MICROCHIP TECHNOLOGY INC (MCP.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:MCP • US5950171042
64.87 EUR
-0.23 (-0.35%)
Last: Jan 30, 2026, 07:00 PM
Taking everything into account, MCP scores 3 out of 10 in our fundamental rating. MCP was compared to 69 industry peers in the Semiconductors & Semiconductor Equipment industry. MCP may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, MCP is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- MCP had positive earnings in the past year.
- In the past year MCP had a positive cash flow from operations.
- Of the past 5 years MCP 4 years were profitable.
- MCP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- MCP has a Return On Assets of -1.69%. This is amonst the worse of the industry: MCP underperforms 91.30% of its industry peers.
- MCP has a Return On Equity of -3.66%. This is amonst the worse of the industry: MCP underperforms 91.30% of its industry peers.
- MCP has a worse Return On Invested Capital (0.81%) than 88.41% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MCP is below the industry average of 14.31%.
- 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 85.51% of its industry peers.
- In the last couple of years the Operating Margin of MCP has declined.
- MCP has a Gross Margin of 54.06%. This is in the better half of the industry: MCP outperforms 66.67% of its industry peers.
- In the last couple of years the Gross Margin of MCP 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MCP is creating some value.
- MCP has more shares outstanding than it did 1 year ago.
- 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
- An Altman-Z score of 4.17 indicates that MCP is not in any danger for bankruptcy at the moment.
- The Altman-Z score of MCP (4.17) is worse than 60.87% of its industry peers.
- 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 worse Debt to FCF ratio (7.13) than 71.01% 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.
- The Debt to Equity ratio of MCP (0.80) is worse than 86.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.13 | ||
| Altman-Z | 4.17 |
ROIC/WACC0.08
WACC10.47%
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 comparable to the rest of the industry.
- MCP has a Quick Ratio of 1.20. This is a normal value and indicates that MCP is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.20, MCP is not doing good in the industry: 82.61% 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
- MCP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.77%.
- 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 for MCP has decreased by -23.36% in the past year. This is quite bad
- MCP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.55% yearly.
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
- MCP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.55% yearly.
- The Revenue is expected to grow by 12.88% on average over the next years. This is quite good.
EPS Next Y19.08%
EPS Next 2Y44.43%
EPS Next 3Y41.69%
EPS Next 5Y29.55%
Revenue Next Year5.22%
Revenue Next 2Y12.73%
Revenue Next 3Y14.58%
Revenue Next 5Y12.88%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- A Price/Earnings ratio of 83.17 indicates a quite expensive valuation of MCP.
- Compared to the rest of the industry, the Price/Earnings ratio of MCP indicates a rather expensive valuation: MCP more expensive than 82.61% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.30. MCP is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 28.51, MCP can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Forward Earnings ratio as MCP.
- MCP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.17 | ||
| Fwd PE | 28.51 |
4.2 Price Multiples
- MCP's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. MCP is more expensive than 82.61% of the companies in the same industry.
- MCP's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.39 | ||
| EV/EBITDA | 53.76 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MCP does not grow enough to justify the current Price/Earnings ratio.
- A more expensive valuation may be justified as MCP's earnings are expected to grow with 41.69% in the coming years.
PEG (NY)4.36
PEG (5Y)N/A
EPS Next 2Y44.43%
EPS Next 3Y41.69%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.29%, MCP has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.72, MCP pays a better dividend. On top of this MCP pays more dividend than 92.75% of the companies listed in the same industry.
- MCP's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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 2Y44.43%
EPS Next 3Y41.69%
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 3 / 10 to MCP.DE.
What is the valuation status of MICROCHIP TECHNOLOGY INC (MCP.DE) stock?
ChartMill assigns a valuation rating of 2 / 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 19.08% in the next year.