Microchip Technology Inc


SKU: MCHP-1 Category:


Microchip’s results for the quarter were solid and the company’s revenue increased by 6.5% sequentially and 25.1% annually to $1.96 billion surpassing Wall Street expectations. It is worth highlighting that the company delivered an all-around beat despite dealing with many COVID-related operational issues throughout the quarter, including but not limited to the Shanghai shutdowns that impacted its clients and supply chain partners. The management has signed into multiyear long-term supply agreements with several significant clients, effectively granting them reserved capacity in exchange for assured purchases, often lasting five years. With an unsupported backlog that is far higher than 100% of the supported backlog, Microchip has a sizable demand cushion that can easily absorb any pushouts and cancellations. It should also be a major beneficiary from the Chips & Science Act. We give Microchip an ‘Outperform’ rating with a revised target price.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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