MICROCHIP TECHNOLOGY INC (MCHP) Stock Fundamental Analysis

NASDAQ:MCHP • US5950171042

76.6 USD
-1.13 (-1.45%)
At close: Feb 23, 2026
76.6 USD
0 (0%)
After Hours: 2/23/2026, 6:51:53 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to MCHP. MCHP was compared to 114 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and the financial health of MCHP get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, MCHP is valued expensive at the moment. Finally MCHP also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • In the past year MCHP was profitable.
  • MCHP had a positive operating cash flow in the past year.
  • Of the past 5 years MCHP 4 years were profitable.
  • MCHP had a positive operating cash flow in each of the past 5 years.
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

  • With a Return On Assets value of -1.09%, MCHP perfoms like the industry average, outperforming 41.23% of the companies in the same industry.
  • MCHP has a Return On Equity of -2.39%. This is comparable to the rest of the industry: MCHP outperforms 41.23% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 1.65%, MCHP is in line with its industry, outperforming 53.51% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for MCHP is in line with the industry average of 10.64%.
  • 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.
  • With a decent Gross Margin value of 55.41%, MCHP is doing good in the industry, outperforming 75.44% of the companies in the same industry.
  • 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. Health

2.1 Basic Checks

  • MCHP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
  • MCHP has a better debt/assets ratio than last year.
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 4.22. This indicates that MCHP is financially healthy and has little risk of bankruptcy at the moment.
  • MCHP's Altman-Z score of 4.22 is in line compared to the rest of the industry. MCHP outperforms 54.39% of its industry peers.
  • The Debt to FCF ratio of MCHP is 6.54, which is on the high side as it means it would take MCHP, 6.54 years of fcf income to pay off all of its debts.
  • MCHP has a Debt to FCF ratio (6.54) which is comparable to the rest of the industry.
  • A Debt/Equity ratio of 0.82 indicates that MCHP is somewhat dependend on debt financing.
  • The Debt to Equity ratio of MCHP (0.82) is worse than 78.95% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.54
Altman-Z 4.22
ROIC/WACC0.16
WACC10.48%
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.
  • With a Current ratio value of 2.16, MCHP is not doing good in the industry: 71.93% of the companies in the same industry are doing better.
  • A Quick Ratio of 1.16 indicates that MCHP should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.16, MCHP is doing worse than 81.58% of the companies in the same industry.
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. Growth

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.
  • 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

  • Based on estimates for the next years, MCHP will show a very strong growth in Earnings Per Share. The EPS will grow by 32.12% on average per year.
  • The Revenue is expected to grow by 13.84% on average over the next years. This is quite good.
EPS Next Y21.21%
EPS Next 2Y42.77%
EPS Next 3Y42.44%
EPS Next 5Y32.12%
Revenue Next Year5.37%
Revenue Next 2Y12.33%
Revenue Next 3Y14.62%
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.
  • 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. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 65.47, MCHP can be considered very expensive at the moment.
  • MCHP's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 26.64. MCHP is valued rather expensively when compared to this.
  • With a Price/Forward Earnings ratio of 28.91, MCHP can be considered very expensive at the moment.
  • MCHP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MCHP is cheaper than 74.56% of the companies in the same industry.
  • MCHP's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.75.
Industry RankSector Rank
PE 65.47
Fwd PE 28.91
MCHP Price Earnings VS Forward Price EarningsMCHP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as MCHP.
  • MCHP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MCHP is cheaper than 70.18% of the companies in the same industry.
Industry RankSector Rank
P/FCF 50.56
EV/EBITDA 48.15
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.
  • MCHP's earnings are expected to grow with 42.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.09
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. Dividend

5.1 Amount

  • MCHP has a Yearly Dividend Yield of 2.31%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.50, MCHP pays a better dividend. On top of this MCHP pays more dividend than 93.86% of the companies listed in the same industry.
  • MCHP's Dividend Yield is a higher than the S&P500 average which is at 1.80.
Industry RankSector Rank
Dividend Yield 2.31%

5.2 History

  • The dividend of MCHP is nicely growing with an annual growth rate of 20.15%!
  • MCHP has been paying a dividend for at least 10 years, so it has 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 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

MICROCHIP TECHNOLOGY INC

NASDAQ:MCHP (2/23/2026, 6:51:53 PM)

After market: 76.6 0 (0%)

76.6

-1.13 (-1.45%)

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-8.17%
Market Cap41.45B
Revenue(TTM)4.37B
Net Income(TTM)-156.60M
Analysts81.21
Price Target84.34 (10.1%)
Short Float %4.88%
Short Ratio2.7
Dividend
Industry RankSector Rank
Dividend Yield 2.31%
Yearly Dividend1.81
Dividend Growth(5Y)20.15%
DP-678.74%
Div Incr Years13
Div Non Decr Years13
Ex-DateN/A
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)6.38%
PT rev (3m)8.25%
EPS NQ rev (1m)4.36%
EPS NQ rev (3m)9.42%
EPS NY rev (1m)1.79%
EPS NY rev (3m)4.97%
Revenue NQ rev (1m)2.72%
Revenue NQ rev (3m)3.79%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 65.47
Fwd PE 28.91
P/S 9.48
P/FCF 50.56
P/OCF 45.5
P/B 6.32
P/tB N/A
EV/EBITDA 48.15
EPS(TTM)1.17
EY1.53%
EPS(NY)2.65
Fwd EY3.46%
FCF(TTM)1.52
FCFY1.98%
OCF(TTM)1.68
OCFY2.2%
SpS8.08
BVpS12.12
TBVpS-4.13
PEG (NY)3.09
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 4.22
F-Score4
WACC10.48%
ROIC/WACC0.16
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 Year5.37%
Revenue Next 2Y12.33%
Revenue Next 3Y14.62%
Revenue Next 5Y13.84%
EBIT growth 1Y-56.73%
EBIT growth 3Y-41.54%
EBIT growth 5Y-11.55%
EBIT Next Year55.23%
EBIT Next 3Y41.48%
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 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.


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 65.47 and the Price/Book (PB) ratio is 6.32.


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%.