Microchip Technology IncFind Ratings Reports
MICROCHIP TECHNOLOGY INC's gross profit margin for the first quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased. MICROCHIP TECHNOLOGY INC has strong liquidity. Currently, the Quick Ratio is 1.81 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 20.66% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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|Income Statement||Q1 FY16||Q1 FY15|
|Net Sales ($mil)||799.41||533.95|
|Net Income ($mil)||-113.36||130.67|
|Balance Sheet||Q1 FY16||Q1 FY15|
|Cash & Equiv. ($mil)||601.79||1532.55|
|Total Assets ($mil)||7358.76||4856.99|
|Total Debt ($mil)||3336.5||1858.7|
|Profitability||Q1 FY16||Q1 FY15|
|Gross Profit Margin||59.14||62.8|
|Return on Assets||1.08||8.43|
|Return on Equity||3.32||19.52|
|Debt||Q1 FY16||Q1 FY15|
|Share Data||Q1 FY16||Q1 FY15|
|Shares outstanding (mil)||215.03||202.41|
|Div / share||0.36||0.36|
|Book value / share||11.78||10.37|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2197691.0||2160839.0|
BUY. MICROCHIP TECHNOLOGY INC's P/E ratio indicates a significant premium compared to an average of 42.11 for the Semiconductors & Semiconductor Equipment industry and a significant premium compared to the S&P 500 average of 25.13. Conducting a second comparison, its price-to-book ratio of 5.19 indicates a significant premium versus the S&P 500 average of 2.82 and a premium versus the industry average of 4.25. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, MICROCHIP TECHNOLOGY INC proves to trade at a premium to investment alternatives within the industry.
|MCHP 160.87||Peers 42.11||MCHP 16.12||Peers 17.36|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
MCHP is trading at a significant premium to 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 16.08||Peers 19.40||MCHP 1.24||Peers 2.66|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
MCHP is trading at a valuation on par with 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 5.19||Peers 4.25||MCHP -79.57||Peers -2.21|
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.
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 5.39||Peers 5.14||MCHP 13.32||Peers 3.97|
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.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
MCHP has a sales growth rate that significantly exceeds its peers.