MICROCHIP TECHNOLOGY INC (1MCHP.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1MCHP • US5950171042
65.8 EUR
+3.36 (+5.38%)
Last: Feb 2, 2026, 07:00 PM
Taking everything into account, 1MCHP scores 4 out of 10 in our fundamental rating. 1MCHP was compared to 63 industry peers in the Semiconductors & Semiconductor Equipment industry. The financial health of 1MCHP is average, but there are quite some concerns on its profitability. 1MCHP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year 1MCHP was profitable.
- In the past year 1MCHP had a positive cash flow from operations.
- 1MCHP had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years 1MCHP had a positive operating cash flow.
1.2 Ratios
- 1MCHP has a Return On Assets of -1.69%. This is amonst the worse of the industry: 1MCHP underperforms 88.24% of its industry peers.
- With a Return On Equity value of -3.66%, 1MCHP is not doing good in the industry: 88.24% of the companies in the same industry are doing better.
- 1MCHP has a Return On Invested Capital of 0.87%. This is amonst the worse of the industry: 1MCHP underperforms 83.82% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1MCHP is below the industry average of 15.01%.
- The 3 year average ROIC (11.32%) for 1MCHP is well above the current ROIC(0.87%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.69% | ||
| ROE | -3.66% | ||
| ROIC | 0.87% |
ROA(3y)8.56%
ROA(5y)7.14%
ROE(3y)20.99%
ROE(5y)18.26%
ROIC(3y)11.32%
ROIC(5y)9.76%
1.3 Margins
- 1MCHP has a worse Operating Margin (3.68%) than 83.82% of its industry peers.
- In the last couple of years the Operating Margin of 1MCHP has declined.
- With a decent Gross Margin value of 54.06%, 1MCHP is doing good in the industry, outperforming 72.06% of the companies in the same industry.
- In the last couple of years the Gross Margin of 1MCHP 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1MCHP is creating some value.
- Compared to 1 year ago, 1MCHP has more shares outstanding
- 1MCHP has more shares outstanding than it did 5 years ago.
- 1MCHP has a better debt/assets ratio than last year.
2.2 Solvency
- 1MCHP has an Altman-Z score of 4.03. This indicates that 1MCHP is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of 1MCHP (4.03) is comparable to the rest of the industry.
- The Debt to FCF ratio of 1MCHP is 7.13, which is on the high side as it means it would take 1MCHP, 7.13 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 7.13, 1MCHP is doing worse than 67.65% of the companies in the same industry.
- 1MCHP has a Debt/Equity ratio of 0.80. This is a neutral value indicating 1MCHP is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.80, 1MCHP is not doing good in the industry: 88.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.13 | ||
| Altman-Z | 4.03 |
ROIC/WACC0.08
WACC10.41%
2.3 Liquidity
- 1MCHP has a Current Ratio of 2.25. This indicates that 1MCHP is financially healthy and has no problem in meeting its short term obligations.
- 1MCHP has a Current ratio (2.25) which is in line with its industry peers.
- 1MCHP has a Quick Ratio of 1.20. This is a normal value and indicates that 1MCHP is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.20, 1MCHP is not doing good in the industry: 79.41% 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 1MCHP have decreased strongly by -64.77% in the last year.
- Measured over the past years, 1MCHP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.29% on average per year.
- The Revenue for 1MCHP has decreased by -23.36% in the past year. This is quite bad
- 1MCHP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.55% yearly.
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
- 1MCHP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.55% yearly.
- The Revenue is expected to grow by 12.88% on average over the next years. This is quite good.
EPS Next Y19.08%
EPS Next 2Y44.43%
EPS Next 3Y41.69%
EPS Next 5Y29.55%
Revenue Next Year5.22%
Revenue Next 2Y12.73%
Revenue Next 3Y14.58%
Revenue Next 5Y12.88%
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
- With a Price/Earnings ratio of 83.29, 1MCHP can be considered very expensive at the moment.
- 79.41% of the companies in the same industry are cheaper than 1MCHP, based on the Price/Earnings ratio.
- 1MCHP is valuated expensively when we compare the Price/Earnings ratio to 28.41, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 28.49 indicates a quite expensive valuation of 1MCHP.
- 1MCHP's Price/Forward Earnings is on the same level as the industry average.
- 1MCHP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.29 | ||
| Fwd PE | 28.49 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1MCHP is valued a bit more expensive than the industry average as 77.94% of the companies are valued more cheaply.
- 1MCHP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.35 | ||
| EV/EBITDA | 51.77 |
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 1MCHP's earnings are expected to grow with 41.69% in the coming years.
PEG (NY)4.37
PEG (5Y)N/A
EPS Next 2Y44.43%
EPS Next 3Y41.69%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.41%, 1MCHP has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.78, 1MCHP pays a better dividend. On top of this 1MCHP pays more dividend than 95.59% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, 1MCHP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
- On average, the dividend of 1MCHP grows each year by 20.15%, which is quite nice.
Dividend Growth(5Y)20.15%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 1MCHP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- 1MCHP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-421.71%
EPS Next 2Y44.43%
EPS Next 3Y41.69%
BIT:1MCHP (2/2/2026, 7:00:00 PM)
65.8
+3.36 (+5.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-05 2026-02-05/amc
Inst Owners98.58%
Inst Owner ChangeN/A
Ins Owners1.93%
Ins Owner ChangeN/A
Market Cap35.56B
Revenue(TTM)4.21B
Net Income(TTM)-245.10M
Analysts79.39
Price Target68.17 (3.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
Yearly Dividend1.55
Dividend Growth(5Y)20.15%
DP-421.71%
Div Incr YearsN/A
Div Non Decr YearsN/A
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)4.19%
PT rev (3m)3.04%
EPS NQ rev (1m)8.07%
EPS NQ rev (3m)2.31%
EPS NY rev (1m)3.13%
EPS NY rev (3m)2.11%
Revenue NQ rev (1m)3.09%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.29 | ||
| Fwd PE | 28.49 | ||
| P/S | 9.91 | ||
| P/FCF | 55.35 | ||
| P/OCF | 49.65 | ||
| P/B | 6.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 51.77 |
EPS(TTM)0.79
EY1.2%
EPS(NY)2.31
Fwd EY3.51%
FCF(TTM)1.19
FCFY1.81%
OCF(TTM)1.33
OCFY2.01%
SpS6.64
BVpS10.55
TBVpS-3.42
PEG (NY)4.37
PEG (5Y)N/A
Graham Number13.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.69% | ||
| ROE | -3.66% | ||
| ROCE | 1.16% | ||
| ROIC | 0.87% | ||
| ROICexc | 0.88% | ||
| ROICexgc | 2.69% | ||
| 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)11.32%
ROIC(5y)9.76%
ROICexc(3y)11.58%
ROICexc(5y)9.98%
ROICexgc(3y)46.19%
ROICexgc(5y)41.66%
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 | 4.03 |
F-Score3
WACC10.41%
ROIC/WACC0.08
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 Y19.08%
EPS Next 2Y44.43%
EPS Next 3Y41.69%
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 Year5.22%
Revenue Next 2Y12.73%
Revenue Next 3Y14.58%
Revenue Next 5Y12.88%
EBIT growth 1Y-86.35%
EBIT growth 3Y-41.54%
EBIT growth 5Y-11.55%
EBIT Next Year55.23%
EBIT Next 3Y41.48%
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 / 1MCHP.MI FAQ
Can you provide the ChartMill fundamental rating for MICROCHIP TECHNOLOGY INC?
ChartMill assigns a fundamental rating of 4 / 10 to 1MCHP.MI.
What is the valuation status for 1MCHP stock?
ChartMill assigns a valuation rating of 2 / 10 to MICROCHIP TECHNOLOGY INC (1MCHP.MI). This can be considered as Overvalued.
What is the profitability of 1MCHP stock?
MICROCHIP TECHNOLOGY INC (1MCHP.MI) has a profitability rating of 3 / 10.
What is the financial health of MICROCHIP TECHNOLOGY INC (1MCHP.MI) stock?
The financial health rating of MICROCHIP TECHNOLOGY INC (1MCHP.MI) is 4 / 10.
What is the earnings growth outlook for MICROCHIP TECHNOLOGY INC?
The Earnings per Share (EPS) of MICROCHIP TECHNOLOGY INC (1MCHP.MI) is expected to grow by 19.08% in the next year.