MICROCHIP TECHNOLOGY INC (1MCHP.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1MCHP • US5950171042
63.1 EUR
+0.66 (+1.06%)
Last: Jan 12, 2026, 07:00 PM
1MCHP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 69 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 valied quite expensively at the moment, while 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.
- Of the past 5 years 1MCHP 4 years were profitable.
- Each year in the past 5 years 1MCHP had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of 1MCHP (-1.69%) is worse than 88.24% of its industry peers.
- 1MCHP's Return On Equity of -3.66% is on the low side compared to the rest of the industry. 1MCHP is outperformed by 88.24% of its industry peers.
- The Return On Invested Capital of 1MCHP (0.87%) is worse than 83.82% of its industry peers.
- 1MCHP had an Average Return On Invested Capital over the past 3 years of 11.32%. This is below the industry average of 14.44%.
- The last Return On Invested Capital (0.87%) for 1MCHP is well below the 3 year average (11.32%), which needs to be investigated, but indicates that 1MCHP had better years and this may not be a problem.
| 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
- With a Operating Margin value of 3.68%, 1MCHP is not doing good in the industry: 83.82% of the companies in the same industry are doing better.
- 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.
- 1MCHP's Gross Margin has declined in the last couple of years.
| 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.
- 1MCHP has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, 1MCHP has more shares outstanding
- 1MCHP has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 4.03 indicates that 1MCHP is not in any danger for bankruptcy at the moment.
- 1MCHP has a Altman-Z score of 4.03. This is comparable to the rest of the industry: 1MCHP outperforms 41.18% of its industry peers.
- 1MCHP has a debt to FCF ratio of 7.13. This is a slightly negative value and a sign of low solvency as 1MCHP would need 7.13 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 7.13, 1MCHP is not doing good in the industry: 67.65% of the companies in the same industry are doing better.
- 1MCHP has a Debt/Equity ratio of 0.80. This is a neutral value indicating 1MCHP is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.80, 1MCHP is doing worse than 88.24% of the companies in the same industry.
| 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.
- 1MCHP's Quick ratio of 1.20 is on the low side compared to the rest of the industry. 1MCHP is outperformed by 79.41% of its industry peers.
| 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
- Measured over the past years, 1MCHP 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
- The Earnings Per Share is expected to grow by 29.55% on average over the next years. This is a very strong growth
- 1MCHP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.88% yearly.
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
- 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
- With a Price/Earnings ratio of 79.87, 1MCHP can be considered very expensive at the moment.
- 1MCHP's Price/Earnings ratio is a bit more expensive when compared to the industry. 1MCHP is more expensive than 79.41% of the companies in the same industry.
- 1MCHP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.32.
- The Price/Forward Earnings ratio is 27.32, which means the current valuation is very expensive for 1MCHP.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MCHP is on the same level as its industry peers.
- 1MCHP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 79.87 | ||
| Fwd PE | 27.32 |
4.2 Price Multiples
- 77.94% of the companies in the same industry are cheaper than 1MCHP, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1MCHP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.08 | ||
| EV/EBITDA | 51.77 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1MCHP does not grow enough to justify the current Price/Earnings ratio.
- A more expensive valuation may be justified as 1MCHP's earnings are expected to grow with 41.69% in the coming years.
PEG (NY)4.19
PEG (5Y)N/A
EPS Next 2Y44.43%
EPS Next 3Y41.69%
5. Dividend
5.1 Amount
- 1MCHP has a Yearly Dividend Yield of 2.41%. Purely for dividend investing, there may be better candidates out there.
- 1MCHP's Dividend Yield is rather good when compared to the industry average which is at 0.72. 1MCHP pays more dividend than 95.59% of the companies in the same industry.
- 1MCHP's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
- The dividend of 1MCHP is nicely growing with an annual growth rate of 20.15%!
Dividend Growth(5Y)20.15%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- The earnings of 1MCHP are negative and hence is the payout ratio. 1MCHP will probably not be able to sustain this dividend level.
- The dividend of 1MCHP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-421.71%
EPS Next 2Y44.43%
EPS Next 3Y41.69%
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.