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A look at a High Market Cap Stock: Microchip Technology Inc., MCHP

Microchip Technology Inc., MCHP is in the exchange NASDAQ and its industry is Semiconductor – Specialized in the sector of Technology. Based in USA, Microchip Technology Inc., MCHP  has a market cap of 12988.15. Since its IPO date on the 3/19/1993, Microchip Technology Inc., MCHP performance year to date is 32.21%. Today Microchip Technology Inc., MCHP has gained -0.64%, with a current price of 60.2.

Ownership of the company is 2.38% for insider ownership while institutional ownership is 98.80%. The management of the company have seen the company have a payout ratio of 341.20%. Return of assets are at 1.30%, with return on investment at 8.60%.

In terms of debt levels and profit levels, Microchip Technology Inc., MCHP is seeing a long-term debt/equity of 1.32. While Total debt/equity is 0. With a profit margin of 3.30%, this is combined with a gross margin of 51.00%, and operating margin of 7.00%. Microchip Technology Inc. ability to meet debt levels, with a current ratio of 2.9, while the quick ratio is 2.

For the last year Microchip Technology Inc., MCHP has seen a EPS growth of -9.70%. A performance for the year of 45.13%. The 52-week high is -4.61%, and the 52-week low is 57.73%. The average volume for Microchip Technology Inc., MCHP is 1483500.

With a target price of 63.62, can Microchip Technology Inc., MCHP reach this target? Looking at the value indicators of Microchip Technology Inc., MCHP. Microchip Technology Inc. has a P/E of 158.42 and a forward P/E of 15.78. Perhaps the more useful indicator than P/E, is PEG which has a value of 10.78. Microchip Technology Inc. also has a P/S and a P/B of 5.33 and 5.09 respectively. For P/cash, Microchip Technology Inc. has a value of 21.58, while it is 31.83 for P/free cash flow.

At the current price of 60.2, Microchip Technology Inc. has a dividend yield of 2.39%. We see a return on equity of 3.60%.

Looking more long-term Microchip Technology Inc., is projected to get an EPS growth for the next five years of 14.70%. In the short-term an EPS growth of 11.75% in the next year is forecasted. This is after a EPS growth of -9.70% for this year and for the last five years a -7.50% growth has been seen.

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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Tony Dabbs

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