AI Spotlight on MCHP
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
- Jan -27 - Microchip Launches the Next Generation of its Low-Noise Chip-Scale Atomic Clock Featuring a Lower Profile Height of Less Than ½ Inch
- Jan -21 - MCHP Plummets 36% in a Year: How Should You Approach the Stock?
- Jan -16 - New Family of Switchtec™ PCIe® Gen 4.0 16-Lane Switches Provides Versatility for Automotive and Embedded Computing Applications
- Jan -04 - These Were the 5 Worst-Performing Stocks in the Nasdaq-100 in 2024
- Jan -02 - Microchip: Still Navigating In The Fog
- Dec -19 - Microchip Launches Touch Controllers: Buy, Sell or Hold the Stock?
- Dec -18 - Microchip Adds MTCH2120 to its Portfolio of Turnkey Capacitive Touch Controllers
- Dec -16 - Microchip price target lowered to $68 from $71 at Truist
- Dec -16 - Integrated and Compact CAN FD System Basis Chip Solution for Space-Constrained Applications
- Dec -13 - Can Microchip's Expanding FPGA Portfolio Push the Stock Higher?
- Dec -12 - Microchip Expands PolarFire® FPGA and SoC Solution Stacks with New Offerings for Medical Imaging and Smart Robotics
- Dec -03 - Microchip Cuts Guidance Amid Restructuring, Shares Fall
- Dec -03 - Beyond NVIDIA: Top 5 Semiconductor Stocks to Watch for 2025
- Dec -03 - Microchip stock price is on the verge of a bearish breakout
- Dec -02 - Microchip Technology lowers quarterly revenue forecast, shuts Arizona factory
- Dec -02 - Microchip Technology to Present at the UBS Global Technology and AI Conference
- Dec -02 - Microchip Technology Updates December 2024 Quarter Revenue Guidance, and Announces Manufacturing Restructuring Plans
- Dec -02 - Dogs of Tech: 3 Semiconductor Stocks Set for a 2025 Rebound
- Nov -18 - Ganesh Moorthy Retiring as Chief Executive Officer and President of Microchip Technology Incorporated; Steve Sanghi Appointed as Interim Chief Executive Officer and President
- Nov -15 - 8 Upcoming Dividend Increases
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
Threat Of Substitutes
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.
Bargaining Power Of Customers
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.
Bargaining Power Of Suppliers
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.
Threat Of New Entrants
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.
Intensity Of Rivalry
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% |
Microchip Technology Incorporated : Quality Control
Microchip Technology Incorporated passed 6 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
Company | Rational |
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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 … |