MICROCHIP TECHNOLOGY INC (MCP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MCP - US5950171042 - Common Stock
46.265 EUR
+1.17 (+2.59%)
MCP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 62 industry peers in the Semiconductors & Semiconductor Equipment industry. While MCP seems to be doing ok healthwise, there are quite some concerns on its profitability. MCP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MCP was profitable.
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.
1.2 Ratios
The Return On Assets of MCP (-1.69%) is worse than 85.48% of its industry peers.
Looking at the Return On Equity, with a value of -3.66%, MCP is doing worse than 83.87% of the companies in the same industry.
With a Return On Invested Capital value of 0.81%, MCP is not doing good in the industry: 79.03% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for MCP is below the industry average of 14.81%.
The 3 year average ROIC (10.63%) for MCP is well above the current ROIC(0.81%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.69% | ||
| ROE | -3.66% | ||
| ROIC | 0.81% |
ROA(3y)8.56%
ROA(5y)7.14%
ROE(3y)20.99%
ROE(5y)18.26%
ROIC(3y)10.63%
ROIC(5y)9.16%
1.3 Margins
The Operating Margin of MCP (3.68%) is worse than 80.65% of its industry peers.
In the last couple of years the Operating Margin of MCP has declined.
The Gross Margin of MCP (54.06%) is better than 70.97% of its industry peers.
MCP's Gross Margin has declined in the last couple of years.
| 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
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
The number of shares outstanding for MCP has been increased compared to 5 years ago.
Compared to 1 year ago, MCP has an improved debt to assets ratio.
2.2 Solvency
MCP has an Altman-Z score of 3.18. This indicates that MCP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MCP (3.18) is comparable to the rest of the industry.
MCP has a debt to FCF ratio of 7.13. This is a slightly negative value and a sign of low solvency as MCP would need 7.13 years to pay back of all of its debts.
MCP has a Debt to FCF ratio of 7.13. This is in the lower half of the industry: MCP underperforms 64.52% of its industry peers.
MCP has a Debt/Equity ratio of 0.80. This is a neutral value indicating MCP is somewhat dependend on debt financing.
MCP has a Debt to Equity ratio of 0.80. This is amonst the worse of the industry: MCP underperforms 80.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.13 | ||
| Altman-Z | 3.18 |
ROIC/WACC0.09
WACC9.44%
2.3 Liquidity
A Current Ratio of 2.25 indicates that MCP has no problem at all paying its short term obligations.
MCP has a Current ratio (2.25) which is in line with its industry peers.
A Quick Ratio of 1.20 indicates that MCP should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.20, MCP is not doing good in the industry: 74.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The earnings per share for MCP have decreased strongly by -64.77% 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.
MCP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -23.36%.
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
The Earnings Per Share is expected to grow by 29.55% on average over the next years. This is a very strong growth
MCP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.85% yearly.
EPS Next Y15.47%
EPS Next 2Y41.81%
EPS Next 3Y38.01%
EPS Next 5Y29.55%
Revenue Next Year5.37%
Revenue Next 2Y12.44%
Revenue Next 3Y13.57%
Revenue Next 5Y9.85%
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
The Price/Earnings ratio is 57.83, which means the current valuation is very expensive for MCP.
Compared to the rest of the industry, the Price/Earnings ratio of MCP indicates a slightly more expensive valuation: MCP is more expensive than 69.35% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, MCP is valued quite expensively.
With a Price/Forward Earnings ratio of 20.47, MCP is valued on the expensive side.
62.90% of the companies in the same industry are more expensive than MCP, based on the Price/Forward Earnings ratio.
MCP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.83 | ||
| Fwd PE | 20.47 |
4.2 Price Multiples
69.35% of the companies in the same industry are cheaper than MCP, based on the Enterprise Value to EBITDA ratio.
66.13% of the companies in the same industry are more expensive than MCP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.33 | ||
| EV/EBITDA | 39.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MCP's earnings are expected to grow with 38.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.74
PEG (5Y)N/A
EPS Next 2Y41.81%
EPS Next 3Y38.01%
5. Dividend
5.1 Amount
MCP has a Yearly Dividend Yield of 3.46%.
MCP's Dividend Yield is rather good when compared to the industry average which is at 1.14. MCP pays more dividend than 100.00% of the companies in the same industry.
MCP's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
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
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.
The dividend of MCP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-421.71%
EPS Next 2Y41.81%
EPS Next 3Y38.01%
FRA:MCP (11/28/2025, 7:00:00 PM)
46.265
+1.17 (+2.59%)
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 Cap25.00B
Revenue(TTM)4.21B
Net Income(TTM)-245.10M
Analysts79.39
Price Target65.85 (42.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
Yearly Dividend1.57
Dividend Growth(5Y)20.15%
DP-421.71%
Div Incr YearsN/A
Div Non Decr YearsN/A
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)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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.83 | ||
| Fwd PE | 20.47 | ||
| P/S | 6.87 | ||
| P/FCF | 38.33 | ||
| P/OCF | 34.38 | ||
| P/B | 4.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 39.02 |
EPS(TTM)0.8
EY1.73%
EPS(NY)2.26
Fwd EY4.89%
FCF(TTM)1.21
FCFY2.61%
OCF(TTM)1.35
OCFY2.91%
SpS6.74
BVpS10.71
TBVpS-3.47
PEG (NY)3.74
PEG (5Y)N/A
Graham Number13.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.69% | ||
| ROE | -3.66% | ||
| ROCE | 1.16% | ||
| ROIC | 0.81% | ||
| ROICexc | 0.83% | ||
| ROICexgc | 2.53% | ||
| 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)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-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 | 3.18 |
F-Score3
WACC9.44%
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 3Y38.01%
EPS Next 5Y29.55%
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 3Y13.57%
Revenue Next 5Y9.85%
EBIT growth 1Y-86.35%
EBIT growth 3Y-41.54%
EBIT growth 5Y-11.55%
EBIT Next Year72.2%
EBIT Next 3Y33.18%
EBIT Next 5Y24.34%
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 / MCP.DE FAQ
What is the ChartMill fundamental rating of MICROCHIP TECHNOLOGY INC (MCP.DE) stock?
ChartMill assigns a fundamental rating of 1 / 10 to MCP.DE.
What is the valuation status for MCP stock?
ChartMill assigns a valuation rating of 0 / 10 to MICROCHIP TECHNOLOGY INC (MCP.DE). This can be considered as Overvalued.
What is the profitability of MCP stock?
MICROCHIP TECHNOLOGY INC (MCP.DE) has a profitability rating of 1 / 10.
What is the valuation of MICROCHIP TECHNOLOGY INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MICROCHIP TECHNOLOGY INC (MCP.DE) is 57.83 and the Price/Book (PB) ratio is 4.32.
How sustainable is the dividend of MICROCHIP TECHNOLOGY INC (MCP.DE) stock?
The dividend rating of MICROCHIP TECHNOLOGY INC (MCP.DE) is 5 / 10 and the dividend payout ratio is -421.71%.