MICROCHIP TECHNOLOGY INC (MCHP) Fundamental Analysis & Valuation

NASDAQ:MCHP • US5950171042

Current stock price

93.95 USD
+1.04 (+1.12%)
At close:
93.6 USD
-0.35 (-0.37%)
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

  • MCHP had positive earnings in the past year.
  • MCHP had a positive operating cash flow in the past year.
  • MCHP had positive earnings in 4 of the past 5 years.
  • 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

  • The Return On Assets of MCHP (-1.09%) is comparable to the rest of the industry.
  • MCHP has a Return On Equity of -2.39%. This is comparable to the rest of the industry: MCHP outperforms 46.09% of its industry peers.
  • MCHP has a Return On Invested Capital (1.65%) which is in line with 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 10.73%.
  • 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

  • With a Operating Margin value of 6.34%, MCHP perfoms like the industry average, outperforming 57.39% of the companies in the same industry.
  • In the last couple of years the Operating Margin of MCHP has declined.
  • The Gross Margin of MCHP (55.41%) is better than 75.65% of its industry peers.
  • In the last couple of years the Gross Margin of MCHP has declined.
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

  • MCHP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for MCHP has been increased compared to 1 year ago.
  • Compared to 5 years ago, MCHP has more shares outstanding
  • The debt/assets ratio for MCHP has been reduced compared to a year ago.
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

  • An Altman-Z score of 4.89 indicates that MCHP is not in any danger for bankruptcy at the moment.
  • With a Altman-Z score value of 4.89, MCHP perfoms like the industry average, outperforming 46.09% 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.
  • MCHP has a Debt to FCF ratio of 6.54. This is comparable to the rest of the industry: MCHP outperforms 49.57% of its industry peers.
  • 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: 81.74% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.54
Altman-Z 4.89
ROIC/WACC0.13
WACC12.61%
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

  • A Current Ratio of 2.16 indicates that MCHP has no problem at all paying its short term obligations.
  • With a Current ratio value of 2.16, MCHP is not doing good in the industry: 76.52% of the companies in the same industry are doing better.
  • MCHP has a Quick Ratio of 1.16. This is a normal value and indicates that MCHP is financially healthy and should not expect problems in meeting its short term obligations.
  • MCHP has a worse Quick ratio (1.16) than 86.09% of its industry peers.
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

  • MCHP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.52%.
  • The earnings per share for MCHP have been decreasing by -14.29% on average. This is quite bad
  • The Revenue has decreased by -8.08% in the past year.
  • Measured over the past years, MCHP shows a decrease in Revenue. The Revenue has been decreasing by -3.55% on average per year.
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

  • MCHP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.12% yearly.
  • MCHP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.34% yearly.
EPS Next Y23.17%
EPS Next 2Y44.92%
EPS Next 3Y43.03%
EPS Next 5Y32.12%
Revenue Next Year6.13%
Revenue Next 2Y14.04%
Revenue Next 3Y15.51%
Revenue Next 5Y14.34%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

3

4. MCHP Valuation Analysis

4.1 Price/Earnings Ratio

  • MCHP is valuated quite expensively with a Price/Earnings ratio of 80.30.
  • MCHP's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 26.64, MCHP is valued quite expensively.
  • Based on the Price/Forward Earnings ratio of 34.41, the valuation of MCHP can be described as expensive.
  • Based on the Price/Forward Earnings ratio, MCHP is valued a bit cheaper than the industry average as 70.43% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of MCHP to the average of the S&P500 Index (21.36), we can say MCHP is valued expensively.
Industry RankSector Rank
PE 80.3
Fwd PE 34.41
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

  • MCHP's Enterprise Value to EBITDA is on the same level as the industry average.
  • MCHP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MCHP is cheaper than 66.96% of the companies in the same industry.
Industry RankSector Rank
P/FCF 62.01
EV/EBITDA 57.1
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 MCHP does not grow enough to justify the current Price/Earnings ratio.
  • A more expensive valuation may be justified as MCHP's earnings are expected to grow with 43.03% in the coming years.
PEG (NY)3.47
PEG (5Y)N/A
EPS Next 2Y44.92%
EPS Next 3Y43.03%

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

6

5. MCHP Dividend Analysis

5.1 Amount

  • MCHP has a Yearly Dividend Yield of 1.96%. Purely for dividend investing, there may be better candidates out there.
  • MCHP's Dividend Yield is rather good when compared to the industry average which is at 0.46. MCHP pays more dividend than 92.17% of the companies in the same industry.
  • MCHP's Dividend Yield is comparable with the S&P500 average which is at 1.80.
Industry RankSector Rank
Dividend Yield 1.96%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)20.15%
Div Incr Years14
Div Non Decr Years14
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

  • MCHP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
  • The dividend of MCHP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-678.74%
EPS Next 2Y44.92%
EPS Next 3Y43.03%
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 (5/1/2026, 8:00:01 PM)

After market: 93.6 -0.35 (-0.37%)

93.95

+1.04 (+1.12%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Industry Strength93.17
Industry Growth91.93
Earnings (Last)02-05
Earnings (Next)05-07
Inst Owners99.75%
Inst Owner Change-0.16%
Ins Owners1.92%
Ins Owner Change-3.24%
Market Cap50.84B
Revenue(TTM)4.37B
Net Income(TTM)-156.60M
Analysts81.88
Price Target88.85 (-5.43%)
Short Float %5.2%
Short Ratio3.16
Dividend
Industry RankSector Rank
Dividend Yield 1.96%
Yearly Dividend1.81
Dividend Growth(5Y)20.15%
DP-678.74%
Div Incr Years14
Div Non Decr Years14
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)0.52%
PT rev (3m)12.07%
EPS NQ rev (1m)0.18%
EPS NQ rev (3m)4.62%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)3.43%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)2.96%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.87%
Valuation
Industry RankSector Rank
PE 80.3
Fwd PE 34.41
P/S 11.63
P/FCF 62.01
P/OCF 55.81
P/B 7.75
P/tB N/A
EV/EBITDA 57.1
EPS(TTM)1.17
EY1.25%
EPS(NY)2.73
Fwd EY2.91%
FCF(TTM)1.52
FCFY1.61%
OCF(TTM)1.68
OCFY1.79%
SpS8.08
BVpS12.12
TBVpS-4.13
PEG (NY)3.47
PEG (5Y)N/A
Graham Number17.8647 (-80.98%)
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 4.89
F-Score4
WACC12.61%
ROIC/WACC0.13
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 Y23.17%
EPS Next 2Y44.92%
EPS Next 3Y43.03%
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 Year6.13%
Revenue Next 2Y14.04%
Revenue Next 3Y15.51%
Revenue Next 5Y14.34%
EBIT growth 1Y-56.73%
EBIT growth 3Y-41.54%
EBIT growth 5Y-11.55%
EBIT Next Year61.19%
EBIT Next 3Y42.57%
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 3 / 10 to MICROCHIP TECHNOLOGY INC (MCHP). This can be considered as Overvalued.


What is the profitability of MCHP stock?

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


What is the financial health of MICROCHIP TECHNOLOGY INC (MCHP) stock?

The financial health rating of MICROCHIP TECHNOLOGY INC (MCHP) is 4 / 10.


Is the dividend of MICROCHIP TECHNOLOGY INC sustainable?

The dividend rating of MICROCHIP TECHNOLOGY INC (MCHP) is 6 / 10 and the dividend payout ratio is -678.74%.