MICROCHIP TECHNOLOGY INC (1MCHP.MI) Stock Fundamental Analysis
BIT:1MCHP - Euronext Milan - US5950171042 - Common Stock - Currency: EUR
1MCHP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 54 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. 1MCHP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1MCHP had positive earnings in the past year.
In the past year 1MCHP had a positive cash flow from operations.
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
With a Return On Assets value of 1.98%, 1MCHP is not doing good in the industry: 79.31% of the companies in the same industry are doing better.
1MCHP has a worse Return On Equity (5.12%) than 67.24% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.36%, 1MCHP is doing worse than 75.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1MCHP is below the industry average of 16.29%.
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's Operating Margin of 13.47% is on the low side compared to the rest of the industry. 1MCHP is outperformed by 60.34% of its industry peers.
1MCHP's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 57.95%, 1MCHP is in the better half of the industry, outperforming 77.59% of the companies in the same industry.
In the last couple of years the Gross Margin of 1MCHP has declined.
| 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.
The number of shares outstanding for 1MCHP has been increased compared to 1 year ago.
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.
2.2 Solvency
1MCHP has an Altman-Z score of 3.46. This indicates that 1MCHP is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.46, 1MCHP is doing worse than 68.97% of the companies in the same industry.
1MCHP has a debt to FCF ratio of 6.96. This is a slightly negative value and a sign of low solvency as 1MCHP would need 6.96 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.96, 1MCHP is in line with its industry, outperforming 41.38% of the companies in the same industry.
1MCHP has a Debt/Equity ratio of 1.12. This is a high value indicating a heavy dependency on external financing.
1MCHP has a worse Debt to Equity ratio (1.12) than 93.10% of its industry peers.
| 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 has a Current ratio (2.25) which is comparable to the rest of the industry.
1MCHP has a Quick Ratio of 1.23. This is a normal value and indicates that 1MCHP is financially healthy and should not expect problems in meeting its short term obligations.
1MCHP has a Quick ratio of 1.23. This is in the lower half of the industry: 1MCHP underperforms 65.52% of its industry peers.
| 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%.
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 -42.35% in the last year.
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
1MCHP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.75% yearly.
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
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.
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
With a Price/Earnings ratio of 53.44, 1MCHP can be considered very expensive at the moment.
Based on the Price/Earnings ratio, 1MCHP is valued more expensive than 81.03% of the companies in the same industry.
1MCHP is valuated expensively when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 49.85, which means the current valuation is very expensive for 1MCHP.
Based on the Price/Forward Earnings ratio, 1MCHP is valued more expensive than 87.93% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. 1MCHP is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.44 | ||
| Fwd PE | 49.85 |
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 70.69% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1MCHP is valued a bit cheaper than 65.52% of the companies in the same industry.
| 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
With a Yearly Dividend Yield of 2.57%, 1MCHP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.19, 1MCHP pays a better dividend. On top of this 1MCHP pays more dividend than 94.83% of the companies listed in the same industry.
1MCHP's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| 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
1MCHP pays out 315.22% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1MCHP is growing, but earnings are growing more, so the dividend growth is 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