Microchip Technology, Inc. (MCHP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

NVIDIA Corp.

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QUALCOMM, Inc.

NXP Semiconductors NV

Microchip Technology, Inc.

Why is Microchip Technology, Inc. ?

The company has declared Negative results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at USD 796.6 MM
PRE-TAX PROFIT(Q) At USD 6.4 MM has Fallen at -96.11%
NET PROFIT(Q) At USD 3.6 MM has Fallen at -97.26%

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 -25.80%, its profits have fallen by -95.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -25.80% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Microchip Technology, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Microchip Technology, Inc.

-1.02%

-0.77

58.70%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.24%

EBIT Growth (5y)

-22.26%

EBIT to Interest (avg)

7.95

Debt to EBITDA (avg)

2.80

Net Debt to Equity (avg)

0.69

Sales to Capital Employed (avg)

0.53

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

13.90%

ROE (avg)

19.99%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

458

Industry P/E

Price to Book Value

5.06

EV to EBIT

108.47

EV to EBITDA

36.18

EV to Capital Employed

3.40

EV to Sales

9.25

PEG Ratio

Dividend Yield

2.09%

ROCE (Latest)

3.14%

ROE (Latest)

1.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 4.55

CASH AND EQV(HY)

Highest at USD 1,338.2 MM

DEBT-EQUITY RATIO (HY)

Lowest at 71.87 %

-27What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 796.6 MM

PRE-TAX PROFIT(Q)

At USD 6.4 MM has Fallen at -96.11%

NET PROFIT(Q)

At USD 3.6 MM has Fallen at -97.26%

NET SALES(HY)

At USD 2,046 MM has Grown at -20.3%

ROCE(HY)

Lowest at -2.24%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 23.24% (YoY

Here's what is working for Microchip Technology, Inc.

Dividend per share

Highest at USD 4.55 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Cash and Eqv

Highest at USD 1,338.2 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 71.87 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Microchip Technology, Inc.

Pre-Tax Profit

At USD 6.4 MM has Fallen at -96.11%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 3.6 MM has Fallen at -97.26%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 796.6 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Net Sales

At USD 2,046 MM has Grown at -20.3%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 23.24% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales