Microchip Technology (Germany) Performance
| MCP Stock | EUR 65.64 1.37 2.13% |
The company secures a Beta (Market Risk) of 1.2, which conveys a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Microchip Technology will likely underperform. At this point, Microchip Technology has a negative expected return of -0.0799%. Please make sure to verify Microchip Technology's standard deviation, maximum drawdown, kurtosis, as well as the relationship between the total risk alpha and potential upside , to decide if Microchip Technology performance from the past will be repeated at some point in the near future.
Risk-Adjusted Performance
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Over the last 90 days Microchip Technology Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Microchip Technology is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders. ...more
| Begin Period Cash Flow | 280 M | |
| Total Cashflows From Investing Activities | -477.7 M |
Microchip |
Microchip Technology Relative Risk vs. Return Landscape
If you would invest 7,009 in Microchip Technology Incorporated on September 3, 2024 and sell it today you would lose (445.00) from holding Microchip Technology Incorporated or give up 6.35% of portfolio value over 90 days. Microchip Technology Incorporated is currently producing negative expected returns and takes up 2.067% volatility of returns over 90 trading days. Put another way, 18% of traded stocks are less volatile than Microchip, and 99% of all traded equity instruments are likely to generate higher returns over the next 90 trading days. Expected Return |
| Risk |
Microchip Technology Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Microchip Technology's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Microchip Technology Incorporated, and traders can use it to determine the average amount a Microchip Technology's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = -0.0386
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Estimated Market Risk
| 2.07 actual daily | 18 82% of assets are more volatile |
Expected Return
| -0.08 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.04 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Microchip Technology is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Microchip Technology by adding Microchip Technology to a well-diversified portfolio.
Microchip Technology Fundamentals Growth
Microchip Stock prices reflect investors' perceptions of the future prospects and financial health of Microchip Technology, and Microchip Technology fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Microchip Stock performance.
| Return On Equity | 0.34 | |||
| Return On Asset | 0.11 | |||
| Profit Margin | 0.26 % | |||
| Operating Margin | 0.35 % | |||
| Current Valuation | 46.19 B | |||
| Shares Outstanding | 547.8 M | |||
| Price To Earning | 62.58 X | |||
| Price To Book | 6.92 X | |||
| Price To Sales | 5.27 X | |||
| Revenue | 6.82 B | |||
| EBITDA | 2.74 B | |||
| Cash And Equivalents | 430.9 M | |||
| Cash Per Share | 1.81 X | |||
| Total Debt | 7.69 B | |||
| Debt To Equity | 194.90 % | |||
| Book Value Per Share | 11.52 X | |||
| Cash Flow From Operations | 2.84 B | |||
| Earnings Per Share | 3.49 X | |||
| Total Asset | 16.2 B | |||
About Microchip Technology Performance
By analyzing Microchip Technology's fundamental ratios, stakeholders can gain valuable insights into Microchip Technology's financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if Microchip Technology has a high ROA and ROE, it suggests that the company is efficiently using its assets and equity to generate substantial profits, making it an attractive investment. Conversely, if Microchip Technology has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.
Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications in the Americas, Europe, and Asia. Microchip Technology Incorporated was founded in 1989 and is headquartered in Chandler, Arizona. MICROCHIP TECH operates under Semiconductors classification in Germany and is traded on Frankfurt Stock Exchange. It employs 18286 people.Things to note about Microchip Technology performance evaluation
Checking the ongoing alerts about Microchip Technology for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Microchip Technology help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.| Microchip Technology generated a negative expected return over the last 90 days | |
| Microchip Technology has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations | |
| Microchip Technology Incorporated has accumulated 7.69 B in total debt with debt to equity ratio (D/E) of 194.9, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Microchip Technology has a current ratio of 0.91, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Microchip Technology until it has trouble settling it off, either with new capital or with free cash flow. So, Microchip Technology's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Microchip Technology sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Microchip to invest in growth at high rates of return. When we think about Microchip Technology's use of debt, we should always consider it together with cash and equity. | |
| Over 93.0% of Microchip Technology shares are owned by institutional investors |
- Analyzing Microchip Technology's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
- Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Microchip Technology's stock is overvalued or undervalued compared to its peers.
- Examining Microchip Technology's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
- Evaluating Microchip Technology's management team can have a significant impact on its success or failure. Reviewing the track record and experience of Microchip Technology's management team can help you assess the Company's leadership.
- Pay attention to analyst opinions and ratings of Microchip Technology's stock. These opinions can provide insight into Microchip Technology's potential for growth and whether the stock is currently undervalued or overvalued.
Complementary Tools for Microchip Stock analysis
When running Microchip Technology's price analysis, check to measure Microchip Technology's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Microchip Technology is operating at the current time. Most of Microchip Technology's value examination focuses on studying past and present price action to predict the probability of Microchip Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Microchip Technology's price. Additionally, you may evaluate how the addition of Microchip Technology to your portfolios can decrease your overall portfolio volatility.
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