Microchip Technology
Market Cap
US$38.7b
Last Updated
2021/01/17 00:18 UTC
Data Sources
Company Financials +
Executive Summary
Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications in the Americas, Europe, and Asia. More Details
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential with proven track record and pays a dividend.
Similar Companies
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: MCHP's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
0.8%
MCHP
1.1%
US Semiconductor
-1.0%
US Market
1 Year Return
35.8%
MCHP
51.3%
US Semiconductor
19.6%
US Market
Return vs Industry: MCHP underperformed the US Semiconductor industry which returned 51.2% over the past year.
Return vs Market: MCHP exceeded the US Market which returned 19.6% over the past year.
Shareholder returns
| MCHP | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.8% | 1.1% | -1.0% |
| 30 Day | 6.3% | 6.0% | 2.2% |
| 90 Day | 34.1% | 18.0% | 11.5% |
| 1 Year | 37.7%35.8% | 53.9%51.3% | 22.3%19.6% |
| 3 Year | 59.9%52.4% | 103.5%92.9% | 45.3%35.7% |
| 5 Year | 278.0%244.4% | 356.2%312.1% | 124.8%99.8% |
Long-Term 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
5 days ago | Simply Wall St
Should Microchip Technology Incorporated (NASDAQ:MCHP) Be Part Of Your Dividend Portfolio?2 weeks ago | Simply Wall St
Are Microchip Technology's (NASDAQ:MCHP) Statutory Earnings A Good Guide To Its Underlying Profitability?1 month ago | Simply Wall St
Did You Participate In Any Of Microchip Technology's (NASDAQ:MCHP) Fantastic 208% Return ?Valuation
Is Microchip Technology undervalued compared to its fair value and its price relative to the market?
60.04x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MCHP ($148.56) is trading above our estimate of fair value ($99.8)
Significantly Below Fair Value: MCHP is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MCHP is poor value based on its PE Ratio (60x) compared to the US Semiconductor industry average (45.7x).
PE vs Market: MCHP is poor value based on its PE Ratio (60x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: MCHP is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: MCHP is overvalued based on its PB Ratio (7.1x) compared to the US Semiconductor industry average (4.4x).
Next Steps
Future Growth
How is Microchip Technology forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
28.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MCHP's forecast earnings growth (28.4% per year) is above the savings rate (2%).
Earnings vs Market: MCHP's earnings (28.4% per year) are forecast to grow faster than the US market (21.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MCHP's revenue (7% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: MCHP's revenue (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 (23.7%)
Next Steps
Past Performance
How has Microchip Technology performed over the past 5 years?
20.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MCHP has a large one-off loss of $112.4M impacting its September 30 2020 financial results.
Growing Profit Margin: MCHP's current net profit margins (11.6%) are higher than last year (7.2%).
Past Earnings Growth Analysis
Earnings Trend: MCHP's earnings have grown significantly by 20.3% per year over the past 5 years.
Accelerating Growth: MCHP's earnings growth over the past year (57.4%) exceeds its 5-year average (20.3% per year).
Earnings vs Industry: MCHP earnings growth over the past year (57.4%) exceeded the Semiconductor industry 20.8%.
Return on Equity
High ROE: MCHP's Return on Equity (11.2%) is considered low.
Next Steps
Financial Health
How is Microchip Technology's financial position?
Financial Position Analysis
Short Term Liabilities: MCHP's short term assets ($2.1B) exceed its short term liabilities ($2.0B).
Long Term Liabilities: MCHP's short term assets ($2.1B) do not cover its long term liabilities ($9.4B).
Debt to Equity History and Analysis
Debt Level: MCHP's debt to equity ratio (166.8%) is considered high.
Reducing Debt: MCHP's debt to equity ratio has increased from 125.9% to 166.8% over the past 5 years.
Debt Coverage: MCHP's debt is not well covered by operating cash flow (19%).
Interest Coverage: MCHP's interest payments on its debt are not well covered by EBIT (1.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Microchip Technology current dividend yield, its reliability and sustainability?
0.99%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MCHP's dividend (0.99%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.39%).
High Dividend: MCHP's dividend (0.99%) is low compared to the top 25% of dividend payers in the US market (3.85%).
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 (59.4%), 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 (19.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.9yrs
Average management tenure
CEO
Steve Sanghi (64 yo)
29.25yrs
Tenure
US$6,883,381
Compensation
Mr. Stephen Sanghi, also known as Steve, has been the Chief Executive Officer of Microchip Technology Incorporated since October 1991. Mr. Sanghi employed by Microchip since February 1990. He served as an ...
CEO Compensation Analysis
Compensation vs Market: Steve's total compensation ($USD6.88M) is below average for companies of similar size in the US market ($USD10.56M).
Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Chairman | 29.25yrs | US$6.88m | 1.9% $ 735.6m | |
| President & COO | 4.92yrs | US$3.04m | 0.12% $ 47.5m | |
| Senior VP & CFO | 12yrs | US$1.21m | 0.010% $ 4.0m | |
| Senior Vice President of Worldwide Client Engagement | 1.92yrs | US$1.32m | 0.0032% $ 1.2m | |
| Senior Vice President of MCU8 & MCU16 Business Units | 1.92yrs | US$1.49m | 0.0065% $ 2.5m | |
| VP, General Counsel & Corporate Secretary | no data | no data | no data | |
| Senior Vice President of Global Human Resources | 1.92yrs | no data | no data | |
| Senior Vice President of Fab Operations | 1.92yrs | no data | no data | |
| Senior Vice President of Analog Power & Interface Business Units | 1.92yrs | US$169.26k | 0.020% $ 7.6m | |
| Senior Vice President of Networking and Data Center Business Units | 1.92yrs | no data | no data | |
| Senior Vice President of Back-End Operations | 1.92yrs | no data | no data | |
| Senior Vice President of 32-bit MCU | 1.92yrs | no data | no data |
1.9yrs
Average Tenure
59.5yo
Average Age
Experienced Management: MCHP's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Chairman | 29.25yrs | US$6.88m | 1.9% $ 735.6m | |
| Independent Director | 23.67yrs | US$205.49k | 0.0074% $ 2.9m | |
| Independent Director | 21.58yrs | US$205.49k | 0.0062% $ 2.4m | |
| Independent Director | 26.08yrs | US$205.49k | 0.0039% $ 1.5m | |
| Independent Director | 7.25yrs | US$205.49k | 0.0032% $ 1.2m | |
| Director | no data | no data | no data |
23.7yrs
Average Tenure
68.5yo
Average Age
Experienced Board: MCHP's board of directors are seasoned and experienced ( 23.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MCHP insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9%.
Top Shareholders
Company Information
Microchip Technology Incorporated's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Microchip Technology Incorporated
- Ticker: MCHP
- Exchange: NasdaqGS
- Founded: 1989
- Industry: Semiconductors
- Sector: Semiconductors
- Market Cap: US$38.681b
- Shares outstanding: 260.38m
- Website: https://www.microchip.com
Number of Employees
Location
- Microchip Technology Incorporated
- 2355 West Chandler Boulevard
- Chandler
- Arizona
- 85224-6199
- United States
Listings
| 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 |
Biography
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 an...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/17 00:18 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/03/31 |
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.