ScoreWhy is Microchip Technology, Inc. ?
1
The company has declared Negative results for the last 6 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at USD 911 MM
- NET PROFIT(9M) At USD 117.52 MM has Grown at -27.13%
- CASH AND EQV(HY) Lowest at USD 487.5 MM
2
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 22.07%, its profits have fallen by -88.6%
3
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
4
Market Beating Performance
- The stock has generated a return of 22.07% in the last 1 year, much higher than market (S&P 500) returns of 11.87%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Microchip Technology, Inc. should be less than 10%
- Overall Portfolio exposure to Other Electrical Equipment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Microchip Technology, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Microchip Technology, Inc.
111.27%
-0.59
58.20%
S&P 500
30.29%
0.62
19.30%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-3.77%
EBIT Growth (5y)
-20.57%
EBIT to Interest (avg)
7.95
Debt to EBITDA (avg)
2.80
Net Debt to Equity (avg)
0.69
Sales to Capital Employed (avg)
0.47
Tax Ratio
100.00%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
13.90%
ROE (avg)
19.99%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
1019
Industry P/E
Price to Book Value
5.36
EV to EBIT
145.40
EV to EBITDA
41.15
EV to Capital Employed
3.44
EV to Sales
9.22
PEG Ratio
NA
Dividend Yield
2.82%
ROCE (Latest)
2.37%
ROE (Latest)
0.53%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend23What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 587.3
DIVIDEND PAYOUT RATIO(Y)
Highest at 710.94%
RAW MATERIAL COST(Y)
Fallen by -6.68% (YoY
NET SALES(Q)
Highest at USD 1,186 MM
OPERATING PROFIT(Q)
Highest at USD 328.3 MM
OPERATING PROFIT MARGIN(Q)
Highest at 27.68 %
PRE-TAX PROFIT(Q)
Highest at USD 98.4 MM
NET PROFIT(Q)
Highest at USD 65.92 MM
EPS(Q)
Highest at USD 0.06
-8What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 911 MM
NET PROFIT(9M)
At USD 117.52 MM has Grown at -27.13%
CASH AND EQV(HY)
Lowest at USD 487.5 MM
Here's what is working for Microchip Technology, Inc.
Pre-Tax Profit
At USD 98.4 MM has Grown at 332.62%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 65.92 MM has Grown at 232.36%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Interest Coverage Ratio
Highest at 587.3
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales
Highest at USD 1,186 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 328.3 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 27.68 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 98.4 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 65.92 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.06
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Dividend Payout Ratio
Highest at 710.94%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -6.68% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Microchip Technology, Inc.
Operating Cash Flow
Lowest at USD 911 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Cash and Eqv
Lowest at USD 487.5 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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