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Microchip Technology

WBAG:MCHP
Snowflake Description

High growth potential average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MCHP
WBAG
$20B
Market Cap
  1. Home
  2. AT
  3. Semiconductors
Company description

Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications in the Americas, Europe, and Asia. The last earnings update was 19 days ago. More info.


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MCHP Share Price and Events
7 Day Returns
0.3%
WBAG:MCHP
-2.6%
Europe Semiconductor
-0.5%
AT Market
1 Year Returns
-12.2%
WBAG:MCHP
-22.1%
Europe Semiconductor
-8%
AT Market
MCHP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Microchip Technology (MCHP) 0.3% 0.8% 3.2% -12.2% - -
Europe Semiconductor -2.6% -9.6% -3.9% -22.1% 65.8% 73.6%
AT Market -0.5% -3.7% -3.3% -8% 37.9% 17.8%
1 Year Return vs Industry and Market
  • MCHP outperformed the Semiconductor industry which returned -22.1% over the past year.
  • MCHP underperformed the Market in Austria which returned -8% over the past year.
Price Volatility
MCHP
Industry
5yr Volatility vs Market
Related Companies

MCHP Value

 Is Microchip Technology undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Microchip Technology to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Microchip Technology.

WBAG:MCHP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 20 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year AT Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for WBAG:MCHP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AT Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6%
Semiconductor Unlevered Beta Simply Wall St/ S&P Global 1.22
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.224 (1 + (1- 21%) (50.96%))
1.48
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.48
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.51% + (1.48 * 5.96%)
9.33%

Discounted Cash Flow Calculation for WBAG:MCHP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Microchip Technology is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

WBAG:MCHP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.33%)
2019 1,390.04 Analyst x5 1,271.42
2020 1,619.80 Analyst x5 1,355.15
2021 1,630.75 Analyst x6 1,247.88
2022 1,640.94 Est @ 0.62% 1,148.53
2023 1,650.63 Est @ 0.59% 1,056.72
2024 1,659.98 Est @ 0.57% 972.02
2025 1,669.10 Est @ 0.55% 893.96
2026 1,678.07 Est @ 0.54% 822.07
2027 1,686.95 Est @ 0.53% 755.90
2028 1,695.78 Est @ 0.52% 695.02
Present value of next 10 years cash flows $10,218.68
WBAG:MCHP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,695.78 × (1 + 0.51%) ÷ (9.33% – 0.51%)
$19,325.58
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $19,325.58 ÷ (1 + 9.33%)10
$7,920.56
WBAG:MCHP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $10,218.68 + $7,920.56
$18,139.24
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $18,139.24 / 237.93
$76.24
WBAG:MCHP Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in WBAG:MCHP represents 0.89788x of NasdaqGS:MCHP
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.89788x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 76.24 x 0.89788
€68.45
Value per share (EUR) From above. €68.45
Current discount Discount to share price of €76.32
= -1 x (€76.32 - €68.45) / €68.45
-11.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Microchip Technology is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Microchip Technology's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Microchip Technology's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
WBAG:MCHP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.51
NasdaqGS:MCHP Share Price ** NasdaqGS (2019-06-18) in USD $85
Europe Semiconductor Industry PE Ratio Median Figure of 27 Publicly-Listed Semiconductor Companies 23.74x
Austria Market PE Ratio Median Figure of 54 Publicly-Listed Companies 15.12x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Microchip Technology.

WBAG:MCHP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:MCHP Share Price ÷ EPS (both in USD)

= 85 ÷ 1.51

56.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Microchip Technology is overvalued based on earnings compared to the Europe Semiconductor industry average.
  • Microchip Technology is overvalued based on earnings compared to the Austria market.
Price based on expected Growth
Does Microchip Technology's expected growth come at a high price?
Raw Data
WBAG:MCHP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 56.41x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
37.7%per year
Europe Semiconductor Industry PEG Ratio Median Figure of 20 Publicly-Listed Semiconductor Companies 1.4x
Austria Market PEG Ratio Median Figure of 32 Publicly-Listed Companies 1.27x

*Line of best fit is calculated by linear regression .

WBAG:MCHP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 56.41x ÷ 37.7%

1.5x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Microchip Technology is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Microchip Technology's assets?
Raw Data
WBAG:MCHP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $22.25
NasdaqGS:MCHP Share Price * NasdaqGS (2019-06-18) in USD $85
Europe Semiconductor Industry PB Ratio Median Figure of 39 Publicly-Listed Semiconductor Companies 1.82x
Austria Market PB Ratio Median Figure of 62 Publicly-Listed Companies 1.22x
WBAG:MCHP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:MCHP Share Price ÷ Book Value per Share (both in USD)

= 85 ÷ 22.25

3.82x

* Primary Listing of Microchip Technology.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Microchip Technology is overvalued based on assets compared to the Europe Semiconductor industry average.
X
Value checks
We assess Microchip Technology's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Semiconductor industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Semiconductor industry average (and greater than 0)? (1 check)
  5. Microchip Technology has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MCHP Future Performance

 How is Microchip Technology expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
37.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Microchip Technology expected to grow at an attractive rate?
  • Microchip Technology's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Microchip Technology's earnings growth is expected to exceed the Austria market average.
  • Microchip Technology's revenue growth is expected to exceed the Austria market average.
Annual Growth Rates Comparison
Raw Data
WBAG:MCHP Future Growth Rates Data Sources
Data Point Source Value (per year)
WBAG:MCHP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts 37.7%
WBAG:MCHP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 5.3%
Europe Semiconductor Industry Earnings Growth Rate Market Cap Weighted Average 22.7%
Europe Semiconductor Industry Revenue Growth Rate Market Cap Weighted Average 8.2%
Austria Market Earnings Growth Rate Market Cap Weighted Average 8.8%
Austria Market Revenue Growth Rate Market Cap Weighted Average 3.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
WBAG:MCHP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
WBAG:MCHP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 6,109 1,864 3
2021-03-31 6,006 1,834 982 18
2020-03-31 5,549 1,697 663 20
WBAG:MCHP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 5,350 1,675 356
2018-12-31 5,022 1,631 328
2018-09-30 4,641 1,514 28
2018-06-30 4,221 1,377 121
2018-03-31 3,981 1,420 255
2017-12-31 3,881 1,383 246
2017-09-30 3,721 1,309 604
2017-06-30 3,580 1,181 450
2017-03-31 3,408 1,060 171
2016-12-31 3,063 939 101
2016-09-30 2,769 859 55
2016-06-30 2,439 787 84

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Microchip Technology's earnings are expected to grow significantly at over 20% yearly.
  • Microchip Technology's revenue is expected to grow by 5.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
WBAG:MCHP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from Microchip Technology Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WBAG:MCHP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31
2021-03-31 3.44 5.39 1.87 10.00
2020-03-31 2.35 5.46 1.12 13.00
WBAG:MCHP Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.51
2018-12-31 1.39
2018-09-30 0.12
2018-06-30 0.51
2018-03-31 1.10
2017-12-31 1.07
2017-09-30 2.68
2017-06-30 2.04
2017-03-31 0.79
2016-12-31 0.48
2016-09-30 0.26
2016-06-30 0.41

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Microchip Technology is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Microchip Technology's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Microchip Technology has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MCHP Past Performance

  How has Microchip Technology performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Microchip Technology's growth in the last year to its industry (Semiconductor).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Microchip Technology's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Microchip Technology's 1-year earnings growth exceeds its 5-year average (39.4% vs -11.4%)
  • Microchip Technology's earnings growth has exceeded the Europe Semiconductor industry average in the past year (39.4% vs -16.3%).
Earnings and Revenue History
Microchip Technology's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Microchip Technology Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WBAG:MCHP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 5,349.50 355.90 642.70 826.30
2018-12-31 5,022.00 327.90 594.00 745.20
2018-09-30 4,641.40 27.70 532.80 659.10
2018-06-30 4,221.20 120.50 475.60 570.70
2018-03-31 3,980.80 255.40 453.90 529.30
2017-12-31 3,881.16 245.62 450.05 522.89
2017-09-30 3,721.33 603.95 451.57 523.62
2017-06-30 3,580.49 450.43 457.00 527.92
2017-03-31 3,407.80 170.60 500.80 545.30
2016-12-31 3,062.79 101.04 466.94 513.75
2016-09-30 2,768.77 54.92 432.20 478.34
2016-06-30 2,438.79 84.24 392.33 435.80
2016-03-31 2,173.30 324.10 301.70 372.60
2015-12-31 2,158.89 356.18 291.16 364.62
2015-09-30 2,147.26 381.03 281.55 356.30
2015-06-30 2,152.11 409.77 272.41 349.85
2015-03-31 2,147.04 369.01 274.82 349.54
2014-12-31 2,097.21 381.10 272.38 339.24
2014-09-30 2,050.88 400.45 272.57 326.89
2014-06-30 1,997.30 406.61 270.82 316.33
2014-03-31 1,931.22 395.28 267.28 305.04
2013-12-31 1,867.98 343.48 266.68 298.12
2013-09-30 1,801.65 248.25 269.19 293.15
2013-06-30 1,692.28 127.26 271.59 278.98
2013-03-31 1,581.62 127.39 261.47 254.72
2012-12-31 1,490.39 148.34 246.45 232.00
2012-09-30 1,403.50 215.65 228.17 204.88
2012-06-30 1,360.80 316.12 206.33 186.18

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Microchip Technology has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Microchip Technology used its assets less efficiently than the Europe Semiconductor industry average last year based on Return on Assets.
  • Microchip Technology's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Microchip Technology's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Semiconductor industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Microchip Technology has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MCHP Health

 How is Microchip Technology's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Microchip Technology's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Microchip Technology's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Microchip Technology's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Microchip Technology's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Microchip Technology Company Filings, last reported 2 months ago.

WBAG:MCHP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 5,287.50 10,307.00 430.90
2018-12-31 5,161.10 10,542.30 436.20
2018-09-30 5,170.20 10,886.10 464.20
2018-06-30 5,123.80 11,349.60 649.70
2018-03-31 3,279.80 3,068.30 2,196.60
2017-12-31 3,185.08 3,039.62 1,099.59
2017-09-30 3,546.12 3,017.83 1,314.60
2017-06-30 3,412.55 2,995.16 1,230.25
2017-03-31 3,270.70 2,950.50 1,302.80
2016-12-31 2,566.90 3,123.99 669.64
2016-09-30 2,519.51 3,105.43 490.84
2016-06-30 2,532.55 3,336.50 601.79
2016-03-31 2,150.92 2,453.41 2,446.04
2015-12-31 2,126.34 2,406.47 1,007.90
2015-09-30 2,129.38 2,687.87 2,001.54
2015-06-30 2,098.88 1,864.74 1,532.55
2015-03-31 2,061.03 1,826.86 1,958.87
2014-12-31 2,282.28 1,359.60 1,122.46
2014-09-30 2,252.21 1,341.37 1,283.11
2014-06-30 2,169.65 1,353.18 1,759.86
2014-03-31 2,135.46 1,020.76 1,344.79
2013-12-31 2,075.11 1,019.47 1,307.40
2013-09-30 2,018.54 1,006.29 1,151.91
2013-06-30 1,954.26 974.25 961.88
2013-03-31 1,933.47 983.39 1,578.60
2012-12-31 1,927.09 971.41 1,622.30
2012-09-30 1,964.10 959.66 1,553.41
2012-06-30 2,017.99 357.36 1,661.76
  • Microchip Technology's level of debt (194.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (48% vs 194.9% today).
  • Debt is not well covered by operating cash flow (16.2%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.3x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Microchip Technology's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Microchip Technology has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MCHP Dividends

 What is Microchip Technology's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.72%
Current annual income from Microchip Technology dividends. Estimated to be 1.69% next year.
If you bought €2,000 of Microchip Technology shares you are expected to receive €34 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Microchip Technology's pays a higher dividend yield than the bottom 25% of dividend payers in Austria (1.43%).
  • Microchip Technology's dividend is below the markets top 25% of dividend payers in Austria (4.44%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
WBAG:MCHP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
Europe Semiconductor Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 1.6%
Austria Market Average Dividend Yield Market Cap Weighted Average of 51 Stocks 3.6%
Austria Minimum Threshold Dividend Yield 10th Percentile 1.1%
Austria Bottom 25% Dividend Yield 25th Percentile 1.4%
Austria Top 25% Dividend Yield 75th Percentile 4.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

WBAG:MCHP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 1.49 3.00
2021-03-31 1.47 7.00
2020-03-31 1.39 9.00
WBAG:MCHP Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-08 1.462 1.754
2019-02-06 1.460 1.615
2019-02-05 1.460 1.694
2018-11-07 1.458 1.975
2018-08-09 1.456 1.912
2018-05-08 1.454 1.521
2018-02-07 1.452 1.636
2018-02-06 1.452 1.665
2017-11-06 1.450 1.594
2017-08-03 1.448 1.640
2017-05-30 1.446 1.784
2017-05-09 1.446 1.804
2017-02-07 1.444 1.962
2016-11-08 1.442 2.203
2016-11-07 1.442 2.286
2016-08-08 1.440 2.374
2016-05-24 1.438 2.735
2016-05-04 1.438 2.987
2016-02-05 1.436 3.082
2016-02-03 1.436 3.385
2015-11-09 1.434 3.165
2015-11-04 1.434 2.979
2015-08-03 1.432 3.246
2015-05-27 1.430 3.101
2015-05-07 1.430 2.933
2015-01-29 1.428 2.904
2014-10-30 1.426 3.206
2014-07-31 1.424 3.139
2014-05-06 1.422 2.966
2014-01-30 1.420 3.061
2013-10-30 1.418 3.246
2013-07-31 1.416 3.554
2013-05-02 1.414 3.759
2013-02-07 1.412 3.902
2012-11-08 1.408 4.408
2012-08-02 1.404 4.189
2012-05-01 1.400 4.357
2012-02-02 1.396 3.846
2011-11-03 1.392 3.908
2011-08-04 1.388 4.229
2011-05-05 1.384 3.781
2010-11-04 1.380 3.804
2010-08-05 1.372 4.557
2010-06-02 1.368 4.687
2010-05-05 1.368 4.911
2010-02-03 1.364 4.833
2009-11-04 1.360 4.971
2009-08-06 1.356 5.173

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Microchip Technology's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.5x coverage).
X
Income/ dividend checks
We assess Microchip Technology's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Microchip Technology afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Microchip Technology has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MCHP Management

 What is the CEO of Microchip Technology's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Steve Sanghi
COMPENSATION $7,893,460
AGE 62
TENURE AS CEO 27.7 years
CEO Bio

Mr. Stephen Sanghi, also known as Steve, has been the Chief Executive Officer of Microchip Technology Incorporated since October 1991 for over 25 years. Mr. Sanghi is employed by Microchip since February 1990. He has been an Independent Director of Mellanox Technologies, Ltd. since February 21, 2018. He served as the President of Microchip Technology Incorporated from August 1990 to February 3, 2016. He has been Chief Executive Officer and Director of Microsemi Corp., since May 29, 2018 also its Chairman since 2018. He served as Acting Chief Executive Officer of FlipChip International, LLC from March 2013 to September 2013. He has held executive positions at Waferscale Integration, Inc., and Intel Corporation. He worked for Intel Corporation from 1978 to 1988 in various engineering and management positions, including General Manager of Intel’s programmable memory operation. He serves as President and Chief Executive Officer of Microchip Technology Inc at Silicon Storage Technology, Inc. He has been the Chairman of Microchip Technology Incorporated since October 1993 and FlipChip International, LLC since September 2013. He serves as Chairman of FIRST (For Inspiration and Recognition of Science and Technology). He served as the Chairman of Adflex Solutions Inc. since April 1999. He has been a Director of Standard Microsystems Corporation since August 2, 2012. He has been a Director of Microchip Technology Incorporated since August 1990. He has been a Director of Myomo, Inc. since November 2016. He serves as a Director of FlipChip International, LLC. He serves as a Director of United States Foundation For Inspiration And Recognition Of Science And Technology. He served as a Director of Xyratex Ltd. from May 2004 to March 31, 2014. He served as a Director of Adflex Solutions Inc. since June 1994. He served as a Director of Hittite Microwave Corporation from October 1, 2013 to July 22, 2014. Mr. Sanghi served as Member of the Board of Trustees of Kettering University in Flint, Michigan since September 2004. He served as a Director of Vivid Semiconductor Inc. and Artisoft. He served as a Director of FIRST Organization since May 2007. He was Vice President of Operations at Waferscale Integration, Inc., a semiconductor company, from 1988 to 1990. He is co-author of the book “Driving Excellence: How the Aggregate System Turned Microchip Technology from a Failing Company to a Market Leader (Wiley; April 2006). In June 1995, Mr. Sanghi received the Arizona Entrepreneur of the Year award. Mr. Sanghi holds a Bachelor of Science in Electronics and Electrical Communications Engineering from Punjab University, India in 1975 and holds an MS degree in Electrical and Computer Engineering from the University of Massachusetts in Amherst, Massachusetts.

CEO Compensation
  • Steve's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Insufficient data for Steve to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure

Average tenure and age of the Microchip Technology management team in years:

0.3
Average Tenure
57
Average Age
  • The average tenure for the Microchip Technology management team is less than 2 years, this suggests a new team.
Management Team

Steve Sanghi

TITLE
CEO & Chairman
COMPENSATION
$8M
AGE
62
TENURE
27.7 yrs

Ganesh Moorthy

TITLE
President & COO
COMPENSATION
$3M
AGE
58
TENURE
3.3 yrs

James Bjornholt

TITLE
Senior VP & CFO
COMPENSATION
$1M
AGE
47
TENURE
10.4 yrs

Mitch Little

TITLE
Senior Vice President of Worldwide Client Engagement
COMPENSATION
$1M
AGE
66
TENURE
0.3 yrs

Steve Drehobl

TITLE
Senior Vice President of MCU8 and MCU16 Business Units
COMPENSATION
$2M
AGE
57
TENURE
0.3 yrs

Kim van Herk

TITLE
VP, General Counsel & Corporate Secretary

Rami Kanama

TITLE
Vice President of Timing & Communication Group
AGE
49

Lauren Carr

TITLE
Senior Vice President of Global Human Resources
TENURE
0.3 yrs

Michael Finley

TITLE
Senior Vice President of Fab Operations
TENURE
0.3 yrs

Rich Simoncic

TITLE
Senior Vice President of Analog Power and Interface Business Units
COMPENSATION
$169K
AGE
54
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Microchip Technology board of directors in years:

22.1
Average Tenure
67
Average Age
  • The average tenure for the Microchip Technology board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Steve Sanghi

TITLE
CEO & Chairman
COMPENSATION
$8M
AGE
62
TENURE
25.7 yrs

Matt Chapman

TITLE
Independent Director
COMPENSATION
$165K
AGE
67
TENURE
22.1 yrs

L. Day

TITLE
Independent Director
COMPENSATION
$165K
AGE
73
TENURE
24.5 yrs

Wade Meyercord

TITLE
Independent Director
COMPENSATION
$165K
AGE
77
TENURE
20 yrs

Esther Johnson

TITLE
Independent Director
COMPENSATION
$165K
AGE
66
TENURE
5.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
14. Mar 19 Sell L. Day Individual 14. Mar 19 14. Mar 19 -3,500 €75.05 €-262,665
15. Feb 19 Sell Matthew Chapman Individual 15. Feb 19 15. Feb 19 -4,660 €80.75 €-376,307
13. Feb 19 Sell Mitchell Little Individual 13. Feb 19 13. Feb 19 -3,585 €80.76 €-289,532
14. Aug 18 Buy Ganesh Moorthy Individual 14. Aug 18 14. Aug 18 12,000 €74.05 €888,602
X
Management checks
We assess Microchip Technology's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Microchip Technology has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MCHP News

Simply Wall St News

MCHP Company Info

Description

Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications in the Americas, Europe, and Asia. The company offers general purpose and specialized 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit microprocessors; and microcontrollers for automotive, industrial, computing, communication, lighting, power supplies, motor control, human machine interface, security, and wired and wireless connectivity applications. It also provides development tools that enable system designers to program microcontroller products for specific applications; field-programmable gate array (FPGA) products; and analog, power, interface, mixed signal, and timing products comprising power management, linear, mixed-signal, high-voltage, thermal management, discrete diodes and metal oxide semiconductor field effect transistors (MOSFETS), radio frequency (RF), drivers, safety, security, timing, USB, Ethernet, wireless, and other interface products. In addition, the company offers memory products consisting of serial electrically erasable programmable read-only memory, serial flash memories, parallel flash memories, serial static random access memories, and serial electrically erasable random access memories for the production of very small footprint devices; and licenses its SuperFlash embedded flash and Smartbits one time programmable NVM technologies to foundries, integrated device manufacturers, and design partners for use in the manufacture of microcontroller products, gate array, RF, analog, and neuromorphic compute products that require embedded non-volatile memory, as well as provides engineering services. Further, it provides wafer foundry and assembly and test subcontracting manufacturing services; and aerospace and timing systems products, application specific integrated circuits, and complex programmable logic devices. Microchip Technology Incorporated was founded in 1989 and is headquartered in Chandler, Arizona.

Details
Name: Microchip Technology Incorporated
MCHP
Exchange: WBAG
Founded: 1989
$18,053,744,464
237,926,508
Website: http://www.microchip.com
Address: Microchip Technology Incorporated
2355 West Chandler Boulevard,
Chandler,
Arizona, 85224,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS MCHP Common Stock Nasdaq Global Select US USD 19. Mar 1993
DB MCP Common Stock Deutsche Boerse AG DE EUR 19. Mar 1993
WBAG MCHP Common Stock Wiener Boerse AG AT EUR 19. Mar 1993
BMV MCHP * Common Stock Bolsa Mexicana de Valores MX MXN 19. Mar 1993
Number of employees
Current staff
Staff numbers
18,286
Microchip Technology employees.
Industry
Semiconductors
Semiconductors
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 22:19
End of day share price update: 2019/06/18 00:00
Last estimates confirmation: 2019/06/11
Last earnings filing: 2019/05/30
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.