MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28 (MCHPP) Stock Fundamental Analysis
USA - NASDAQ:MCHPP - US5950173022
49.44 USD
-1.57 (-3.08%)
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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
MCHPP had positive earnings in the past year.
MCHPP had a positive operating cash flow in the past year.
Of the past 5 years MCHPP 4 years were profitable.
MCHPP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.69%, MCHPP is in line with its industry, outperforming 41.96% of the companies in the same industry.
Looking at the Return On Equity, with a value of -3.66%, MCHPP is in line with its industry, outperforming 41.07% of the companies in the same industry.
With a Return On Invested Capital value of 0.91%, MCHPP perfoms like the industry average, outperforming 50.00% 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 10.86%.
The 3 year average ROIC (11.93%) for MCHPP is well above the current ROIC(0.91%). The reason for the recent decline needs to be investigated.
| 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
MCHPP has a Operating Margin (3.68%) which is comparable to the rest of the industry.
MCHPP's Operating Margin has declined in the last couple of years.
The Gross Margin of MCHPP (54.06%) is better than 72.32% 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
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
The number of shares outstanding for MCHPP has been increased compared to 5 years ago.
The debt/assets ratio for MCHPP has been reduced compared to a year ago.
2.2 Solvency
MCHPP has an Altman-Z score of 3.07. This indicates that MCHPP is financially healthy and has little risk of bankruptcy at the moment.
MCHPP has a Altman-Z score of 3.07. This is comparable to the rest of the industry: MCHPP outperforms 50.00% of its industry peers.
The Debt to FCF ratio of MCHPP is 7.13, which is on the high side as it means it would take MCHPP, 7.13 years of fcf income to pay off 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 worse Debt to Equity ratio (0.80) than 80.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.13 | ||
| Altman-Z | 3.07 |
ROIC/WACC0.09
WACC10.3%
2.3 Liquidity
A Current Ratio of 2.25 indicates that MCHPP has no problem at all paying its short term obligations.
With a Current ratio value of 2.25, MCHPP is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
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 Quick ratio of 1.20. This is amonst the worse of the industry: MCHPP underperforms 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.2 |
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%.
MCHPP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.29% yearly.
Looking at the last year, MCHPP shows a very negative growth in Revenue. The Revenue has decreased by -23.36% in the last year.
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 29.71% yearly.
Based on estimates for the next years, MCHPP will show a quite strong growth in Revenue. The Revenue will grow by 10.04% on average per year.
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
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.
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
The Price/Earnings ratio is 53.16, which means the current valuation is very expensive for MCHPP.
MCHPP's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of MCHPP to the average of the S&P500 Index (25.89), we can say MCHPP is valued expensively.
A Price/Forward Earnings ratio of 18.91 indicates a rather expensive valuation of MCHPP.
77.68% of the companies in the same industry are more expensive than MCHPP, based on the Price/Forward Earnings ratio.
MCHPP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.16 | ||
| Fwd PE | 18.91 |
4.2 Price Multiples
MCHPP's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MCHPP indicates a somewhat cheap valuation: MCHPP is cheaper than 71.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.37 | ||
| EV/EBITDA | 37.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MCHPP's earnings are expected to grow with 39.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.44
PEG (5Y)N/A
EPS Next 2Y41.81%
EPS Next 3Y39.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.32%, MCHPP has a reasonable but not impressive dividend return.
MCHPP's Dividend Yield is rather good when compared to the industry average which is at 2.22. MCHPP pays more dividend than 93.75% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, MCHPP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
5.2 History
The dividend of MCHPP is nicely growing with an annual growth rate of 20.15%!
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
The earnings of MCHPP are negative and hence is the payout ratio. MCHPP will probably not be able to sustain this dividend level.
The dividend of MCHPP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-421.71%
EPS Next 2Y41.81%
EPS Next 3Y39.35%
MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28
NASDAQ:MCHPP (11/17/2025, 3:50:57 PM)
49.44
-1.57 (-3.08%)
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 Cap26.68B
Revenue(TTM)4.21B
Net Income(TTM)-245.10M
Analysts79.39
Price Target73.55 (48.77%)
Short Float %0.19%
Short Ratio10.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
Yearly Dividend1.81
Dividend Growth(5Y)20.15%
DP-421.71%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)3.1%
PT rev (3m)3.96%
EPS NQ rev (1m)-2.22%
EPS NQ rev (3m)-1.06%
EPS NY rev (1m)-0.99%
EPS NY rev (3m)5.19%
Revenue NQ rev (1m)-2.07%
Revenue NQ rev (3m)-1.99%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.16 | ||
| Fwd PE | 18.91 | ||
| P/S | 6.33 | ||
| P/FCF | 35.37 | ||
| P/OCF | 31.72 | ||
| P/B | 3.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 37.43 |
EPS(TTM)0.93
EY1.88%
EPS(NY)2.61
Fwd EY5.29%
FCF(TTM)1.4
FCFY2.83%
OCF(TTM)1.56
OCFY3.15%
SpS7.81
BVpS12.41
TBVpS-4.02
PEG (NY)3.44
PEG (5Y)N/A
Graham Number16.11
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 | 3.07 |
F-Score3
WACC10.3%
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 Y15.47%
EPS Next 2Y41.81%
EPS Next 3Y39.35%
EPS Next 5Y29.71%
Revenue 1Y (TTM)-23.36%
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-86.35%
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-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 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 53.16 and the Price/Book (PB) ratio is 3.99.
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.