MICROCHIP TECHNOLOGY INC (1MCHP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MCHP - US5950171042 - Common Stock
63.1 EUR
+0.66 (+1.06%)
1MCHP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 71 industry peers in the Semiconductors & Semiconductor Equipment industry. While 1MCHP seems to be doing ok healthwise, 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
- 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.
- Each year in the past 5 years 1MCHP had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of -1.69%, 1MCHP is not doing good in the industry: 88.73% of the companies in the same industry are doing better.
- Looking at the Return On Equity, with a value of -3.66%, 1MCHP is doing worse than 88.73% of the companies in the same industry.
- The Return On Invested Capital of 1MCHP (0.87%) is worse than 85.92% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1MCHP is below the industry average of 13.85%.
- The 3 year average ROIC (11.32%) for 1MCHP is well above the current ROIC(0.87%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.69% | ||
| ROE | -3.66% | ||
| ROIC | 0.87% |
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
- Looking at the Operating Margin, with a value of 3.68%, 1MCHP is doing worse than 83.10% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1MCHP has declined.
- 1MCHP has a better Gross Margin (54.06%) than 70.42% of its industry peers.
- In the last couple of years the Gross Margin of 1MCHP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.68% | ||
| PM (TTM) | N/A | ||
| GM | 54.06% |
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.
- 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.
2.2 Solvency
- An Altman-Z score of 4.00 indicates that 1MCHP is not in any danger for bankruptcy at the moment.
- 1MCHP's Altman-Z score of 4.00 is in line compared to the rest of the industry. 1MCHP outperforms 40.85% of its industry peers.
- The Debt to FCF ratio of 1MCHP is 7.13, which is on the high side as it means it would take 1MCHP, 7.13 years of fcf income to pay off all of its debts.
- 1MCHP has a Debt to FCF ratio of 7.13. This is in the lower half of the industry: 1MCHP underperforms 67.61% of its industry peers.
- A Debt/Equity ratio of 0.80 indicates that 1MCHP is somewhat dependend on debt financing.
- 1MCHP's Debt to Equity ratio of 0.80 is on the low side compared to the rest of the industry. 1MCHP is outperformed by 87.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.13 | ||
| Altman-Z | 4 |
ROIC/WACC0.08
WACC10.35%
2.3 Liquidity
- 1MCHP has a Current Ratio of 2.25. This indicates that 1MCHP is financially healthy and has no problem in meeting its short term obligations.
- 1MCHP's Current ratio of 2.25 is in line compared to the rest of the industry. 1MCHP outperforms 45.07% of its industry peers.
- 1MCHP has a Quick Ratio of 1.20. 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 Quick ratio of 1.20. This is amonst the worse of the industry: 1MCHP underperforms 80.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
- The earnings per share for 1MCHP have decreased strongly by -64.77% in the last year.
- 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 for 1MCHP has decreased by -23.36% in the past year. This is quite bad
- 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)-64.77%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%-23.91%
Revenue 1Y (TTM)-23.36%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%-2.01%
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.
- The Revenue is expected to grow by 10.04% on average over the next years. This is quite good.
EPS Next Y15.47%
EPS Next 2Y41.81%
EPS Next 3Y39.35%
EPS Next 5Y29.71%
Revenue Next Year5.37%
Revenue Next 2Y12.44%
Revenue Next 3Y14.65%
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
- 1MCHP is valuated quite expensively with a Price/Earnings ratio of 78.88.
- Based on the Price/Earnings ratio, 1MCHP is valued a bit more expensive than 76.06% of the companies in the same industry.
- 1MCHP is valuated expensively when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
- 1MCHP is valuated quite expensively with a Price/Forward Earnings ratio of 28.06.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MCHP is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of 1MCHP to the average of the S&P500 Index (24.31), we can say 1MCHP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.88 | ||
| Fwd PE | 28.06 |
4.2 Price Multiples
- 1MCHP's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. 1MCHP is more expensive than 80.28% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1MCHP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.47 | ||
| EV/EBITDA | 51.24 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- A more expensive valuation may be justified as 1MCHP's earnings are expected to grow with 39.35% in the coming years.
PEG (NY)5.1
PEG (5Y)N/A
EPS Next 2Y41.81%
EPS Next 3Y39.35%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.71%, 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 0.79. 1MCHP pays more dividend than 97.18% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.92, 1MCHP pays a better dividend.
| 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-421.71%
EPS Next 2Y41.81%
EPS Next 3Y39.35%
BIT:1MCHP (1/12/2026, 7:00:00 PM)
63.1
+0.66 (+1.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-04 2026-02-04/amc
Inst Owners104.37%
Inst Owner ChangeN/A
Ins Owners1.93%
Ins Owner ChangeN/A
Market Cap34.05B
Revenue(TTM)4.21B
Net Income(TTM)-245.10M
Analysts79.39
Price Target65.42 (3.68%)
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-421.71%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.19%
Min EPS beat(2)2.58%
Max EPS beat(2)11.8%
EPS beat(4)3
Avg EPS beat(4)-2.68%
Min EPS beat(4)-27.71%
Max EPS beat(4)11.8%
EPS beat(8)5
Avg EPS beat(8)-0.82%
EPS beat(12)5
Avg EPS beat(12)-1.03%
EPS beat(16)7
Avg EPS beat(16)-0.46%
Revenue beat(2)0
Avg Revenue beat(2)-0.83%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-0.05%
Revenue beat(4)0
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-4.74%
Max Revenue beat(4)-0.05%
Revenue beat(8)0
Avg Revenue beat(8)-1.9%
Revenue beat(12)0
Avg Revenue beat(12)-1.88%
Revenue beat(16)0
Avg Revenue beat(16)-1.69%
PT rev (1m)-1.11%
PT rev (3m)-1.89%
EPS NQ rev (1m)-5.33%
EPS NQ rev (3m)-5.35%
EPS NY rev (1m)-0.99%
EPS NY rev (3m)-1.01%
Revenue NQ rev (1m)-3.48%
Revenue NQ rev (3m)-3.8%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.88 | ||
| Fwd PE | 28.06 | ||
| P/S | 9.4 | ||
| P/FCF | 52.47 | ||
| P/OCF | 47.06 | ||
| P/B | 5.91 | ||
| P/tB | N/A | ||
| EV/EBITDA | 51.24 |
EPS(TTM)0.8
EY1.27%
EPS(NY)2.25
Fwd EY3.56%
FCF(TTM)1.2
FCFY1.91%
OCF(TTM)1.34
OCFY2.12%
SpS6.71
BVpS10.67
TBVpS-3.46
PEG (NY)5.1
PEG (5Y)N/A
Graham Number13.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.69% | ||
| ROE | -3.66% | ||
| ROCE | 1.16% | ||
| ROIC | 0.87% | ||
| ROICexc | 0.88% | ||
| ROICexgc | 2.69% | ||
| OM | 3.68% | ||
| PM (TTM) | N/A | ||
| GM | 54.06% | ||
| FCFM | 17.91% |
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-Score3
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.13 | ||
| Debt/EBITDA | 6.16 | ||
| Cap/Depr | 12.08% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 4 |
F-Score3
WACC10.35%
ROIC/WACC0.08
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)-64.77%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%-23.91%
EPS Next Y15.47%
EPS Next 2Y41.81%
EPS Next 3Y39.35%
EPS Next 5Y29.71%
Revenue 1Y (TTM)-23.36%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%-2.01%
Revenue Next Year5.37%
Revenue Next 2Y12.44%
Revenue Next 3Y14.65%
Revenue Next 5Y10.04%
EBIT growth 1Y-86.35%
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-76.11%
FCF growth 3Y-32.16%
FCF growth 5Y-12.16%
OCF growth 1Y-76.62%
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 15.47% in the next year.