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

FRA:MCP • US5950171042

Current stock price

67.21 EUR
+1.76 (+2.69%)
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.
  • MCP had a positive operating cash flow in the past year.
  • Of the past 5 years MCP 4 years were profitable.
  • 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

  • With a Return On Assets value of -1.09%, MCP is not doing good in the industry: 90.77% of the companies in the same industry are doing better.
  • The Return On Equity of MCP (-2.39%) is worse than 90.77% of its industry peers.
  • MCP has a worse Return On Invested Capital (1.47%) than 83.08% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for MCP is below the industry average of 15.52%.
  • 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

  • MCP has a worse Operating Margin (6.34%) than 78.46% of its industry peers.
  • In the last couple of years the Operating Margin of MCP has declined.
  • With a decent Gross Margin value of 55.41%, MCP is doing good in the industry, outperforming 70.77% of the companies in the same industry.
  • 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.
  • MCP has a better debt/assets ratio than last year.
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 4.26 indicates that MCP is not in any danger for bankruptcy at the moment.
  • MCP's Altman-Z score of 4.26 is on the low side compared to the rest of the industry. MCP is outperformed by 75.38% 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.
  • With a Debt to FCF ratio value of 6.54, MCP is not doing good in the industry: 67.69% of the companies in the same industry are doing better.
  • A Debt/Equity ratio of 0.82 indicates that MCP is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.82, MCP is doing worse than 87.69% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.54
Altman-Z 4.26
ROIC/WACC0.13
WACC11.59%
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 63.08% of the companies in the same industry.
  • MCP has a Quick Ratio of 1.16. This is a normal value and indicates that MCP is financially healthy and should not expect problems in meeting its short term obligations.
  • MCP's Quick ratio of 1.16 is on the low side compared to the rest of the industry. MCP is outperformed by 83.08% of its industry peers.
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.
  • Looking at the last year, MCP shows a decrease in Revenue. The Revenue has decreased by -8.08% in the last year.
  • MCP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.55% yearly.
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.
  • The Revenue is expected to grow by 14.34% on average over the next years. This is quite good.
EPS Next Y23.17%
EPS Next 2Y44.92%
EPS Next 3Y43.03%
EPS Next 5Y32.12%
Revenue Next Year6.13%
Revenue Next 2Y14.04%
Revenue Next 3Y15.51%
Revenue Next 5Y14.34%

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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2

4. MCP.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 67.21 indicates a quite expensive valuation of MCP.
  • Based on the Price/Earnings ratio, MCP is valued a bit more expensive than 66.15% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.77, MCP is valued quite expensively.
  • A Price/Forward Earnings ratio of 28.83 indicates a quite expensive valuation of MCP.
  • Based on the Price/Forward Earnings ratio, MCP is valued a bit cheaper than 63.08% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 21.75. MCP is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 67.21
Fwd PE 28.83
MCP.DE Price Earnings VS Forward Price EarningsMCP.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MCP indicates a slightly more expensive valuation: MCP is more expensive than 72.31% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, MCP is valued a bit cheaper than the industry average as 72.31% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 51.95
EV/EBITDA 48.69
MCP.DE Per share dataMCP.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6 8 10

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.
  • MCP's earnings are expected to grow with 43.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.9
PEG (5Y)N/A
EPS Next 2Y44.92%
EPS Next 3Y43.03%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. MCP.DE Dividend Analysis

5.1 Amount

  • MCP has a Yearly Dividend Yield of 2.01%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.49, MCP pays a better dividend. On top of this MCP pays more dividend than 92.31% of the companies listed in the same industry.
  • MCP's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.01%

5.2 History

  • On average, the dividend of MCP grows each year by 20.15%, which is quite nice.
Dividend Growth(5Y)20.15%
Div Incr Years0
Div Non Decr Years1
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 2Y44.92%
EPS Next 3Y43.03%
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

More info and screens

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MCP.DE Fundamentals: All Metrics, Ratios and Statistics

MICROCHIP TECHNOLOGY INC

FRA:MCP (4/17/2026, 7:00:00 PM)

67.21

+1.76 (+2.69%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Industry Strength93.17
Industry Growth93.17
Earnings (Last)02-05
Earnings (Next)05-07
Inst Owners99.75%
Inst Owner ChangeN/A
Ins Owners1.92%
Ins Owner ChangeN/A
Market Cap36.37B
Revenue(TTM)4.37B
Net Income(TTM)-156.60M
Analysts81.88
Price Target73.57 (9.46%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.01%
Yearly Dividend1.55
Dividend Growth(5Y)20.15%
DP-678.74%
Div Incr Years0
Div Non Decr Years1
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)-0.14%
PT rev (3m)8.05%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)4.62%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)3.43%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)2.96%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.87%
Valuation
Industry RankSector Rank
PE 67.21
Fwd PE 28.83
P/S 9.74
P/FCF 51.95
P/OCF 46.76
P/B 6.49
P/tB N/A
EV/EBITDA 48.69
EPS(TTM)1
EY1.49%
EPS(NY)2.33
Fwd EY3.47%
FCF(TTM)1.29
FCFY1.92%
OCF(TTM)1.44
OCFY2.14%
SpS6.9
BVpS10.35
TBVpS-3.53
PEG (NY)2.9
PEG (5Y)N/A
Graham Number15.2611 (-77.29%)
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 4.26
F-Score4
WACC11.59%
ROIC/WACC0.13
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 Y23.17%
EPS Next 2Y44.92%
EPS Next 3Y43.03%
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 Year6.13%
Revenue Next 2Y14.04%
Revenue Next 3Y15.51%
Revenue Next 5Y14.34%
EBIT growth 1Y-56.73%
EBIT growth 3Y-41.54%
EBIT growth 5Y-11.55%
EBIT Next Year61.19%
EBIT Next 3Y42.57%
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 2 / 10 to MICROCHIP TECHNOLOGY INC (MCP.DE). This can be considered as Overvalued.


How profitable is MICROCHIP TECHNOLOGY INC (MCP.DE) stock?

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


Can you provide the PE and PB ratios for MCP stock?

The Price/Earnings (PE) ratio for MICROCHIP TECHNOLOGY INC (MCP.DE) is 67.21 and the Price/Book (PB) ratio is 6.49.


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 23.17% in the next year.