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MICROCHIP TECHNOLOGY INC (MCP.DE) Stock Fundamental Analysis

FRA:MCP - Deutsche Boerse Ag - US5950171042 - Common Stock - Currency: EUR

63  -4.5 (-6.67%)

Fundamental Rating

4

Overall MCP gets a fundamental rating of 4 out of 10. We evaluated MCP against 53 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and financial health of MCP have multiple concerns. MCP has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

MCP had positive earnings in the past year.
In the past 5 years MCP has always been profitable.
Each year in the past 5 years MCP had a positive operating cash flow.
MCP.DE Yearly Net Income VS EBIT VS OCF VS FCFMCP.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B 2.5B

1.2 Ratios

Industry RankSector Rank
ROA 9.5%
ROE 25.76%
ROIC 12.86%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
MCP.DE Yearly ROA, ROE, ROICMCP.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 5 10 15 20

1.3 Margins

Industry RankSector Rank
OM 30.27%
PM (TTM) 21.34%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
MCP.DE Yearly Profit, Operating, Gross MarginsMCP.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 20 40 60

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3

2. Health

2.1 Basic Checks

MCP 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, MCP has more shares outstanding
MCP has a better debt/assets ratio than last year.
MCP.DE Yearly Shares OutstandingMCP.DE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M 500M
MCP.DE Yearly Total Debt VS Total AssetsMCP.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 5B 10B 15B

2.2 Solvency

An Altman-Z score of 3.34 indicates that MCP is not in any danger for bankruptcy at the moment.
MCP has a Debt/Equity ratio of 1.27. This is a high value indicating a heavy dependency on external financing.
Industry RankSector Rank
Debt/Equity 1.27
Debt/FCF N/A
Altman-Z 3.34
ROIC/WACC1.19
WACC10.78%
MCP.DE Yearly LT Debt VS Equity VS FCFMCP.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B

2.3 Liquidity

A Current Ratio of 1.78 indicates that MCP should not have too much problems paying its short term obligations.
MCP has a Quick Ratio of 1.17. This is a normal value and indicates that MCP is financially healthy and should not expect problems in meeting its short term obligations.
Industry RankSector Rank
Current Ratio 1.78
Quick Ratio 1.17
MCP.DE Yearly Current Assets VS Current LiabilitesMCP.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B

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6

3. Growth

3.1 Past

MCP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.37%, which is quite impressive.
The Earnings Per Share has been growing slightly by 2.93% on average over the past years.
MCP shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.62%.
Measured over the past years, MCP shows a quite strong growth in Revenue. The Revenue has been growing by 14.89% on average per year.
EPS 1Y (TTM)42.37%
EPS 3Y-11.09%
EPS 5Y2.93%
EPS Q2Q%38.38%
Revenue 1Y (TTM)26.62%
Revenue growth 3Y8.44%
Revenue growth 5Y14.89%
Sales Q2Q%25.12%

3.2 Future

Based on estimates for the next years, MCP will show a small growth in Earnings Per Share. The EPS will grow by 5.09% on average per year.
Based on estimates for the next years, MCP will show a small growth in Revenue. The Revenue will grow by 4.68% on average per year.
EPS Next Y25.62%
EPS Next 2Y12.71%
EPS Next 3Y8.62%
EPS Next 5Y5.09%
Revenue Next Year20.1%
Revenue Next 2Y10.29%
Revenue Next 3Y7.46%
Revenue Next 5Y4.68%

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 decreasing: in the next years the growth will be less than in the last years.
MCP.DE Yearly Revenue VS EstimatesMCP.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B 8B
MCP.DE Yearly EPS VS EstimatesMCP.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 12.30 indicates a correct valuation of MCP.
MCP is valuated cheaply when we compare the Price/Earnings ratio to 27.61, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.49, which indicates a very decent valuation of MCP.
MCP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.13.
Industry RankSector Rank
PE 12.3
Fwd PE 10.49
MCP.DE Price Earnings VS Forward Price EarningsMCP.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 12.4
MCP.DE Per share dataMCP.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.48
PEG (5Y)4.2
EPS Next 2Y12.71%
EPS Next 3Y8.62%

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4

5. Dividend

5.1 Amount

MCP has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
Compared to an average S&P500 Dividend Yield of 2.32, MCP has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.94%

5.2 History

On average, the dividend of MCP grows each year by 7.70%, which is quite nice.
Dividend Growth(5Y)7.7%
Div Incr YearsN/A
Div Non Decr YearsN/A
MCP.DE Yearly Dividends per shareMCP.DE Yearly Dividends per shareYearly Dividends per share 2020 2021 2022 0.5 1

5.3 Sustainability

MCP pays out 35.31% of its income as dividend. This is a sustainable payout ratio.
The dividend of MCP is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.31%
EPS Next 2Y12.71%
EPS Next 3Y8.62%
MCP.DE Yearly Income VS Free CF VS DividendMCP.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B
MCP.DE Dividend Payout.MCP.DE Dividend Payout, showing the Payout Ratio.MCP.DE Dividend Payout.PayoutRetained Earnings

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MICROCHIP TECHNOLOGY INC

FRA:MCP (9/23/2022, 7:00:00 PM)

63

-4.5 (-6.67%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap34.81B
Analysts78.75
Price Target87.09 (38.24%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.94%
Yearly Dividend0.91
Dividend Growth(5Y)7.7%
DP35.31%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 12.3
Fwd PE 10.49
P/S 4.7
P/FCF N/A
P/OCF N/A
P/B 5.68
P/tB N/A
EV/EBITDA 12.4
EPS(TTM)5.12
EY8.13%
EPS(NY)6.01
Fwd EY9.54%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS13.4
BVpS11.1
TBVpSN/A
PEG (NY)0.48
PEG (5Y)4.2
Profitability
Industry RankSector Rank
ROA 9.5%
ROE 25.76%
ROCE N/A
ROIC 12.86%
ROICexc N/A
ROICexgc 45.31%
OM 30.27%
PM (TTM) 21.34%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y0%
ROICexcg growth 5Y0%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.45
Health
Industry RankSector Rank
Debt/Equity 1.27
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.78
Quick Ratio 1.17
Altman-Z 3.34
F-Score8
WACC10.78%
ROIC/WACC1.19
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)42.37%
EPS 3Y-11.09%
EPS 5Y2.93%
EPS Q2Q%38.38%
EPS Next Y25.62%
EPS Next 2Y12.71%
EPS Next 3Y8.62%
EPS Next 5Y5.09%
Revenue 1Y (TTM)26.62%
Revenue growth 3Y8.44%
Revenue growth 5Y14.89%
Sales Q2Q%25.12%
Revenue Next Year20.1%
Revenue Next 2Y10.29%
Revenue Next 3Y7.46%
Revenue Next 5Y4.68%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A