Microchip Technology Inc

Find Ratings Reports
MCHP : NASDAQ : Technology
$64.5 up 1.0 | 1.6%
Today's Range: 63.04 - 64.59
Avg. Daily Volume: 2163400.0
12/07/16 - 3:59 PM ET

Financial Analysis

MICROCHIP TECHNOLOGY INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged 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 1.63 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 18.32% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.

Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)871.36541.39
EBITDA ($mil)273.45162.86
EBIT ($mil)160.6491.75
Net Income ($mil)33.9264.9

Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)490.842001.54
Total Assets ($mil)7074.45786.31
Total Debt ($mil)3105.432687.87
Equity ($mil)2519.512129.38

Profitability Q2 FY16 Q2 FY15
Gross Profit Margin60.5262.3
EBITDA Margin31.3830.08
Operating Margin18.4416.95
Sales Turnover0.390.37
Return on Assets0.696.58
Return on Equity2.1717.89
Debt Q2 FY16 Q2 FY15
Current Ratio2.587.47
Interest Expense35.1325.64
Interest Coverage4.573.58

Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)215.95203.05
Div / share0.360.36
Book value / share11.6710.49
Institutional Own % n/a n/a
Avg Daily Volume2222338.02224435.0


BUY. MICROCHIP TECHNOLOGY INC's P/E ratio indicates a significant premium compared to an average of 30.16 for the Semiconductors & Semiconductor Equipment industry and a significant premium compared to the S&P 500 average of 25.37. Conducting a second comparison, its price-to-book ratio of 5.42 indicates a significant premium versus the S&P 500 average of 2.81 and a premium versus the industry average of 4.18. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MCHP 274.91 Peers 30.16   MCHP 15.49 Peers 17.71

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.


Discount. 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 discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
MCHP 15.64 Peers 18.33   MCHP 1.93 Peers 2.53

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 discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MCHP 5.42 Peers 4.18   MCHP -86.79 Peers 22.14

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 significant 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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MCHP 4.93 Peers 4.46   MCHP 28.94 Peers 10.64

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 significantly exceeds its peers.



Latest Stock Upgrades/Downgrades