MICROCHIP TECHNOLOGY INC (1MCHP.MI) Stock Fundamental Analysis
Europe - BIT:1MCHP - US5950171042 - Common Stock
56.78 EUR
+2 (+3.65%)
1MCHP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 54 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 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.
1MCHP had a positive operating cash flow in the past year.
1MCHP had positive earnings in 4 of the past 5 years.
1MCHP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -1.21%, 1MCHP is not doing good in the industry: 83.08% of the companies in the same industry are doing better.
1MCHP has a worse Return On Equity (-2.63%) than 81.54% of its industry peers.
1MCHP has a worse Return On Invested Capital (1.13%) than 80.00% 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 15.08%.
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
1MCHP has a Operating Margin of 4.91%. This is amonst the worse of the industry: 1MCHP underperforms 83.08% of its industry peers.
1MCHP's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 54.48%, 1MCHP is doing good in 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.
1MCHP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for 1MCHP has been increased compared to 5 years ago.
Compared to 1 year ago, 1MCHP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.61 indicates that 1MCHP is not in any danger for bankruptcy at the moment.
1MCHP has a Altman-Z score (3.61) which is in line with 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.
The Debt to FCF ratio of 1MCHP (7.52) is worse than 61.54% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that 1MCHP is somewhat dependend on debt financing.
1MCHP has a worse Debt to Equity ratio (0.80) than 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
1MCHP has a Current Ratio of 2.31. This indicates that 1MCHP is financially healthy and has no problem in meeting its short term obligations.
1MCHP has a Current ratio (2.31) which is comparable to the rest of the industry.
1MCHP has a Quick Ratio of 1.33. 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 1.33 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%.
The earnings per share for 1MCHP have been decreasing by -14.29% on average. This is quite bad
Looking at the last year, 1MCHP shows a very negative growth in Revenue. The Revenue has decreased by -35.70% in the last year.
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)-35.7%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%-13.36%
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
Based on estimates for the next years, 1MCHP will show a quite strong growth in Revenue. The Revenue will grow by 10.04% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 63.80 indicates a quite expensive valuation of 1MCHP.
Based on the Price/Earnings ratio, 1MCHP is valued a bit more expensive than the industry average as 73.85% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.89, 1MCHP is valued quite expensively.
Based on the Price/Forward Earnings ratio of 24.82, the valuation of 1MCHP can be described as rather expensive.
1MCHP's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of 1MCHP to the average of the S&P500 Index (22.99), we can say 1MCHP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.8 | ||
| Fwd PE | 24.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1MCHP is valued a bit more expensive than the industry average as 70.77% of the companies are valued more cheaply.
1MCHP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.33 | ||
| 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.
1MCHP's earnings are expected to grow with 38.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.84
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 1.08. 1MCHP pays more dividend than 96.92% of the companies in the same industry.
1MCHP's Dividend Yield is a higher than the S&P500 average which is at 2.31.
| 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
1MCHP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
1MCHP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-555.76%
EPS Next 2Y43.36%
EPS Next 3Y38.15%
BIT:1MCHP (10/9/2025, 7:00:00 PM)
56.78
+2 (+3.65%)
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 Cap30.64B
Revenue(TTM)4.24B
Net Income(TTM)-180600000
Analysts79.39
Price Target66.16 (16.52%)
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 | 63.8 | ||
| Fwd PE | 24.82 | ||
| P/S | 8.45 | ||
| P/FCF | 49.33 | ||
| P/OCF | 44.93 | ||
| P/B | 5.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 43.26 |
EPS(TTM)0.89
EY1.57%
EPS(NY)2.29
Fwd EY4.03%
FCF(TTM)1.15
FCFY2.03%
OCF(TTM)1.26
OCFY2.23%
SpS6.72
BVpS10.88
TBVpS-3.38
PEG (NY)3.84
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 63.8 and the Price/Book (PB) ratio is 5.22.
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%.