Stock Analysis on Net
Stock Analysis on Net

Microchip Technology Inc. (NASDAQ:MCHP)

This company has been moved to the archive! The financial data has not been updated since February 2, 2023.

Price to FCFE (P/FCFE) 

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Free Cash Flow to Equity (FCFE)

Microchip Technology Inc., FCFE calculation

US$ in thousands

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12 months ended: Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Net income 1,285,500 349,400 570,600 355,900 255,400 164,639
Net noncash charges 1,523,000 1,594,100 1,039,900 1,134,200 899,700 590,644
Changes in operating assets and liabilities, excluding impact of acquisitions 34,200 (27,000) (66,700) 184,700 264,500 294,821
Net cash provided by operating activities 2,842,700 1,916,500 1,543,800 1,674,800 1,419,600 1,050,104
Capital expenditures (370,100) (92,600) (67,600) (228,900) (206,800) (75,310)
Proceeds from borrowings on Revolving Credit Facility 4,176,000 3,966,000 1,026,000 4,416,500 187,000 1,537,000
Repayments of Revolving Credit Facility (5,123,500) (4,007,900) (1,904,000) (1,150,000) (187,000) (2,781,000)
Proceeds from issuance of senior notes 997,000 3,577,800 — 1,989,500 — 2,645,000
Repayment of senior notes (1,000,000) — — — — —
Proceeds from borrowings on Bridge Loan Facility — — 611,900 — — —
Repayment of Bridge Loan Facility — (615,000) — — — —
Proceeds from borrowings on Term Loan Facility — — — 3,000,000 — —
Repayments of Term Loan Facility — (1,723,500) (188,000) (1,088,500) — —
Payments on settlement of convertible debt (424,700) (2,611,400) (615,000) — (73,400) (436,205)
Repayment of debt assumed in Microsemi acquisition — — — (2,056,900) — —
Capital lease payments (800) (600) (800) (800) (800) (783)
Free cash flow to equity (FCFE) 1,096,600 409,300 406,300 6,555,700 1,138,600 1,938,806

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Microchip Technology Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Microchip Technology Inc. FCFE increased from 2020 to 2021 and from 2021 to 2022.

Price to FCFE Ratio, Current

Microchip Technology Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 547,795,897
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands) 1,096,600
FCFE per share 2.00
Current share price (P) 84.53
Valuation Ratio
P/FCFE 42.23
Benchmarks
P/FCFE, Competitors1
Advanced Micro Devices Inc. 172.57
Analog Devices Inc. 28.33
Applied Materials Inc. 16.47
Broadcom Inc. 26.03
First Solar Inc. —
Intel Corp. —
KLA Corp. 22.35
Lam Research Corp. 23.10
Micron Technology Inc. —
Monolithic Power Systems Inc. 49.84
NVIDIA Corp. 128.00
Qualcomm Inc. 16.41
Texas Instruments Inc. 44.29
P/FCFE, Sector
Semiconductors & Semiconductor Equipment 89.11
P/FCFE, Industry
Information Technology 52.62

Based on: 10-K (reporting date: 2022-03-31).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

Microchip Technology Inc., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
No. shares of common stock outstanding1 554,501,300 547,062,818 490,664,994 475,853,016 470,073,406 458,795,754
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)2 1,096,600 409,300 406,300 6,555,700 1,138,600 1,938,806
FCFE per share3 1.98 0.75 0.83 13.78 2.42 4.23
Share price1, 4 66.67 71.22 43.91 40.67 46.40 41.26
Valuation Ratio
P/FCFE5 33.71 95.19 53.03 2.95 19.16 9.76
Benchmarks
P/FCFE, Competitors6
Advanced Micro Devices Inc. 33.46 44.72 133.51 — — —
Analog Devices Inc. 24.14 34.67 33.98 37.52 — —
Applied Materials Inc. 19.17 27.20 23.21 19.53 — —
Broadcom Inc. 14.62 22.35 9.16 5.64 — —
First Solar Inc. 61.91 — — — — —
Intel Corp. — 14.25 8.57 16.55 — —
KLA Corp. 9.01 28.05 19.15 9.84 — —
Lam Research Corp. 24.95 34.58 16.89 6.14 — —
Micron Technology Inc. 18.66 37.24 81.71 13.92 — —
Monolithic Power Systems Inc. 121.66 95.13 83.64 54.53 — —
NVIDIA Corp. 54.83 35.22 44.24 30.15 — —
Qualcomm Inc. 19.13 17.93 34.91 16.39 — —
Texas Instruments Inc. 23.88 21.87 24.10 18.77 — —
P/FCFE, Sector
Semiconductors & Semiconductor Equipment 29.45 25.31 18.07 14.34 — —
P/FCFE, Industry
Information Technology 26.79 27.64 23.72 19.16 — —

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,096,600,000 ÷ 554,501,300 = 1.98

4 Closing price as at the filing date of Microchip Technology Inc. Annual Report.

5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 66.67 ÷ 1.98 = 33.71

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Microchip Technology Inc. P/FCFE ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.