MICROCHIP TECHNOLOGY INC (1MCHP.MI) Stock Fundamental Analysis
Europe - BIT:1MCHP - US5950171042 - Common Stock
47.52 EUR
-7.26 (-13.25%)
Overall 1MCHP gets a fundamental rating of 4 out of 10. We evaluated 1MCHP against 62 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.
In the past year 1MCHP had a positive cash flow from operations.
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.
1.2 Ratios
The Return On Assets of 1MCHP (-1.21%) is worse than 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.
1MCHP had an Average Return On Invested Capital over the past 3 years of 11.32%. This is below the industry average of 14.29%.
The 3 year average ROIC (11.32%) for 1MCHP is well above the current ROIC(1.13%). The reason for the recent decline needs to be investigated.
| 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
With a Operating Margin value of 4.91%, 1MCHP is not doing good in the industry: 83.08% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1MCHP is creating some value.
1MCHP has more shares outstanding than it did 1 year ago.
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
1MCHP has an Altman-Z score of 3.61. This indicates that 1MCHP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1MCHP (3.61) is comparable to the rest of the industry.
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.
The Debt to FCF ratio of 1MCHP (7.52) is worse than 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.
1MCHP has a Current ratio (2.31) which 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.
The Quick ratio of 1MCHP (1.33) is worse than 72.31% of its industry peers.
| 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.
1MCHP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.29% yearly.
The Revenue for 1MCHP has decreased by -35.70% in the past year. This is quite bad
1MCHP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.55% yearly.
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.
1MCHP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.04% yearly.
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
With a Price/Earnings ratio of 53.39, 1MCHP can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of 1MCHP indicates a slightly more expensive valuation: 1MCHP is more expensive than 73.85% of the companies listed in the same industry.
1MCHP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.34.
1MCHP is valuated rather expensively with a Price/Forward Earnings ratio of 20.78.
1MCHP's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of 1MCHP to the average of the S&P500 Index (34.43), we can say 1MCHP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.39 | ||
| Fwd PE | 20.78 |
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 70.77% of the companies listed in the same industry.
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 | 41.29 | ||
| EV/EBITDA | 43.26 |
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 38.15% in the coming years.
PEG (NY)3.21
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.
Compared to an average industry Dividend Yield of 1.31, 1MCHP pays a better dividend. On top of this 1MCHP pays more dividend than 96.92% of the companies listed 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.
1MCHP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-555.76%
EPS Next 2Y43.36%
EPS Next 3Y38.15%
BIT:1MCHP (11/11/2025, 7:00:00 PM)
47.52
-7.26 (-13.25%)
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)4.24B
Net Income(TTM)-180.60M
Analysts79.39
Price Target66.16 (39.23%)
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 | 53.39 | ||
| Fwd PE | 20.78 | ||
| P/S | 7.07 | ||
| P/FCF | 41.29 | ||
| P/OCF | 37.61 | ||
| P/B | 4.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 43.26 |
EPS(TTM)0.89
EY1.87%
EPS(NY)2.29
Fwd EY4.81%
FCF(TTM)1.15
FCFY2.42%
OCF(TTM)1.26
OCFY2.66%
SpS6.72
BVpS10.88
TBVpS-3.38
PEG (NY)3.21
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%
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 of MICROCHIP TECHNOLOGY INC (1MCHP.MI) 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 valuation of MICROCHIP TECHNOLOGY INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MICROCHIP TECHNOLOGY INC (1MCHP.MI) is 53.39 and the Price/Book (PB) ratio is 4.37.
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 -555.76%.