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

BIT:1MCHP • US5950171042

Current stock price

54.91 EUR
-6.11 (-10.01%)
Last:

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

3

1. 1MCHP.MI Profitability Analysis

1.1 Basic Checks

  • 1MCHP had positive earnings in the past year.
  • In the past year 1MCHP had a positive cash flow from operations.
  • 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.
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

  • With a Return On Assets value of -1.09%, 1MCHP is not doing good in the industry: 91.04% of the companies in the same industry are doing better.
  • The Return On Equity of 1MCHP (-2.39%) is worse than 91.04% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 1.57%, 1MCHP is doing worse than 86.57% 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 14.50%.
  • The 3 year average ROIC (11.32%) for 1MCHP is well above the current ROIC(1.57%). The reason for the recent decline needs to be investigated.
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

  • With a Operating Margin value of 6.34%, 1MCHP is not doing good in the industry: 85.07% of the companies in the same industry are doing better.
  • 1MCHP's Operating Margin has declined in the last couple of years.
  • The Gross Margin of 1MCHP (55.41%) is better than 73.13% 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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3

2. 1MCHP.MI Health Analysis

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
  • 1MCHP has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, 1MCHP has an improved debt to assets ratio.
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 3.60 indicates that 1MCHP is not in any danger for bankruptcy at the moment.
  • 1MCHP has a Altman-Z score of 3.60. This is in the lower half of the industry: 1MCHP underperforms 65.67% of its industry peers.
  • 1MCHP has a debt to FCF ratio of 6.54. This is a slightly negative value and a sign of low solvency as 1MCHP would need 6.54 years to pay back of all of its debts.
  • The Debt to FCF ratio of 1MCHP (6.54) is worse than 65.67% of its industry peers.
  • 1MCHP has a Debt/Equity ratio of 0.82. This is a neutral value indicating 1MCHP is somewhat dependend on debt financing.
  • 1MCHP has a worse Debt to Equity ratio (0.82) than 86.57% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.54
Altman-Z 3.6
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.
  • 1MCHP's Current ratio of 2.16 is on the low side compared to the rest of the industry. 1MCHP is outperformed by 61.19% of its industry peers.
  • A Quick Ratio of 1.16 indicates that 1MCHP should not have too much problems paying its short term obligations.
  • 1MCHP's Quick ratio of 1.16 is on the low side compared to the rest of the industry. 1MCHP is outperformed by 83.58% 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.
  • Looking at the last year, 1MCHP shows a decrease in Revenue. The Revenue has decreased by -8.08% in the last year.
  • 1MCHP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.55% yearly.
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

  • The Earnings Per Share is expected to grow by 32.12% on average over the next years. This is a very strong growth
  • Based on estimates for the next years, 1MCHP will show a quite strong growth in Revenue. The Revenue will grow by 13.84% on average per year.
EPS Next Y23.2%
EPS Next 2Y44.89%
EPS Next 3Y42.88%
EPS Next 5Y32.12%
Revenue Next Year6.11%
Revenue Next 2Y13.95%
Revenue Next 3Y15.31%
Revenue Next 5Y13.84%

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.
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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3

4. 1MCHP.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 53.83, the valuation of 1MCHP can be described as expensive.
  • Based on the Price/Earnings ratio, 1MCHP is valued a bit more expensive than the industry average as 73.13% of the companies are valued more cheaply.
  • The average S&P500 Price/Earnings ratio is at 26.11. 1MCHP is valued rather expensively when compared to this.
  • A Price/Forward Earnings ratio of 23.09 indicates a rather expensive valuation of 1MCHP.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MCHP indicates a somewhat cheap valuation: 1MCHP is cheaper than 67.16% of the companies listed in the same industry.
  • 1MCHP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.12.
Industry RankSector Rank
PE 53.83
Fwd PE 23.09
1MCHP.MI Price Earnings VS Forward Price Earnings1MCHP.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, 1MCHP is valued a bit more expensive than 76.12% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, 1MCHP is valued a bit cheaper than the industry average as 74.63% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 41.6
EV/EBITDA 40.03
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.
  • A more expensive valuation may be justified as 1MCHP's earnings are expected to grow with 42.88% in the coming years.
PEG (NY)2.32
PEG (5Y)N/A
EPS Next 2Y44.89%
EPS Next 3Y42.88%

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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 2.90%.
  • Compared to an average industry Dividend Yield of 0.84, 1MCHP pays a better dividend. On top of this 1MCHP pays more dividend than 92.54% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.91, 1MCHP pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.9%

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

  • The earnings of 1MCHP are negative and hence is the payout ratio. 1MCHP will probably not be able to sustain this dividend level.
  • The dividend of 1MCHP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-678.74%
EPS Next 2Y44.89%
EPS Next 3Y42.88%
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 (3/9/2026, 7:00:00 PM)

54.91

-6.11 (-10.01%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-05
Earnings (Next)05-06
Inst Owners99.68%
Inst Owner ChangeN/A
Ins Owners1.92%
Ins Owner ChangeN/A
Market Cap29.71B
Revenue(TTM)4.37B
Net Income(TTM)-156.60M
Analysts81.82
Price Target75.49 (37.48%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.9%
Yearly Dividend1.58
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)6.21%
PT rev (3m)15.39%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)12.96%
EPS NY rev (1m)1.64%
EPS NY rev (3m)6.7%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)5.49%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)0.7%
Valuation
Industry RankSector Rank
PE 53.83
Fwd PE 23.09
P/S 7.8
P/FCF 41.6
P/OCF 37.44
P/B 5.2
P/tB N/A
EV/EBITDA 40.03
EPS(TTM)1.02
EY1.86%
EPS(NY)2.38
Fwd EY4.33%
FCF(TTM)1.32
FCFY2.4%
OCF(TTM)1.47
OCFY2.67%
SpS7.04
BVpS10.56
TBVpS-3.6
PEG (NY)2.32
PEG (5Y)N/A
Graham Number15.57
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 3.6
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 Y23.2%
EPS Next 2Y44.89%
EPS Next 3Y42.88%
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 Year6.11%
Revenue Next 2Y13.95%
Revenue Next 3Y15.31%
Revenue Next 5Y13.84%
EBIT growth 1Y-56.73%
EBIT growth 3Y-41.54%
EBIT growth 5Y-11.55%
EBIT Next Year61.19%
EBIT Next 3Y43.22%
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 Fundamental Analysis 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 for 1MCHP 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 financial health of MICROCHIP TECHNOLOGY INC (1MCHP.MI) stock?

The financial health rating of MICROCHIP TECHNOLOGY INC (1MCHP.MI) is 3 / 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 23.2% in the next year.