MICROCHIP TECHNOLOGY INC (1MCHP.MI) Stock Fundamental Analysis
BIT:1MCHP - Euronext Milan - US5950171042 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to 1MCHP. 1MCHP was compared to 52 industry peers in the Semiconductors & Semiconductor Equipment industry. 1MCHP has an average financial health and profitability rating. 1MCHP does not seem to be growing, but still is valued expensively.
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.
Each year in the past 5 years 1MCHP has been profitable.
1MCHP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1MCHP has a Return On Assets of 1.98%. This is in the lower half of the industry: 1MCHP underperforms 79.63% of its industry peers.
1MCHP has a worse Return On Equity (5.12%) than 66.67% of its industry peers.
With a Return On Invested Capital value of 3.53%, 1MCHP is not doing good in the industry: 74.07% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for 1MCHP is in line with the industry average of 15.85%.
The last Return On Invested Capital (3.53%) for 1MCHP is well below the 3 year average (14.53%), which needs to be investigated, but indicates that 1MCHP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 5.12% | ||
| ROIC | 3.53% |
ROA(3y)11.21%
ROA(5y)7.8%
ROE(3y)28.27%
ROE(5y)20.31%
ROIC(3y)14.53%
ROIC(5y)10.53%
1.3 Margins
1MCHP has a worse Profit Margin (6.49%) than 68.52% of its industry peers.
1MCHP's Profit Margin has improved in the last couple of years.
1MCHP has a worse Operating Margin (13.47%) than 61.11% of its industry peers.
In the last couple of years the Operating Margin of 1MCHP has grown nicely.
The Gross Margin of 1MCHP (57.95%) is better than 81.48% of its industry peers.
1MCHP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.47% | ||
| PM (TTM) | 6.49% | ||
| GM | 57.95% |
OM growth 3Y22.16%
OM growth 5Y19.11%
PM growth 3Y57.24%
PM growth 5Y30.29%
GM growth 3Y1.74%
GM growth 5Y3.61%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1MCHP is still creating some value.
The number of shares outstanding for 1MCHP has been reduced compared to 1 year ago.
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
1MCHP has an Altman-Z score of 2.41. This is not the best score and indicates that 1MCHP is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.41, 1MCHP is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
1MCHP has a debt to FCF ratio of 6.96. This is a slightly negative value and a sign of low solvency as 1MCHP would need 6.96 years to pay back of all of its debts.
1MCHP has a Debt to FCF ratio of 6.96. This is comparable to the rest of the industry: 1MCHP outperforms 44.44% of its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that 1MCHP has dependencies on debt financing.
1MCHP's Debt to Equity ratio of 1.12 is on the low side compared to the rest of the industry. 1MCHP is outperformed by 90.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 6.96 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.34
WACC10.23%
2.3 Liquidity
A Current Ratio of 2.25 indicates that 1MCHP has no problem at all paying its short term obligations.
1MCHP has a Current ratio (2.25) which is comparable to the rest of the industry.
1MCHP has a Quick Ratio of 1.23. This is a normal value and indicates that 1MCHP is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.23, 1MCHP is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
The earnings per share for 1MCHP have decreased strongly by -70.57% in the last year.
The Earnings Per Share has been growing by 8.40% on average over the past years. This is quite good.
1MCHP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -44.31%.
Measured over the past years, 1MCHP shows a small growth in Revenue. The Revenue has been growing by 7.37% on average per year.
EPS 1Y (TTM)-70.57%
EPS 3Y14.22%
EPS 5Y8.4%
EPS Q2Q%-81.48%
Revenue 1Y (TTM)-44.31%
Revenue growth 3Y11.97%
Revenue growth 5Y7.37%
Sales Q2Q%-41.89%
3.2 Future
Based on estimates for the next years, 1MCHP will show a decrease in Earnings Per Share. The EPS will decrease by -2.19% on average per year.
1MCHP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.20% yearly.
EPS Next Y-73.09%
EPS Next 2Y-49.19%
EPS Next 3Y-20%
EPS Next 5Y-2.19%
Revenue Next Year-42.45%
Revenue Next 2Y-23.51%
Revenue Next 3Y-9.78%
Revenue Next 5Y-1.2%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.78, which indicates a rather expensive current valuation of 1MCHP.
1MCHP's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 24.12, 1MCHP is valued at the same level.
Based on the Price/Forward Earnings ratio of 30.25, the valuation of 1MCHP can be described as expensive.
Based on the Price/Forward Earnings ratio, 1MCHP is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
When comparing the Price/Forward Earnings ratio of 1MCHP to the average of the S&P500 Index (20.42), we can say 1MCHP is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.78 | ||
| Fwd PE | 30.25 |
4.2 Price Multiples
1MCHP's Enterprise Value to EBITDA ratio is in line with the industry average.
81.48% of the companies in the same industry are more expensive than 1MCHP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.25 | ||
| EV/EBITDA | 18.83 |
4.3 Compensation for Growth
1MCHP's earnings are expected to decrease with -20.00% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.59
EPS Next 2Y-49.19%
EPS Next 3Y-20%
5. Dividend
5.1 Amount
1MCHP has a Yearly Dividend Yield of 3.86%.
1MCHP's Dividend Yield is rather good when compared to the industry average which is at 1.48. 1MCHP pays more dividend than 98.15% of the companies in the same industry.
1MCHP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
5.2 History
The dividend of 1MCHP is nicely growing with an annual growth rate of 18.25%!
Dividend Growth(5Y)18.25%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
315.22% of the earnings are spent on dividend by 1MCHP. This is not a sustainable payout ratio.
The Dividend Rate of 1MCHP has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP315.22%
EPS Next 2Y-49.19%
EPS Next 3Y-20%
BIT:1MCHP (4/16/2025, 7:00:00 PM)
33.76
+1.33 (+4.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.38%
Inst Owner ChangeN/A
Ins Owners1.92%
Ins Owner ChangeN/A
Market Cap18.16B
Analysts78.67
Price Target53.94 (59.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
Yearly Dividend1.48
Dividend Growth(5Y)18.25%
DP315.22%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-11.43%
Min EPS beat(2)-27.71%
Max EPS beat(2)4.85%
EPS beat(4)1
Avg EPS beat(4)-6.38%
Min EPS beat(4)-27.71%
Max EPS beat(4)4.85%
EPS beat(8)2
Avg EPS beat(8)-3.51%
EPS beat(12)3
Avg EPS beat(12)-2.05%
EPS beat(16)6
Avg EPS beat(16)-1.21%
Revenue beat(2)0
Avg Revenue beat(2)-2.84%
Min Revenue beat(2)-4.74%
Max Revenue beat(2)-0.95%
Revenue beat(4)0
Avg Revenue beat(4)-2.49%
Min Revenue beat(4)-4.74%
Max Revenue beat(4)-0.95%
Revenue beat(8)0
Avg Revenue beat(8)-2.3%
Revenue beat(12)0
Avg Revenue beat(12)-1.88%
Revenue beat(16)0
Avg Revenue beat(16)-1.75%
PT rev (1m)-12.52%
PT rev (3m)-36.35%
EPS NQ rev (1m)0.79%
EPS NQ rev (3m)-88.11%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)-21.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-40.81%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-4.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.78 | ||
| Fwd PE | 30.25 | ||
| P/S | 4.33 | ||
| P/FCF | 21.25 | ||
| P/OCF | 18.38 | ||
| P/B | 3.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.83 |
EPS(TTM)1.55
EY4.59%
EPS(NY)1.12
Fwd EY3.31%
FCF(TTM)1.59
FCFY4.71%
OCF(TTM)1.84
OCFY5.44%
SpS7.79
BVpS9.87
TBVpS-5.19
PEG (NY)N/A
PEG (5Y)2.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.98% | ||
| ROE | 5.12% | ||
| ROCE | 4.48% | ||
| ROIC | 3.53% | ||
| ROICexc | 3.68% | ||
| ROICexgc | 11.18% | ||
| OM | 13.47% | ||
| PM (TTM) | 6.49% | ||
| GM | 57.95% | ||
| FCFM | 20.4% |
ROA(3y)11.21%
ROA(5y)7.8%
ROE(3y)28.27%
ROE(5y)20.31%
ROIC(3y)14.53%
ROIC(5y)10.53%
ROICexc(3y)14.84%
ROICexc(5y)10.75%
ROICexgc(3y)59.35%
ROICexgc(5y)46.01%
ROCE(3y)18.45%
ROCE(5y)13.37%
ROICexcg growth 3Y18.42%
ROICexcg growth 5Y15.98%
ROICexc growth 3Y39.37%
ROICexc growth 5Y32.47%
OM growth 3Y22.16%
OM growth 5Y19.11%
PM growth 3Y57.24%
PM growth 5Y30.29%
GM growth 3Y1.74%
GM growth 5Y3.61%
F-Score5
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 6.96 | ||
| Debt/EBITDA | 4.75 | ||
| Cap/Depr | 19.44% | ||
| Cap/Sales | 3.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.91% | ||
| Profit Quality | 314.22% | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.23 | ||
| Altman-Z | 2.41 |
F-Score5
WACC10.23%
ROIC/WACC0.34
Cap/Depr(3y)37.83%
Cap/Depr(5y)25.41%
Cap/Sales(3y)4.97%
Cap/Sales(5y)3.58%
Profit Quality(3y)156.39%
Profit Quality(5y)249.98%
High Growth Momentum
Growth
EPS 1Y (TTM)-70.57%
EPS 3Y14.22%
EPS 5Y8.4%
EPS Q2Q%-81.48%
EPS Next Y-73.09%
EPS Next 2Y-49.19%
EPS Next 3Y-20%
EPS Next 5Y-2.19%
Revenue 1Y (TTM)-44.31%
Revenue growth 3Y11.97%
Revenue growth 5Y7.37%
Sales Q2Q%-41.89%
Revenue Next Year-42.45%
Revenue Next 2Y-23.51%
Revenue Next 3Y-9.78%
Revenue Next 5Y-1.2%
EBIT growth 1Y-79.8%
EBIT growth 3Y36.78%
EBIT growth 5Y27.89%
EBIT Next Year-55.97%
EBIT Next 3Y-9.72%
EBIT Next 5Y6.3%
FCF growth 1Y-69.4%
FCF growth 3Y12.65%
FCF growth 5Y12.52%
OCF growth 1Y-69.33%
OCF growth 3Y14.71%
OCF growth 5Y11.55%