MICROCHIP TECHNOLOGY INC (1MCHP.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MCHP - US5950171042 - Common Stock
47.52 EUR
-9.26 (-16.31%)
1MCHP gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 65 industry peers in the Semiconductors & Semiconductor Equipment industry. 1MCHP may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, 1MCHP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
1MCHP had positive earnings in the past year.
In the past year 1MCHP had a positive cash flow from operations.
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 (-1.69%) is worse than 87.30% of its industry peers.
1MCHP has a worse Return On Equity (-3.66%) than 85.71% of its industry peers.
The Return On Invested Capital of 1MCHP (0.87%) is worse than 80.95% 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 15.14%.
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
Looking at the Operating Margin, with a value of 3.68%, 1MCHP is doing worse than 82.54% of the companies in the same industry.
In the last couple of years the Operating Margin of 1MCHP has declined.
1MCHP has a Gross Margin of 54.06%. This is in the better half of the industry: 1MCHP outperforms 69.84% of its industry peers.
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
1MCHP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for 1MCHP has been increased compared to 1 year ago.
1MCHP has more shares outstanding than it did 5 years ago.
The debt/assets ratio for 1MCHP has been reduced compared to a year ago.
2.2 Solvency
1MCHP has an Altman-Z score of 3.22. This indicates that 1MCHP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1MCHP (3.22) is worse than 60.32% of its industry peers.
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.
1MCHP's Debt to FCF ratio of 7.13 is on the low side compared to the rest of the industry. 1MCHP is outperformed by 66.67% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that 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: 79.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.13 | ||
| Altman-Z | 3.22 |
ROIC/WACC0.09
WACC10.12%
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 of 2.25. This is comparable to the rest of the industry: 1MCHP outperforms 47.62% of 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 has a Quick ratio of 1.20. This is in the lower half of the industry: 1MCHP underperforms 76.19% 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.
1MCHP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -23.36%.
The Revenue has been decreasing by -3.55% on average over the past years.
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 29.71% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 10.04% on average over the next years. This is quite good.
EPS Next Y15.47%
EPS Next 2Y41.81%
EPS Next 3Y39.35%
EPS Next 5Y29.71%
Revenue Next Year5.37%
Revenue Next 2Y12.44%
Revenue Next 3Y14.65%
Revenue Next 5Y10.04%
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
Based on the Price/Earnings ratio of 58.67, the valuation of 1MCHP can be described as expensive.
Based on the Price/Earnings ratio, 1MCHP is valued a bit more expensive than the industry average as 77.78% of the companies are valued more cheaply.
1MCHP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.59.
With a Price/Forward Earnings ratio of 20.94, 1MCHP is valued on the expensive side.
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 (23.80), we can say 1MCHP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.67 | ||
| Fwd PE | 20.94 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1MCHP is valued a bit more expensive than the industry average as 73.02% of the companies are valued more cheaply.
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 | 39.16 | ||
| EV/EBITDA | 39.74 |
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 39.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.79
PEG (5Y)N/A
EPS Next 2Y41.81%
EPS Next 3Y39.35%
5. Dividend
5.1 Amount
1MCHP has a Yearly Dividend Yield of 3.71%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.18, 1MCHP pays a better dividend. On top of this 1MCHP pays more dividend than 100.00% of the companies listed in the same industry.
1MCHP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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.
The dividend of 1MCHP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-421.71%
EPS Next 2Y41.81%
EPS Next 3Y39.35%
BIT:1MCHP (11/11/2025, 7:00:00 PM)
47.52
-9.26 (-16.31%)
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)4.21B
Net Income(TTM)-245.10M
Analysts79.39
Price Target65.42 (37.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
Yearly Dividend1.58
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)-1.11%
PT rev (3m)-1.89%
EPS NQ rev (1m)-5.33%
EPS NQ rev (3m)-5.35%
EPS NY rev (1m)-0.99%
EPS NY rev (3m)-1.01%
Revenue NQ rev (1m)-3.48%
Revenue NQ rev (3m)-3.8%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.67 | ||
| Fwd PE | 20.94 | ||
| P/S | 7.01 | ||
| P/FCF | 39.16 | ||
| P/OCF | 35.13 | ||
| P/B | 4.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 39.74 |
EPS(TTM)0.81
EY1.7%
EPS(NY)2.27
Fwd EY4.78%
FCF(TTM)1.21
FCFY2.55%
OCF(TTM)1.35
OCFY2.85%
SpS6.78
BVpS10.77
TBVpS-3.49
PEG (NY)3.79
PEG (5Y)N/A
Graham Number14.01
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 | 3.22 |
F-Score3
WACC10.12%
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 3Y39.35%
EPS Next 5Y29.71%
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 3Y14.65%
Revenue Next 5Y10.04%
EBIT growth 1Y-86.35%
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-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 3 / 10 to 1MCHP.MI.
What is the valuation status of MICROCHIP TECHNOLOGY INC (1MCHP.MI) stock?
ChartMill assigns a valuation rating of 3 / 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 58.67 and the Price/Book (PB) ratio is 4.41.
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 -421.71%.