MICROCHIP TECHNOLOGY INC (MCP.DE) Fundamental Analysis & Valuation

FRA:MCP • US5950171042

Current stock price

57.03 EUR
+0.53 (+0.94%)
Last:

This MCP.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. MCP.DE Profitability Analysis

1.1 Basic Checks

  • MCP had positive earnings in the past year.
  • In the past year MCP had a positive cash flow from operations.
  • MCP had positive earnings in 4 of the past 5 years.
  • In the past 5 years MCP always reported a positive cash flow from operatings.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

1.2 Ratios

  • Looking at the Return On Assets, with a value of -1.09%, MCP is doing worse than 92.54% of the companies in the same industry.
  • With a Return On Equity value of -2.39%, MCP is not doing good in the industry: 92.54% of the companies in the same industry are doing better.
  • Looking at the Return On Invested Capital, with a value of 1.47%, MCP is doing worse than 88.06% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for MCP is below the industry average of 14.50%.
  • The last Return On Invested Capital (1.47%) for MCP is well below the 3 year average (10.63%), which needs to be investigated, but indicates that MCP had better years and this may not be a problem.
Industry RankSector Rank
ROA -1.09%
ROE -2.39%
ROIC 1.47%
ROA(3y)8.56%
ROA(5y)7.14%
ROE(3y)20.99%
ROE(5y)18.26%
ROIC(3y)10.63%
ROIC(5y)9.16%
MCP.DE Yearly ROA, ROE, ROICMCP.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30

1.3 Margins

  • With a Operating Margin value of 6.34%, MCP is not doing good in the industry: 86.57% of the companies in the same industry are doing better.
  • MCP's Operating Margin has declined in the last couple of years.
  • The Gross Margin of MCP (55.41%) is better than 71.64% of its industry peers.
  • In the last couple of years the Gross Margin of MCP 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%
MCP.DE Yearly Profit, Operating, Gross MarginsMCP.DE 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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3

2. MCP.DE Health Analysis

2.1 Basic Checks

  • MCP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, MCP has more shares outstanding
  • The number of shares outstanding for MCP has been increased compared to 5 years ago.
  • The debt/assets ratio for MCP has been reduced compared to a year ago.
MCP.DE Yearly Shares OutstandingMCP.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • An Altman-Z score of 3.70 indicates that MCP is not in any danger for bankruptcy at the moment.
  • MCP's Altman-Z score of 3.70 is on the low side compared to the rest of the industry. MCP is outperformed by 64.18% of its industry peers.
  • MCP has a debt to FCF ratio of 6.54. This is a slightly negative value and a sign of low solvency as MCP would need 6.54 years to pay back of all of its debts.
  • MCP's Debt to FCF ratio of 6.54 is on the low side compared to the rest of the industry. MCP is outperformed by 67.16% of its industry peers.
  • MCP has a Debt/Equity ratio of 0.82. This is a neutral value indicating MCP is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.82, MCP is not doing good in the industry: 88.06% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.54
Altman-Z 3.7
ROIC/WACC0.14
WACC10.89%
MCP.DE Yearly LT Debt VS Equity VS FCFMCP.DE 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

  • MCP has a Current Ratio of 2.16. This indicates that MCP is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 2.16, MCP is doing worse than 62.69% of the companies in the same industry.
  • A Quick Ratio of 1.16 indicates that MCP should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.16, MCP is doing worse than 85.07% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.16
Quick Ratio 1.16
MCP.DE Yearly Current Assets VS Current LiabilitesMCP.DE 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. MCP.DE Growth Analysis

3.1 Past

  • The earnings per share for MCP have decreased strongly by -33.52% in the last year.
  • MCP 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.
  • The Revenue has been decreasing by -3.55% on average over the past years.
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

  • Based on estimates for the next years, MCP will show a very strong growth in Earnings Per Share. The EPS will grow by 32.12% on average per year.
  • Based on estimates for the next years, MCP 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 2Y13.95%
Revenue Next 3Y15.31%
Revenue Next 5Y13.84%

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.
MCP.DE Yearly Revenue VS EstimatesMCP.DE 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
MCP.DE Yearly EPS VS EstimatesMCP.DE 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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3

4. MCP.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 55.91, MCP can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Earnings ratio of MCP indicates a slightly more expensive valuation: MCP is more expensive than 74.63% of the companies listed in the same industry.
  • MCP is valuated expensively when we compare the Price/Earnings ratio to 25.96, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 23.98, the valuation of MCP can be described as rather expensive.
  • Based on the Price/Forward Earnings ratio, MCP is valued a bit cheaper than the industry average as 62.69% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, MCP is valued at the same level.
Industry RankSector Rank
PE 55.91
Fwd PE 23.98
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 40 50

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, MCP is valued a bit more expensive than the industry average as 77.61% of the companies are valued more cheaply.
  • Based on the Price/Free Cash Flow ratio, MCP is valued a bit cheaper than 67.16% of the companies in the same industry.
Industry RankSector Rank
P/FCF 43.2
EV/EBITDA 41.36
MCP.DE Per share dataMCP.DE 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 an expensive valuation of the company.
  • A more expensive valuation may be justified as MCP's earnings are expected to grow with 42.88% in the coming years.
PEG (NY)2.41
PEG (5Y)N/A
EPS Next 2Y44.89%
EPS Next 3Y42.88%

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6

5. MCP.DE Dividend Analysis

5.1 Amount

  • MCP has a Yearly Dividend Yield of 2.90%. Purely for dividend investing, there may be better candidates out there.
  • MCP's Dividend Yield is rather good when compared to the industry average which is at 0.84. MCP pays more dividend than 94.03% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.91, MCP pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.9%

5.2 History

  • The dividend of MCP is nicely growing with an annual growth rate of 20.15%!
Dividend Growth(5Y)20.15%
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 2025 2026 0.5 1

5.3 Sustainability

  • The earnings of MCP are negative and hence is the payout ratio. MCP will probably not be able to sustain this dividend level.
  • MCP'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%
MCP.DE Yearly Income VS Free CF VS DividendMCP.DE 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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MCP.DE Fundamentals: All Metrics, Ratios and Statistics

MICROCHIP TECHNOLOGY INC

FRA:MCP (3/12/2026, 7:00:00 PM)

57.03

+0.53 (+0.94%)

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 Cap30.86B
Revenue(TTM)4.37B
Net Income(TTM)-156.60M
Analysts81.82
Price Target73.67 (29.18%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.9%
Yearly Dividend1.58
Dividend Growth(5Y)20.15%
DP-678.74%
Div Incr YearsN/A
Div Non Decr YearsN/A
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)7.78%
PT rev (3m)14.26%
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 55.91
Fwd PE 23.98
P/S 8.1
P/FCF 43.2
P/OCF 38.88
P/B 5.4
P/tB N/A
EV/EBITDA 41.36
EPS(TTM)1.02
EY1.79%
EPS(NY)2.38
Fwd EY4.17%
FCF(TTM)1.32
FCFY2.32%
OCF(TTM)1.47
OCFY2.57%
SpS7.04
BVpS10.56
TBVpS-3.6
PEG (NY)2.41
PEG (5Y)N/A
Graham Number15.57
Profitability
Industry RankSector Rank
ROA -1.09%
ROE -2.39%
ROCE 2.09%
ROIC 1.47%
ROICexc 1.5%
ROICexgc 4.63%
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)10.63%
ROIC(5y)9.16%
ROICexc(3y)10.87%
ROICexc(5y)9.37%
ROICexgc(3y)43.36%
ROICexgc(5y)39.11%
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 3.7
F-Score4
WACC10.89%
ROIC/WACC0.14
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 2Y13.95%
Revenue Next 3Y15.31%
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 5Y26.04%
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 / MCP.DE Fundamental Analysis FAQ

What is the ChartMill fundamental rating of MICROCHIP TECHNOLOGY INC (MCP.DE) stock?

ChartMill assigns a fundamental rating of 3 / 10 to MCP.DE.


What is the valuation status of MICROCHIP TECHNOLOGY INC (MCP.DE) stock?

ChartMill assigns a valuation rating of 3 / 10 to MICROCHIP TECHNOLOGY INC (MCP.DE). This can be considered as Overvalued.


Can you provide the profitability details for MICROCHIP TECHNOLOGY INC?

MICROCHIP TECHNOLOGY INC (MCP.DE) has a profitability rating of 3 / 10.


What is the financial health of MICROCHIP TECHNOLOGY INC (MCP.DE) stock?

The financial health rating of MICROCHIP TECHNOLOGY INC (MCP.DE) is 3 / 10.


Can you provide the expected EPS growth for MCP stock?

The Earnings per Share (EPS) of MICROCHIP TECHNOLOGY INC (MCP.DE) is expected to grow by 23.2% in the next year.