Microchip Technology IncorporatedFind Ratings Reports
MICROCHIP TECHNOLOGY INC's gross profit margin for the fourth quarter of its fiscal year 2020 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its subsector. MICROCHIP TECHNOLOGY INC has weak liquidity. Currently, the Quick Ratio is 0.53 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.44% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q4 FY20||Q4 FY19|
|Net Sales ($mil)||1467.1||1326.4|
|Net Income ($mil)||116.0||99.9|
|Balance Sheet||Q4 FY20||Q4 FY19|
|Cash & Equiv. ($mil)||282.0||403.0|
|Total Assets ($mil)||16478.8||17426.1|
|Total Debt ($mil)||8904.1||9621.4|
|Profitability||Q4 FY20||Q4 FY19|
|Gross Profit Margin||47.73||46.16|
|Return on Assets||2.12||3.27|
|Return on Equity||6.55||10.22|
|Debt||Q4 FY20||Q4 FY19|
|Share Data||Q4 FY20||Q4 FY19|
|Shares outstanding (mil)||269.26||245.33|
|Div / share||0.39||0.37|
|Book value / share||19.82||22.77|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2089401.0||1959635.0|
BUY. MICROCHIP TECHNOLOGY INC's P/E ratio indicates a significant premium compared to an average of 52.49 for the Computer and Electronic Product Manufacturing subsector and a significant premium compared to the S&P 500 average of 44.64. To use another comparison, its price-to-book ratio of 7.39 indicates a significant premium versus the S&P 500 average of 4.42 and a significant discount versus the subsector average of 11.56. The price-to-sales ratio is well above the S&P 500 average, but well below the subsector average.
|MCHP 113.57||Peers 46.18||MCHP NA||Peers 29.93|
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.
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 19.54||Peers 28.22||MCHP 0.28||Peers 1.38|
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 7.39||Peers 11.56||MCHP -41.90||Peers 79.04|
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 significant 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 7.25||Peers 10.56||MCHP 3.11||Peers 26.78|
Discount. 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 significant discount to its subsector on this measurement.
Lower. A sales growth rate that trails the subsector implies that a company is losing market share.
MCHP significantly trails its peers on the basis of sales growth.