MICROCHIP TECHNOLOGY INC (1MCHP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MCHP - US5950171042 - Common Stock
47.52 EUR
-9.26 (-16.31%)
We assign a fundamental rating of 3 out of 10 to 1MCHP. 1MCHP was compared to 63 industry peers in the Semiconductors & Semiconductor Equipment industry. 1MCHP may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, 1MCHP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
1MCHP had positive earnings in the past year.
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
With a Return On Assets value of -1.21%, 1MCHP is not doing good in the industry: 87.30% of the companies in the same industry are doing better.
1MCHP has a worse Return On Equity (-2.63%) than 85.71% of its industry peers.
1MCHP has a Return On Invested Capital of 1.13%. This is amonst the worse of the industry: 1MCHP underperforms 80.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1MCHP is below the industry average of 14.81%.
The 3 year average ROIC (11.32%) for 1MCHP is well above the current ROIC(1.13%). The reason for the recent decline needs to be investigated.
| 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 82.54% 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 71.43% 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.
Compared to 1 year ago, 1MCHP has more shares outstanding
1MCHP has more shares outstanding than it did 5 years ago.
1MCHP has a better debt/assets ratio than last year.
2.2 Solvency
1MCHP has an Altman-Z score of 3.15. This indicates that 1MCHP is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.15, 1MCHP is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
The Debt to FCF ratio of 1MCHP is 7.52, which is on the high side as it means it would take 1MCHP, 7.52 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.52, 1MCHP is doing worse than 65.08% of the companies in the same industry.
1MCHP has a Debt/Equity ratio of 0.80. This is a neutral value indicating 1MCHP is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.80, 1MCHP is doing worse than 79.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.52 | ||
| Altman-Z | 3.15 |
ROIC/WACC0.11
WACC10.12%
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 has a Current ratio (2.31) which is comparable to the rest of the industry.
1MCHP has a Quick Ratio of 1.33. This is a normal value and indicates that 1MCHP is financially healthy and should not expect problems in meeting its short term obligations.
1MCHP has a worse Quick ratio (1.33) than 71.43% 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%.
The earnings per share for 1MCHP have been decreasing by -14.29% on average. This is quite bad
Looking at the last year, 1MCHP shows a very negative growth in Revenue. The Revenue has decreased by -35.70% in the last year.
Measured over the past years, 1MCHP shows a decrease in Revenue. The Revenue has been decreasing by -3.55% on average per year.
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
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 Y16.62%
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
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
Based on the Price/Earnings ratio of 52.80, the valuation of 1MCHP can be described as expensive.
Based on the Price/Earnings ratio, 1MCHP is valued a bit more expensive than 65.08% of the companies in the same industry.
1MCHP is valuated expensively when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
1MCHP is valuated rather expensively with a Price/Forward Earnings ratio of 20.48.
60.32% of the companies in the same industry are more expensive than 1MCHP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of 1MCHP to the average of the S&P500 Index (34.46), we can say 1MCHP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.8 | ||
| Fwd PE | 20.48 |
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 68.25% of the companies listed in the same industry.
60.32% of the companies in the same industry are more expensive than 1MCHP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.7 | ||
| EV/EBITDA | 36.59 |
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 38.15% in the coming years.
PEG (NY)3.18
PEG (5Y)N/A
EPS Next 2Y43.36%
EPS Next 3Y38.15%
5. Dividend
5.1 Amount
1MCHP has a Yearly Dividend Yield of 3.71%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.21, 1MCHP pays a better dividend. On top of this 1MCHP pays more dividend than 98.41% of the companies listed in the same industry.
1MCHP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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.
1MCHP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-555.76%
EPS Next 2Y43.36%
EPS Next 3Y38.15%
BIT:1MCHP (11/11/2025, 7:00:00 PM)
47.52
-9.26 (-16.31%)
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 Target65.42 (37.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
Yearly Dividend1.58
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 | 52.8 | ||
| Fwd PE | 20.48 | ||
| P/S | 6.97 | ||
| P/FCF | 40.7 | ||
| P/OCF | 37.07 | ||
| P/B | 4.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 36.59 |
EPS(TTM)0.9
EY1.89%
EPS(NY)2.32
Fwd EY4.88%
FCF(TTM)1.17
FCFY2.46%
OCF(TTM)1.28
OCFY2.7%
SpS6.82
BVpS11.04
TBVpS-3.43
PEG (NY)3.18
PEG (5Y)N/A
Graham Number14.95
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 | 3.15 |
F-Score4
WACC10.12%
ROIC/WACC0.11
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 3 / 10 to 1MCHP.MI.
What is the valuation status of MICROCHIP TECHNOLOGY INC (1MCHP.MI) stock?
ChartMill assigns a valuation rating of 3 / 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 52.8 and the Price/Book (PB) ratio is 4.31.
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%.