MICROCHIP TECHNOLOGY INC (1MCHP.MI) Fundamental Analysis & Valuation

BIT:1MCHP • US5950171042

61.02 EUR
-4.78 (-7.26%)
Last: Mar 4, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership

This 1MCHP.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

1MCHP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 66 industry peers in the Semiconductors & Semiconductor Equipment industry. 1MCHP scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. While showing a medium growth rate, 1MCHP is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

3

1. 1MCHP.MI Profitability Analysis

1.1 Basic Checks

  • In the past year 1MCHP was profitable.
  • 1MCHP had a positive operating cash flow in the past year.
  • 1MCHP had positive earnings in 4 of the past 5 years.
  • Each year in the past 5 years 1MCHP had a positive operating cash flow.
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

  • The Return On Assets of 1MCHP (-1.09%) is worse than 89.39% of its industry peers.
  • 1MCHP has a worse Return On Equity (-2.39%) than 89.39% of its industry peers.
  • 1MCHP has a worse Return On Invested Capital (1.57%) than 83.33% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for 1MCHP is below the industry average of 13.69%.
  • The last Return On Invested Capital (1.57%) 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 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

  • Looking at the Operating Margin, with a value of 6.34%, 1MCHP is doing worse than 83.33% of the companies in the same industry.
  • In the last couple of years the Operating Margin of 1MCHP has declined.
  • 1MCHP's Gross Margin of 55.41% is fine compared to the rest of the industry. 1MCHP outperforms 72.73% of its industry peers.
  • 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

4

2. 1MCHP.MI Health Analysis

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
  • 1MCHP has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for 1MCHP has been reduced compared to a year ago.
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 3.92 indicates that 1MCHP is not in any danger for bankruptcy at the moment.
  • 1MCHP has a Altman-Z score of 3.92. This is comparable to the rest of the industry: 1MCHP outperforms 42.42% of its industry peers.
  • The Debt to FCF ratio of 1MCHP is 6.54, which is on the high side as it means it would take 1MCHP, 6.54 years of fcf income to pay off all of its debts.
  • 1MCHP's Debt to FCF ratio of 6.54 is on the low side compared to the rest of the industry. 1MCHP is outperformed by 63.64% of its industry peers.
  • A Debt/Equity ratio of 0.82 indicates that 1MCHP is somewhat dependend on debt financing.
  • 1MCHP has a Debt to Equity ratio of 0.82. This is amonst the worse of the industry: 1MCHP underperforms 86.36% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.54
Altman-Z 3.92
ROIC/WACC0.14
WACC10.93%
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

  • A Current Ratio of 2.16 indicates that 1MCHP has no problem at all paying its short term obligations.
  • With a Current ratio value of 2.16, 1MCHP perfoms like the industry average, outperforming 42.42% of the companies in the same industry.
  • A Quick Ratio of 1.16 indicates that 1MCHP should not have too much problems paying its short term obligations.
  • 1MCHP has a worse Quick ratio (1.16) than 80.30% of its industry peers.
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. 1MCHP.MI Growth Analysis

3.1 Past

  • The earnings per share for 1MCHP have decreased strongly by -33.52% in the last year.
  • 1MCHP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.29% yearly.
  • 1MCHP shows a decrease in Revenue. In the last year, the revenue decreased by -8.08%.
  • 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)-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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2

4. 1MCHP.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 60.42, which means the current valuation is very expensive for 1MCHP.
  • Based on the Price/Earnings ratio, 1MCHP is valued a bit more expensive than the industry average as 75.76% of the companies are valued more cheaply.
  • Compared to an average S&P500 Price/Earnings ratio of 26.29, 1MCHP is valued quite expensively.
  • A Price/Forward Earnings ratio of 26.62 indicates a quite expensive valuation of 1MCHP.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MCHP is on the same level as its industry peers.
  • 1MCHP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.60, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 60.42
Fwd PE 26.62
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

  • 1MCHP's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1MCHP is more expensive than 75.76% of the companies in the same industry.
  • 60.61% of the companies in the same industry are more expensive than 1MCHP, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 46.56
EV/EBITDA 44.18
1MCHP.MI Per share data1MCHP.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 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.
  • 1MCHP's earnings are expected to grow with 42.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.85
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. 1MCHP.MI Dividend Analysis

5.1 Amount

  • 1MCHP has a Yearly Dividend Yield of 2.31%.
  • Compared to an average industry Dividend Yield of 0.68, 1MCHP pays a better dividend. On top of this 1MCHP pays more dividend than 93.94% 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

  • 1MCHP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
  • 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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1MCHP.MI Fundamentals: All Metrics, Ratios and Statistics

MICROCHIP TECHNOLOGY INC

BIT:1MCHP (3/4/2026, 7:00:00 PM)

61.02

-4.78 (-7.26%)

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 Cap33.02B
Revenue(TTM)4.37B
Net Income(TTM)-156.60M
Analysts81.21
Price Target71.07 (16.47%)
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)4.27%
PT rev (3m)8.64%
EPS NQ rev (1m)4.36%
EPS NQ rev (3m)12.88%
EPS NY rev (1m)1.79%
EPS NY rev (3m)4.97%
Revenue NQ rev (1m)2.72%
Revenue NQ rev (3m)5.32%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 60.42
Fwd PE 26.62
P/S 8.73
P/FCF 46.56
P/OCF 41.9
P/B 5.82
P/tB N/A
EV/EBITDA 44.18
EPS(TTM)1.01
EY1.66%
EPS(NY)2.29
Fwd EY3.76%
FCF(TTM)1.31
FCFY2.15%
OCF(TTM)1.46
OCFY2.39%
SpS6.99
BVpS10.49
TBVpS-3.57
PEG (NY)2.85
PEG (5Y)N/A
Graham Number15.44
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 3.92
F-Score4
WACC10.93%
ROIC/WACC0.14
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.