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Is Microchip Technology Inc.(NASDAQ: MCHP), a large market cap stock a smart buy?

With a market cap of has a large market cap size. Microchip Technology Inc. (NASDAQ: MCHP) has been on the stock market since its IPO date on the 3/19/1993. Microchip Technology Inc. is in the Semiconductor – Specialized industry and Technology sector. Average volume for Microchip Technology Inc., is 2096.35, and so far today it has a volume of 809544. Performance year to date since the 3/19/1993 is 21.47%.

To help you determine whether Microchip Technology Inc. is undervalued the following values will help you decide. P/E is 37.29 and forward P/E is 15.05. PEG perhaps more useful shows that Microchip Technology Inc. has a value for PEG of 2.91. P/S ratio is 5.61 and the P/B ratio is 5.27. The P/Cash and P/Free cash flow is 4.98 and 34.29 respectively.

At the current price Microchip Technology Inc. is trading at, 55.67 (0.05% today), Microchip Technology Inc. has a dividend yield of 2.58%, and this is covered by a payout ratio of 89.80%. Earnings per share (EPS) is 1.49, and this is looking to grow in the next year to 17.03% after growing -9.70% this past year. EPS growth quarter over quarter is -31.20%, and 2.70% for sales growth quarter over quarter.

The number of shares outstanding is 219.08, and the number of shares float is 209.84. The senior management bring insider ownership to 2.38%, and institutional ownership is at 98.80%. The float short is 10.20%, with the short ratio at a value of 10.21. Management has seen a return on assets of 6.00%, and also a return on investment of 8.50%.

The ability for Microchip Technology Inc., to deal with debt, means it current ratio is 8.1, and quick ratio is 7.3. Long term debt/equity is 1.15 and total debt/equity is 0. In terms of margins, Microchip Technology Inc. has a gross margin of 55.50%, with its operating margin at 16.20%, and Microchip Technology Inc. has a profit margin of 14.90%.

The 52 week high is -5.23%, with 52.15% being its 52 week low. The 20 day simple moving average is 6.98% and the 200 day simple moving average is 17.52%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.


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Peter Clarke

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