MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28 (MCHPP) Stock Fundamental Analysis
USA - NASDAQ:MCHPP - US5950173022
53.13 USD
-1.86 (-3.38%)
MCHPP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 112 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 is not valued too expensively and it also shows a decent growth rate.
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.
Of the past 5 years MCHPP 4 years were profitable.
Each year in the past 5 years MCHPP had a positive operating cash flow.
1.2 Ratios
MCHPP's Return On Assets of -1.21% is in line compared to the rest of the industry. MCHPP outperforms 43.75% of its industry peers.
MCHPP has a Return On Equity (-2.63%) which is comparable to the rest of the industry.
MCHPP's Return On Invested Capital of 1.19% is in line compared to the rest of the industry. MCHPP outperforms 50.00% 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 11.09%.
The last Return On Invested Capital (1.19%) 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 | -1.21% | ||
| ROE | -2.63% | ||
| ROIC | 1.19% |
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 4.91%, MCHPP is in line with its industry, outperforming 53.57% of the companies in the same industry.
In the last couple of years the Operating Margin of MCHPP has declined.
MCHPP has a Gross Margin of 54.48%. This is in the better half of the industry: MCHPP outperforms 72.32% of its industry peers.
MCHPP's Gross Margin has declined in the last couple of years.
| 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
MCHPP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, MCHPP has more shares outstanding
Compared to 5 years ago, MCHPP has more shares outstanding
Compared to 1 year ago, MCHPP has an improved debt to assets ratio.
2.2 Solvency
MCHPP has an Altman-Z score of 3.08. This indicates that MCHPP is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.08, MCHPP perfoms like the industry average, outperforming 47.32% of the companies in the same industry.
MCHPP has a debt to FCF ratio of 7.52. This is a slightly negative value and a sign of low solvency as MCHPP would need 7.52 years to pay back of all of its debts.
The Debt to FCF ratio of MCHPP (7.52) is comparable to the rest of the industry.
MCHPP has a Debt/Equity ratio of 0.80. This is a neutral value indicating MCHPP is somewhat dependend on debt financing.
MCHPP has a Debt to Equity ratio of 0.80. This is amonst the worse of the industry: MCHPP underperforms 80.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.52 | ||
| Altman-Z | 3.08 |
ROIC/WACC0.1
WACC11.36%
2.3 Liquidity
MCHPP has a Current Ratio of 2.31. This indicates that MCHPP is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.31, MCHPP is not doing good in the industry: 65.18% of the companies in the same industry are doing better.
MCHPP has a Quick Ratio of 1.33. 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 Quick ratio of 1.33. This is in the lower half of the industry: MCHPP underperforms 79.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
MCHPP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.77%.
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.
Looking at the last year, MCHPP shows a very negative growth in Revenue. The Revenue has decreased by -42.35% in the last year.
Measured over the past years, MCHPP shows a decrease in Revenue. The Revenue has been decreasing by -3.55% on average per year.
EPS 1Y (TTM)-64.77%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%-23.91%
Revenue 1Y (TTM)-42.35%
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 29.71% yearly.
MCHPP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.04% yearly.
EPS Next Y15.47%
EPS Next 2Y41.81%
EPS Next 3Y39.35%
EPS Next 5Y29.71%
Revenue Next Year5.37%
Revenue Next 2Y12.44%
Revenue Next 3Y14.65%
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.
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
With a Price/Earnings ratio of 57.13, MCHPP can be considered very expensive at the moment.
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 26.06, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.32, the valuation of MCHPP can be described as rather expensive.
76.79% of the companies in the same industry are more expensive than MCHPP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MCHPP to the average of the S&P500 Index (32.73), we can say MCHPP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.13 | ||
| Fwd PE | 20.32 |
4.2 Price Multiples
MCHPP's Enterprise Value to EBITDA ratio is in line with the industry average.
MCHPP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MCHPP is cheaper than 73.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.52 | ||
| EV/EBITDA | 35.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as MCHPP's earnings are expected to grow with 39.35% in the coming years.
PEG (NY)3.69
PEG (5Y)N/A
EPS Next 2Y41.81%
EPS Next 3Y39.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.07%, MCHPP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.14, MCHPP pays a better dividend. On top of this MCHPP pays more dividend than 92.86% of the companies listed in the same industry.
MCHPP's Dividend Yield is a higher than the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
On average, the dividend of MCHPP grows each year by 20.15%, which is quite nice.
MCHPP is new to the dividend game and has less than 3 years of track record.
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-555.76%
EPS Next 2Y41.81%
EPS Next 3Y39.35%
MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28
NASDAQ:MCHPP (11/7/2025, 8:00:01 PM)
53.13
-1.86 (-3.38%)
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 Cap28.67B
Revenue(TTM)4.40B
Net Income(TTM)-180.60M
Analysts79.39
Price Target72 (35.52%)
Short Float %0.19%
Short Ratio10.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
Yearly Dividend1.81
Dividend Growth(5Y)20.15%
DP-555.76%
Div Incr Years0
Div Non Decr Years0
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)0.92%
PT rev (3m)1.76%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)6.92%
EPS NY rev (1m)-0.99%
EPS NY rev (3m)5.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.87%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.13 | ||
| Fwd PE | 20.32 | ||
| P/S | 6.77 | ||
| P/FCF | 39.52 | ||
| P/OCF | 35.99 | ||
| P/B | 4.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 35.68 |
EPS(TTM)0.93
EY1.75%
EPS(NY)2.61
Fwd EY4.92%
FCF(TTM)1.34
FCFY2.53%
OCF(TTM)1.48
OCFY2.78%
SpS7.85
BVpS12.71
TBVpS-3.95
PEG (NY)3.69
PEG (5Y)N/A
Graham Number16.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.21% | ||
| ROE | -2.63% | ||
| ROCE | 1.51% | ||
| ROIC | 1.19% | ||
| ROICexc | 1.24% | ||
| ROICexgc | 3.88% | ||
| 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)11.93%
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 Turnover0.28
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 | 3.08 |
F-Score4
WACC11.36%
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)-64.77%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%-23.91%
EPS Next Y15.47%
EPS Next 2Y41.81%
EPS Next 3Y39.35%
EPS Next 5Y29.71%
Revenue 1Y (TTM)-42.35%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%-2.01%
Revenue Next Year5.37%
Revenue Next 2Y12.44%
Revenue Next 3Y14.65%
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 - 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.
What is the valuation status for MCHPP stock?
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 valuation of MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28 based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28 (MCHPP) is 57.13 and the Price/Book (PB) ratio is 4.18.
Can you provide the expected EPS growth for MCHPP stock?
The Earnings per Share (EPS) of MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28 (MCHPP) is expected to grow by 15.47% in the next year.