65.98 USD
-0.52 (-0.78%)
65.88 USD
-0.1 (-0.15%)
Taking everything into account, MCHPP scores 4 out of 10 in our fundamental rating. MCHPP was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and the financial health of MCHPP get a neutral evaluation. Nothing too spectacular is happening here. MCHPP has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year MCHPP was profitable.
- In the past year MCHPP had a positive cash flow from operations.
- MCHPP had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years MCHPP had a positive operating cash flow.
1.2 Ratios
- MCHPP has a Return On Assets (-1.69%) which is in line with its industry peers.
- MCHPP's Return On Equity of -3.66% is in line compared to the rest of the industry. MCHPP outperforms 41.59% of its industry peers.
- With a Return On Invested Capital value of 0.91%, MCHPP perfoms like the industry average, outperforming 50.44% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for MCHPP is in line with the industry average of 10.75%.
- The last Return On Invested Capital (0.91%) for MCHPP is well below the 3 year average (11.93%), which needs to be investigated, but indicates that MCHPP 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%, MCHPP is in line with its industry, outperforming 54.87% of the companies in the same industry.
- MCHPP's Operating Margin has declined in the last couple of years.
- The Gross Margin of MCHPP (54.06%) is better than 71.68% of its industry peers.
- In the last couple of years the Gross Margin of MCHPP 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MCHPP is still creating some value.
- The number of shares outstanding for MCHPP has been increased compared to 1 year ago.
- The number of shares outstanding for MCHPP has been increased compared to 5 years ago.
- Compared to 1 year ago, MCHPP has an improved debt to assets ratio.
2.2 Solvency
- MCHPP has an Altman-Z score of 3.70. This indicates that MCHPP is financially healthy and has little risk of bankruptcy at the moment.
- With a Altman-Z score value of 3.70, MCHPP perfoms like the industry average, outperforming 50.44% of the companies in the same industry.
- MCHPP has a debt to FCF ratio of 7.13. This is a slightly negative value and a sign of low solvency as MCHPP would need 7.13 years to pay back of all of its debts.
- The Debt to FCF ratio of MCHPP (7.13) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.80 indicates that MCHPP is somewhat dependend on debt financing.
- MCHPP has a Debt to Equity ratio of 0.80. This is in the lower half of the industry: MCHPP underperforms 79.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.13 | ||
| Altman-Z | 3.7 |
ROIC/WACC0.09
WACC10.49%
2.3 Liquidity
- A Current Ratio of 2.25 indicates that MCHPP has no problem at all paying its short term obligations.
- MCHPP has a Current ratio of 2.25. This is in the lower half of the industry: MCHPP underperforms 69.03% of its industry peers.
- MCHPP has a Quick Ratio of 1.20. This is a normal value and indicates that MCHPP is financially healthy and should not expect problems in meeting its short term obligations.
- MCHPP has a worse Quick ratio (1.20) than 80.53% 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 MCHPP have decreased strongly by -64.77% in the last year.
- The earnings per share for MCHPP have been decreasing by -14.29% on average. This is quite bad
- MCHPP 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
- MCHPP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.55% yearly.
- The Revenue is expected to grow by 12.88% on average over the next years. This is quite good.
EPS Next Y19.08%
EPS Next 2Y44.43%
EPS Next 3Y41.69%
EPS Next 5Y29.55%
Revenue Next Year5.22%
Revenue Next 2Y12.73%
Revenue Next 3Y14.58%
Revenue Next 5Y12.88%
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
- The Price/Earnings ratio is 70.95, which means the current valuation is very expensive for MCHPP.
- Compared to the rest of the industry, the Price/Earnings ratio of MCHPP is on the same level as its industry peers.
- MCHPP is valuated expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 24.33, which indicates a rather expensive current valuation of MCHPP.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MCHPP indicates a somewhat cheap valuation: MCHPP is cheaper than 78.76% of the companies listed in the same industry.
- MCHPP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.95 | ||
| Fwd PE | 24.33 |
4.2 Price Multiples
- MCHPP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MCHPP is cheaper than 60.18% of the companies in the same industry.
- MCHPP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MCHPP is cheaper than 73.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.27 | ||
| EV/EBITDA | 46.74 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MCHPP does not grow enough to justify the current Price/Earnings ratio.
- A more expensive valuation may be justified as MCHPP's earnings are expected to grow with 41.69% in the coming years.
PEG (NY)3.72
PEG (5Y)N/A
EPS Next 2Y44.43%
EPS Next 3Y41.69%
5. Dividend
5.1 Amount
- MCHPP has a Yearly Dividend Yield of 2.41%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.50, MCHPP pays a better dividend. On top of this MCHPP pays more dividend than 93.81% of the companies listed in the same industry.
- MCHPP's Dividend Yield is a higher than the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.41% |
5.2 History
- On average, the dividend of MCHPP grows each year by 20.15%, which is quite nice.
- MCHPP does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)20.15%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- MCHPP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- MCHPP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-421.71%
EPS Next 2Y44.43%
EPS Next 3Y41.69%
MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28 / MCHPP FAQ
Can you provide the ChartMill fundamental rating for MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28?
ChartMill assigns a fundamental rating of 4 / 10 to MCHPP.
Can you provide the valuation status for MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28?
ChartMill assigns a valuation rating of 4 / 10 to MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28 (MCHPP). This can be considered as Fairly Valued.
How profitable is MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28 (MCHPP) stock?
MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28 (MCHPP) has a profitability rating of 4 / 10.
What is the earnings growth outlook for MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28?
The Earnings per Share (EPS) of MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28 (MCHPP) is expected to grow by 19.08% in the next year.
Can you provide the dividend sustainability for MCHPP stock?
The dividend rating of MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28 (MCHPP) is 4 / 10 and the dividend payout ratio is -421.71%.