MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28 (MCHPP) Fundamental Analysis & Valuation

NASDAQ:MCHPP • US5950173022

Current stock price

69.5 USD
+1.2 (+1.76%)
Last:

This MCHPP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. MCHPP Profitability Analysis

1.1 Basic Checks

  • In the past year MCHPP was profitable.
  • MCHPP had a positive operating cash flow in the past year.
  • 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.
MCHPP Yearly Net Income VS EBIT VS OCF VS FCFMCHPP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

1.2 Ratios

  • MCHPP has a Return On Assets (-1.09%) which is in line with its industry peers.
  • MCHPP has a Return On Equity of -2.39%. This is comparable to the rest of the industry: MCHPP outperforms 46.09% of its industry peers.
  • MCHPP has a Return On Invested Capital of 1.65%. This is comparable to the rest of the industry: MCHPP outperforms 53.04% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for MCHPP is in line with the industry average of 10.89%.
  • The 3 year average ROIC (11.93%) for MCHPP is well above the current ROIC(1.65%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA -1.09%
ROE -2.39%
ROIC 1.65%
ROA(3y)8.56%
ROA(5y)7.14%
ROE(3y)20.99%
ROE(5y)18.26%
ROIC(3y)11.93%
ROIC(5y)10.28%
MCHPP Yearly ROA, ROE, ROICMCHPP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30

1.3 Margins

  • MCHPP has a Operating Margin (6.34%) which is in line with its industry peers.
  • In the last couple of years the Operating Margin of MCHPP has declined.
  • MCHPP has a Gross Margin of 55.41%. This is in the better half of the industry: MCHPP outperforms 76.52% of its industry peers.
  • In the last couple of years the Gross Margin of MCHPP has declined.
Industry RankSector Rank
OM 6.34%
PM (TTM) N/A
GM 55.41%
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%
MCHPP Yearly Profit, Operating, Gross MarginsMCHPP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. MCHPP Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MCHPP is creating some value.
  • MCHPP has more shares outstanding than it did 1 year ago.
  • MCHPP has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, MCHPP has an improved debt to assets ratio.
MCHPP Yearly Shares OutstandingMCHPP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
MCHPP Yearly Total Debt VS Total AssetsMCHPP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • MCHPP has an Altman-Z score of 3.87. This indicates that MCHPP is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of MCHPP (3.87) is worse than 60.00% of its industry peers.
  • The Debt to FCF ratio of MCHPP is 6.54, which is on the high side as it means it would take MCHPP, 6.54 years of fcf income to pay off all of its debts.
  • MCHPP has a Debt to FCF ratio (6.54) which is comparable to the rest of the industry.
  • A Debt/Equity ratio of 0.82 indicates that MCHPP is somewhat dependend on debt financing.
  • MCHPP has a worse Debt to Equity ratio (0.82) than 80.87% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.54
Altman-Z 3.87
ROIC/WACC0.14
WACC11.65%
MCHPP Yearly LT Debt VS Equity VS FCFMCHPP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 2.16 indicates that MCHPP has no problem at all paying its short term obligations.
  • MCHPP has a Current ratio of 2.16. This is in the lower half of the industry: MCHPP underperforms 74.78% of its industry peers.
  • A Quick Ratio of 1.16 indicates that MCHPP should not have too much problems paying its short term obligations.
  • MCHPP's Quick ratio of 1.16 is on the low side compared to the rest of the industry. MCHPP is outperformed by 85.22% of its industry peers.
Industry RankSector Rank
Current Ratio 2.16
Quick Ratio 1.16
MCHPP Yearly Current Assets VS Current LiabilitesMCHPP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. MCHPP Growth Analysis

3.1 Past

  • MCHPP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.52%.
  • Measured over the past years, MCHPP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.29% on average per year.
  • The Revenue has decreased by -8.08% in the past year.
  • The Revenue has been decreasing by -3.55% on average over the past years.
EPS 1Y (TTM)-33.52%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%120%
Revenue 1Y (TTM)-8.08%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%15.59%

3.2 Future

  • Based on estimates for the next years, MCHPP will show a very strong growth in Earnings Per Share. The EPS will grow by 32.12% on average per year.
  • Based on estimates for the next years, MCHPP will show a quite strong growth in Revenue. The Revenue will grow by 13.84% on average per year.
EPS Next Y23.17%
EPS Next 2Y44.92%
EPS Next 3Y43.03%
EPS Next 5Y32.12%
Revenue Next Year6.13%
Revenue Next 2Y14.04%
Revenue Next 3Y15.51%
Revenue Next 5Y13.84%

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.
MCHPP Yearly Revenue VS EstimatesMCHPP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
MCHPP Yearly EPS VS EstimatesMCHPP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6

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Find the best growth stocksShow best growing peers

4

4. MCHPP Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 59.40, which means the current valuation is very expensive for MCHPP.
  • 64.35% of the companies in the same industry are more expensive than MCHPP, based on the Price/Earnings ratio.
  • MCHPP is valuated expensively when we compare the Price/Earnings ratio to 27.95, which is the current average of the S&P500 Index.
  • MCHPP is valuated quite expensively with a Price/Forward Earnings ratio of 25.46.
  • Based on the Price/Forward Earnings ratio, MCHPP is valued cheaply inside the industry as 82.61% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 38.68, MCHPP is valued a bit cheaper.
Industry RankSector Rank
PE 59.4
Fwd PE 25.46
MCHPP Price Earnings VS Forward Price EarningsMCHPP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • 68.70% of the companies in the same industry are more expensive than MCHPP, based on the Enterprise Value to EBITDA ratio.
  • MCHPP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MCHPP is cheaper than 77.39% of the companies in the same industry.
Industry RankSector Rank
P/FCF 45.87
EV/EBITDA 43.6
MCHPP Per share dataMCHPP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

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 43.03% in the coming years.
PEG (NY)2.56
PEG (5Y)N/A
EPS Next 2Y44.92%
EPS Next 3Y43.03%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. MCHPP Dividend Analysis

5.1 Amount

  • MCHPP has a Yearly Dividend Yield of 2.37%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.45, MCHPP pays a better dividend. On top of this MCHPP pays more dividend than 93.04% 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 RankSector Rank
Dividend Yield 2.37%

5.2 History

  • The dividend of MCHPP is nicely growing with an annual growth rate of 20.15%!
  • 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

  • The earnings of MCHPP are negative and hence is the payout ratio. MCHPP will probably not be able to sustain this dividend level.
  • MCHPP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-678.74%
EPS Next 2Y44.92%
EPS Next 3Y43.03%
MCHPP Yearly Income VS Free CF VS DividendMCHPP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

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Find the best dividend stocksShow peers with best dividend

MCHPP Fundamentals: All Metrics, Ratios and Statistics

MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28

NASDAQ:MCHPP (4/20/2026, 8:15:08 PM)

69.5

+1.2 (+1.76%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-05
Earnings (Next)05-11
Inst Owners99.75%
Inst Owner ChangeN/A
Ins Owners1.92%
Ins Owner ChangeN/A
Market Cap37.61B
Revenue(TTM)4.37B
Net Income(TTM)-156.60M
Analysts81.88
Price Target77.27 (11.18%)
Short Float %0.01%
Short Ratio0.21
Dividend
Industry RankSector Rank
Dividend Yield 2.37%
Yearly Dividend1.81
Dividend Growth(5Y)20.15%
DP-678.74%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.66%
Min EPS beat(2)2.58%
Max EPS beat(2)4.75%
EPS beat(4)4
Avg EPS beat(4)5.43%
Min EPS beat(4)2.58%
Max EPS beat(4)11.8%
EPS beat(8)5
Avg EPS beat(8)-0.47%
EPS beat(12)6
Avg EPS beat(12)-0.53%
EPS beat(16)7
Avg EPS beat(16)-0.18%
Revenue beat(2)0
Avg Revenue beat(2)-1.55%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-1.5%
Revenue beat(4)0
Avg Revenue beat(4)-1.08%
Min Revenue beat(4)-1.6%
Max Revenue beat(4)-0.05%
Revenue beat(8)0
Avg Revenue beat(8)-1.78%
Revenue beat(12)0
Avg Revenue beat(12)-1.89%
Revenue beat(16)0
Avg Revenue beat(16)-1.68%
PT rev (1m)-1.09%
PT rev (3m)8.47%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)6.12%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)8.65%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)2.96%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)1.67%
Valuation
Industry RankSector Rank
PE 59.4
Fwd PE 25.46
P/S 8.6
P/FCF 45.87
P/OCF 41.28
P/B 5.73
P/tB N/A
EV/EBITDA 43.6
EPS(TTM)1.17
EY1.68%
EPS(NY)2.73
Fwd EY3.93%
FCF(TTM)1.52
FCFY2.18%
OCF(TTM)1.68
OCFY2.42%
SpS8.08
BVpS12.12
TBVpS-4.13
PEG (NY)2.56
PEG (5Y)N/A
Graham Number17.8647 (-74.3%)
Profitability
Industry RankSector Rank
ROA -1.09%
ROE -2.39%
ROCE 2.09%
ROIC 1.65%
ROICexc 1.68%
ROICexgc 5.19%
OM 6.34%
PM (TTM) N/A
GM 55.41%
FCFM 18.75%
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-Score4
Asset Turnover0.31
Health
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.54
Debt/EBITDA 5.48
Cap/Depr 12.97%
Cap/Sales 2.08%
Interest Coverage 250
Cash Conversion 92.97%
Profit Quality N/A
Current Ratio 2.16
Quick Ratio 1.16
Altman-Z 3.87
F-Score4
WACC11.65%
ROIC/WACC0.14
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)-33.52%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%120%
EPS Next Y23.17%
EPS Next 2Y44.92%
EPS Next 3Y43.03%
EPS Next 5Y32.12%
Revenue 1Y (TTM)-8.08%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%15.59%
Revenue Next Year6.13%
Revenue Next 2Y14.04%
Revenue Next 3Y15.51%
Revenue Next 5Y13.84%
EBIT growth 1Y-56.73%
EBIT growth 3Y-41.54%
EBIT growth 5Y-11.55%
EBIT Next Year61.19%
EBIT Next 3Y42.57%
EBIT Next 5Y25.08%
FCF growth 1Y-70.87%
FCF growth 3Y-32.16%
FCF growth 5Y-12.16%
OCF growth 1Y-71.28%
OCF growth 3Y-31.89%
OCF growth 5Y-10.27%

MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28 / MCHPP Fundamental Analysis 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.


Can you provide the profitability details for MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28?

MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28 (MCHPP) has a profitability rating of 4 / 10.


What are the PE and PB ratios of MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28 (MCHPP) stock?

The Price/Earnings (PE) ratio for MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28 (MCHPP) is 59.4 and the Price/Book (PB) ratio is 5.73.


Can you provide the financial health for MCHPP stock?

The financial health rating of MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28 (MCHPP) is 4 / 10.