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

  • 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.
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: 92.54% of the companies in the same industry are doing better.
  • The Return On Equity of 1MCHP (-2.39%) is worse than 92.54% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 1.57%, 1MCHP is doing worse than 88.06% 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 14.64%.
  • The last Return On Invested Capital (1.57%) 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 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

  • The Operating Margin of 1MCHP (6.34%) is worse than 88.06% of its industry peers.
  • 1MCHP's Operating Margin has declined in the last couple of years.
  • 1MCHP has a Gross Margin of 55.41%. This is in the better half of the industry: 1MCHP outperforms 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.
  • 1MCHP has more shares outstanding than it did 1 year ago.
  • 1MCHP has more shares outstanding than it did 5 years ago.
  • 1MCHP has a better debt/assets ratio than last year.
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

  • 1MCHP has an Altman-Z score of 3.62. This indicates that 1MCHP is financially healthy and has little risk of bankruptcy at the moment.
  • 1MCHP has a worse Altman-Z score (3.62) than 65.67% of its industry peers.
  • The Debt to FCF ratio of 1MCHP is 6.54, which is on the high side as it means it would take 1MCHP, 6.54 years of fcf income to pay off all of its debts.
  • 1MCHP's Debt to FCF ratio of 6.54 is on the low side compared to the rest of the industry. 1MCHP is outperformed by 65.67% of its industry peers.
  • A Debt/Equity ratio of 0.82 indicates that 1MCHP is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.82, 1MCHP is doing worse than 86.57% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.54
Altman-Z 3.62
ROIC/WACC0.14
WACC11.03%
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 has a worse Current ratio (2.16) than 62.69% of its industry peers.
  • A Quick Ratio of 1.16 indicates that 1MCHP should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.16, 1MCHP is not doing good in the industry: 83.58% of the companies in the same industry are doing better.
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.
  • 1MCHP shows a decrease in Revenue. In the last year, the revenue decreased by -8.08%.
  • 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

  • 1MCHP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.12% yearly.
  • 1MCHP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.84% yearly.
EPS Next Y23.2%
EPS Next 2Y44.89%
EPS Next 3Y42.88%
EPS Next 5Y32.12%
Revenue Next Year6.11%
Revenue Next 2Y14%
Revenue Next 3Y15.44%
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.
  • 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.
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

  • With a Price/Earnings ratio of 54.37, 1MCHP can be considered very expensive at the moment.
  • Based on the Price/Earnings ratio, 1MCHP is valued a bit more expensive than the industry average as 76.12% of the companies are valued more cheaply.
  • 1MCHP is valuated expensively when we compare the Price/Earnings ratio to 25.50, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 23.25 indicates a rather expensive valuation of 1MCHP.
  • 1MCHP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1MCHP is cheaper than 64.18% of the companies in the same industry.
  • 1MCHP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.67, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 54.37
Fwd PE 23.25
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 more expensive than 80.60% of the companies in the same industry.
  • 1MCHP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1MCHP is cheaper than 70.15% of the companies in the same industry.
Industry RankSector Rank
P/FCF 41.88
EV/EBITDA 40.26
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)2.34
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

  • With a Yearly Dividend Yield of 2.88%, 1MCHP has a reasonable but not impressive dividend return.
  • 1MCHP's Dividend Yield is rather good when compared to the industry average which is at 0.79. 1MCHP pays more dividend than 94.03% of the companies in the same industry.
  • 1MCHP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.88%

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.
  • 1MCHP's earnings are growing more than its dividend. This makes the dividend growth 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 2.88%
Yearly Dividend1.57
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 54.37
Fwd PE 23.25
P/S 7.85
P/FCF 41.88
P/OCF 37.69
P/B 5.23
P/tB N/A
EV/EBITDA 40.26
EPS(TTM)1.01
EY1.84%
EPS(NY)2.36
Fwd EY4.3%
FCF(TTM)1.31
FCFY2.39%
OCF(TTM)1.46
OCFY2.65%
SpS6.99
BVpS10.49
TBVpS-3.57
PEG (NY)2.34
PEG (5Y)N/A
Graham Number15.44
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 3.62
F-Score4
WACC11.03%
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 2Y14%
Revenue Next 3Y15.44%
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.