Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications in the Americas, Europe, and Asia.
Solid track record with high growth potential and pays a dividend.
Share Price & News
How has Microchip Technology's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MCHP has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: MCHP underperformed the Austrian Semiconductor industry which returned 61.1% over the past year.
Return vs Market: MCHP exceeded the Austrian Market which returned 3.9% over the past year.
Price Volatility Vs. Market
How volatile is Microchip Technology's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Microchip Technology undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MCHP (€101.56) is trading below our estimate of fair value (€102.32)
Significantly Below Fair Value: MCHP is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: MCHP is poor value based on its PE Ratio (39.9x) compared to the Semiconductor industry average (29.5x).
PE vs Market: MCHP is poor value based on its PE Ratio (39.9x) compared to the Austrian market (14.2x).
Price to Earnings Growth Ratio
PEG Ratio: MCHP is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: MCHP is overvalued based on its PB Ratio (4.6x) compared to the XE Semiconductor industry average (2.7x).
How is Microchip Technology forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MCHP's forecast earnings growth (25.1% per year) is above the savings rate (-0.1%).
Earnings vs Market: MCHP's earnings (25.1% per year) are forecast to grow faster than the Austrian market (9.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MCHP's revenue (6.7% per year) is forecast to grow faster than the Austrian market (2.7% per year).
High Growth Revenue: MCHP's revenue (6.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MCHP's Return on Equity is forecast to be high in 3 years time (31.5%)
How has Microchip Technology performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MCHP has high quality earnings.
Growing Profit Margin: MCHP's current net profit margins (12.2%) are higher than last year (6.5%).
Past Earnings Growth Analysis
Earnings Trend: MCHP's earnings have grown by 3.6% per year over the past 5 years.
Accelerating Growth: MCHP's earnings growth over the past year (96.8%) exceeds its 5-year average (3.6% per year).
Earnings vs Industry: MCHP earnings growth over the past year (96.8%) exceeded the Semiconductor industry -19%.
Return on Equity
High ROE: MCHP's Return on Equity (11.5%) is considered low.
Return on Assets
Return on Capital Employed
How is Microchip Technology's financial position?
Financial Position Analysis
Short Term Liabilities: MCHP's short term assets ($2.1B) do not cover its short term liabilities ($2.3B).
Long Term Liabilities: MCHP's short term assets ($2.1B) do not cover its long term liabilities ($9.6B).
Debt to Equity History and Analysis
Debt Level: MCHP's debt to equity ratio (170.6%) is considered high.
Reducing Debt: MCHP's debt to equity ratio has increased from 59.9% to 170.6% over the past 5 years.
Debt Coverage: MCHP's debt is not well covered by operating cash flow (16.4%).
Interest Coverage: MCHP's interest payments on its debt are not well covered by EBIT (1.6x coverage).
Inventory Level: MCHP has a low level of unsold assets or inventory.
Debt Coverage by Assets: MCHP's debt is not covered by short term assets (assets are 0.2x debt).
What is Microchip Technology's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: MCHP's dividend (1.36%) isn’t notable compared to the bottom 25% of dividend payers in the Austrian market (1.58%).
High Dividend: MCHP's dividend (1.36%) is low compared to the top 25% of dividend payers in the Austrian market (4.54%).
Stability and Growth of Payments
Stable Dividend: MCHP's dividends per share have been stable in the past 10 years.
Growing Dividend: MCHP's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (54%), MCHP's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MCHP's dividends in 3 years are forecast to be well covered by earnings (20.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Steve Sanghi (63yo)
Mr. Stephen Sanghi, also known as Steve, has been the Chief Executive Officer of Microchip Technology Incorporated since October 1991. Mr. Sanghi is employed by Microchip since February 1990. He has been a ...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD12.86M) is above average for companies of similar size in the Austrian market ($USD3.60M).
Compensation vs Earnings: Steve's compensation has increased by more than 20% in the past year.
|CEO & Chairman||28.3yrs||US$12.86m||2.01% $483.1m|
|President & COO||4yrs||US$5.82m||0.12% $29.7m|
|Senior VP & CFO||11.1yrs||US$1.82m||0.011% $2.7m|
|Senior VP of Worldwide Sales & Applications||1yrs||US$2.39m||0.0040% $972.0k|
|Senior Vice President of MCU8 & Technology Development Division||1yrs||US$2.73m||0.0077% $1.8m|
|VP, General Counsel & Corporate Secretary||0yrs||no data||no data|
|Vice President of Timing & Communication Group||0yrs||no data||no data|
|Senior Vice President of Global Human Resources||1yrs||no data||no data|
|Senior Vice President of Fab Operations||1yrs||no data||no data|
|Senior Vice President of Analog Power and Interface Business Units||1yrs||US$169.26k||0.021% $5.1m|
Experienced Management: MCHP's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
|CEO & Chairman||28.3yrs||US$12.86m||2.01% $483.1m|
|Independent Director||22.8yrs||US$164.64k||0.0086% $2.1m|
|Independent Director||20.7yrs||US$164.64k||0.0086% $2.1m|
|Independent Director||25.2yrs||US$164.64k||0.0045% $1.1m|
|Independent Director||6.3yrs||US$164.64k||0.0034% $820.8k|
Experienced Board: MCHP's board of directors are seasoned and experienced ( 22.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Microchip Technology Incorporated's company bio, employee growth, exchange listings and data sources
- Name: Microchip Technology Incorporated
- Ticker: MCHP
- Exchange: WBAG
- Founded: 1989
- Industry: Semiconductors
- Sector: Semiconductors
- Market Cap: US$25.901b
- Listing Market Cap: US$24.000b
- Shares outstanding: 239.54m
- Website: https://www.microchip.com
Number of Employees
- Microchip Technology Incorporated
- 2355 West Chandler Boulevard
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|MCHP||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Mar 1993|
|MIR||SEAQ (SEAQ International)||Yes||Common Stock||GB||GBP||Mar 1993|
|MCP||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Mar 1993|
|MCHP||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Mar 1993|
|MCHP *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Mar 1993|
|MCP||ETLX (Eurotlx)||Yes||Common Stock||IT||EUR||Mar 1993|
|0K19||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Mar 1993|
|M1CH34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH REPR 2 COM||BR||BRL||Dec 2019|
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.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/20 23:33|
|End of Day Share Price||2020/02/20 00:00|
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.