Microchip Technology became an independent company in 1989 when it was spun off from General Instrument. More than half of revenue comes from MCUs, which are used in a wide array of electronic devices from remote controls to garage door openers to power windows in autos. The company's strength lies in lower-end 8-bit MCUs that are suitable for a wider range of less technologically advanced devices, but the firm has expanded its presence in higher-end MCUs and analog chips as well.

Financial Strength

6/10

Name	Current	Vs Industry
Cash-To-Debt	0.05
Equity-to-Asset	0.44
Debt-to-Equity	0.81
Debt-to-EBITDA	1.41
Interest Coverage	17.37
Piotroski F-Score	7/9	0 1 2 3 4 5 6 7 8 9
Altman Z-Score	5.11	Distress Grey Safe
Beneish M-Score	-2.5	Manipulator Not Manipulator
WACC vs ROIC		WACC ROIC

Growth Rank

9/10

	Name	Current	Vs Industry		Vs History
	3-Year Revenue Growth Rate	13.7
	3-Year EBITDA Growth Rate	26.9
	3-Year EPS without NRI Growth Rate	50.4
	3-Year FCF Growth Rate	25
	3-Year Book Growth Rate	1.6
	Future 3-5Y EPS without NRI Growth Rate	3.19
	Future 3-5Y Total Revenue Growth Rate	-5.3

Momentum Rank

8/10

	Name	Current	Vs Industry		Vs History
	5-Day RSI	80.26
	9-Day RSI	69.02
	14-Day RSI	63.14
	6-1 Month Momentum %	18.53
	12-1 Month Momentum %	16.37

Liquidity Ratio

	Name	Current	Vs Industry		Vs History
	Current Ratio	0.98
	Quick Ratio	0.58
	Cash Ratio	0.09
	Days Inventory	167.68
	Days Sales Outstanding	60.04
	Days Payable	40.4

Dividend & Buy Back

	Name	Current	Vs Industry		Vs History
	Dividend Yield %	1.8
	Dividend Payout Ratio	0.33
	3-Year Dividend Growth Rate	19.9
	Forward Dividend Yield %	1.8
	5-Year Yield-on-Cost %	2.95
	3-Year Average Share Buyback Ratio	-3.6
	Shareholder Yield %	5.77

Profitability Rank

10/10

	Name	Current	Vs Industry		Vs History
	Gross Margin %	67.03
	Operating Margin %	37.14
	Net Margin %	27.59
	FCF Margin %	32.95
	ROE %	34.95
	ROA %	14.42
	ROIC %	16.19
	ROC (Joel Greenblatt) %	128.75
	ROCE %	23.49
	Years of Profitability over Past 10-Year	10

GF Value Rank

3/10

	Name	Current	Vs Industry		Vs History
	PE Ratio	21.87
	Forward PE Ratio	29.47
	PE Ratio without NRI	19.28
	Shiller PE Ratio	58
	Price-to-Owner-Earnings	18.71
	PEG Ratio	1.1
	PS Ratio	6.03
	PB Ratio	7.14
	Price-to-Free-Cash-Flow	18.29
	Price-to-Operating-Cash-Flow	16.24
	EV-to-EBIT	17.78
	EV-to-Forward-EBIT	29.19
	EV-to-EBITDA	13.82
	EV-to-Forward-EBITDA	22.36
	EV-to-Revenue	6.56
	EV-to-Forward-Revenue	9.02
	EV-to-FCF	19.91
	Price-to-Projected-FCF	1.38
	Price-to-DCF (Earnings Based)	0.74
	Price-to-DCF (FCF Based)	0.67
	Price-to-Median-PS-Value	1.14
	Price-to-Peter-Lynch-Fair-Value	0.87
	Earnings Yield (Greenblatt) %	5.62
	FCF Yield %	5.56
	Forward Rate of Return (Yacktman) %	24.47

GF Value: $78.82

MCHP

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