-0.29%
-4.10%
-25.04%
-38.05%
-35.43%
-29.01%
12.84%

Company Description

Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia.The company offers general purpose 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit embedded microprocessors markets; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications.It also provides development tools that enable system designers to program microcontroller and microprocessor products for specific applications; field-programmable gate array (FPGA) products; and analog, interface, mixed signal, and timing products comprising power management, linear, mixed-signal, high-voltage, thermal management, discrete diodes and metal oxide semiconductor field effect transistors (MOSFETS), radio frequency (RF), drivers, safety, security, timing, USB, Ethernet, wireless, and other interface products.


In addition, the company offers memory products consisting of serial electrically erasable programmable read-only memory, serial flash memories, parallel flash memories, serial static random access memories, and serial electrically erasable random access memories for the production of very small footprint devices; and licenses its SuperFlash embedded flash and NVM technologies to foundries, integrated device manufacturers, and design partners for use in the manufacture of microcontroller products, gate array, RF, analog, and neuromorphic compute products that require embedded non-volatile memory, as well as provides engineering services.Further, it offers wafer foundry and assembly, and test subcontracting manufacturing services; and timing systems products, application specific integrated circuits, and aerospace products.Microchip Technology Incorporated was incorporated in 1989 and is headquartered in Chandler, Arizona.

Market Data

Last Price 55
Change Percentage -0.29%
Open 54.78
Previous Close 55.16
Market Cap ( Millions) 29536
Volume 341619
Year High 100.57
Year Low 54.47
M A 50 60.28
M A 200 78.39

Financial Ratios

FCF Yield 4.99%
Dividend Yield 3.29%
ROE 11.83%
Debt / Equity 102.90%
Net Debt / EBIDTA 315.95%
Price To Book 4.7
Price Earnings Ratio 37.77
Price To FCF 20.03
Price To sales 5.37
EV / EBITDA 18.28

News

Business Breakdown

Expected Mid-Term Growth

Segment n°1 -> Semiconductor

Expected Growth : 8.9 %

What the company do ?

Microchip Technology Incorporated is a leading manufacturer of semiconductor products, including microcontrollers, analog and interface products, and memory devices.

Why we expect these perspectives ?

Microchip Technology Incorporated's 8.9% growth in the semiconductor segment is driven by increasing demand for IoT devices, autonomous vehicles, and 5G infrastructure. Additionally, the company's focus on analog and mixed-signal products, as well as its strategic acquisitions, have contributed to its growth momentum.

Segment n°2 -> Technology Licensing

Expected Growth : 9.27 %

What the company do ?

Microchip Technology's Technology Licensing allows companies to license and integrate Microchip's intellectual property, such as microcontrollers and analog circuits, into their own products.

Why we expect these perspectives ?

Microchip Technology's 9.27% growth in Technology Licensing is driven by increasing demand for IoT and 5G-enabled devices, growing adoption of cloud computing and artificial intelligence, and the company's strategic partnerships and acquisitions. Additionally, the rising need for secure and efficient data processing, and the growing importance of semiconductor intellectual property (IP) in emerging technologies, contribute to this growth.

Microchip Technology Incorporated Products

Product Range What is it ?
Microcontrollers (MCUs) Microchip's microcontrollers are designed to provide a high level of performance, low power consumption, and advanced peripherals for a wide range of applications.
Analog and Interface Products Microchip's analog and interface products include amplifiers, data converters, interface devices, and power management devices.
Memory and Storage Microchip's memory and storage products include serial EEPROMs, serial flash, and parallel flash devices.
RF and Wireless Solutions Microchip's RF and wireless solutions include Wi-Fi, Bluetooth, and LoRa modules and devices.
Security and Authentication Microchip's security and authentication products include cryptographic coprocessors, secure boot, and secure authentication devices.
Power Management and Interface Microchip's power management and interface products include power management ICs, battery management, and interface devices.
Sensors and Actuators Microchip's sensors and actuators include temperature sensors, pressure sensors, and motor control devices.

Microchip Technology Incorporated's Porter Forces

Microchip Technology Incorporated faces moderate threat from substitutes, as customers have limited alternatives for its microcontrollers and analog semiconductors. However, the company's focus on innovation and customer relationships helps mitigate this threat.

Microchip Technology Incorporated's customers have limited bargaining power due to the company's diverse customer base and lack of concentration. The company's strong relationships with customers also reduce the bargaining power of individual customers.

Microchip Technology Incorporated has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company's strong relationships with suppliers and its ability to negotiate prices also mitigate this threat.

The threat of new entrants is low for Microchip Technology Incorporated due to the high barriers to entry in the semiconductor industry. The company's strong brand recognition, intellectual property, and established customer relationships also make it difficult for new entrants to gain traction.

The semiconductor industry is highly competitive, with several established players competing for market share. Microchip Technology Incorporated faces intense rivalry from companies like Texas Instruments, STMicroelectronics, and Analog Devices, which can lead to pricing pressure and increased marketing expenses.

Capital Structure

Value
Debt Weight 47.54%
Debt Cost 3.95%
Equity Weight 52.46%
Equity Cost 11.90%
WACC 8.12%
Leverage 90.61%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
KLAC KLA Corporation designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. It operates through four segments: Semiconductor Process Control; Specialty …
LRCX Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten …
TXN Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. It operates in two segments, Analog and Embedded Processing. The Analog segment offers power products to …
AMAT Applied Materials, Inc. provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. It operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent …
MPWR Monolithic Power Systems, Inc. engages in the design, development, marketing, and sale of semiconductor-based power electronics solutions for the computing and storage, automotive, industrial, communications, and consumer markets. The company …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
54.98$
Current Price
54.98$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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