66.85 USD
-0.5 (-0.74%)
66.6379 USD
-0.21 (-0.32%)
MCHP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and the financial health of MCHP get a neutral evaluation. Nothing too spectacular is happening here. MCHP is quite expensive at the moment. It does show a decent growth rate. MCHP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MCHP had positive earnings in the past year.
MCHP had a positive operating cash flow in the past year.
MCHP had positive earnings in 4 of the past 5 years.
MCHP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MCHP has a Return On Assets (-1.69%) which is comparable to the rest of the industry.
MCHP's Return On Equity of -3.66% is in line compared to the rest of the industry. MCHP outperforms 40.18% of its industry peers.
MCHP has a Return On Invested Capital (0.91%) which is comparable to the rest of the industry.
MCHP had an Average Return On Invested Capital over the past 3 years of 11.93%. This is in line with the industry average of 10.82%.
The last Return On Invested Capital (0.91%) for MCHP is well below the 3 year average (11.93%), which needs to be investigated, but indicates that MCHP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.69% | ||
| ROE | -3.66% | ||
| ROIC | 0.91% |
ROA(3y)8.56%
ROA(5y)7.14%
ROE(3y)20.99%
ROE(5y)18.26%
ROIC(3y)11.93%
ROIC(5y)10.28%
1.3 Margins
Looking at the Operating Margin, with a value of 3.68%, MCHP is in line with its industry, outperforming 54.46% of the companies in the same industry.
MCHP's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 54.06%, MCHP is doing good in the industry, outperforming 70.54% of the companies in the same industry.
In the last couple of years the Gross Margin of MCHP has declined.
| 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
MCHP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
MCHP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MCHP has been increased compared to 5 years ago.
The debt/assets ratio for MCHP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.73 indicates that MCHP is not in any danger for bankruptcy at the moment.
The Altman-Z score of MCHP (3.73) is comparable to the rest of the industry.
MCHP has a debt to FCF ratio of 7.13. This is a slightly negative value and a sign of low solvency as MCHP would need 7.13 years to pay back of all of its debts.
MCHP has a Debt to FCF ratio of 7.13. This is comparable to the rest of the industry: MCHP outperforms 50.89% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that MCHP is somewhat dependend on debt financing.
MCHP's Debt to Equity ratio of 0.80 is on the low side compared to the rest of the industry. MCHP is outperformed by 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.13 | ||
| Altman-Z | 3.73 |
ROIC/WACC0.09
WACC10.18%
2.3 Liquidity
A Current Ratio of 2.25 indicates that MCHP has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.25, MCHP is doing worse than 69.64% of the companies in the same industry.
A Quick Ratio of 1.20 indicates that MCHP should not have too much problems paying its short term obligations.
MCHP has a Quick ratio of 1.20. This is amonst the worse of the industry: MCHP underperforms 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The earnings per share for MCHP have decreased strongly by -64.77% in the last year.
MCHP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.29% yearly.
Looking at the last year, MCHP shows a very negative growth in Revenue. The Revenue has decreased by -23.36% in the last year.
Measured over the past years, MCHP shows a decrease in Revenue. The Revenue has been decreasing by -3.55% on average per year.
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
MCHP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.55% yearly.
MCHP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.85% yearly.
EPS Next Y12.78%
EPS Next 2Y39.7%
EPS Next 3Y41.47%
EPS Next 5Y29.55%
Revenue Next Year3.21%
Revenue Next 2Y10.83%
Revenue Next 3Y13.73%
Revenue Next 5Y9.85%
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.
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
The Price/Earnings ratio is 71.88, which means the current valuation is very expensive for MCHP.
The rest of the industry has a similar Price/Earnings ratio as MCHP.
Compared to an average S&P500 Price/Earnings ratio of 26.28, MCHP is valued quite expensively.
A Price/Forward Earnings ratio of 26.35 indicates a quite expensive valuation of MCHP.
MCHP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MCHP is cheaper than 69.64% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.52. MCHP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.88 | ||
| Fwd PE | 26.35 |
4.2 Price Multiples
MCHP's Enterprise Value to EBITDA is on the same level as the industry average.
MCHP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MCHP is cheaper than 66.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.89 | ||
| EV/EBITDA | 47.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MCHP's earnings are expected to grow with 41.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.62
PEG (5Y)N/A
EPS Next 2Y39.7%
EPS Next 3Y41.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.81%, MCHP has a reasonable but not impressive dividend return.
MCHP's Dividend Yield is rather good when compared to the industry average which is at 2.09. MCHP pays more dividend than 94.64% of the companies in the same industry.
MCHP's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
5.2 History
On average, the dividend of MCHP grows each year by 20.15%, which is quite nice.
MCHP has paid a dividend for at least 10 years, which is a reliable track record.
MCHP has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)20.15%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
The earnings of MCHP are negative and hence is the payout ratio. MCHP will probably not be able to sustain this dividend level.
The dividend of MCHP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-421.71%
EPS Next 2Y39.7%
EPS Next 3Y41.47%
66.85
-0.5 (-0.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.37%
Inst Owner Change-5.42%
Ins Owners1.93%
Ins Owner Change2.41%
Market Cap36.13B
Revenue(TTM)4.21B
Net Income(TTM)-245.10M
Analysts79.39
Price Target75.5 (12.94%)
Short Float %4.54%
Short Ratio3.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
Yearly Dividend1.81
Dividend Growth(5Y)20.15%
DP-421.71%
Div Incr Years13
Div Non Decr Years13
Ex-Date
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)-3.1%
PT rev (3m)-4.05%
EPS NQ rev (1m)-2.66%
EPS NQ rev (3m)-4.93%
EPS NY rev (1m)-2.33%
EPS NY rev (3m)-3.31%
Revenue NQ rev (1m)-1.44%
Revenue NQ rev (3m)-3.48%
Revenue NY rev (1m)-2.05%
Revenue NY rev (3m)-2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.88 | ||
| Fwd PE | 26.35 | ||
| P/S | 8.58 | ||
| P/FCF | 47.89 | ||
| P/OCF | 42.95 | ||
| P/B | 5.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 47.28 |
EPS(TTM)0.93
EY1.39%
EPS(NY)2.54
Fwd EY3.79%
FCF(TTM)1.4
FCFY2.09%
OCF(TTM)1.56
OCFY2.33%
SpS7.79
BVpS12.39
TBVpS-4.01
PEG (NY)5.62
PEG (5Y)N/A
Graham Number16.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.69% | ||
| ROE | -3.66% | ||
| ROCE | 1.16% | ||
| ROIC | 0.91% | ||
| ROICexc | 0.93% | ||
| ROICexgc | 2.84% | ||
| 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)11.93%
ROIC(5y)10.28%
ROICexc(3y)12.2%
ROICexc(5y)10.52%
ROICexgc(3y)48.65%
ROICexgc(5y)43.88%
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 | 3.73 |
F-Score3
WACC10.18%
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 Y12.78%
EPS Next 2Y39.7%
EPS Next 3Y41.47%
EPS Next 5Y29.55%
Revenue 1Y (TTM)-23.36%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%-2.01%
Revenue Next Year3.21%
Revenue Next 2Y10.83%
Revenue Next 3Y13.73%
Revenue Next 5Y9.85%
EBIT growth 1Y-86.35%
EBIT growth 3Y-41.54%
EBIT growth 5Y-11.55%
EBIT Next Year54.95%
EBIT Next 3Y42.38%
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 / MCHP FAQ
What is the fundamental rating for MCHP stock?
ChartMill assigns a fundamental rating of 4 / 10 to MCHP.
What is the valuation status of MICROCHIP TECHNOLOGY INC (MCHP) stock?
ChartMill assigns a valuation rating of 3 / 10 to MICROCHIP TECHNOLOGY INC (MCHP). This can be considered as Overvalued.
Can you provide the profitability details for MICROCHIP TECHNOLOGY INC?
MICROCHIP TECHNOLOGY INC (MCHP) has a profitability rating of 4 / 10.
Can you provide the financial health for MCHP stock?
The financial health rating of MICROCHIP TECHNOLOGY INC (MCHP) is 4 / 10.
What is the expected EPS growth for MICROCHIP TECHNOLOGY INC (MCHP) stock?
The Earnings per Share (EPS) of MICROCHIP TECHNOLOGY INC (MCHP) is expected to grow by 12.78% in the next year.