP.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.05, 1MCHP is valued at the same level.
Industry RankSector Rank
PE 66.46
Fwd PE 29.46
1MCHP.MI Price Earnings VS Forward Price Earnings1MCHP.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, 1MCHP is valued more expensive than 80.00% of the companies in the same industry.
  • 1MCHP's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 51.51
EV/EBITDA 48.32
1MCHP.MI Per share data1MCHP.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6 8 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.
  • A more expensive valuation may be justified as 1MCHP's earnings are expected to grow with 42.44% in the coming years.
PEG (NY)3.13
PEG (5Y)N/A
EPS Next 2Y42.77%
EPS Next 3Y42.44%

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

6

5. Dividend

5.1 Amount

  • 1MCHP has a Yearly Dividend Yield of 2.31%.
  • Compared to an average industry Dividend Yield of 0.69, 1MCHP pays a better dividend. On top of this 1MCHP pays more dividend than 90.00% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, 1MCHP pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.31%

5.2 History

  • On average, the dividend of 1MCHP grows each year by 20.15%, which is quite nice.
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-678.74%
EPS Next 2Y42.77%
EPS Next 3Y42.44%
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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MICROCHIP TECHNOLOGY INC

BIT:1MCHP (2/2/2026, 7:00:00 PM)

65.8

+2.7 (+4.28%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-05
Earnings (Next)05-06
Inst Owners98.58%
Inst Owner ChangeN/A
Ins Owners1.93%
Ins Owner ChangeN/A
Market Cap35.61B
Revenue(TTM)4.37B
Net Income(TTM)-156.60M
Analysts81.21
Price Target71.07 (8.01%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.31%
Yearly Dividend1.53
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)8.64%
PT rev (3m)7.43%
EPS NQ rev (1m)5.86%
EPS NQ rev (3m)6.15%
EPS NY rev (1m)6.92%
EPS NY rev (3m)3.93%
Revenue NQ rev (1m)2.72%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0.94%
Revenue NY rev (3m)-0.06%
Valuation
Industry RankSector Rank
PE 66.46
Fwd PE 29.46
P/S 9.66
P/FCF 51.51
P/OCF 46.36
P/B 6.44
P/tB N/A
EV/EBITDA 48.32
EPS(TTM)0.99
EY1.5%
EPS(NY)2.23
Fwd EY3.39%
FCF(TTM)1.28
FCFY1.94%
OCF(TTM)1.42
OCFY2.16%
SpS6.81
BVpS10.22
TBVpS-3.48
PEG (NY)3.13
PEG (5Y)N/A
Graham Number15.09
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 4.23
F-Score4
WACC10.43%
ROIC/WACC0.15
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 Y21.21%
EPS Next 2Y42.77%
EPS Next 3Y42.44%
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 Year5.37%
Revenue Next 2Y12.33%
Revenue Next 3Y14.62%
Revenue Next 5Y13.84%
EBIT growth 1Y-56.73%
EBIT growth 3Y-41.54%
EBIT growth 5Y-11.55%
EBIT Next Year55.23%
EBIT Next 3Y41.48%
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 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 for 1MCHP 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 financial health of MICROCHIP TECHNOLOGY INC (1MCHP.MI) stock?

The financial health rating of MICROCHIP TECHNOLOGY INC (1MCHP.MI) is 4 / 10.


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 21.21% in the next year.