MICROCHIP TECHNOLOGY INC (1MCHP.MI) Stock Fundamental Analysis
Europe - BIT:1MCHP - US5950171042 - Common Stock
47.52 EUR
-7.26 (-13.25%)
1MCHP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 62 industry peers in the Semiconductors & Semiconductor Equipment industry. While 1MCHP seems to be doing ok healthwise, 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
1MCHP had positive earnings in the past year.
1MCHP had a positive operating cash flow in the past year.
Of the past 5 years 1MCHP 4 years were profitable.
In the past 5 years 1MCHP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1MCHP (-1.21%) is worse than 83.08% of its industry peers.
The Return On Equity of 1MCHP (-2.63%) is worse than 81.54% of its industry peers.
The Return On Invested Capital of 1MCHP (1.13%) is worse than 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1MCHP is below the industry average of 14.29%.
The last Return On Invested Capital (1.13%) 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 | -1.21% | ||
| ROE | -2.63% | ||
| ROIC | 1.13% |
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
Looking at the Operating Margin, with a value of 4.91%, 1MCHP is doing worse than 83.08% of the companies in the same industry.
In the last couple of years the Operating Margin of 1MCHP has declined.
Looking at the Gross Margin, with a value of 54.48%, 1MCHP is in the better half of the industry, outperforming 72.31% 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 | 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
1MCHP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, 1MCHP has more shares outstanding
The number of shares outstanding for 1MCHP has been increased compared to 5 years ago.
1MCHP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.61 indicates that 1MCHP is not in any danger for bankruptcy at the moment.
1MCHP's Altman-Z score of 3.61 is in line compared to the rest of the industry. 1MCHP outperforms 41.54% of its industry peers.
The Debt to FCF ratio of 1MCHP is 7.52, which is on the high side as it means it would take 1MCHP, 7.52 years of fcf income to pay off all of its debts.
1MCHP's Debt to FCF ratio of 7.52 is on the low side compared to the rest of the industry. 1MCHP is outperformed by 61.54% of its industry peers.
1MCHP has a Debt/Equity ratio of 0.80. This is a neutral value indicating 1MCHP is somewhat dependend on debt financing.
1MCHP's Debt to Equity ratio of 0.80 is on the low side compared to the rest of the industry. 1MCHP is outperformed by 83.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.52 | ||
| Altman-Z | 3.61 |
ROIC/WACC0.1
WACC11.1%
2.3 Liquidity
A Current Ratio of 2.31 indicates that 1MCHP has no problem at all paying its short term obligations.
1MCHP has a Current ratio (2.31) which is comparable to the rest of the industry.
A Quick Ratio of 1.33 indicates that 1MCHP should not have too much problems paying its short term obligations.
1MCHP's Quick ratio of 1.33 is on the low side compared to the rest of the industry. 1MCHP is outperformed by 72.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
1MCHP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -72.63%.
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.
Looking at the last year, 1MCHP shows a very negative growth in Revenue. The Revenue has decreased by -35.70% in the last year.
The Revenue has been decreasing by -3.55% on average over the past years.
EPS 1Y (TTM)-72.63%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%-49.06%
Revenue 1Y (TTM)-35.7%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%-13.36%
3.2 Future
1MCHP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.71% yearly.
1MCHP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.04% yearly.
EPS Next Y16.62%
EPS Next 2Y43.36%
EPS Next 3Y38.15%
EPS Next 5Y29.71%
Revenue Next Year5.44%
Revenue Next 2Y12.92%
Revenue Next 3Y14.45%
Revenue Next 5Y10.04%
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 53.39, 1MCHP can be considered very expensive at the moment.
Based on the Price/Earnings ratio, 1MCHP is valued a bit more expensive than 73.85% of the companies in the same industry.
1MCHP is valuated expensively when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.78, the valuation of 1MCHP can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MCHP is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of 1MCHP to the average of the S&P500 Index (34.59), we can say 1MCHP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.39 | ||
| Fwd PE | 20.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1MCHP is valued a bit more expensive than 70.77% of the companies in the same industry.
1MCHP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.29 | ||
| EV/EBITDA | 43.26 |
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 38.15% in the coming years.
PEG (NY)3.21
PEG (5Y)N/A
EPS Next 2Y43.36%
EPS Next 3Y38.15%
5. Dividend
5.1 Amount
1MCHP has a Yearly Dividend Yield of 2.79%.
1MCHP's Dividend Yield is rather good when compared to the industry average which is at 1.34. 1MCHP pays more dividend than 96.92% of the companies in the same industry.
1MCHP's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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
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-555.76%
EPS Next 2Y43.36%
EPS Next 3Y38.15%
BIT:1MCHP (11/11/2025, 7:00:00 PM)
47.52
-7.26 (-13.25%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners104.37%
Inst Owner ChangeN/A
Ins Owners1.93%
Ins Owner ChangeN/A
Market Cap25.65B
Revenue(TTM)4.24B
Net Income(TTM)-180.60M
Analysts79.39
Price Target66.16 (39.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
Yearly Dividend1.55
Dividend Growth(5Y)20.15%
DP-555.76%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
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)-0.79%
PT rev (3m)12.19%
EPS NQ rev (1m)0.55%
EPS NQ rev (3m)10.92%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)8.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.93%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.39 | ||
| Fwd PE | 20.78 | ||
| P/S | 7.07 | ||
| P/FCF | 41.29 | ||
| P/OCF | 37.61 | ||
| P/B | 4.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 43.26 |
EPS(TTM)0.89
EY1.87%
EPS(NY)2.29
Fwd EY4.81%
FCF(TTM)1.15
FCFY2.42%
OCF(TTM)1.26
OCFY2.66%
SpS6.72
BVpS10.88
TBVpS-3.38
PEG (NY)3.21
PEG (5Y)N/A
Graham Number14.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.21% | ||
| ROE | -2.63% | ||
| ROCE | 1.51% | ||
| ROIC | 1.13% | ||
| ROICexc | 1.18% | ||
| ROICexgc | 3.69% | ||
| 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)11.32%
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-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 | 3.61 |
F-Score4
WACC11.1%
ROIC/WACC0.1
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)-72.63%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%-49.06%
EPS Next Y16.62%
EPS Next 2Y43.36%
EPS Next 3Y38.15%
EPS Next 5Y29.71%
Revenue 1Y (TTM)-35.7%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%-13.36%
Revenue Next Year5.44%
Revenue Next 2Y12.92%
Revenue Next 3Y14.45%
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 / 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 of MICROCHIP TECHNOLOGY INC (1MCHP.MI) 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 valuation of MICROCHIP TECHNOLOGY INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MICROCHIP TECHNOLOGY INC (1MCHP.MI) is 53.39 and the Price/Book (PB) ratio is 4.37.
Can you provide the dividend sustainability for 1MCHP stock?
The dividend rating of MICROCHIP TECHNOLOGY INC (1MCHP.MI) is 5 / 10 and the dividend payout ratio is -555.76%.