MICROCHIP TECHNOLOGY INC (MCHP) Fundamental Analysis & Valuation

NASDAQ:MCHP • US5950171042

Current stock price

82.48 USD
+1.55 (+1.92%)
At close:
87 USD
+4.52 (+5.48%)
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.
  • 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

  • MCHP's Return On Assets of -1.09% is in line compared to the rest of the industry. MCHP outperforms 44.35% of its industry peers.
  • Looking at the Return On Equity, with a value of -2.39%, MCHP is in line with its industry, outperforming 45.22% of the companies in the same industry.
  • With a Return On Invested Capital value of 1.65%, MCHP perfoms like the industry average, outperforming 52.17% 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 10.89%.
  • 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 of 6.34%. This is comparable to the rest of the industry: MCHP outperforms 56.52% of its industry peers.
  • MCHP's Operating Margin has declined in the last couple of years.
  • MCHP has a better Gross Margin (55.41%) 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

  • 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.
  • Compared to 5 years ago, MCHP has more shares outstanding
  • 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 4.35. This indicates that MCHP is financially healthy and has little risk of bankruptcy at the moment.
  • MCHP has a Altman-Z score (4.35) which is comparable to the rest of the industry.
  • 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 in line with its industry peers.
  • 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 81.74% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.54
Altman-Z 4.35
ROIC/WACC0.14
WACC11.73%
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.
  • MCHP has a worse Current ratio (2.16) than 75.65% of its industry peers.
  • A Quick Ratio of 1.16 indicates that MCHP should not have too much problems paying its short term obligations.
  • MCHP's Quick ratio of 1.16 is on the low side compared to the rest of the industry. MCHP is outperformed by 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

  • 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.
  • Looking at the last year, MCHP shows a decrease in Revenue. The Revenue has decreased by -8.08% in the last year.
  • MCHP shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.55% yearly.
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 13.84% 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 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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4

4. MCHP Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 70.50 indicates a quite expensive valuation of MCHP.
  • The rest of the industry has a similar Price/Earnings ratio as MCHP.
  • Compared to an average S&P500 Price/Earnings ratio of 27.79, MCHP is valued quite expensively.
  • A Price/Forward Earnings ratio of 30.21 indicates a quite expensive valuation of MCHP.
  • Based on the Price/Forward Earnings ratio, MCHP is valued a bit cheaper than 75.65% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 38.88, MCHP is valued a bit cheaper.
Industry RankSector Rank
PE 70.5
Fwd PE 30.21
MCHP Price Earnings VS Forward Price EarningsMCHP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, MCHP is valued a bit cheaper than 65.22% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of MCHP indicates a somewhat cheap valuation: MCHP is cheaper than 71.30% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 54.44
EV/EBITDA 49.91
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 43.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.04
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

7

5. MCHP Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.37%, MCHP has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 0.45, MCHP pays a better dividend. On top of this MCHP pays more dividend than 93.91% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, MCHP pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.37%

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 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

  • 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 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 (4/22/2026, 8:00:01 PM)

After market: 87 +4.52 (+5.48%)

82.48

+1.55 (+1.92%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-05
Earnings (Next)05-11
Inst Owners99.75%
Inst Owner Change0.16%
Ins Owners1.92%
Ins Owner Change-3.24%
Market Cap44.63B
Revenue(TTM)4.37B
Net Income(TTM)-156.60M
Analysts81.88
Price Target88.38 (7.15%)
Short Float %5.21%
Short Ratio2.99
Dividend
Industry RankSector Rank
Dividend Yield 2.37%
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)0.08%
PT rev (3m)11.48%
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)1.67%
Valuation
Industry RankSector Rank
PE 70.5
Fwd PE 30.21
P/S 10.21
P/FCF 54.44
P/OCF 48.99
P/B 6.8
P/tB N/A
EV/EBITDA 49.91
EPS(TTM)1.17
EY1.42%
EPS(NY)2.73
Fwd EY3.31%
FCF(TTM)1.52
FCFY1.84%
OCF(TTM)1.68
OCFY2.04%
SpS8.08
BVpS12.12
TBVpS-4.13
PEG (NY)3.04
PEG (5Y)N/A
Graham Number17.8647 (-78.34%)
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 4.35
F-Score4
WACC11.73%
ROIC/WACC0.14
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 5Y13.84%
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 4 / 10 to MICROCHIP TECHNOLOGY INC (MCHP). This can be considered as Fairly Valued.


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 7 / 10 and the dividend payout ratio is -678.74%.