MICROCHIP TECHNOLOGY INC's gross profit margin for the fourth quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. MICROCHIP TECHNOLOGY INC is extremely liquid. Currently, the Quick Ratio is 6.31 which clearly shows the ability to cover any short-term cash needs. MCHP managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.25% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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|Income Statement||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||543.21||493.38|
|Net Income ($mil)||99.4||111.5|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||1958.87||1344.79|
|Total Assets ($mil)||4780.71||4067.63|
|Total Debt ($mil)||1826.86||1020.76|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||49.35||63.79|
|Return on Assets||7.71||9.71|
|Return on Equity||18.04||18.51|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||201.44||200.0|
|Div / share||0.36||0.36|
|Book value / share||10.15||10.68|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2331963.0||2652352.0|
BUY. MICROCHIP TECHNOLOGY INC's P/E ratio indicates a premium compared to an average of 28.96 for the Semiconductors & Semiconductor Equipment industry and a premium compared to the S&P 500 average of 20.73. For additional comparison, its price-to-book ratio of 4.91 indicates a significant premium versus the S&P 500 average of 2.86 and a discount versus the industry average of 6.37. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. The valuation analysis reveals that, MICROCHIP TECHNOLOGY INC seems to be trading at a premium to investment alternatives within the industry.
|MCHP 30.03||Peers 28.96||MCHP NA||Peers 14.89|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
MCHP is trading at a valuation on par with its peers.
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.
Ratio not available.
|MCHP 15.43||Peers 18.87||MCHP 0.38||Peers 1.27|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
MCHP is trading at a discount to its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
MCHP trades at a significant discount to its peers.
|MCHP 4.91||Peers 6.37||MCHP -8.29||Peers 44.24|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
MCHP is trading at a discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, MCHP is expected to significantly trail its peers on the basis of its earnings growth rate.
|MCHP 4.68||Peers 4.46||MCHP 11.17||Peers 15.21|
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
MCHP is trading at a valuation on par with its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
MCHP significantly trails its peers on the basis of sales growth
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