MICROCHIP TECHNOLOGY INC (1MCHP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MCHP - US5950171042 - Common Stock
47.52 EUR
-9.26 (-16.31%)
1MCHP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 65 industry peers in the Semiconductors & Semiconductor Equipment industry. 1MCHP has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, 1MCHP is valued expensive at the moment.
1. Profitability
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.
Each year in the past 5 years 1MCHP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.69%, 1MCHP is doing worse than 87.30% of the companies in the same industry.
1MCHP's Return On Equity of -3.66% is on the low side compared to the rest of the industry. 1MCHP is outperformed by 85.71% of its industry peers.
1MCHP has a worse Return On Invested Capital (0.87%) than 80.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1MCHP is below the industry average of 14.14%.
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
The Operating Margin of 1MCHP (3.68%) is worse than 82.54% of its industry peers.
1MCHP's Operating Margin has declined in the last couple of years.
1MCHP's Gross Margin of 54.06% is fine compared to the rest of the industry. 1MCHP outperforms 69.84% of its industry peers.
1MCHP's Gross Margin has declined in the last couple of years.
| 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.
Compared to 1 year ago, 1MCHP has more shares outstanding
Compared to 5 years ago, 1MCHP has more shares outstanding
1MCHP has a better debt/assets ratio than last year.
2.2 Solvency
1MCHP has an Altman-Z score of 3.22. This indicates that 1MCHP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1MCHP (3.22) is worse than 60.32% of its industry peers.
1MCHP has a debt to FCF ratio of 7.13. This is a slightly negative value and a sign of low solvency as 1MCHP would need 7.13 years to pay back of all of its debts.
1MCHP has a worse Debt to FCF ratio (7.13) than 66.67% of its industry peers.
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 | 7.13 | ||
| Altman-Z | 3.22 |
ROIC/WACC0.09
WACC10.12%
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 47.62% of its industry peers.
A Quick Ratio of 1.20 indicates that 1MCHP should not have too much problems paying its short term obligations.
1MCHP has a Quick ratio of 1.20. This is in the lower half of the industry: 1MCHP underperforms 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
1MCHP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.77%.
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 -23.36%.
1MCHP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.55% yearly.
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.
Based on estimates for the next years, 1MCHP will show a quite strong growth in Revenue. The Revenue will grow by 10.04% on average per year.
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
Based on the Price/Earnings ratio of 58.67, the valuation of 1MCHP can be described as expensive.
Based on the Price/Earnings ratio, 1MCHP is valued a bit more expensive than 77.78% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1MCHP to the average of the S&P500 Index (26.26), we can say 1MCHP is valued expensively.
The Price/Forward Earnings ratio is 20.94, which indicates a rather expensive current valuation of 1MCHP.
1MCHP's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.68. 1MCHP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.67 | ||
| Fwd PE | 20.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1MCHP is valued a bit more expensive than 73.02% of the companies in the same industry.
1MCHP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.16 | ||
| EV/EBITDA | 39.74 |
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)3.79
PEG (5Y)N/A
EPS Next 2Y41.81%
EPS Next 3Y39.35%
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.
1MCHP's Dividend Yield is rather good when compared to the industry average which is at 0.75. 1MCHP pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, 1MCHP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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
1MCHP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
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 (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)4.21B
Net Income(TTM)-245.10M
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-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 | 58.67 | ||
| Fwd PE | 20.94 | ||
| P/S | 7.01 | ||
| P/FCF | 39.16 | ||
| P/OCF | 35.13 | ||
| P/B | 4.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 39.74 |
EPS(TTM)0.81
EY1.7%
EPS(NY)2.27
Fwd EY4.78%
FCF(TTM)1.21
FCFY2.55%
OCF(TTM)1.35
OCFY2.85%
SpS6.78
BVpS10.77
TBVpS-3.49
PEG (NY)3.79
PEG (5Y)N/A
Graham Number14.01
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 | 3.22 |
F-Score3
WACC10.12%
ROIC/WACC0.09
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 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 58.67 and the Price/Book (PB) ratio is 4.41.
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 -421.71%.