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Microchip Technology Inc. (NASDAQ: MCHP) – Is this large market cap stock undervalued?

Microchip Technology Inc. (NASDAQ: MCHP), is firmly in the large market cap category with market cap of 13272.63. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Microchip Technology Inc. is 61.65 (with a change from open of 0.39%), this in conjunction with a target price of 63.62. Volume today has so far reached 1333300, with an average volume of about 2215.52. The GAP for this stock, is 0.15%.

The P/E ratio is 162.24, bringing the forward P/E to a value of 16.16. The current EPS for Microchip Technology Inc., is 0.38, with a EPS growth for this year coming to a value of -9.70%. Performance has been interesting with performance year to date coming to 35.39%.

Looking further into the growth statistics for Microchip Technology Inc., EPS is looking like it will grow 11.75% in the next year. Looking even further it is projected to be 14.70%. Quarter over quarter is -184.50% for EPS growth and for sales growth quarter over quarter it is 49.70%. Looking at past EPS growth statistics we see that for the past five years it has been -7.50%. Sales growth for the past five years has in fact been 7.90%.

Looking at the ownership, we see that the insider ownership is at 2.38% and institutional ownership is 98.80%. Shares outstanding is 215.29, while shares float is at a value of 210.1. Float short for Microchip Technology Inc. is 10.25% and the short ratio is 9.72.

In terms of debt, long term debt/equity is 1.32, while the total debt/equity comes to 0. The ability to meet these debts, means that the current ratio is 2.9, and the quick ratio is 2. The most recent gross margin is 51.00% and their operating margin is 7.00%. The profit margin is 3.30%.

Microchip Technology Inc. has seen returns on assets of 1.30%, and on investment, 8.60%. Return on equity is 3.60%. Price/Earnings to growth ratio is 11.04. Price/Sales ratio is at a value of 5.44, with Price/book ratio coming to 5.22 and Price/cash is 22.05, and finally Price/Free cash Flow is 32.52.

The simple moving averages are 4.27% and 23.43% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -2.31% and the 52 week low is 61.53%.

Microchip Technology Inc. has a dividend yield of 2.34%, with a current price of 61.65. The ability to pay this means the payout ratio is 341.20%. This is in an industry, Semiconductor – Specialized, with equally high dividends from other companies in this sector, which it is Technology. Microchip Technology Inc. is based in USA.

Performance in the Semiconductor – Specialized industry means that Microchip Technology Inc. has seen performance for the past week of 0.87%, with performance for the month coming to 0.08%. Looking at the data for the quarter it is at a value of 24.78%, and for the half year the performance is 52.40%. Volatility for this week is 1.57% and for the month this is 1.83%.

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.

About the author

Mark Hines

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