MICROCHIP TECHNOLOGY INC (MCHP) Fundamental Analysis & Valuation

NASDAQ:MCHP • US5950171042

Current stock price

64.59 USD
+0.76 (+1.19%)
At close:
64.72 USD
+0.13 (+0.2%)
After Hours:

This MCHP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. MCHP Profitability Analysis

1.1 Basic Checks

  • In the past year MCHP was profitable.
  • In the past year MCHP had a positive cash flow from operations.
  • Of the past 5 years MCHP 4 years were profitable.
  • In the past 5 years MCHP always reported a positive cash flow from operatings.
MCHP Yearly Net Income VS EBIT VS OCF VS FCFMCHP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

1.2 Ratios

  • MCHP's Return On Assets of -1.09% is in line compared to the rest of the industry. MCHP outperforms 43.48% of its industry peers.
  • MCHP has a Return On Equity (-2.39%) which is comparable to the rest of the industry.
  • MCHP has a Return On Invested Capital of 1.65%. This is comparable to the rest of the industry: MCHP outperforms 52.17% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for MCHP is in line with the industry average of 10.52%.
  • The 3 year average ROIC (11.93%) for MCHP is well above the current ROIC(1.65%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA -1.09%
ROE -2.39%
ROIC 1.65%
ROA(3y)8.56%
ROA(5y)7.14%
ROE(3y)20.99%
ROE(5y)18.26%
ROIC(3y)11.93%
ROIC(5y)10.28%
MCHP Yearly ROA, ROE, ROICMCHP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20 30

1.3 Margins

  • MCHP has a Operating Margin (6.34%) which is in line with its industry peers.
  • MCHP's Operating Margin has declined in the last couple of years.
  • The Gross Margin of MCHP (55.41%) is better than 76.52% of its industry peers.
  • MCHP's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 6.34%
PM (TTM) N/A
GM 55.41%
OM growth 3Y-32.35%
OM growth 5Y-8.3%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.92%
GM growth 5Y-1.82%
MCHP Yearly Profit, Operating, Gross MarginsMCHP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. MCHP Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MCHP is creating some value.
  • The number of shares outstanding for MCHP has been increased compared to 1 year ago.
  • The number of shares outstanding for MCHP has been increased compared to 5 years ago.
  • Compared to 1 year ago, MCHP has an improved debt to assets ratio.
MCHP Yearly Shares OutstandingMCHP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M
MCHP Yearly Total Debt VS Total AssetsMCHP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B

2.2 Solvency

  • MCHP has an Altman-Z score of 3.67. This indicates that MCHP is financially healthy and has little risk of bankruptcy at the moment.
  • With a Altman-Z score value of 3.67, MCHP perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
  • MCHP has a debt to FCF ratio of 6.54. This is a slightly negative value and a sign of low solvency as MCHP would need 6.54 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 6.54, MCHP is in line with its industry, outperforming 51.30% of the companies in the same industry.
  • MCHP has a Debt/Equity ratio of 0.82. This is a neutral value indicating MCHP is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.82, MCHP is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.54
Altman-Z 3.67
ROIC/WACC0.15
WACC11.06%
MCHP Yearly LT Debt VS Equity VS FCFMCHP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.3 Liquidity

  • MCHP has a Current Ratio of 2.16. This indicates that MCHP is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of MCHP (2.16) is worse than 73.04% of its industry peers.
  • A Quick Ratio of 1.16 indicates that MCHP should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.16, MCHP is not doing good in the industry: 81.74% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 2.16
Quick Ratio 1.16
MCHP Yearly Current Assets VS Current LiabilitesMCHP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. MCHP Growth Analysis

3.1 Past

  • The earnings per share for MCHP have decreased strongly by -33.52% in the last year.
  • MCHP shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -14.29% yearly.
  • MCHP shows a decrease in Revenue. In the last year, the revenue decreased by -8.08%.
  • The Revenue has been decreasing by -3.55% on average over the past years.
EPS 1Y (TTM)-33.52%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%120%
Revenue 1Y (TTM)-8.08%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%15.59%

3.2 Future

  • The Earnings Per Share is expected to grow by 32.12% on average over the next years. This is a very strong growth
  • MCHP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.84% yearly.
EPS Next Y21.21%
EPS Next 2Y42.77%
EPS Next 3Y42.44%
EPS Next 5Y32.12%
Revenue Next Year6.11%
Revenue Next 2Y13.95%
Revenue Next 3Y15.31%
Revenue Next 5Y13.84%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
MCHP Yearly Revenue VS EstimatesMCHP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
MCHP Yearly EPS VS EstimatesMCHP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6

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Find the best growth stocksShow best growing peers

4

4. MCHP Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 55.21, MCHP can be considered very expensive at the moment.
  • MCHP's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 26.11, MCHP is valued quite expensively.
  • The Price/Forward Earnings ratio is 24.38, which indicates a rather expensive current valuation of MCHP.
  • MCHP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MCHP is cheaper than 73.04% of the companies in the same industry.
  • MCHP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.12, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 55.21
Fwd PE 24.38
MCHP Price Earnings VS Forward Price EarningsMCHP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, MCHP is valued a bit cheaper than 61.74% of the companies in the same industry.
  • 75.65% of the companies in the same industry are more expensive than MCHP, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 42.63
EV/EBITDA 40.89
MCHP Per share dataMCHP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • A more expensive valuation may be justified as MCHP's earnings are expected to grow with 42.44% in the coming years.
PEG (NY)2.6
PEG (5Y)N/A
EPS Next 2Y42.77%
EPS Next 3Y42.44%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. MCHP Dividend Analysis

5.1 Amount

  • MCHP has a Yearly Dividend Yield of 2.43%.
  • MCHP's Dividend Yield is rather good when compared to the industry average which is at 0.49. MCHP pays more dividend than 93.04% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.91, MCHP pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.43%

5.2 History

  • On average, the dividend of MCHP grows each year by 20.15%, which is quite nice.
  • MCHP has paid a dividend for at least 10 years, which is a reliable track record.
  • MCHP has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)20.15%
Div Incr Years13
Div Non Decr Years13
MCHP Yearly Dividends per shareMCHP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • The earnings of MCHP are negative and hence is the payout ratio. MCHP will probably not be able to sustain this dividend level.
  • MCHP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-678.74%
EPS Next 2Y42.77%
EPS Next 3Y42.44%
MCHP Yearly Income VS Free CF VS DividendMCHP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

More info and screens

Find the best dividend stocksShow peers with best dividend

MCHP Fundamentals: All Metrics, Ratios and Statistics

MICROCHIP TECHNOLOGY INC

NASDAQ:MCHP (3/17/2026, 8:00:01 PM)

After market: 64.72 +0.13 (+0.2%)

64.59

+0.76 (+1.19%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-05
Earnings (Next)05-06
Inst Owners98.58%
Inst Owner Change0.54%
Ins Owners1.93%
Ins Owner Change-3.24%
Market Cap34.95B
Revenue(TTM)4.37B
Net Income(TTM)-156.60M
Analysts81.21
Price Target88.31 (36.72%)
Short Float %4.11%
Short Ratio2.31
Dividend
Industry RankSector Rank
Dividend Yield 2.43%
Yearly Dividend1.81
Dividend Growth(5Y)20.15%
DP-678.74%
Div Incr Years13
Div Non Decr Years13
Ex-Date02-23
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.66%
Min EPS beat(2)2.58%
Max EPS beat(2)4.75%
EPS beat(4)4
Avg EPS beat(4)5.43%
Min EPS beat(4)2.58%
Max EPS beat(4)11.8%
EPS beat(8)5
Avg EPS beat(8)-0.47%
EPS beat(12)6
Avg EPS beat(12)-0.53%
EPS beat(16)7
Avg EPS beat(16)-0.18%
Revenue beat(2)0
Avg Revenue beat(2)-1.55%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-1.5%
Revenue beat(4)0
Avg Revenue beat(4)-1.08%
Min Revenue beat(4)-1.6%
Max Revenue beat(4)-0.05%
Revenue beat(8)0
Avg Revenue beat(8)-1.78%
Revenue beat(12)0
Avg Revenue beat(12)-1.89%
Revenue beat(16)0
Avg Revenue beat(16)-1.68%
PT rev (1m)4.71%
PT rev (3m)16.97%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)13.34%
EPS NY rev (1m)0%
EPS NY rev (3m)7.47%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)5.57%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)2.81%
Valuation
Industry RankSector Rank
PE 55.21
Fwd PE 24.38
P/S 7.99
P/FCF 42.63
P/OCF 38.37
P/B 5.33
P/tB N/A
EV/EBITDA 40.89
EPS(TTM)1.17
EY1.81%
EPS(NY)2.65
Fwd EY4.1%
FCF(TTM)1.52
FCFY2.35%
OCF(TTM)1.68
OCFY2.61%
SpS8.08
BVpS12.12
TBVpS-4.13
PEG (NY)2.6
PEG (5Y)N/A
Graham Number17.86
Profitability
Industry RankSector Rank
ROA -1.09%
ROE -2.39%
ROCE 2.09%
ROIC 1.65%
ROICexc 1.68%
ROICexgc 5.19%
OM 6.34%
PM (TTM) N/A
GM 55.41%
FCFM 18.75%
ROA(3y)8.56%
ROA(5y)7.14%
ROE(3y)20.99%
ROE(5y)18.26%
ROIC(3y)11.93%
ROIC(5y)10.28%
ROICexc(3y)12.2%
ROICexc(5y)10.52%
ROICexgc(3y)48.65%
ROICexgc(5y)43.88%
ROCE(3y)15.1%
ROCE(5y)13.02%
ROICexgc growth 3Y-44.39%
ROICexgc growth 5Y-17.88%
ROICexc growth 3Y-40.07%
ROICexc growth 5Y-9.14%
OM growth 3Y-32.35%
OM growth 5Y-8.3%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.92%
GM growth 5Y-1.82%
F-Score4
Asset Turnover0.31
Health
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.54
Debt/EBITDA 5.48
Cap/Depr 12.97%
Cap/Sales 2.08%
Interest Coverage 250
Cash Conversion 92.97%
Profit Quality N/A
Current Ratio 2.16
Quick Ratio 1.16
Altman-Z 3.67
F-Score4
WACC11.06%
ROIC/WACC0.15
Cap/Depr(3y)32.64%
Cap/Depr(5y)27.66%
Cap/Sales(3y)4.12%
Cap/Sales(5y)3.9%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-33.52%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%120%
EPS Next Y21.21%
EPS Next 2Y42.77%
EPS Next 3Y42.44%
EPS Next 5Y32.12%
Revenue 1Y (TTM)-8.08%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%15.59%
Revenue Next Year6.11%
Revenue Next 2Y13.95%
Revenue Next 3Y15.31%
Revenue Next 5Y13.84%
EBIT growth 1Y-56.73%
EBIT growth 3Y-41.54%
EBIT growth 5Y-11.55%
EBIT Next Year61.19%
EBIT Next 3Y43.22%
EBIT Next 5Y25.08%
FCF growth 1Y-70.87%
FCF growth 3Y-32.16%
FCF growth 5Y-12.16%
OCF growth 1Y-71.28%
OCF growth 3Y-31.89%
OCF growth 5Y-10.27%

MICROCHIP TECHNOLOGY INC / MCHP Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for MICROCHIP TECHNOLOGY INC?

ChartMill assigns a fundamental rating of 4 / 10 to MCHP.


What is the valuation status for MCHP stock?

ChartMill assigns a valuation rating of 4 / 10 to MICROCHIP TECHNOLOGY INC (MCHP). This can be considered as Fairly Valued.


Can you provide the profitability details for MICROCHIP TECHNOLOGY INC?

MICROCHIP TECHNOLOGY INC (MCHP) has a profitability rating of 4 / 10.


What is the valuation of MICROCHIP TECHNOLOGY INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for MICROCHIP TECHNOLOGY INC (MCHP) is 55.21 and the Price/Book (PB) ratio is 5.33.


Is the dividend of MICROCHIP TECHNOLOGY INC sustainable?

The dividend rating of MICROCHIP TECHNOLOGY INC (MCHP) is 7 / 10 and the dividend payout ratio is -678.74%.