MICROCHIP TECHNOLOGY INC (MCHP) Stock Fundamental Analysis
USA - NASDAQ:MCHP - US5950171042 - Common Stock
50.54 USD
-0.33 (-0.65%)
Overall MCHP gets a fundamental rating of 4 out of 10. We evaluated MCHP 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 not valued too expensively and it also shows a decent growth rate. MCHP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MCHP was profitable.
MCHP had a positive operating cash flow in the past year.
MCHP had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MCHP had a positive operating cash flow.
1.2 Ratios
MCHP has a Return On Assets (-1.69%) which is in line with its industry peers.
With a Return On Equity value of -3.66%, MCHP perfoms like the industry average, outperforming 40.18% of the companies in the same industry.
With a Return On Invested Capital value of 0.91%, MCHP perfoms like the industry average, outperforming 49.11% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MCHP is in line with the industry average of 10.86%.
The 3 year average ROIC (11.93%) for MCHP is well above the current ROIC(0.91%). The reason for the recent decline needs to be investigated.
| 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
MCHP has a Operating Margin (3.68%) which is comparable to the rest of the industry.
MCHP's Operating Margin has declined in the last couple of years.
MCHP has a Gross Margin of 54.06%. This is in the better half of the industry: MCHP outperforms 71.43% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MCHP is still creating some value.
Compared to 1 year ago, MCHP has more shares outstanding
Compared to 5 years ago, MCHP has more shares outstanding
MCHP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.06 indicates that MCHP is not in any danger for bankruptcy at the moment.
MCHP's Altman-Z score of 3.06 is in line compared to the rest of the industry. MCHP outperforms 50.89% of its industry peers.
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.
With a Debt to FCF ratio value of 7.13, MCHP perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
MCHP has a Debt/Equity ratio of 0.80. This is a neutral value indicating MCHP is somewhat dependend on debt financing.
The Debt to Equity ratio of MCHP (0.80) is worse than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.13 | ||
| Altman-Z | 3.06 |
ROIC/WACC0.09
WACC10.28%
2.3 Liquidity
MCHP has a Current Ratio of 2.25. This indicates that MCHP is financially healthy and has no problem in meeting its short term obligations.
MCHP has a worse Current ratio (2.25) than 68.75% of its industry peers.
MCHP has a Quick Ratio of 1.20. This is a normal value and indicates that MCHP is financially healthy and should not expect problems in meeting 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
MCHP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.77%.
Measured over the past years, MCHP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.29% on average per year.
MCHP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -23.36%.
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 29.71% yearly.
Based on estimates for the next years, MCHP will show a quite strong growth in Revenue. The Revenue will grow by 10.04% on average per year.
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.
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
A Price/Earnings ratio of 54.34 indicates a quite expensive valuation of MCHP.
MCHP's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.51. MCHP is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 19.33 indicates a rather expensive valuation of MCHP.
74.11% of the companies in the same industry are more expensive than MCHP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MCHP to the average of the S&P500 Index (34.98), we can say MCHP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.34 | ||
| Fwd PE | 19.33 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MCHP is on the same level as its industry peers.
MCHP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MCHP is cheaper than 70.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.16 | ||
| EV/EBITDA | 37.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MCHP does not grow enough to justify the current Price/Earnings ratio.
MCHP's earnings are expected to grow with 39.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.51
PEG (5Y)N/A
EPS Next 2Y41.81%
EPS Next 3Y39.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.32%, MCHP has a reasonable but not impressive dividend return.
In the last 3 months the price of MCHP has falen by -26.42%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
MCHP's Dividend Yield is rather good when compared to the industry average which is at 2.21. MCHP pays more dividend than 94.64% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, MCHP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)20.15%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
MCHP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
MCHP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-421.71%
EPS Next 2Y41.81%
EPS Next 3Y39.35%
NASDAQ:MCHP (11/19/2025, 2:48:06 PM)
50.54
-0.33 (-0.65%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners104.37%
Inst Owner Change-5.84%
Ins Owners1.93%
Ins Owner Change0.58%
Market Cap27.28B
Revenue(TTM)4.21B
Net Income(TTM)-245.10M
Analysts79.39
Price Target77.91 (54.16%)
Short Float %4.47%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
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)0.27%
PT rev (3m)1.95%
EPS NQ rev (1m)-2.22%
EPS NQ rev (3m)1.11%
EPS NY rev (1m)-0.99%
EPS NY rev (3m)5.19%
Revenue NQ rev (1m)-2.07%
Revenue NQ rev (3m)-2.4%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.34 | ||
| Fwd PE | 19.33 | ||
| P/S | 6.48 | ||
| P/FCF | 36.16 | ||
| P/OCF | 32.43 | ||
| P/B | 4.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 37.34 |
EPS(TTM)0.93
EY1.84%
EPS(NY)2.61
Fwd EY5.17%
FCF(TTM)1.4
FCFY2.77%
OCF(TTM)1.56
OCFY3.08%
SpS7.81
BVpS12.41
TBVpS-4.02
PEG (NY)3.51
PEG (5Y)N/A
Graham Number16.11
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 | 3.06 |
F-Score3
WACC10.28%
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 / 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 4 / 10 to MICROCHIP TECHNOLOGY INC (MCHP). This can be considered as Fairly Valued.
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 15.47% in the next year.