BRAZIL – 2021/12/14: In this photo illustration the Microchip Technology logo seen displayed on a … [+]
Microchip Technology Inc. (NASDAQ: MCHP) stock price jumped around 3.3x from $18 in 2018 end, to almost $60 currently, primarily due to favorable changes in its P/S multiple. Additionally, the company witnessed a strong rise in revenue over this period, and revenue per share has increased, despite a substantial rise in the outstanding share count. This has enabled the stock to strongly outperform the S&P, which has risen just around 50% in comparison over this period.
In our interactive dashboard, Why Microchip Technology Stock Moved: MCHP Stock Has Gained 230% Since 2018, we break down the factors behind this move.
Microchip’s Total Revenue has grown 28% from $5.3 billion in FY 2019 to $6.8 billion currently
Factors of MCHP Stock Price Change
Revenue per share increased 8.4% from $11.35 in FY ’19 to $12.31 currently
Price-To-Sales (P/S) multiple for Microchip rose from 1.9x in 2018-end to 8.9x by 2021 end, but has pulled back to 4.8x currently, still around 2.5x higher than its 2018 level
Stock prices have fallen precipitously across sectors over recent months and we are now in a bear market for the first time since March 2020, when the Covid-19 outbreak triggered a market crash. We capture key trends in the Dow during and after major market crashes in our interactive dashboard analysis, ‘Market Crashes Compared.’
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
MCHP Return
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates