(MCHP) Microchip Technology - Ratings and Ratios
Microcontrollers, Microprocessors, Analog Products, FPGA, Memory Products
MCHP EPS (Earnings per Share)
MCHP Revenue
Description: MCHP Microchip Technology
Microchip Technology Inc (NASDAQ:MCHP) is a leading provider of embedded control solutions, offering a broad range of products including microcontrollers, microprocessors, analog products, and memory products. The companys products cater to various applications across industries such as automotive, industrial, computing, and communications.
From a business perspective, Microchip Technology has a diversified revenue stream with a strong presence in the semiconductor industry. Key performance indicators (KPIs) to monitor include revenue growth, gross margin, and operating expenses as a percentage of revenue. The companys ability to maintain a healthy gross margin is crucial, given the competitive nature of the semiconductor industry. As of the latest available data, the gross margin is around 60%, indicating a strong pricing power and efficient manufacturing operations.
In terms of financial health, Microchip Technologys debt-to-equity ratio is a relevant metric, and as of the latest data, it stands at approximately 0.43, suggesting a relatively conservative approach to leveraging debt. The companys return on assets (ROA) and return on equity (ROE) are also important; while the provided ROE is negative, this could be due to one-time items or accounting adjustments, and a deeper dive into the financials is necessary to understand the underlying profitability.
From an operational standpoint, the companys ability to innovate and bring new products to market is critical. The product development cycle, time-to-market, and the success rate of new products are all important KPIs. Additionally, the companys supply chain resilience and manufacturing capacity are vital in meeting customer demand and navigating industry-wide semiconductor shortages.
Investors should also monitor the companys guidance on future revenue and earnings, as well as any updates on industry trends and competitor activity. With a market capitalization of approximately $39.5 billion, Microchip Technology is a significant player in the semiconductor space, and its stock performance is influenced by both company-specific factors and broader industry trends.
MCHP Stock Overview
| Market Cap in USD | 34,939m |
| Sub-Industry | Semiconductors |
| IPO / Inception | 1993-03-19 |
MCHP Stock Ratings
| Growth Rating | 3.38% |
| Fundamental | 41.7% |
| Dividend Rating | 71.1% |
| Return 12m vs S&P 500 | -25.8% |
| Analyst Rating | 4.25 of 5 |
MCHP Dividends
| Dividend Yield 12m | 2.83% |
| Yield on Cost 5y | 4.06% |
| Annual Growth 5y | 19.73% |
| Payout Consistency | 98.4% |
| Payout Ratio | 1.8% |
MCHP Growth Ratios
| Growth Correlation 3m | -75.6% |
| Growth Correlation 12m | -11.4% |
| Growth Correlation 5y | 16% |
| CAGR 5y | 2.89% |
| CAGR/Max DD 3y | 0.05 |
| CAGR/Mean DD 3y | 0.23 |
| Sharpe Ratio 12m | -0.21 |
| Alpha | 0.01 |
| Beta | 0.906 |
| Volatility | 36.11% |
| Current Volume | 7381.6k |
| Average Volume 20d | 7153.4k |
| Stop Loss | 63.4 (-3.6%) |
| Signal | 1.15 |
Piotroski VR‑10 (Strict, 0-10) 2.5
| Net Income (-148.4m TTM) > 0 and > 6% of Revenue (6% = 254.1m TTM) |
| FCFTA 0.05 (>2.0%) and ΔFCFTA -7.97pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 36.91% (prev 21.68%; Δ 15.23pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.05 (>3.0%) and CFO 796.6m > Net Income -148.4m (YES >=105%, WARN >=100%) |
| Net Debt (4.93b) to EBITDA (841.4m) ratio: 5.86 <= 3.0 (WARN <= 3.5) |
| Current Ratio 2.31 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (539.2m) change vs 12m ago -0.66% (target <= -2.0% for YES) |
| Gross Margin 54.48% (prev 63.37%; Δ -8.89pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 27.49% (prev 41.59%; Δ -14.10pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 0.44 (EBITDA TTM 841.4m / Interest Expense TTM 249.0m) >= 6 (WARN >= 3) |
Altman Z'' 2.64
| (A) 0.10 = (Total Current Assets 2.75b - Total Current Liabilities 1.19b) / Total Assets 14.98b |
| (B) 0.37 = Retained Earnings (Balance) 5.49b / Total Assets 14.98b |
| (C) 0.01 = EBIT TTM 108.9m / Avg Total Assets 15.41b |
| (D) 0.68 = Book Value of Equity 5.48b / Total Liabilities 8.12b |
| Total Rating: 2.64 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 41.66
| 1. Piotroski 2.50pt = -2.50 |
| 2. FCF Yield 1.82% = 0.91 |
| 3. FCF Margin 17.13% = 4.28 |
| 4. Debt/Equity 0.80 = 2.19 |
| 5. Debt/Ebitda 6.53 = -2.50 |
| 6. ROIC - WACC (= 0.89)% = 1.11 |
| 7. RoE -2.26% = -0.38 |
| 8. Rev. Trend -92.33% = -6.92 |
| 9. EPS Trend -90.61% = -4.53 |
What is the price of MCHP shares?
Over the past week, the price has changed by +1.61%, over one month by +1.03%, over three months by -2.15% and over the past year by -12.06%.
Is Microchip Technology a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of MCHP is around 60.54 USD . This means that MCHP is currently overvalued and has a potential downside of -7.97%.
Is MCHP a buy, sell or hold?
- Strong Buy: 13
- Buy: 4
- Hold: 7
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the MCHP price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 76.9 | 16.9% |
| Analysts Target Price | 76.9 | 16.9% |
| ValueRay Target Price | 68 | 3.4% |
Last update: 2025-09-12 04:40
MCHP Fundamental Data Overview
CCE Cash And Equivalents = 566.5m USD (Cash And Short Term Investments, last quarter)
P/E Forward = 41.3223
P/S = 8.2485
P/B = 5.0953
P/EG = 5.6959
Beta = 1.544
Revenue TTM = 4.24b USD
EBIT TTM = 108.9m USD
EBITDA TTM = 841.4m USD
Long Term Debt = 5.46b USD (from longTermDebt, last quarter)
Short Term Debt = 36.4m USD (from shortTermDebt, last quarter)
Debt = 5.49b USD (Calculated: Short Term 36.4m + Long Term 5.46b)
Net Debt = 4.93b USD (from netDebt column, last quarter)
Enterprise Value = 39.87b USD (34.94b + Debt 5.49b - CCE 566.5m)
Interest Coverage Ratio = 0.44 (Ebit TTM 108.9m / Interest Expense TTM 249.0m)
FCF Yield = 1.82% (FCF TTM 725.6m / Enterprise Value 39.87b)
FCF Margin = 17.13% (FCF TTM 725.6m / Revenue TTM 4.24b)
Net Margin = -3.50% (Net Income TTM -148.4m / Revenue TTM 4.24b)
Gross Margin = 54.48% ((Revenue TTM 4.24b - Cost of Revenue TTM 1.93b) / Revenue TTM)
Tobins Q-Ratio = 7.27 (Enterprise Value 39.87b / Book Value Of Equity 5.48b)
Interest Expense / Debt = 1.04% (Interest Expense 57.4m / Debt 5.49b)
Taxrate = 101.3% (set to none) (39.4m / 38.9m)
NOPAT = unknown (EBIT/Op.Income or Taxrate missing)
Current Ratio = 2.31 (Total Current Assets 2.75b / Total Current Liabilities 1.19b)
Debt / Equity = 0.80 (Debt 5.49b / last Quarter total Stockholder Equity 6.86b)
Debt / EBITDA = 6.53 (Net Debt 4.93b / EBITDA 841.4m)
Debt / FCF = 7.57 (Debt 5.49b / FCF TTM 725.6m)
Total Stockholder Equity = 6.56b (last 4 quarters mean)
RoA = -0.99% (Net Income -148.4m, Total Assets 14.98b )
RoE = -2.26% (Net Income TTM -148.4m / Total Stockholder Equity 6.56b)
RoCE = 0.91% (Ebit 108.9m / (Equity 6.56b + L.T.Debt 5.46b))
RoIC = 0.89% (Ebit 108.9m / (Assets 14.98b - Current Assets 2.75b))
WACC = unknown (E(34.94b)/V(40.43b) * Re(9.35%)) + (D(5.49b)/V(40.43b) * Rd(1.04%) * (1-Tc(none)))
Shares Correlation 3-Years: -93.13 | Cagr: -0.32%
Discount Rate = 9.35% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 71.46% ; FCFE base≈1.25b ; Y1≈1.11b ; Y5≈920.2m
Fair Price DCF = 24.76 (DCF Value 13.36b / Shares Outstanding 539.7m; 5y FCF grow -14.03% → 3.0% )
EPS Correlation: -90.61 | EPS CAGR: -45.87% | SUE: 0.83 | # QB: 0
Revenue Correlation: -92.33 | Revenue CAGR: -21.23% | SUE: N/A | # QB: None
Additional Sources for MCHP Stock
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