MICROCHIP TECHNOLOGY INC (1MCHP.MI) Stock Fundamental Analysis
BIT:1MCHP - Euronext Milan - US5950171042 - Common Stock - Currency: EUR
Overall 1MCHP gets a fundamental rating of 4 out of 10. We evaluated 1MCHP against 58 industry peers in the Semiconductors & Semiconductor Equipment industry. 1MCHP has only an average score on both its financial health and profitability. 1MCHP does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
1MCHP had positive earnings in the past year.
1MCHP had a positive operating cash flow in the past year.
1MCHP had positive earnings in each of the past 5 years.
Each year in the past 5 years 1MCHP 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: 83.33% of the companies in the same industry are doing better.
1MCHP has a Return On Equity of 5.12%. This is in the lower half of the industry: 1MCHP underperforms 70.37% of its industry peers.
With a Return On Invested Capital value of 3.53%, 1MCHP is not doing good in the industry: 70.37% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for 1MCHP is in line with the industry average of 16.14%.
The 3 year average ROIC (14.53%) for 1MCHP is well above the current ROIC(3.53%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 5.12% | ||
| ROIC | 3.53% |
ROA(3y)11.21%
ROA(5y)7.8%
ROE(3y)28.27%
ROE(5y)20.31%
ROIC(3y)14.53%
ROIC(5y)10.53%
1.3 Margins
1MCHP has a Profit Margin of 6.49%. This is in the lower half of the industry: 1MCHP underperforms 75.93% of its industry peers.
1MCHP's Profit Margin has improved in the last couple of years.
1MCHP's Operating Margin of 13.47% is on the low side compared to the rest of the industry. 1MCHP is outperformed by 61.11% of its industry peers.
1MCHP's Operating Margin has improved in the last couple of years.
1MCHP's Gross Margin of 57.95% is fine compared to the rest of the industry. 1MCHP outperforms 79.63% of its industry peers.
1MCHP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.47% | ||
| PM (TTM) | 6.49% | ||
| GM | 57.95% |
OM growth 3Y22.16%
OM growth 5Y19.11%
PM growth 3Y57.24%
PM growth 5Y30.29%
GM growth 3Y1.74%
GM growth 5Y3.61%
2. Health
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.
The number of shares outstanding for 1MCHP has been reduced compared to 1 year ago.
Compared to 5 years ago, 1MCHP has more shares outstanding
1MCHP has a better debt/assets ratio than last year.
2.2 Solvency
1MCHP has an Altman-Z score of 3.28. This indicates that 1MCHP is financially healthy and has little risk of bankruptcy at the moment.
1MCHP has a Altman-Z score of 3.28. This is in the lower half of the industry: 1MCHP underperforms 61.11% of its industry peers.
The Debt to FCF ratio of 1MCHP is 6.96, which is on the high side as it means it would take 1MCHP, 6.96 years of fcf income to pay off all of its debts.
1MCHP has a Debt to FCF ratio (6.96) which is comparable to the rest of the 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 Debt to Equity ratio of 1.12. This is amonst the worse of the industry: 1MCHP underperforms 87.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 6.96 | ||
| Altman-Z | 3.28 |
ROIC/WACC0.32
WACC10.96%
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 of 2.25. This is comparable to the rest of the industry: 1MCHP outperforms 46.30% of its industry peers.
A Quick Ratio of 1.23 indicates that 1MCHP should not have too much problems paying its short term obligations.
The Quick ratio of 1MCHP (1.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The earnings per share for 1MCHP have decreased strongly by -70.57% in the last year.
The Earnings Per Share has been growing by 8.40% on average over the past years. This is quite good.
1MCHP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -44.31%.
1MCHP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.37% yearly.
EPS 1Y (TTM)-70.57%
EPS 3Y14.22%
EPS 5Y8.4%
EPS Q2Q%-81.48%
Revenue 1Y (TTM)-44.31%
Revenue growth 3Y11.97%
Revenue growth 5Y7.37%
Sales Q2Q%-41.89%
3.2 Future
The Earnings Per Share is expected to grow by 3.26% on average over the next years.
Based on estimates for the next years, 1MCHP will show a small growth in Revenue. The Revenue will grow by 1.46% on average per year.
EPS Next Y-73.32%
EPS Next 2Y-48.91%
EPS Next 3Y-19.48%
EPS Next 5Y3.26%
Revenue Next Year-42.47%
Revenue Next 2Y-23.14%
Revenue Next 3Y-9.35%
Revenue Next 5Y1.46%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
1MCHP is valuated quite expensively with a Price/Earnings ratio of 33.14.
Based on the Price/Earnings ratio, 1MCHP is valued a bit more expensive than 64.81% of the companies in the same industry.
1MCHP's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.35.
A Price/Forward Earnings ratio of 45.52 indicates a quite expensive valuation of 1MCHP.
Based on the Price/Forward Earnings ratio, 1MCHP is valued more expensive than 85.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. 1MCHP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.14 | ||
| Fwd PE | 45.52 |
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 62.96% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1MCHP indicates a somewhat cheap valuation: 1MCHP is cheaper than 72.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.33 | ||
| EV/EBITDA | 28.63 |
4.3 Compensation for Growth
A cheap valuation may be justified as 1MCHP's earnings are expected to decrease with -19.48% in the coming years.
PEG (NY)N/A
PEG (5Y)3.94
EPS Next 2Y-48.91%
EPS Next 3Y-19.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.19%, 1MCHP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.50, 1MCHP pays a better dividend. On top of this 1MCHP pays more dividend than 92.59% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, 1MCHP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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
315.22% of the earnings are spent on dividend by 1MCHP. This is not a sustainable payout ratio.
The dividend of 1MCHP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP315.22%
EPS Next 2Y-48.91%
EPS Next 3Y-19.48%
BIT:1MCHP (3/4/2025, 7:00:00 PM)
55.68
+4.58 (+8.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.38%
Inst Owner ChangeN/A
Ins Owners1.92%
Ins Owner ChangeN/A
Market Cap29.95B
Analysts78.71
Price Target77.03 (38.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
Yearly Dividend1.62
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)-9.09%
PT rev (3m)-16.45%
EPS NQ rev (1m)-87.34%
EPS NQ rev (3m)-87.34%
EPS NY rev (1m)-22.36%
EPS NY rev (3m)-51.05%
Revenue NQ rev (1m)-40.63%
Revenue NQ rev (3m)-40.63%
Revenue NY rev (1m)-4.37%
Revenue NY rev (3m)-19.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.14 | ||
| Fwd PE | 45.52 | ||
| P/S | 6.6 | ||
| P/FCF | 32.33 | ||
| P/OCF | 27.96 | ||
| P/B | 5.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.63 |
EPS(TTM)1.68
EY3.02%
EPS(NY)1.22
Fwd EY2.2%
FCF(TTM)1.72
FCFY3.09%
OCF(TTM)1.99
OCFY3.58%
SpS8.44
BVpS10.7
TBVpS-5.63
PEG (NY)N/A
PEG (5Y)3.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 5.12% | ||
| ROCE | 4.48% | ||
| ROIC | 3.53% | ||
| ROICexc | 3.68% | ||
| ROICexgc | 11.18% | ||
| OM | 13.47% | ||
| PM (TTM) | 6.49% | ||
| GM | 57.95% | ||
| FCFM | 20.4% |
ROA(3y)11.21%
ROA(5y)7.8%
ROE(3y)28.27%
ROE(5y)20.31%
ROIC(3y)14.53%
ROIC(5y)10.53%
ROICexc(3y)14.84%
ROICexc(5y)10.75%
ROICexgc(3y)59.35%
ROICexgc(5y)46.01%
ROCE(3y)18.45%
ROCE(5y)13.37%
ROICexcg growth 3Y18.42%
ROICexcg growth 5Y15.98%
ROICexc growth 3Y39.37%
ROICexc growth 5Y32.47%
OM growth 3Y22.16%
OM growth 5Y19.11%
PM growth 3Y57.24%
PM growth 5Y30.29%
GM growth 3Y1.74%
GM growth 5Y3.61%
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 | 3.28 |
F-Score5
WACC10.96%
ROIC/WACC0.32
Cap/Depr(3y)37.83%
Cap/Depr(5y)25.41%
Cap/Sales(3y)4.97%
Cap/Sales(5y)3.58%
Profit Quality(3y)156.39%
Profit Quality(5y)249.98%
High Growth Momentum
Growth
EPS 1Y (TTM)-70.57%
EPS 3Y14.22%
EPS 5Y8.4%
EPS Q2Q%-81.48%
EPS Next Y-73.32%
EPS Next 2Y-48.91%
EPS Next 3Y-19.48%
EPS Next 5Y3.26%
Revenue 1Y (TTM)-44.31%
Revenue growth 3Y11.97%
Revenue growth 5Y7.37%
Sales Q2Q%-41.89%
Revenue Next Year-42.47%
Revenue Next 2Y-23.14%
Revenue Next 3Y-9.35%
Revenue Next 5Y1.46%
EBIT growth 1Y-79.8%
EBIT growth 3Y36.78%
EBIT growth 5Y27.89%
EBIT Next Year-50.84%
EBIT Next 3Y-5.79%
EBIT Next 5Y6.3%
FCF growth 1Y-69.4%
FCF growth 3Y12.65%
FCF growth 5Y12.52%
OCF growth 1Y-69.33%
OCF growth 3Y14.71%
OCF growth 5Y11.55%