Microchip Technology (MCHP) Hits New Lifetime High

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Microchip Technology ( MCHP) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Microchip Technology as such a stock due to the following factors:

  • MCHP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $69.6 million.
  • MCHP has traded 18,662 shares today.
  • MCHP is trading at a new lifetime high.

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More details on MCHP:

Microchip Technology Incorporated engages in developing, manufacturing, and selling semiconductor products for embedded control applications. The stock currently has a dividend yield of 3%. MCHP has a PE ratio of 29.6. Currently there are 3 analysts that rate Microchip Technology a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Microchip Technology has been 2.1 million shares per day over the past 30 days. Microchip Technology has a market cap of $9.5 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.08 and a short float of 14.5% with 17.14 days to cover. Shares are up 6.7% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Microchip Technology as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, notable return on equity, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 5.2%. Since the same quarter one year prior, revenues rose by 15.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 860.00% and other important driving factors, this stock has surged by 27.26% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MICROCHIP TECHNOLOGY INC's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for MICROCHIP TECHNOLOGY INC is rather high; currently it is at 63.47%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.85% is above that of the industry average.
  • Net operating cash flow has increased to $153.87 million or 19.36% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -9.54%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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