MICROCHIP TECHNOLOGY INC (1MCHP.MI) Stock Fundamental Analysis
Europe - BIT:1MCHP - US5950171042 - Common Stock
54.78 EUR
-5.76 (-9.51%)
Overall 1MCHP gets a fundamental rating of 4 out of 10. We evaluated 1MCHP against 56 industry peers in the Semiconductors & Semiconductor Equipment industry. 1MCHP scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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
Looking at the Return On Assets, with a value of -0.03%, 1MCHP is doing worse than 81.48% of the companies in the same industry.
1MCHP has a worse Return On Equity (-0.07%) than 79.63% of its industry peers.
The Return On Invested Capital of 1MCHP (1.98%) is worse than 75.93% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1MCHP is below the industry average of 14.85%.
The last Return On Invested Capital (1.98%) 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 | -0.03% | ||
| ROE | -0.07% | ||
| ROIC | 1.98% |
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's Operating Margin of 8.53% is on the low side compared to the rest of the industry. 1MCHP is outperformed by 74.07% of its industry peers.
In the last couple of years the Operating Margin of 1MCHP has declined.
The Gross Margin of 1MCHP (56.07%) is better than 75.93% of its industry peers.
In the last couple of years the Gross Margin of 1MCHP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.53% | ||
| PM (TTM) | N/A | ||
| GM | 56.07% |
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.
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 3.55 indicates that 1MCHP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.55, 1MCHP is doing worse than 72.22% of the companies in the same industry.
1MCHP has a debt to FCF ratio of 7.29. This is a slightly negative value and a sign of low solvency as 1MCHP would need 7.29 years to pay back of all of its debts.
The Debt to FCF ratio of 1MCHP (7.29) is worse than 61.11% 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.
With a Debt to Equity ratio value of 0.80, 1MCHP is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.29 | ||
| Altman-Z | 3.55 |
ROIC/WACC0.18
WACC10.96%
2.3 Liquidity
A Current Ratio of 2.59 indicates that 1MCHP has no problem at all paying its short term obligations.
The Current ratio of 1MCHP (2.59) is comparable to the rest of the industry.
A Quick Ratio of 1.47 indicates that 1MCHP should not have too much problems paying its short term obligations.
1MCHP has a Quick ratio (1.47) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.47 |
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.
The Revenue for 1MCHP has decreased by -42.35% 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)-72.63%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%-49.06%
Revenue 1Y (TTM)-42.35%
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 Y16.65%
EPS Next 2Y43.41%
EPS Next 3Y40.72%
EPS Next 5Y29.71%
Revenue Next Year5.46%
Revenue Next 2Y12.91%
Revenue Next 3Y14.64%
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
A Price/Earnings ratio of 60.87 indicates a quite expensive valuation of 1MCHP.
1MCHP's Price/Earnings ratio is rather expensive when compared to the industry. 1MCHP is more expensive than 85.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1MCHP to the average of the S&P500 Index (27.38), we can say 1MCHP is valued expensively.
A Price/Forward Earnings ratio of 23.78 indicates a rather expensive valuation of 1MCHP.
1MCHP's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.86. 1MCHP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.87 | ||
| Fwd PE | 23.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1MCHP indicates a slightly more expensive valuation: 1MCHP is more expensive than 72.22% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1MCHP indicates a somewhat cheap valuation: 1MCHP is cheaper than 61.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.45 | ||
| EV/EBITDA | 35.21 |
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.
1MCHP's earnings are expected to grow with 40.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.66
PEG (5Y)N/A
EPS Next 2Y43.41%
EPS Next 3Y40.72%
5. Dividend
5.1 Amount
1MCHP has a Yearly Dividend Yield of 2.75%. 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 1.29. 1MCHP pays more dividend than 96.30% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 1MCHP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
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.
1MCHP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-19912.24%
EPS Next 2Y43.41%
EPS Next 3Y40.72%
BIT:1MCHP (9/19/2025, 7:00:00 PM)
54.78
-5.76 (-9.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners100.81%
Inst Owner ChangeN/A
Ins Owners1.93%
Ins Owner ChangeN/A
Market Cap29.56B
Analysts80
Price Target66.69 (21.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.75% |
Yearly Dividend1.56
Dividend Growth(5Y)20.15%
DP-19912.24%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-12.56%
Min EPS beat(2)-27.71%
Max EPS beat(2)2.6%
EPS beat(4)2
Avg EPS beat(4)-5.07%
Min EPS beat(4)-27.71%
Max EPS beat(4)4.85%
EPS beat(8)3
Avg EPS beat(8)-3.08%
EPS beat(12)3
Avg EPS beat(12)-2.3%
EPS beat(16)6
Avg EPS beat(16)-1.31%
Revenue beat(2)0
Avg Revenue beat(2)-2.95%
Min Revenue beat(2)-4.74%
Max Revenue beat(2)-1.17%
Revenue beat(4)0
Avg Revenue beat(4)-2.22%
Min Revenue beat(4)-4.74%
Max Revenue beat(4)-0.95%
Revenue beat(8)0
Avg Revenue beat(8)-2.24%
Revenue beat(12)0
Avg Revenue beat(12)-1.92%
Revenue beat(16)0
Avg Revenue beat(16)-1.75%
PT rev (1m)13.08%
PT rev (3m)26.13%
EPS NQ rev (1m)1.52%
EPS NQ rev (3m)5.41%
EPS NY rev (1m)8.88%
EPS NY rev (3m)11.99%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)0.65%
Revenue NY rev (1m)1.16%
Revenue NY rev (3m)2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.87 | ||
| Fwd PE | 23.78 | ||
| P/S | 7.8 | ||
| P/FCF | 44.45 | ||
| P/OCF | 38.21 | ||
| P/B | 4.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.21 |
EPS(TTM)0.9
EY1.64%
EPS(NY)2.3
Fwd EY4.2%
FCF(TTM)1.23
FCFY2.25%
OCF(TTM)1.43
OCFY2.62%
SpS7.03
BVpS11.3
TBVpS-3.19
PEG (NY)3.66
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.03% | ||
| ROE | -0.07% | ||
| ROCE | 2.64% | ||
| ROIC | 1.98% | ||
| ROICexc | 2.09% | ||
| ROICexgc | 6.44% | ||
| OM | 8.53% | ||
| PM (TTM) | N/A | ||
| GM | 56.07% | ||
| FCFM | 17.54% |
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%
ROICexcg growth 3Y-44.39%
ROICexcg 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 | 7.29 | ||
| Debt/EBITDA | 5 | ||
| Cap/Depr | 16.8% | ||
| Cap/Sales | 2.86% | ||
| Interest Coverage | 1.59 | ||
| Cash Conversion | 79.79% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.59 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 3.55 |
F-Score3
WACC10.96%
ROIC/WACC0.18
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 Y16.65%
EPS Next 2Y43.41%
EPS Next 3Y40.72%
EPS Next 5Y29.71%
Revenue 1Y (TTM)-42.35%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%-13.36%
Revenue Next Year5.46%
Revenue Next 2Y12.91%
Revenue Next 3Y14.64%
Revenue Next 5Y10.04%
EBIT growth 1Y-85.32%
EBIT growth 3Y-41.54%
EBIT growth 5Y-11.55%
EBIT Next Year54.31%
EBIT Next 3Y33.49%
EBIT Next 5Y25.08%
FCF growth 1Y-70.39%
FCF growth 3Y-32.16%
FCF growth 5Y-12.16%
OCF growth 1Y-68.95%
OCF growth 3Y-31.89%
OCF growth 5Y-10.27%