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

NASDAQ:MCHPP • US5950173022

Current stock price

58.06 USD
+0.77 (+1.34%)
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.
  • MCHPP had a positive operating cash flow in each of the past 5 years.
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 comparable to the rest of the industry.
  • The Return On Equity of MCHPP (-2.39%) is comparable to the rest of the industry.
  • MCHPP has a Return On Invested Capital (1.65%) which is comparable to the rest of the industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for MCHPP is in line with the industry average of 10.70%.
  • The last Return On Invested Capital (1.65%) 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 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

  • Looking at the Operating Margin, with a value of 6.34%, MCHPP is in line with its industry, outperforming 57.39% of the companies in the same industry.
  • MCHPP's Operating Margin has declined in the last couple of years.
  • 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.
  • The number of shares outstanding for MCHPP has been increased compared to 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

  • An Altman-Z score of 3.36 indicates that MCHPP is not in any danger for bankruptcy at the moment.
  • MCHPP has a Altman-Z score (3.36) which is in line with its industry peers.
  • MCHPP has a debt to FCF ratio of 6.54. This is a slightly negative value and a sign of low solvency as MCHPP would need 6.54 years to pay back of all of its debts.
  • With a Debt to FCF ratio value of 6.54, MCHPP perfoms like the industry average, outperforming 51.30% of the companies in the same industry.
  • A Debt/Equity ratio of 0.82 indicates that MCHPP is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.82, MCHPP is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.54
Altman-Z 3.36
ROIC/WACC0.15
WACC11.11%
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

  • MCHPP has a Current Ratio of 2.16. This indicates that MCHPP is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 2.16, MCHPP is doing worse than 72.17% of the companies in the same industry.
  • MCHPP has a Quick Ratio of 1.16. 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 1.16. This is amonst the worse of the industry: MCHPP underperforms 81.74% 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%.
  • MCHPP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.29% yearly.
  • The Revenue has decreased by -8.08% in the past year.
  • MCHPP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.55% yearly.
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

  • The Earnings Per Share is expected to grow by 32.12% on average over the next years. This is a very strong growth
  • 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 Y23.2%
EPS Next 2Y44.89%
EPS Next 3Y42.88%
EPS Next 5Y32.12%
Revenue Next Year6.11%
Revenue Next 2Y14%
Revenue Next 3Y15.44%
Revenue Next 5Y13.84%

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.
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

  • A Price/Earnings ratio of 49.62 indicates a quite expensive valuation of MCHPP.
  • MCHPP's Price/Earnings ratio is a bit cheaper when compared to the industry. MCHPP is cheaper than 61.74% of the companies in the same industry.
  • MCHPP is valuated expensively when we compare the Price/Earnings ratio to 25.50, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 21.28 indicates a rather expensive valuation of MCHPP.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of MCHPP indicates a rather cheap valuation: MCHPP is cheaper than 80.87% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of MCHPP to the average of the S&P500 Index (22.67), we can say MCHPP is valued inline with the index average.
Industry RankSector Rank
PE 49.62
Fwd PE 21.28
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

  • MCHPP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MCHPP is cheaper than 64.35% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, MCHPP is valued a bit cheaper than the industry average as 77.39% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 38.32
EV/EBITDA 36.86
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.
  • MCHPP's earnings are expected to grow with 42.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.14
PEG (5Y)N/A
EPS Next 2Y44.89%
EPS Next 3Y42.88%

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

5

5. MCHPP Dividend Analysis

5.1 Amount

  • MCHPP has a Yearly Dividend Yield of 2.88%. Purely for dividend investing, there may be better candidates out there.
  • MCHPP's Dividend Yield is rather good when compared to the industry average which is at 0.50. MCHPP pays more dividend than 93.91% of the companies in the same industry.
  • MCHPP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 2.88%

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

  • 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 2Y44.89%
EPS Next 3Y42.88%
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 (3/24/2026, 8:00:00 PM)

58.06

+0.77 (+1.34%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-05
Earnings (Next)05-06
Inst Owners99.68%
Inst Owner ChangeN/A
Ins Owners1.92%
Ins Owner ChangeN/A
Market Cap31.42B
Revenue(TTM)4.37B
Net Income(TTM)-156.60M
Analysts81.82
Price Target78.12 (34.55%)
Short Float %0.02%
Short Ratio0.2
Dividend
Industry RankSector Rank
Dividend Yield 2.88%
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)6.22%
PT rev (3m)13.25%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)13.38%
EPS NY rev (1m)1.64%
EPS NY rev (3m)9.24%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)5.57%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)2.81%
Valuation
Industry RankSector Rank
PE 49.62
Fwd PE 21.28
P/S 7.19
P/FCF 38.32
P/OCF 34.49
P/B 4.79
P/tB N/A
EV/EBITDA 36.86
EPS(TTM)1.17
EY2.02%
EPS(NY)2.73
Fwd EY4.7%
FCF(TTM)1.52
FCFY2.61%
OCF(TTM)1.68
OCFY2.9%
SpS8.08
BVpS12.12
TBVpS-4.13
PEG (NY)2.14
PEG (5Y)N/A
Graham Number17.86
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 3.36
F-Score4
WACC11.11%
ROIC/WACC0.15
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 Y23.2%
EPS Next 2Y44.89%
EPS Next 3Y42.88%
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 Year6.11%
Revenue Next 2Y14%
Revenue Next 3Y15.44%
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 3Y43.22%
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.


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 23.2% 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 5 / 10 and the dividend payout ratio is -678.74%.