75.22 USD
+1.69 (+2.3%)
75.29 USD
+0.07 (+0.09%)
Taking everything into account, MCHP scores 4 out of 10 in our fundamental rating. MCHP was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. MCHP has only an average score on both its financial health and profitability. MCHP is valied quite expensively at the moment, while it does show a decent growth rate. Finally MCHP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MCHP had positive earnings in the past year.
In the past year MCHP had a positive cash flow from operations.
Of the past 5 years MCHP 4 years were profitable.
Each year in the past 5 years MCHP had a positive operating cash flow.
1.2 Ratios
MCHP has a Return On Assets of -1.69%. This is comparable to the rest of the industry: MCHP outperforms 41.59% of its industry peers.
MCHP's Return On Equity of -3.66% is in line compared to the rest of the industry. MCHP outperforms 40.71% of its industry peers.
MCHP's Return On Invested Capital of 0.91% is in line compared to the rest of the industry. MCHP outperforms 49.56% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MCHP is in line with the industry average of 10.75%.
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
Looking at the Operating Margin, with a value of 3.68%, MCHP is in line with its industry, outperforming 53.98% of the companies in the same industry.
In the last couple of years the Operating Margin of MCHP has declined.
The Gross Margin of MCHP (54.06%) is better than 70.80% 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
The number of shares outstanding for MCHP has been increased compared to 5 years ago.
MCHP has a better debt/assets ratio than last year.
2.2 Solvency
MCHP has an Altman-Z score of 4.08. This indicates that MCHP is financially healthy and has little risk of bankruptcy at the moment.
MCHP's Altman-Z score of 4.08 is in line compared to the rest of the industry. MCHP outperforms 52.21% of its industry peers.
The Debt to FCF ratio of MCHP is 7.13, which is on the high side as it means it would take MCHP, 7.13 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.13, MCHP perfoms like the industry average, outperforming 50.44% of the companies in the same industry.
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 80.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.13 | ||
| Altman-Z | 4.08 |
ROIC/WACC0.09
WACC10.58%
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.
The Current ratio of MCHP (2.25) is worse than 69.03% 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.
With a Quick ratio value of 1.20, MCHP is not doing good in the industry: 81.42% 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
MCHP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.77%.
MCHP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.29% yearly.
MCHP 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
Based on estimates for the next years, MCHP will show a very strong growth in Earnings Per Share. The EPS will grow by 29.55% on average per year.
The Revenue is expected to grow by 12.88% on average over the next years. This is quite good.
EPS Next Y13.37%
EPS Next 2Y40.15%
EPS Next 3Y41.57%
EPS Next 5Y29.55%
Revenue Next Year3.61%
Revenue Next 2Y11.6%
Revenue Next 3Y13.88%
Revenue Next 5Y12.88%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 80.88 indicates a quite expensive valuation of MCHP.
Compared to the rest of the industry, the Price/Earnings ratio of MCHP is on the same level as its industry peers.
When comparing the Price/Earnings ratio of MCHP to the average of the S&P500 Index (27.19), we can say MCHP is valued expensively.
Based on the Price/Forward Earnings ratio of 29.46, the valuation of MCHP can be described as expensive.
Based on the Price/Forward Earnings ratio, MCHP is valued a bit cheaper than the industry average as 70.80% of the companies are valued more expensively.
MCHP is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.88 | ||
| Fwd PE | 29.46 |
4.2 Price Multiples
MCHP's Enterprise Value to EBITDA ratio is in line with the industry average.
66.37% of the companies in the same industry are more expensive than MCHP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.89 | ||
| EV/EBITDA | 52.47 |
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 41.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.05
PEG (5Y)N/A
EPS Next 2Y40.15%
EPS Next 3Y41.57%
5. Dividend
5.1 Amount
MCHP has a Yearly Dividend Yield of 2.48%.
Compared to an average industry Dividend Yield of 0.53, MCHP pays a better dividend. On top of this MCHP pays more dividend than 94.69% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, MCHP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
5.2 History
On average, the dividend of MCHP grows each year by 20.15%, which is quite nice.
MCHP has been paying a dividend for at least 10 years, so it has 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 2Y40.15%
EPS Next 3Y41.57%
75.22
+1.69 (+2.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.58%
Inst Owner Change0.18%
Ins Owners1.93%
Ins Owner Change2.41%
Market Cap40.65B
Revenue(TTM)4.21B
Net Income(TTM)-245.10M
Analysts79.39
Price Target76.77 (2.06%)
Short Float %4.64%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.48% |
Yearly Dividend1.81
Dividend Growth(5Y)20.15%
DP-421.71%
Div Incr Years13
Div Non Decr Years13
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)1.69%
PT rev (3m)-1.19%
EPS NQ rev (1m)3.71%
EPS NQ rev (3m)-1.29%
EPS NY rev (1m)0.52%
EPS NY rev (3m)-2.79%
Revenue NQ rev (1m)1.12%
Revenue NQ rev (3m)-2.4%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)-1.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 80.88 | ||
| Fwd PE | 29.46 | ||
| P/S | 9.65 | ||
| P/FCF | 53.89 | ||
| P/OCF | 48.33 | ||
| P/B | 6.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 52.47 |
EPS(TTM)0.93
EY1.24%
EPS(NY)2.55
Fwd EY3.39%
FCF(TTM)1.4
FCFY1.86%
OCF(TTM)1.56
OCFY2.07%
SpS7.79
BVpS12.39
TBVpS-4.01
PEG (NY)6.05
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 | 4.08 |
F-Score3
WACC10.58%
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 Y13.37%
EPS Next 2Y40.15%
EPS Next 3Y41.57%
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 Year3.61%
Revenue Next 2Y11.6%
Revenue Next 3Y13.88%
Revenue Next 5Y12.88%
EBIT growth 1Y-86.35%
EBIT growth 3Y-41.54%
EBIT growth 5Y-11.55%
EBIT Next Year54.68%
EBIT Next 3Y41.71%
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
Can you provide the ChartMill fundamental rating for MICROCHIP TECHNOLOGY INC?
ChartMill assigns a fundamental rating of 4 / 10 to MCHP.
What is the valuation status for 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.
What is the valuation of MICROCHIP TECHNOLOGY INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MICROCHIP TECHNOLOGY INC (MCHP) is 80.88 and the Price/Book (PB) ratio is 6.07.
Is the dividend of MICROCHIP TECHNOLOGY INC sustainable?
The dividend rating of MICROCHIP TECHNOLOGY INC (MCHP) is 7 / 10 and the dividend payout ratio is -421.71%.