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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 11217.41. Since its IPO date on the 3/19/1993, Microchip Technology Inc., MCHP performance year to date is 13.24%. Today Microchip Technology Inc., MCHP has gained 2.92%, with a current price of 51.87.

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 89.80%. Return of assets are at 6.00%, with return on investment at 8.50%.

In terms of debt levels and profit levels, Microchip Technology Inc., MCHP is seeing a long-term debt/equity of 1.15. While Total debt/equity is 0. With a profit margin of 14.90%, this is combined with a gross margin of 55.50%, and operating margin of 16.20%. Microchip Technology Inc. ability to meet debt levels, with a current ratio of 8.1, while the quick ratio is 7.3.

For the last year Microchip Technology Inc., MCHP has seen a EPS growth of -9.70%. A performance for the year of 21.19%. The 52-week high is -2.44%, and the 52-week low is 41.76%. The average volume for Microchip Technology Inc., MCHP is 1561015.

With a target price of 55.35, 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 34.77 and a forward P/E of 14.02. Perhaps the more useful indicator than P/E, is PEG which has a value of 3.58. Microchip Technology Inc. also has a P/S and a P/B of 5.16 and 4.91 respectively. For P/cash, Microchip Technology Inc. has a value of 4.59, while it is 31.55 for P/free cash flow.

At the current price of 51.87, Microchip Technology Inc. has a dividend yield of 2.78%. We see a return on equity of 15.20%.

Looking more long-term Microchip Technology Inc., is projected to get an EPS growth for the next five years of 9.70%. In the short-term an EPS growth of 17.01% 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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Peter Clarke

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