MICROCHIP TECHNOLOGY INC (1MCHP.MI) Stock Fundamental Analysis
BIT:1MCHP - Euronext Milan - US5950171042 - Common Stock - Currency: EUR
We assign a fundamental rating of 4 out of 10 to 1MCHP. 1MCHP was compared to 55 industry peers in the Semiconductors & Semiconductor Equipment industry. 1MCHP has only an average score on both its financial health and profitability. 1MCHP has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year 1MCHP was profitable.
1MCHP had a positive operating cash flow in the past year.
1MCHP had positive earnings in 4 of the past 5 years.
Of the past 5 years 1MCHP 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1MCHP (1.98%) is worse than 80.00% of its industry peers.
Looking at the Return On Equity, with a value of 5.12%, 1MCHP is doing worse than 67.27% of the companies in the same industry.
With a Return On Invested Capital value of 3.53%, 1MCHP is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for 1MCHP is in line with the industry average of 15.29%.
The 3 year average ROIC (14.53%) for 1MCHP is well above the current ROIC(3.53%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 5.12% | ||
| ROIC | 3.53% |
ROA(3y)11.21%
ROA(5y)7.8%
ROE(3y)28.27%
ROE(5y)20.31%
ROIC(3y)14.53%
ROIC(5y)10.53%
1.3 Margins
The Profit Margin of 1MCHP (6.49%) is worse than 70.91% of its industry peers.
In the last couple of years the Profit Margin of 1MCHP has grown nicely.
With a Operating Margin value of 13.47%, 1MCHP is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
1MCHP's Operating Margin has improved in the last couple of years.
1MCHP has a better Gross Margin (57.95%) than 80.00% of its industry peers.
In the last couple of years the Gross Margin of 1MCHP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.47% | ||
| PM (TTM) | 6.49% | ||
| GM | 57.95% |
OM growth 3Y22.16%
OM growth 5Y19.11%
PM growth 3Y57.24%
PM growth 5Y30.29%
GM growth 3Y1.74%
GM growth 5Y3.61%
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.
1MCHP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
1MCHP has an Altman-Z score of 3.36. This indicates that 1MCHP is financially healthy and has little risk of bankruptcy at the moment.
1MCHP has a worse Altman-Z score (3.36) than 69.09% of its industry peers.
1MCHP has a debt to FCF ratio of 6.96. This is a slightly negative value and a sign of low solvency as 1MCHP would need 6.96 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.96, 1MCHP is in line with its industry, outperforming 41.82% of the companies in the same industry.
A Debt/Equity ratio of 1.12 is on the high side and indicates that 1MCHP has dependencies on debt financing.
The Debt to Equity ratio of 1MCHP (1.12) is worse than 92.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 6.96 | ||
| Altman-Z | 3.36 |
ROIC/WACC0.37
WACC9.56%
2.3 Liquidity
A Current Ratio of 2.25 indicates that 1MCHP has no problem at all paying its short term obligations.
With a Current ratio value of 2.25, 1MCHP perfoms like the industry average, outperforming 47.27% of the companies in the same industry.
1MCHP has a Quick Ratio of 1.23. This is a normal value and indicates that 1MCHP is financially healthy and should not expect problems in meeting its short term obligations.
1MCHP has a worse Quick ratio (1.23) than 65.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The earnings per share for 1MCHP have decreased strongly by -73.52% in the last year.
The earnings per share for 1MCHP have been decreasing by -14.29% on average. This is quite bad
EPS 1Y (TTM)-73.52%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%-80.7%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-26.8%
3.2 Future
Based on estimates for the next years, 1MCHP will show a very strong growth in Earnings Per Share. The EPS will grow by 35.61% on average per year.
Based on estimates for the next years, 1MCHP will show a quite strong growth in Revenue. The Revenue will grow by 13.10% on average per year.
EPS Next Y4.16%
EPS Next 2Y39.33%
EPS Next 3Y32.99%
EPS Next 5Y35.61%
Revenue Next Year3.19%
Revenue Next 2Y12.27%
Revenue Next 3Y13.31%
Revenue Next 5Y13.1%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 51.19, the valuation of 1MCHP can be described as expensive.
Based on the Price/Earnings ratio, 1MCHP is valued more expensive than 81.82% of the companies in the same industry.
1MCHP is valuated expensively when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 49.17, the valuation of 1MCHP can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MCHP indicates a rather expensive valuation: 1MCHP more expensive than 87.27% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of 1MCHP to the average of the S&P500 Index (22.19), we can say 1MCHP is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.19 | ||
| Fwd PE | 49.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1MCHP is valued a bit more expensive than the industry average as 70.91% of the companies are valued more cheaply.
63.64% of the companies in the same industry are more expensive than 1MCHP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.9 | ||
| EV/EBITDA | 29.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1MCHP's earnings are expected to grow with 32.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)12.31
PEG (5Y)N/A
EPS Next 2Y39.33%
EPS Next 3Y32.99%
5. Dividend
5.1 Amount
1MCHP has a Yearly Dividend Yield of 3.07%.
Compared to an average industry Dividend Yield of 1.28, 1MCHP pays a better dividend. On top of this 1MCHP pays more dividend than 98.18% of the companies listed in the same industry.
1MCHP's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
On average, the dividend of 1MCHP grows each year by 18.25%, which is quite nice.
Dividend Growth(5Y)18.25%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
315.22% of the earnings are spent on dividend by 1MCHP. This is not a sustainable payout ratio.
1MCHP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP315.22%
EPS Next 2Y39.33%
EPS Next 3Y32.99%
BIT:1MCHP (6/13/2025, 7:00:00 PM)
57.85
+1.18 (+2.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.38%
Inst Owner ChangeN/A
Ins Owners1.92%
Ins Owner ChangeN/A
Market Cap31.11B
Analysts78.67
Price Target52.87 (-8.61%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
Yearly Dividend1.49
Dividend Growth(5Y)18.25%
DP315.22%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.43%
Min EPS beat(2)-27.71%
Max EPS beat(2)4.85%
EPS beat(4)1
Avg EPS beat(4)-6.38%
Min EPS beat(4)-27.71%
Max EPS beat(4)4.85%
EPS beat(8)2
Avg EPS beat(8)-3.51%
EPS beat(12)3
Avg EPS beat(12)-2.05%
EPS beat(16)6
Avg EPS beat(16)-1.21%
Revenue beat(2)0
Avg Revenue beat(2)-2.84%
Min Revenue beat(2)-4.74%
Max Revenue beat(2)-0.95%
Revenue beat(4)0
Avg Revenue beat(4)-2.49%
Min Revenue beat(4)-4.74%
Max Revenue beat(4)-0.95%
Revenue beat(8)0
Avg Revenue beat(8)-2.3%
Revenue beat(12)0
Avg Revenue beat(12)-1.88%
Revenue beat(16)0
Avg Revenue beat(16)-1.75%
PT rev (1m)-13.65%
PT rev (3m)-31.37%
EPS NQ rev (1m)-0.27%
EPS NQ rev (3m)-6.33%
EPS NY rev (1m)0%
EPS NY rev (3m)0.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.19 | ||
| Fwd PE | 49.17 | ||
| P/S | 7.53 | ||
| P/FCF | 36.9 | ||
| P/OCF | 31.91 | ||
| P/B | 5.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.51 |
EPS(TTM)1.13
EY1.95%
EPS(NY)1.18
Fwd EY2.03%
FCF(TTM)1.57
FCFY2.71%
OCF(TTM)1.81
OCFY3.13%
SpS7.69
BVpS9.75
TBVpS-5.12
PEG (NY)12.31
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 5.12% | ||
| ROCE | 4.48% | ||
| ROIC | 3.53% | ||
| ROICexc | 3.68% | ||
| ROICexgc | 11.18% | ||
| OM | 13.47% | ||
| PM (TTM) | 6.49% | ||
| GM | 57.95% | ||
| FCFM | 20.4% |
ROA(3y)11.21%
ROA(5y)7.8%
ROE(3y)28.27%
ROE(5y)20.31%
ROIC(3y)14.53%
ROIC(5y)10.53%
ROICexc(3y)14.84%
ROICexc(5y)10.75%
ROICexgc(3y)59.35%
ROICexgc(5y)46.01%
ROCE(3y)18.45%
ROCE(5y)13.37%
ROICexcg growth 3Y18.42%
ROICexcg growth 5Y15.98%
ROICexc growth 3Y39.37%
ROICexc growth 5Y32.47%
OM growth 3Y22.16%
OM growth 5Y19.11%
PM growth 3Y57.24%
PM growth 5Y30.29%
GM growth 3Y1.74%
GM growth 5Y3.61%
F-Score5
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 6.96 | ||
| Debt/EBITDA | 4.75 | ||
| Cap/Depr | 19.44% | ||
| Cap/Sales | 3.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.91% | ||
| Profit Quality | 314.22% | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 3.36 |
F-Score5
WACC9.56%
ROIC/WACC0.37
Cap/Depr(3y)37.83%
Cap/Depr(5y)25.41%
Cap/Sales(3y)4.97%
Cap/Sales(5y)3.58%
Profit Quality(3y)156.39%
Profit Quality(5y)249.98%
High Growth Momentum
Growth
EPS 1Y (TTM)-73.52%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%-80.7%
EPS Next Y4.16%
EPS Next 2Y39.33%
EPS Next 3Y32.99%
EPS Next 5Y35.61%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-26.8%
Revenue Next Year3.19%
Revenue Next 2Y12.27%
Revenue Next 3Y13.31%
Revenue Next 5Y13.1%
EBIT growth 1Y-79.8%
EBIT growth 3Y36.78%
EBIT growth 5Y27.89%
EBIT Next Year-55.97%
EBIT Next 3Y-13.46%
EBIT Next 5Y6.3%
FCF growth 1Y-69.4%
FCF growth 3Y12.65%
FCF growth 5Y12.52%
OCF growth 1Y-69.33%
OCF growth 3Y14.71%
OCF growth 5Y11.55%