MICROCHIP TECHNOLOGY INC's gross profit margin for the first quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. MICROCHIP TECHNOLOGY INC is extremely liquid. Currently, the Quick Ratio is 5.69 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 increased by 11.02% 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||Q1 FY14||Q1 FY13|
|Net Sales ($mil)||528.88||462.79|
|Net Income ($mil)||89.91||78.58|
|Balance Sheet||Q1 FY14||Q1 FY13|
|Cash & Equiv. ($mil)||1759.86||961.88|
|Total Assets ($mil)||4501.74||3883.58|
|Total Debt ($mil)||1353.18||974.25|
|Profitability||Q1 FY14||Q1 FY13|
|Gross Profit Margin||64.04||62.51|
|Return on Assets||9.03||3.27|
|Return on Equity||18.74||6.51|
|Debt||Q1 FY14||Q1 FY13|
|Share Data||Q1 FY14||Q1 FY13|
|Shares outstanding (mil)||200.4||197.3|
|Div / share||0.36||0.35|
|Book value / share||10.83||9.91|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1342590.0||1516218.0|
BUY. The current P/E ratio indicates a discount compared to an average of 28.00 for the Semiconductors & Semiconductor Equipment industry and a premium compared to the S&P 500 average of 19.69. Conducting a second comparison, its price-to-book ratio of 4.40 indicates a significant premium versus the S&P 500 average of 2.72 and a premium versus the industry average of 3.98. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.
|MCHP 25.91||Peers 28.00||MCHP 14.12||Peers 14.82|
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.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
MCHP is trading at a valuation on par to its peers.
|MCHP 15.13||Peers 19.31||MCHP 0.47||Peers 0.76|
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 4.40||Peers 3.98||MCHP 211.86||Peers 81.77|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
MCHP is trading at a premium to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
MCHP is expected to have an earnings growth rate that significantly exceeds its peers.
|MCHP 4.78||Peers 4.02||MCHP 18.02||Peers 15.10|
Premium. 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 premium to its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
MCHP has a sales growth rate that exceeds its peers.
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