MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28 (MCHPP) Stock Fundamental Analysis
USA - NASDAQ:MCHPP - US5950173022
61.32 USD
+0.7 (+1.15%)
Taking everything into account, MCHPP scores 4 out of 10 in our fundamental rating. MCHPP was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. MCHPP has an average financial health and profitability rating. MCHPP is valied quite expensively at the moment, while it does show a decent growth rate.
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.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of -1.21%, MCHPP is in line with its industry, outperforming 44.64% of the companies in the same industry.
With a Return On Equity value of -2.63%, MCHPP perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.19%, MCHPP is in line with its industry, outperforming 50.00% of the companies in the same industry.
MCHPP had an Average Return On Invested Capital over the past 3 years of 11.93%. This is in line with the industry average of 10.93%.
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
MCHPP has a Operating Margin of 4.91%. This is comparable to the rest of the industry: MCHPP outperforms 53.57% of its industry peers.
MCHPP's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 54.48%, MCHPP is in the better half of the industry, outperforming 72.32% of the companies in the same industry.
In the last couple of years the Gross Margin of MCHPP has declined.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MCHPP is still creating some value.
MCHPP has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MCHPP has more shares outstanding
MCHPP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.38 indicates that MCHPP is not in any danger for bankruptcy at the moment.
MCHPP has a Altman-Z score (3.38) which is in line with its industry peers.
The Debt to FCF ratio of MCHPP is 7.52, which is on the high side as it means it would take MCHPP, 7.52 years of fcf income to pay off all of its debts.
MCHPP's Debt to FCF ratio of 7.52 is in line compared to the rest of the industry. MCHPP outperforms 51.79% of its industry peers.
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 | 3.38 |
ROIC/WACC0.11
WACC11.01%
2.3 Liquidity
A Current Ratio of 2.31 indicates that MCHPP has no problem at all paying its short term obligations.
MCHPP has a worse Current ratio (2.31) than 67.86% of its industry peers.
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's Quick ratio of 1.33 is on the low side compared to the rest of the industry. MCHPP is outperformed by 80.36% 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 -72.63%.
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.
MCHPP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -35.70%.
MCHPP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.55% yearly.
EPS 1Y (TTM)-72.63%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%-49.06%
Revenue 1Y (TTM)-35.7%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%-13.36%
3.2 Future
The Earnings Per Share is expected to grow by 29.71% on average over the next years. This is a very strong growth
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 Y16.62%
EPS Next 2Y43.36%
EPS Next 3Y40.36%
EPS Next 5Y29.71%
Revenue Next Year5.46%
Revenue Next 2Y12.91%
Revenue Next 3Y14.64%
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.
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
MCHPP is valuated quite expensively with a Price/Earnings ratio of 58.96.
MCHPP's Price/Earnings ratio is in line with the industry average.
MCHPP is valuated expensively when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.95, 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 75.89% 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 (23.29), we can say MCHPP is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.96 | ||
| Fwd PE | 22.95 |
4.2 Price Multiples
MCHPP's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, MCHPP is valued a bit cheaper than 70.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.61 | ||
| EV/EBITDA | 39.98 |
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 40.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.55
PEG (5Y)N/A
EPS Next 2Y43.36%
EPS Next 3Y40.36%
5. Dividend
5.1 Amount
MCHPP has a Yearly Dividend Yield of 2.76%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.20, MCHPP pays a better dividend. On top of this MCHPP pays more dividend than 91.96% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, MCHPP has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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
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-555.76%
EPS Next 2Y43.36%
EPS Next 3Y40.36%
MICROCHIP TECHNOLOGY INC - MCHP 7 1/2 03/15/28
NASDAQ:MCHPP (10/3/2025, 2:06:40 PM)
61.32
+0.7 (+1.15%)
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 Cap33.09B
Analysts80
Price Target72.81 (18.74%)
Short Float %0.08%
Short Ratio3.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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)0.59%
PT rev (3m)15.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)10.82%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)8.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.96 | ||
| Fwd PE | 22.95 | ||
| P/S | 7.81 | ||
| P/FCF | 45.61 | ||
| P/OCF | 41.54 | ||
| P/B | 4.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 39.98 |
EPS(TTM)1.04
EY1.7%
EPS(NY)2.67
Fwd EY4.36%
FCF(TTM)1.34
FCFY2.19%
OCF(TTM)1.48
OCFY2.41%
SpS7.85
BVpS12.71
TBVpS-3.95
PEG (NY)3.55
PEG (5Y)N/A
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%
ROICexcg growth 3Y-44.39%
ROICexcg 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 | 3.38 |
F-Score4
WACC11.01%
ROIC/WACC0.11
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)-72.63%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%-49.06%
EPS Next Y16.62%
EPS Next 2Y43.36%
EPS Next 3Y40.36%
EPS Next 5Y29.71%
Revenue 1Y (TTM)-35.7%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%-13.36%
Revenue Next Year5.46%
Revenue Next 2Y12.91%
Revenue Next 3Y14.64%
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 3Y47.19%
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%