MICROCHIP TECHNOLOGY INC (MCHP) Stock Fundamental Analysis
USA - NASDAQ:MCHP - US5950171042 - Common Stock
56.28 USD
-3.07 (-5.17%)
56.29 USD
+0.01 (+0.02%)
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. MCHP has an average financial health and profitability rating. MCHP has a decent growth rate and is not valued too expensively. 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.
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 -1.21%. This is comparable to the rest of the industry: MCHP outperforms 42.86% of its industry peers.
Looking at the Return On Equity, with a value of -2.63%, MCHP is in line with its industry, outperforming 41.96% of the companies in the same industry.
With a Return On Invested Capital value of 1.19%, 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 11.09%.
The last Return On Invested Capital (1.19%) 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 | -1.21% | ||
| ROE | -2.63% | ||
| ROIC | 1.19% |
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
With a Operating Margin value of 4.91%, MCHP perfoms like the industry average, outperforming 52.68% of the companies in the same industry.
In the last couple of years the Operating Margin of MCHP has declined.
MCHP has a better Gross Margin (54.48%) than 71.43% of its industry peers.
In the last couple of years the Gross Margin of MCHP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.91% | ||
| PM (TTM) | N/A | ||
| GM | 54.48% |
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), MCHP is creating some value.
Compared to 1 year ago, MCHP has more shares outstanding
MCHP has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MCHP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.21 indicates that MCHP is not in any danger for bankruptcy at the moment.
MCHP has a Altman-Z score of 3.21. This is comparable to the rest of the industry: MCHP outperforms 50.00% of its industry peers.
MCHP has a debt to FCF ratio of 7.52. This is a slightly negative value and a sign of low solvency as MCHP would need 7.52 years to pay back of all of its debts.
MCHP has a Debt to FCF ratio of 7.52. This is comparable to the rest of the industry: MCHP outperforms 51.79% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that MCHP is somewhat dependend on debt financing.
MCHP has a worse Debt to Equity ratio (0.80) than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.52 | ||
| Altman-Z | 3.21 |
ROIC/WACC0.12
WACC10.36%
2.3 Liquidity
MCHP has a Current Ratio of 2.31. This indicates that MCHP is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.31, MCHP is doing worse than 66.07% of the companies in the same industry.
A Quick Ratio of 1.33 indicates that MCHP should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.33, MCHP is not doing good in the industry: 80.36% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The earnings per share for MCHP have decreased strongly by -64.77% in the last year.
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.
Looking at the last year, MCHP shows a very negative growth in Revenue. The Revenue has decreased by -42.35% 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)-42.35%
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.
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.
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
MCHP is valuated quite expensively with a Price/Earnings ratio of 60.52.
Compared to the rest of the industry, the Price/Earnings ratio of MCHP is on the same level as its industry peers.
MCHP is valuated expensively when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.53 indicates a rather expensive valuation of MCHP.
Based on the Price/Forward Earnings ratio, MCHP is valued a bit cheaper than the industry average as 74.11% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 32.73, MCHP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.52 | ||
| Fwd PE | 21.53 |
4.2 Price Multiples
MCHP's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MCHP indicates a somewhat cheap valuation: MCHP is cheaper than 68.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.86 | ||
| EV/EBITDA | 37.49 |
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.
A more expensive valuation may be justified as MCHP's earnings are expected to grow with 39.35% in the coming years.
PEG (NY)3.91
PEG (5Y)N/A
EPS Next 2Y41.81%
EPS Next 3Y39.35%
5. Dividend
5.1 Amount
MCHP has a Yearly Dividend Yield of 3.07%.
Compared to an average industry Dividend Yield of 2.14, MCHP pays a better dividend. On top of this MCHP pays more dividend than 93.75% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, MCHP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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.
The dividend of MCHP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-555.76%
EPS Next 2Y41.81%
EPS Next 3Y39.35%
56.28
-3.07 (-5.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners104.37%
Inst Owner Change-0.26%
Ins Owners1.93%
Ins Owner Change1.71%
Market Cap30.37B
Revenue(TTM)4.40B
Net Income(TTM)-180.60M
Analysts79.39
Price Target77.91 (38.43%)
Short Float %4.41%
Short Ratio3.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
Yearly Dividend1.81
Dividend Growth(5Y)20.15%
DP-555.76%
Div Incr Years13
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.2%
Min EPS beat(2)2.6%
Max EPS beat(2)11.8%
EPS beat(4)3
Avg EPS beat(4)-2.11%
Min EPS beat(4)-27.71%
Max EPS beat(4)11.8%
EPS beat(8)4
Avg EPS beat(8)-1.35%
EPS beat(12)4
Avg EPS beat(12)-1.31%
EPS beat(16)6
Avg EPS beat(16)-0.69%
Revenue beat(2)0
Avg Revenue beat(2)-0.61%
Min Revenue beat(2)-1.17%
Max Revenue beat(2)-0.05%
Revenue beat(4)0
Avg Revenue beat(4)-1.73%
Min Revenue beat(4)-4.74%
Max Revenue beat(4)-0.05%
Revenue beat(8)0
Avg Revenue beat(8)-2%
Revenue beat(12)0
Avg Revenue beat(12)-1.83%
Revenue beat(16)0
Avg Revenue beat(16)-1.7%
PT rev (1m)0.27%
PT rev (3m)1.95%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)6.92%
EPS NY rev (1m)-0.99%
EPS NY rev (3m)5.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.87%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.52 | ||
| Fwd PE | 21.53 | ||
| P/S | 7.17 | ||
| P/FCF | 41.86 | ||
| P/OCF | 38.13 | ||
| P/B | 4.43 | ||
| P/tB | N/A | ||
| EV/EBITDA | 37.49 |
EPS(TTM)0.93
EY1.65%
EPS(NY)2.61
Fwd EY4.65%
FCF(TTM)1.34
FCFY2.39%
OCF(TTM)1.48
OCFY2.62%
SpS7.85
BVpS12.71
TBVpS-3.95
PEG (NY)3.91
PEG (5Y)N/A
Graham Number16.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.21% | ||
| ROE | -2.63% | ||
| ROCE | 1.51% | ||
| ROIC | 1.19% | ||
| ROICexc | 1.24% | ||
| ROICexgc | 3.88% | ||
| OM | 4.91% | ||
| PM (TTM) | N/A | ||
| GM | 54.48% | ||
| FCFM | 17.13% |
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-Score4
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.52 | ||
| Debt/EBITDA | 5.8 | ||
| Cap/Depr | 9.69% | ||
| Cap/Sales | 1.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.69% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 3.21 |
F-Score4
WACC10.36%
ROIC/WACC0.12
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)-42.35%
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-88.9%
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-78%
FCF growth 3Y-32.16%
FCF growth 5Y-12.16%
OCF growth 1Y-78.89%
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.