MICROCHIP TECHNOLOGY INC (1MCHP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MCHP - US5950171042 - Common Stock
47.52 EUR
-9.26 (-16.31%)
1MCHP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 61 industry peers in the Semiconductors & Semiconductor Equipment industry. 1MCHP may be in some trouble as it scores bad on both profitability and health. 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.
In the past 5 years 1MCHP always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of -1.69%, 1MCHP is not doing good in the industry: 87.30% of the companies in the same industry are doing better.
The Return On Equity of 1MCHP (-3.66%) is worse than 85.71% of its industry peers.
The Return On Invested Capital of 1MCHP (0.87%) is worse than 80.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1MCHP is below the industry average of 14.58%.
The 3 year average ROIC (11.32%) for 1MCHP is well above the current ROIC(0.87%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.69% | ||
| ROE | -3.66% | ||
| ROIC | 0.87% |
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 3.68%. This is amonst the worse of the industry: 1MCHP underperforms 82.54% of its industry peers.
1MCHP's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 54.06%, 1MCHP is doing good in the industry, outperforming 69.84% of the companies in the same industry.
1MCHP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.68% | ||
| PM (TTM) | N/A | ||
| GM | 54.06% |
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.
Compared to 5 years ago, 1MCHP has more shares outstanding
1MCHP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.22 indicates that 1MCHP is not in any danger for bankruptcy at the moment.
1MCHP has a worse Altman-Z score (3.22) than 60.32% of its industry peers.
1MCHP has a debt to FCF ratio of 7.13. This is a slightly negative value and a sign of low solvency as 1MCHP would need 7.13 years to pay back of all of its debts.
1MCHP's Debt to FCF ratio of 7.13 is on the low side compared to the rest of the industry. 1MCHP is outperformed by 66.67% of its industry peers.
1MCHP has a Debt/Equity ratio of 0.80. This is a neutral value indicating 1MCHP is somewhat dependend on debt financing.
1MCHP has a Debt to Equity ratio of 0.80. This is in the lower half of the industry: 1MCHP underperforms 79.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.13 | ||
| Altman-Z | 3.22 |
ROIC/WACC0.09
WACC10.12%
2.3 Liquidity
1MCHP has a Current Ratio of 2.25. This indicates that 1MCHP is financially healthy and has no problem in meeting its short term obligations.
1MCHP has a Current ratio (2.25) which is in line with its industry peers.
A Quick Ratio of 1.20 indicates that 1MCHP should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.20, 1MCHP is not doing good in the industry: 76.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The earnings per share for 1MCHP have decreased strongly by -64.77% 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.
1MCHP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -23.36%.
The Revenue has been decreasing by -3.55% on average over the past years.
EPS 1Y (TTM)-64.77%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%-23.91%
Revenue 1Y (TTM)-23.36%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%-2.01%
3.2 Future
1MCHP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.71% yearly.
The Revenue is expected to grow by 10.04% on average over the next years. This is quite good.
EPS Next Y15.47%
EPS Next 2Y41.81%
EPS Next 3Y39.35%
EPS Next 5Y29.71%
Revenue Next Year5.37%
Revenue Next 2Y12.44%
Revenue Next 3Y14.65%
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.
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
The Price/Earnings ratio is 58.67, which means the current valuation is very expensive for 1MCHP.
Based on the Price/Earnings ratio, 1MCHP is valued a bit more expensive than 77.78% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.57. 1MCHP is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 20.94, which indicates a rather expensive current valuation of 1MCHP.
The rest of the industry has a similar Price/Forward Earnings ratio as 1MCHP.
When comparing the Price/Forward Earnings ratio of 1MCHP to the average of the S&P500 Index (24.04), we can say 1MCHP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.67 | ||
| Fwd PE | 20.94 |
4.2 Price Multiples
73.02% of the companies in the same industry are cheaper than 1MCHP, based on the Enterprise Value to EBITDA ratio.
1MCHP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.16 | ||
| EV/EBITDA | 39.74 |
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 39.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.79
PEG (5Y)N/A
EPS Next 2Y41.81%
EPS Next 3Y39.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.71%, 1MCHP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.79, 1MCHP pays a better dividend. On top of this 1MCHP pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.88, 1MCHP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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
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-421.71%
EPS Next 2Y41.81%
EPS Next 3Y39.35%
BIT:1MCHP (11/11/2025, 7:00:00 PM)
47.52
-9.26 (-16.31%)
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)4.21B
Net Income(TTM)-245.10M
Analysts79.39
Price Target65.42 (37.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
Yearly Dividend1.58
Dividend Growth(5Y)20.15%
DP-421.71%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.19%
Min EPS beat(2)2.58%
Max EPS beat(2)11.8%
EPS beat(4)3
Avg EPS beat(4)-2.68%
Min EPS beat(4)-27.71%
Max EPS beat(4)11.8%
EPS beat(8)5
Avg EPS beat(8)-0.82%
EPS beat(12)5
Avg EPS beat(12)-1.03%
EPS beat(16)7
Avg EPS beat(16)-0.46%
Revenue beat(2)0
Avg Revenue beat(2)-0.83%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-0.05%
Revenue beat(4)0
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-4.74%
Max Revenue beat(4)-0.05%
Revenue beat(8)0
Avg Revenue beat(8)-1.9%
Revenue beat(12)0
Avg Revenue beat(12)-1.88%
Revenue beat(16)0
Avg Revenue beat(16)-1.69%
PT rev (1m)-1.11%
PT rev (3m)-1.89%
EPS NQ rev (1m)-5.33%
EPS NQ rev (3m)-5.35%
EPS NY rev (1m)-0.99%
EPS NY rev (3m)-1.01%
Revenue NQ rev (1m)-3.48%
Revenue NQ rev (3m)-3.8%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.67 | ||
| Fwd PE | 20.94 | ||
| P/S | 7.01 | ||
| P/FCF | 39.16 | ||
| P/OCF | 35.13 | ||
| P/B | 4.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 39.74 |
EPS(TTM)0.81
EY1.7%
EPS(NY)2.27
Fwd EY4.78%
FCF(TTM)1.21
FCFY2.55%
OCF(TTM)1.35
OCFY2.85%
SpS6.78
BVpS10.77
TBVpS-3.49
PEG (NY)3.79
PEG (5Y)N/A
Graham Number14.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.69% | ||
| ROE | -3.66% | ||
| ROCE | 1.16% | ||
| ROIC | 0.87% | ||
| ROICexc | 0.88% | ||
| ROICexgc | 2.69% | ||
| OM | 3.68% | ||
| PM (TTM) | N/A | ||
| GM | 54.06% | ||
| FCFM | 17.91% |
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-Score3
Asset Turnover0.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.13 | ||
| Debt/EBITDA | 6.16 | ||
| Cap/Depr | 12.08% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | 3.22 |
F-Score3
WACC10.12%
ROIC/WACC0.09
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)-64.77%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%-23.91%
EPS Next Y15.47%
EPS Next 2Y41.81%
EPS Next 3Y39.35%
EPS Next 5Y29.71%
Revenue 1Y (TTM)-23.36%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%-2.01%
Revenue Next Year5.37%
Revenue Next 2Y12.44%
Revenue Next 3Y14.65%
Revenue Next 5Y10.04%
EBIT growth 1Y-86.35%
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-76.11%
FCF growth 3Y-32.16%
FCF growth 5Y-12.16%
OCF growth 1Y-76.62%
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 3 / 10 to 1MCHP.MI.
What is the valuation status of MICROCHIP TECHNOLOGY INC (1MCHP.MI) 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 valuation of MICROCHIP TECHNOLOGY INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MICROCHIP TECHNOLOGY INC (1MCHP.MI) is 58.67 and the Price/Book (PB) ratio is 4.41.
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 -421.71%.