52.135 USD
+0.3 (+0.59%)
Overall MCHP gets a fundamental rating of 4 out of 10. We evaluated MCHP 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
In the past year MCHP was profitable.
In the past year MCHP had a positive cash flow from operations.
Of the past 5 years MCHP 4 years were profitable.
In the past 5 years MCHP always reported a positive cash flow from operatings.
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 41.07% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.91%, MCHP is in line with its industry, outperforming 49.11% of the companies in the same industry.
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 53.57% of the companies in the same industry.
In the last couple of years the Operating Margin of MCHP has declined.
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
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.
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 3.11 indicates that MCHP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.11, MCHP is in line with its industry, outperforming 50.89% of the companies in the same industry.
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.
MCHP's Debt to FCF ratio of 7.13 is in line compared to the rest of the industry. MCHP outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that MCHP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.80, MCHP is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.13 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.09
WACC10.27%
2.3 Liquidity
A Current Ratio of 2.25 indicates that MCHP has no problem at all paying its short term obligations.
The Current ratio of MCHP (2.25) is worse than 68.75% of its industry peers.
A Quick Ratio of 1.20 indicates that MCHP should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.20, MCHP is not doing good in the industry: 83.04% 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
The earnings per share for MCHP have decreased strongly by -64.77% in the last year.
The earnings per share for MCHP have been decreasing by -14.29% on average. This is quite bad
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
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.
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 Y15.47%
EPS Next 2Y41.81%
EPS Next 3Y38.01%
EPS Next 5Y29.55%
Revenue Next Year5.37%
Revenue Next 2Y12.44%
Revenue Next 3Y13.57%
Revenue Next 5Y9.85%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 56.06, MCHP can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as MCHP.
MCHP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.98.
The Price/Forward Earnings ratio is 19.94, which indicates a rather expensive current valuation of MCHP.
75.00% of the companies in the same industry are more expensive than MCHP, based on the Price/Forward Earnings ratio.
MCHP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.06 | ||
| Fwd PE | 19.94 |
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.
Based on the Price/Free Cash Flow ratio, MCHP is valued a bit cheaper than 70.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.35 | ||
| EV/EBITDA | 37.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as MCHP's earnings are expected to grow with 38.01% in the coming years.
PEG (NY)3.62
PEG (5Y)N/A
EPS Next 2Y41.81%
EPS Next 3Y38.01%
5. Dividend
5.1 Amount
MCHP has a Yearly Dividend Yield of 3.71%.
The stock price of MCHP dropped by -20.26% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
MCHP's Dividend Yield is rather good when compared to the industry average which is at 2.35. MCHP pays more dividend than 95.54% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, MCHP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
5.2 History
The dividend of MCHP is nicely growing with an annual growth rate of 20.15%!
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 2Y41.81%
EPS Next 3Y38.01%
NASDAQ:MCHP (11/26/2025, 9:44:07 AM)
52.135
+0.3 (+0.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners104.37%
Inst Owner Change-5.58%
Ins Owners1.93%
Ins Owner Change2.41%
Market Cap28.18B
Revenue(TTM)4.21B
Net Income(TTM)-245.10M
Analysts79.39
Price Target75.4 (44.62%)
Short Float %4.47%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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)-2.95%
PT rev (3m)-1.33%
EPS NQ rev (1m)-5.45%
EPS NQ rev (3m)-4.67%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)5.19%
Revenue NQ rev (1m)-3.49%
Revenue NQ rev (3m)-3.65%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.06 | ||
| Fwd PE | 19.94 | ||
| P/S | 6.69 | ||
| P/FCF | 37.35 | ||
| P/OCF | 33.5 | ||
| P/B | 4.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 37.98 |
EPS(TTM)0.93
EY1.78%
EPS(NY)2.61
Fwd EY5.01%
FCF(TTM)1.4
FCFY2.68%
OCF(TTM)1.56
OCFY2.99%
SpS7.79
BVpS12.39
TBVpS-4.01
PEG (NY)3.62
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 | 3.11 |
F-Score3
WACC10.27%
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 3Y38.01%
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 Year5.37%
Revenue Next 2Y12.44%
Revenue Next 3Y13.57%
Revenue Next 5Y9.85%
EBIT growth 1Y-86.35%
EBIT growth 3Y-41.54%
EBIT growth 5Y-11.55%
EBIT Next Year72.2%
EBIT Next 3Y33.18%
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.