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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 2198.51, and so far today it has a volume of 3412700. Performance year to date since the 3/19/1993 is 37.92%.

To help you determine whether Microchip Technology Inc. is undervalued the following values will help you decide. P/E is 165.26 and forward P/E is 16.46. PEG perhaps more useful shows that Microchip Technology Inc. has a value for PEG of 11.24. P/S ratio is 5.5 and the P/B ratio is 5.31. The P/Cash and P/Free cash flow is 22.3 and 32.89 respectively.

At the current price Microchip Technology Inc. is trading at, 62.8 (1.44% today), Microchip Technology Inc. has a dividend yield of 2.29%, and this is covered by a payout ratio of 341.20%. Earnings per share (EPS) is 0.38, and this is looking to grow in the next year to 11.75% after growing -9.70% this past year. EPS growth quarter over quarter is -184.50%, and 49.70% for sales growth quarter over quarter.

The number of shares outstanding is 213.72, and the number of shares float is 210.1. The senior management bring insider ownership to 2.38%, and institutional ownership is at 98.80%. The float short is 10.01%, with the short ratio at a value of 9.57. Management has seen a return on assets of 1.30%, and also a return on investment of 8.60%.

The ability for Microchip Technology Inc., to deal with debt, means it current ratio is 2.9, and quick ratio is 2. Long term debt/equity is 1.32 and total debt/equity is 0. In terms of margins, Microchip Technology Inc. has a gross margin of 51.00%, with its operating margin at 7.00%, and Microchip Technology Inc. has a profit margin of 3.30%.

The 52 week high is 0.90%, with 64.54% being its 52 week low. The 20 day simple moving average is 12.81% and the 200 day simple moving average is 29.20%.

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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Mark Hines

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