Cerebras Systems Inc. (CBRS) vs Microchip Technology Incorporated (MCHP)

Cerebras Systems Inc. and Microchip Technology Incorporated are both Semiconductors companies. Microchip Technology Incorporated is the larger, with a market value of $40.5B against $24.4B — 1.7× the size. Cerebras Systems Inc. trades at the lower P/E: 49.4× against 111×. Microchip Technology Incorporated has the higher net margin (7.17% vs −63.9%) and the higher return on invested capital (4.30% vs −21.1%). Across the 15 metrics below, Microchip Technology Incorporated leads on 10 and Cerebras Systems Inc. on 5.

Valuation

Metric CBRS MCHP Semiconductors median
P/E 49.45 111.28 46.12
P/S 28.65 7.90 7.90
P/B 1.80 6.27 4.67
Price to free cash flow n/m 36.41 49.43
EV/EBITDA n/m 31.53 27.68
EV/Sales 15.73 9.27 7.24
Earnings yield 2.02% 0.90% 0.78%
Free cash flow yield (5.48%) 2.75% 0.68%

Profitability

Metric CBRS MCHP Semiconductors median
Gross margin 32.17% 60.19% 52.28%
Operating margin (100.27%) 15.52% 4.76%
Net margin (63.86%) 7.17% 4.26%
Free cash flow margin (157.07%) 21.69% 8.47%
Return on equity 0.00% 5.52% 3.62%
Return on assets (6.33%) 2.50% 1.78%
Return on invested capital (21.13%) 4.30% 2.23%

Growth

Metric CBRS MCHP Semiconductors median
Revenue growth (TTM) — 20.93% 16.66%
EPS growth (last fiscal year) — 2,300.00% 26.67%
Revenue growth, 5-year CAGR — (2.82%) 5.60%
Net income growth, 5-year CAGR — (19.41%) 0.00%

Health

Metric CBRS MCHP Semiconductors median
Debt to equity 0.13 0.83 0.05
Current ratio 5.82 1.92 3.22
Net debt to EBITDA — 4.33 0.53

Dividend

Metric CBRS MCHP Semiconductors median
Dividend yield — 2.44% 1.23%
Payout ratio — 2.72 0.40

Size

Metric CBRS MCHP Semiconductors median
Market cap 24.39b 40.47b 5.99b

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