ScoreWhy is Microchip Technology, Inc. ?
1
With a growth in Operating Profit of 145.32%, the company declared Outstanding results in Mar 26
- The company has declared positive results for the last 2 consecutive quarters
- INTEREST COVERAGE RATIO(Q) Highest at 768.86
- NET SALES(Q) Highest at USD 1,311.2 MM
- OPERATING PROFIT(Q) Highest at USD 397.5 MM
2
High Institutional Holdings at 100%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
3
Market Beating Performance
- The stock has generated a return of 46.68% in the last 1 year, much higher than market (S&P 500) returns of 25.41%
Real-Time Research ReportHow much should you buy?
- 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.
46.68%
0.13
45.65%
S&P 500
25.41%
1.92
13.25%
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
990
Industry P/E
Price to Book Value
5.21
EV to EBIT
141.76
EV to EBITDA
40.12
EV to Capital Employed
3.36
EV to Sales
8.99
PEG Ratio
NA
Dividend Yield
2.90%
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 Trend34What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 768.86
NET SALES(Q)
Highest at USD 1,311.2 MM
OPERATING PROFIT(Q)
Highest at USD 397.5 MM
OPERATING PROFIT MARGIN(Q)
Highest at 30.32 %
PRE-TAX PROFIT(Q)
Highest at USD 170.3 MM
NET PROFIT(Q)
Highest at USD 149.83 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 214.22%
RAW MATERIAL COST(Y)
Fallen by -30.55% (YoY
EPS(Q)
Highest at USD 0.21
-1What is not working for the Company
CASH AND EQV(HY)
Lowest at USD 491 MM
Here's what is working for Microchip Technology, Inc.
Interest Coverage Ratio
Highest at 768.86 and Grown
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Pre-Tax Profit
At USD 170.3 MM has Grown at 276.11%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 149.83 MM has Grown at 280.52%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Net Sales
Highest at USD 1,311.2 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Operating Profit
Highest at USD 397.5 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 30.32 % and Grown
In each period in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 170.3 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 149.83 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Net Sales
At USD 1,311.2 MM has Grown at 35.11%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
EPS
Highest at USD 0.21
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Dividend Payout Ratio
Highest at 214.22%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Fallen by -30.55% (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.
Cash and Eqv
Lowest at USD 491 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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