MICROCHIP TECHNOLOGY INC (1MCHP.MI) Stock Fundamental Analysis
BIT:1MCHP - Euronext Milan - US5950171042 - Common Stock - Currency: EUR
Overall 1MCHP gets a fundamental rating of 4 out of 10. We evaluated 1MCHP against 51 industry peers in the Semiconductors & Semiconductor Equipment industry. The financial health of 1MCHP is average, but there are quite some concerns on its profitability. 1MCHP is quite expensive at the moment. It does show a decent growth rate.
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.
Of the past 5 years 1MCHP 4 years had a positive operating cash flow.
1.2 Ratios
1MCHP has a Return On Assets of 1.98%. This is in the lower half of the industry: 1MCHP underperforms 79.31% of its industry peers.
With a Return On Equity value of 5.12%, 1MCHP is not doing good in the industry: 67.24% of the companies in the same industry are doing better.
1MCHP has a worse Return On Invested Capital (3.36%) than 75.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1MCHP is below the industry average of 15.12%.
The last Return On Invested Capital (3.36%) 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 Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 5.12% | ||
| ROIC | 3.36% |
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
With a Profit Margin value of 6.49%, 1MCHP is not doing good in the industry: 70.69% of the companies in the same industry are doing better.
1MCHP has a worse Operating Margin (13.47%) than 60.34% of its industry peers.
1MCHP's Operating Margin has declined in the last couple of years.
1MCHP's Gross Margin of 57.95% is fine compared to the rest of the industry. 1MCHP outperforms 77.59% of its industry peers.
1MCHP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.47% | ||
| PM (TTM) | 6.49% | ||
| GM | 57.95% |
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
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 3.46 indicates that 1MCHP is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1MCHP (3.46) is worse than 68.97% of its industry peers.
The Debt to FCF ratio of 1MCHP is 6.96, which is on the high side as it means it would take 1MCHP, 6.96 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.96, 1MCHP perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
A Debt/Equity ratio of 1.12 is on the high side and indicates that 1MCHP has dependencies on debt financing.
With a Debt to Equity ratio value of 1.12, 1MCHP is not doing good in the industry: 93.10% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 6.96 | ||
| Altman-Z | 3.46 |
ROIC/WACC0.35
WACC9.59%
2.3 Liquidity
A Current Ratio of 2.25 indicates that 1MCHP has no problem at all paying its short term obligations.
1MCHP's Current ratio of 2.25 is in line compared to the rest of the industry. 1MCHP outperforms 50.00% of its industry peers.
A Quick Ratio of 1.23 indicates that 1MCHP should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.23, 1MCHP is not doing good in the industry: 65.52% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
1MCHP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -73.52%.
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.
1MCHP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -42.35%.
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)-73.52%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%-80.7%
Revenue 1Y (TTM)-42.35%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%-26.8%
3.2 Future
The Earnings Per Share is expected to grow by 30.75% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.66% on average over the next years. This is quite good.
EPS Next Y7.13%
EPS Next 2Y40.3%
EPS Next 3Y36.16%
EPS Next 5Y30.75%
Revenue Next Year4.26%
Revenue Next 2Y12.67%
Revenue Next 3Y13.47%
Revenue Next 5Y9.66%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 53.44, the valuation of 1MCHP can be described as expensive.
81.03% of the companies in the same industry are cheaper than 1MCHP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.29. 1MCHP is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 49.85 indicates a quite expensive valuation of 1MCHP.
Based on the Price/Forward Earnings ratio, 1MCHP is valued expensively inside the industry as 87.93% of the companies are valued cheaper.
The average S&P500 Price/Forward Earnings ratio is at 21.74. 1MCHP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.44 | ||
| Fwd PE | 49.85 |
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 70.69% of the companies listed in the same industry.
65.52% 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 | 38.6 | ||
| EV/EBITDA | 30.67 |
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 36.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.5
PEG (5Y)N/A
EPS Next 2Y40.3%
EPS Next 3Y36.16%
5. Dividend
5.1 Amount
1MCHP has a Yearly Dividend Yield of 2.57%.
1MCHP's Dividend Yield is rather good when compared to the industry average which is at 1.12. 1MCHP pays more dividend than 94.83% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, 1MCHP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
5.2 History
The dividend of 1MCHP is nicely growing with an annual growth rate of 18.25%!
Dividend Growth(5Y)18.25%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
315.22% of the earnings are spent on dividend by 1MCHP. This is not a sustainable payout ratio.
1MCHP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP315.22%
EPS Next 2Y40.3%
EPS Next 3Y36.16%
BIT:1MCHP (6/20/2025, 7:00:00 PM)
59.32
+1.47 (+2.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners100.8%
Inst Owner ChangeN/A
Ins Owners1.91%
Ins Owner ChangeN/A
Market Cap32.00B
Analysts79.33
Price Target58.97 (-0.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
Yearly Dividend1.44
Dividend Growth(5Y)18.25%
DP315.22%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.43%
Min EPS beat(2)-27.71%
Max EPS beat(2)4.85%
EPS beat(4)1
Avg EPS beat(4)-6.38%
Min EPS beat(4)-27.71%
Max EPS beat(4)4.85%
EPS beat(8)2
Avg EPS beat(8)-3.51%
EPS beat(12)3
Avg EPS beat(12)-2.05%
EPS beat(16)6
Avg EPS beat(16)-1.21%
Revenue beat(2)0
Avg Revenue beat(2)-2.84%
Min Revenue beat(2)-4.74%
Max Revenue beat(2)-0.95%
Revenue beat(4)0
Avg Revenue beat(4)-2.49%
Min Revenue beat(4)-4.74%
Max Revenue beat(4)-0.95%
Revenue beat(8)0
Avg Revenue beat(8)-2.3%
Revenue beat(12)0
Avg Revenue beat(12)-1.88%
Revenue beat(16)0
Avg Revenue beat(16)-1.75%
PT rev (1m)11.54%
PT rev (3m)-2.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.53%
EPS NY rev (1m)2.85%
EPS NY rev (3m)4.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)1.04%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.44 | ||
| Fwd PE | 49.85 | ||
| P/S | 7.87 | ||
| P/FCF | 38.6 | ||
| P/OCF | 33.37 | ||
| P/B | 6.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.67 |
EPS(TTM)1.11
EY1.87%
EPS(NY)1.19
Fwd EY2.01%
FCF(TTM)1.54
FCFY2.59%
OCF(TTM)1.78
OCFY3%
SpS7.53
BVpS9.55
TBVpS-5.02
PEG (NY)7.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 5.12% | ||
| ROCE | 4.48% | ||
| ROIC | 3.36% | ||
| ROICexc | 3.5% | ||
| ROICexgc | 10.65% | ||
| OM | 13.47% | ||
| PM (TTM) | 6.49% | ||
| GM | 57.95% | ||
| FCFM | 20.4% |
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)44.74%
ROICexgc(5y)40.79%
ROCE(3y)15.1%
ROCE(5y)13.02%
ROICexcg growth 3Y-61.75%
ROICexcg growth 5Y-34.4%
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-Score5
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 6.96 | ||
| Debt/EBITDA | 4.75 | ||
| Cap/Depr | 19.44% | ||
| Cap/Sales | 3.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.91% | ||
| Profit Quality | 314.22% | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 3.46 |
F-Score5
WACC9.59%
ROIC/WACC0.35
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-73.52%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%-80.7%
EPS Next Y7.13%
EPS Next 2Y40.3%
EPS Next 3Y36.16%
EPS Next 5Y30.75%
Revenue 1Y (TTM)-42.35%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%-26.8%
Revenue Next Year4.26%
Revenue Next 2Y12.67%
Revenue Next 3Y13.47%
Revenue Next 5Y9.66%
EBIT growth 1Y-79.8%
EBIT growth 3Y-41.54%
EBIT growth 5Y-11.55%
EBIT Next Year40.73%
EBIT Next 3Y32.02%
EBIT Next 5Y25%
FCF growth 1Y-65.53%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-64.62%
OCF growth 3YN/A
OCF growth 5YN/A