MICROCHIP TECHNOLOGY INC (MCP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:MCP - US5950171042 - Common Stock
56.4 EUR
+1.36 (+2.47%)
We assign a fundamental rating of 3 out of 10 to MCP. MCP was compared to 61 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and financial health of MCP have multiple concerns. MCP is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MCP was profitable.
MCP had a positive operating cash flow in the past year.
Of the past 5 years MCP 4 years were profitable.
Each year in the past 5 years MCP had a positive operating cash flow.
1.2 Ratios
MCP has a worse Return On Assets (-1.69%) than 88.52% of its industry peers.
Looking at the Return On Equity, with a value of -3.66%, MCP is doing worse than 88.52% of the companies in the same industry.
MCP has a worse Return On Invested Capital (0.81%) than 83.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MCP is below the industry average of 14.58%.
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
Looking at the Operating Margin, with a value of 3.68%, MCP is doing worse than 83.61% of the companies in the same industry.
In the last couple of years the Operating Margin of MCP has declined.
MCP's Gross Margin of 54.06% is fine compared to the rest of the industry. MCP outperforms 72.13% 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.
MCP has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MCP has more shares outstanding
Compared to 1 year ago, MCP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.72 indicates that MCP is not in any danger for bankruptcy at the moment.
MCP has a Altman-Z score of 3.72. This is in the lower half of the industry: MCP underperforms 60.66% 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's Debt to FCF ratio of 7.13 is on the low side compared to the rest of the industry. MCP is outperformed by 67.21% of its industry peers.
A Debt/Equity ratio of 0.80 indicates that MCP is somewhat dependend on debt financing.
MCP's Debt to Equity ratio of 0.80 is on the low side compared to the rest of the industry. MCP is outperformed by 86.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.13 | ||
| Altman-Z | 3.72 |
ROIC/WACC0.08
WACC10.17%
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 of 2.25. This is comparable to the rest of the industry: MCP outperforms 52.46% of its industry peers.
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.
MCP has a Quick ratio of 1.20. This is in the lower half of the industry: MCP underperforms 78.69% of its industry peers.
| 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%.
The earnings per share for MCP have been decreasing by -14.29% on average. This is quite bad
Looking at the last year, MCP shows a very negative growth in Revenue. The Revenue has decreased by -23.36% in the last year.
Measured over the past years, MCP shows a decrease in Revenue. The Revenue has been decreasing by -3.55% on average per year.
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
Based on estimates for the next years, MCP will show a very strong growth in Earnings Per Share. The EPS will grow by 29.55% 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 9.85% on average per year.
EPS Next Y12.78%
EPS Next 2Y39.7%
EPS Next 3Y41.47%
EPS Next 5Y29.55%
Revenue Next Year3.21%
Revenue Next 2Y10.83%
Revenue Next 3Y13.73%
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
With a Price/Earnings ratio of 71.39, MCP can be considered very expensive at the moment.
Based on the Price/Earnings ratio, MCP is valued expensively inside the industry as 81.97% of the companies are valued cheaper.
Compared to an average S&P500 Price/Earnings ratio of 26.57, MCP is valued quite expensively.
MCP is valuated quite expensively with a Price/Forward Earnings ratio of 26.20.
The rest of the industry has a similar Price/Forward Earnings ratio as MCP.
The average S&P500 Price/Forward Earnings ratio is at 24.04. MCP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.39 | ||
| Fwd PE | 26.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MCP is valued expensively inside the industry as 80.33% of the companies are valued cheaper.
MCP's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.63 | ||
| EV/EBITDA | 47.05 |
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 41.47% in the coming years.
PEG (NY)5.59
PEG (5Y)N/A
EPS Next 2Y39.7%
EPS Next 3Y41.47%
5. Dividend
5.1 Amount
MCP has a Yearly Dividend Yield of 2.78%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.79, MCP pays a better dividend. On top of this MCP pays more dividend than 96.72% of the companies listed in the same industry.
MCP's Dividend Yield is a higher than the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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
MCP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
MCP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-421.71%
EPS Next 2Y39.7%
EPS Next 3Y41.47%
FRA:MCP (12/22/2025, 7:00:00 PM)
56.4
+1.36 (+2.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.37%
Inst Owner ChangeN/A
Ins Owners1.93%
Ins Owner ChangeN/A
Market Cap30.48B
Revenue(TTM)4.21B
Net Income(TTM)-245.10M
Analysts79.39
Price Target65.1 (15.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Yearly Dividend1.54
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 | 71.39 | ||
| Fwd PE | 26.2 | ||
| P/S | 8.53 | ||
| P/FCF | 47.63 | ||
| P/OCF | 42.72 | ||
| P/B | 5.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 47.05 |
EPS(TTM)0.79
EY1.4%
EPS(NY)2.15
Fwd EY3.82%
FCF(TTM)1.18
FCFY2.1%
OCF(TTM)1.32
OCFY2.34%
SpS6.61
BVpS10.51
TBVpS-3.41
PEG (NY)5.59
PEG (5Y)N/A
Graham Number13.67
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 | 3.72 |
F-Score3
WACC10.17%
ROIC/WACC0.08
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 Y12.78%
EPS Next 2Y39.7%
EPS Next 3Y41.47%
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 Year3.21%
Revenue Next 2Y10.83%
Revenue Next 3Y13.73%
Revenue Next 5Y9.85%
EBIT growth 1Y-86.35%
EBIT growth 3Y-41.54%
EBIT growth 5Y-11.55%
EBIT Next Year54.95%
EBIT Next 3Y42.38%
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 3 / 10 to MCP.DE.
What is the valuation status for MCP stock?
ChartMill assigns a valuation rating of 2 / 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 3 / 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 71.39 and the Price/Book (PB) ratio is 5.37.
How sustainable is the dividend of MICROCHIP TECHNOLOGY INC (MCP.DE) stock?
The dividend rating of MICROCHIP TECHNOLOGY INC (MCP.DE) is 6 / 10 and the dividend payout ratio is -421.71%.