MICROCHIP TECHNOLOGY INC (1MCHP.MI) Stock Fundamental Analysis
Europe - BIT:1MCHP - US5950171042 - Common Stock
56.78 EUR
+2 (+3.65%)
Taking everything into account, 1MCHP scores 4 out of 10 in our fundamental rating. 1MCHP was compared to 59 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
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.
1MCHP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1MCHP has a Return On Assets of -1.21%. This is amonst the worse of the industry: 1MCHP underperforms 83.08% of its industry peers.
1MCHP has a worse Return On Equity (-2.63%) than 81.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.13%, 1MCHP is doing worse than 80.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1MCHP is below the industry average of 15.39%.
The last Return On Invested Capital (1.13%) 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 | -1.21% | ||
| 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 has a Operating Margin of 4.91%. This is amonst the worse of the industry: 1MCHP underperforms 83.08% of its industry peers.
1MCHP's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 54.48%, 1MCHP is doing good in the industry, outperforming 72.31% of the companies in the same industry.
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
1MCHP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, 1MCHP has more shares outstanding
Compared to 5 years ago, 1MCHP has more shares outstanding
Compared to 1 year ago, 1MCHP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.61 indicates that 1MCHP is not in any danger for bankruptcy at the moment.
1MCHP has a Altman-Z score of 3.61. This is comparable to the rest of the industry: 1MCHP outperforms 41.54% of its industry peers.
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.
1MCHP's Debt to FCF ratio of 7.52 is on the low side compared to the rest of the industry. 1MCHP is outperformed by 61.54% 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 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.52 | ||
| Altman-Z | 3.61 |
ROIC/WACC0.1
WACC11.1%
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.
The Current ratio of 1MCHP (2.31) 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.
Looking at the Quick ratio, with a value of 1.33, 1MCHP is doing worse than 72.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The earnings per share for 1MCHP have decreased strongly by -72.63% in the last year.
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.
The Revenue has been decreasing by -3.55% on average over the past years.
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.
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 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
The Price/Earnings ratio is 63.80, which means the current valuation is very expensive for 1MCHP.
73.85% of the companies in the same industry are cheaper than 1MCHP, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 1MCHP to the average of the S&P500 Index (27.77), we can say 1MCHP is valued expensively.
1MCHP is valuated rather expensively with a Price/Forward Earnings ratio of 24.82.
1MCHP's Price/Forward Earnings is on the same level as the industry average.
1MCHP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.8 | ||
| Fwd PE | 24.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1MCHP is valued a bit more expensive than the industry average as 70.77% of the companies are valued more cheaply.
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 | 49.33 | ||
| EV/EBITDA | 43.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1MCHP's earnings are expected to grow with 38.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.84
PEG (5Y)N/A
EPS Next 2Y43.36%
EPS Next 3Y38.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.79%, 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 1.10. 1MCHP pays more dividend than 96.92% of the companies in the same industry.
1MCHP's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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-555.76%
EPS Next 2Y43.36%
EPS Next 3Y38.15%
BIT:1MCHP (10/9/2025, 7:00:00 PM)
56.78
+2 (+3.65%)
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 Cap30.64B
Revenue(TTM)4.24B
Net Income(TTM)-180600000
Analysts79.39
Price Target66.16 (16.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
Yearly Dividend1.55
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 | 63.8 | ||
| Fwd PE | 24.82 | ||
| P/S | 8.45 | ||
| P/FCF | 49.33 | ||
| P/OCF | 44.93 | ||
| P/B | 5.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 43.26 |
EPS(TTM)0.89
EY1.57%
EPS(NY)2.29
Fwd EY4.03%
FCF(TTM)1.15
FCFY2.03%
OCF(TTM)1.26
OCFY2.23%
SpS6.72
BVpS10.88
TBVpS-3.38
PEG (NY)3.84
PEG (5Y)N/A
Graham Number14.76
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 | 3.61 |
F-Score4
WACC11.1%
ROIC/WACC0.1
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%