Finny logo
Finny logo
Dibs:
Dibs:
0

7-day free trial: Get unlimited comparisons, and stock, ETF and mutual fund analyses for just $15 a month, without ads. Start a free trial. Go ad free!

Microchip Technology Incorporated (MCHP) Stock Guide

November 12, 2020
40
Bull Case
  • Company’s profitability is improving
  • Forward dividend yield higher than the industry and sector averages
  • Forward P/E ratio low relative to industry peers
  • Buy analyst rating
Bear Case
  • Stock price high relative to the 52-week range
  • Revenue growth lower than the industry and sector averages
  • Average analyst stock price below current stock price
  • High short share of float
  • High short interest
  • Cash/Debt ratio is lower than the industry and sector averages

Before we start: if you're looking for MCHP stock price, you can quickly find it out by visiting Finny and typing "MCHP quote". If you're looking for a quick scoop on MCHP stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "MCHP". You'll get all this info in one place. Or you can just type "MCHP news" to get the latest stock news.

Looking to buy or sell Microchip Technology Incorporated (MCHP)? Interested in getting the full scoop on MCHP, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this MCHP stock guide, we'll address key questions about MCHP, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are MCHP earnings?
2. When is MCHP earnings date?
3. What is MCHP dividend?
4. What is MCHP dividend yield?
5. What is MCHP stock forecast (i.e., prediction)?
6. MCHP buy or sell? What is MCHP Finny Score?
7. What are the reasons to buy MCHP? Why should I buy MCHP stock?
8. What are the reasons to sell MCHP? Why should I sell MCHP stock?
9. What are MCHP key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are MCHP earnings?

MCHP trailing 12-month earnings per share (EPS) is $2.50.

2. When is MCHP earnings date?

MCHP earnings date is February 02, 2021.

3. What is MCHP dividend?

MCHP forward dividend is $1.47.

4. What is MCHP dividend yield?

MCHP forward dividend yield is 1.4%.

Analyst Predictions

5. What is MCHP stock forecast (i.e., prediction)?

Based on MCHP analyst price targets, MCHP stock forecast is $122.71 (for a year from now). That means the average analyst price target for MCHP stock is $122.71. The prediction is based on 17 analyst estimates.

The low price target for MCHP is $102.00, while the high price target is $135.00.

MCHP analyst rating is Buy.

Analysis

6. MCHP buy or sell? What is MCHP Finny Score?

Our quantitative analysis shows 4 reasons to buy and 6 reasons to sell MCHP, resulting in Finny Score of 40.

7. What are the reasons to buy MCHP? Why should I buy MCHP stock?

Here are the reasons to buy MCHP stock:

  • Microchip sells to tens of thousands of end customers, so it is not overly dependent on sales to any one client or market segment.
  • Microchip's focus on the MCU market gives it an advantage over larger competitors, in our view, as MCUs are only one of many segments within their larger businesses.
  • Microchip has one of the highest dividend yields in the chip sector.
  • MCHP profitability is improving. The YoY profit margin change was 1.58 percentage points. See MCHP profitability chart.
  • MCHP forward dividend yield is 1.40%, higher than the industry (0.56%) and sector (0.23%) forward dividend yields. See MCHP forward dividend chart.
  • MCHP forward P/E ratio is 15.66, which is low compared to its industry peers’ P/E ratios. See MCHP forward P/E ratio chart.
  • MCHP average analyst rating is Buy. See MCHP analyst rating chart.

8. What are the reasons to sell MCHP? Why should I sell MCHP stock?

Let's look at the reasons to sell MCHP stock (i.e., the bear case):

  • Microchip faces competition in analog chips and microcontrollers from larger firms, such as Texas Instruments and STMicro.
  • Microchip is the market-share leader in 8-bit MCUs but trails a couple of other firms in 16- and 32-bit MCUs.
  • Microchip has done an exceptional job of integrating M&A targets in recent years, but has leveraged up the balance sheet to do so.
  • MCHP stock price ($123.46) is close to the 52-week high ($126.82). Perhaps now is a good time to sell? See MCHP price chart.
  • MCHP quarterly revenue growth was -1.00%, lower than the industry and sector average revenue growth (-0.83% and 0.53%, respectively). See MCHP revenue growth chart.
  • MCHP average analyst price target ($122.71) is below its current price ($123.46). See MCHP price target chart.
  • MCHP short share of float is 6.20%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See MCHP short share of float chart.
  • MCHP short interest (days to cover the shorts) ratio is 7.63. The stock garners more short interest than the average industry, sector or S&P 500 stock. See MCHP short interest ratio chart.
  • MCHP cash to debt ratio is 0.04, lower than the average industry (0.33) and sector (0.17) cash to debt ratio. See MCHP cash to debt chart.

Key Stats

9. What are MCHP key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for MCHP:

Metrics MCHP
Price $137.42
Average Price Target / Upside $122.71 / -10.70%
Average Analyst Rating Buy
Forward Dividend Yield 1.10%
Industry Semiconductors
Sector Technology
Number of Employees 14,234
Market Cap $35.66B
Forward P/E Ratio 19.32
Price/Book Ratio 6.82
Revenue (TTM) $5.23B
YoY Quarterly Revenue Growth -2.10%
Profit Margin 11.62%

If you liked this analysis, check out Stock Guides for other stocks.

Follow Us