66.1 USD
+1.19 (+1.83%)
MCHP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. MCHP has only an average score on both its financial health and profitability. MCHP is quite expensive at the moment. It does show a decent growth rate. Finally MCHP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MCHP was profitable.
MCHP had a positive operating cash flow in the past year.
MCHP had positive earnings in 4 of the past 5 years.
In the past 5 years MCHP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MCHP (-1.69%) is comparable to the rest of the industry.
MCHP has a Return On Equity of -3.66%. This is in the lower half of the industry: MCHP underperforms 60.18% of its industry peers.
MCHP has a Return On Invested Capital (0.91%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for MCHP is in line with the industry average of 10.77%.
The last Return On Invested Capital (0.91%) for MCHP is well below the 3 year average (11.93%), which needs to be investigated, but indicates that MCHP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.69% | ||
| ROE | -3.66% | ||
| ROIC | 0.91% |
ROA(3y)8.56%
ROA(5y)7.14%
ROE(3y)20.99%
ROE(5y)18.26%
ROIC(3y)11.93%
ROIC(5y)10.28%
1.3 Margins
Looking at the Operating Margin, with a value of 3.68%, MCHP is in line with its industry, outperforming 53.98% of the companies in the same industry.
MCHP's Operating Margin has declined in the last couple of years.
MCHP has a better Gross Margin (54.06%) than 70.80% of its industry peers.
MCHP's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MCHP is still creating some value.
The number of shares outstanding for MCHP has been increased compared to 1 year ago.
Compared to 5 years ago, MCHP has more shares outstanding
The debt/assets ratio for MCHP has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.65 indicates that MCHP is not in any danger for bankruptcy at the moment.
MCHP has a Altman-Z score of 3.65. This is comparable to the rest of the industry: MCHP outperforms 52.21% of its industry peers.
MCHP has a debt to FCF ratio of 7.13. This is a slightly negative value and a sign of low solvency as MCHP would need 7.13 years to pay back of all of its debts.
MCHP has a Debt to FCF ratio (7.13) which is comparable to the rest of the industry.
MCHP has a Debt/Equity ratio of 0.80. This is a neutral value indicating MCHP is somewhat dependend on debt financing.
The Debt to Equity ratio of MCHP (0.80) is worse than 82.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.13 | ||
| Altman-Z | 3.65 |
ROIC/WACC0.09
WACC10.36%
2.3 Liquidity
A Current Ratio of 2.25 indicates that MCHP has no problem at all paying its short term obligations.
The Current ratio of MCHP (2.25) is worse than 69.03% of its industry peers.
MCHP has a Quick Ratio of 1.20. This is a normal value and indicates that MCHP is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of MCHP (1.20) is worse than 81.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
MCHP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.77%.
The earnings per share for MCHP have been decreasing by -14.29% on average. This is quite bad
Looking at the last year, MCHP shows a very negative growth in Revenue. The Revenue has decreased by -23.36% in the last year.
MCHP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.55% yearly.
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
MCHP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.55% yearly.
MCHP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.85% yearly.
EPS Next Y13.37%
EPS Next 2Y40.15%
EPS Next 3Y41.57%
EPS Next 5Y29.55%
Revenue Next Year3.61%
Revenue Next 2Y11.6%
Revenue Next 3Y13.88%
Revenue Next 5Y9.85%
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
MCHP is valuated quite expensively with a Price/Earnings ratio of 71.08.
MCHP's Price/Earnings is on the same level as the industry average.
MCHP is valuated expensively when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
MCHP is valuated quite expensively with a Price/Forward Earnings ratio of 25.89.
MCHP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MCHP is cheaper than 69.03% of the companies in the same industry.
MCHP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.08 | ||
| Fwd PE | 25.89 |
4.2 Price Multiples
MCHP's Enterprise Value to EBITDA ratio is in line with the industry average.
67.26% of the companies in the same industry are more expensive than MCHP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.35 | ||
| EV/EBITDA | 46.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MCHP does not grow enough to justify the current Price/Earnings ratio.
MCHP's earnings are expected to grow with 41.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.32
PEG (5Y)N/A
EPS Next 2Y40.15%
EPS Next 3Y41.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.84%, MCHP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.56, MCHP pays a better dividend. On top of this MCHP pays more dividend than 94.69% of the companies listed in the same industry.
MCHP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
5.2 History
The dividend of MCHP is nicely growing with an annual growth rate of 20.15%!
MCHP has paid a dividend for at least 10 years, which is a reliable track record.
MCHP has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)20.15%
Div Incr Years13
Div Non Decr Years13
5.3 Sustainability
The earnings of MCHP are negative and hence is the payout ratio. MCHP will probably not be able to sustain this dividend level.
MCHP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-421.71%
EPS Next 2Y40.15%
EPS Next 3Y41.57%
NASDAQ:MCHP (12/22/2025, 3:10:09 PM)
66.1
+1.19 (+1.83%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.37%
Inst Owner Change-5.42%
Ins Owners1.93%
Ins Owner Change2.41%
Market Cap35.72B
Revenue(TTM)4.21B
Net Income(TTM)-245.10M
Analysts79.39
Price Target76.77 (16.14%)
Short Float %5.01%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
Yearly Dividend1.81
Dividend Growth(5Y)20.15%
DP-421.71%
Div Incr Years13
Div Non Decr Years13
Ex-Date
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)-1.46%
PT rev (3m)-2.43%
EPS NQ rev (1m)4.77%
EPS NQ rev (3m)-1.41%
EPS NY rev (1m)-1.82%
EPS NY rev (3m)-2.79%
Revenue NQ rev (1m)1.38%
Revenue NQ rev (3m)-2.4%
Revenue NY rev (1m)-1.67%
Revenue NY rev (3m)-1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.08 | ||
| Fwd PE | 25.89 | ||
| P/S | 8.48 | ||
| P/FCF | 47.35 | ||
| P/OCF | 42.47 | ||
| P/B | 5.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 46.08 |
EPS(TTM)0.93
EY1.41%
EPS(NY)2.55
Fwd EY3.86%
FCF(TTM)1.4
FCFY2.11%
OCF(TTM)1.56
OCFY2.35%
SpS7.79
BVpS12.39
TBVpS-4.01
PEG (NY)5.32
PEG (5Y)N/A
Graham Number16.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.69% | ||
| ROE | -3.66% | ||
| ROCE | 1.16% | ||
| ROIC | 0.91% | ||
| ROICexc | 0.93% | ||
| ROICexgc | 2.84% | ||
| 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)11.93%
ROIC(5y)10.28%
ROICexc(3y)12.2%
ROICexc(5y)10.52%
ROICexgc(3y)48.65%
ROICexgc(5y)43.88%
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 | 3.65 |
F-Score3
WACC10.36%
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 Y13.37%
EPS Next 2Y40.15%
EPS Next 3Y41.57%
EPS Next 5Y29.55%
Revenue 1Y (TTM)-23.36%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%-2.01%
Revenue Next Year3.61%
Revenue Next 2Y11.6%
Revenue Next 3Y13.88%
Revenue Next 5Y9.85%
EBIT growth 1Y-86.35%
EBIT growth 3Y-41.54%
EBIT growth 5Y-11.55%
EBIT Next Year54.95%
EBIT Next 3Y42.38%
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 / MCHP FAQ
What is the fundamental rating for MCHP stock?
ChartMill assigns a fundamental rating of 4 / 10 to MCHP.
What is the valuation status of MICROCHIP TECHNOLOGY INC (MCHP) stock?
ChartMill assigns a valuation rating of 3 / 10 to MICROCHIP TECHNOLOGY INC (MCHP). This can be considered as Overvalued.
Can you provide the profitability details for MICROCHIP TECHNOLOGY INC?
MICROCHIP TECHNOLOGY INC (MCHP) has a profitability rating of 4 / 10.
Can you provide the financial health for MCHP stock?
The financial health rating of MICROCHIP TECHNOLOGY INC (MCHP) is 4 / 10.
What is the expected EPS growth for MICROCHIP TECHNOLOGY INC (MCHP) stock?
The Earnings per Share (EPS) of MICROCHIP TECHNOLOGY INC (MCHP) is expected to grow by 13.37% in the next year.