74.41 USD
-1.6 (-2.1%)
At close: Feb 9, 2026
74 USD
-0.41 (-0.55%)
After Hours: 2/9/2026, 8:14:09 PM
MCHP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. MCHP has an average financial health and profitability rating. MCHP has a decent growth rate and is not valued too expensively. Finally MCHP also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- MCHP had positive earnings in the past year.
- In the past year MCHP had a positive cash flow from operations.
- Of the past 5 years MCHP 4 years were profitable.
- Each year in the past 5 years MCHP had a positive operating cash flow.
1.2 Ratios
- MCHP has a Return On Assets of -1.09%. This is comparable to the rest of the industry: MCHP outperforms 40.71% of its industry peers.
- MCHP has a Return On Equity (-2.39%) which is in line with its industry peers.
- With a Return On Invested Capital value of 1.65%, MCHP perfoms like the industry average, outperforming 52.21% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for MCHP is in line with the industry average of 10.71%.
- 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 Rank | Sector 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%
1.3 Margins
- MCHP has a Operating Margin of 6.34%. This is comparable to the rest of the industry: MCHP outperforms 54.87% 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 75.22% of its industry peers.
- MCHP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MCHP is still creating some value.
- MCHP has more shares outstanding than it did 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.
2.2 Solvency
- MCHP has an Altman-Z score of 4.07. This indicates that MCHP is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.07, MCHP is in line with its industry, outperforming 53.98% of the companies in the same 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's Debt to FCF ratio of 6.54 is in line compared to the rest of the industry. MCHP outperforms 51.33% of its industry peers.
- A Debt/Equity ratio of 0.82 indicates that MCHP is somewhat dependend on debt financing.
- MCHP has a Debt to Equity ratio of 0.82. This is amonst the worse of the industry: MCHP underperforms 80.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 6.54 | ||
| Altman-Z | 4.07 |
ROIC/WACC0.15
WACC10.73%
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.
- MCHP's Current ratio of 2.16 is on the low side compared to the rest of the industry. MCHP is outperformed by 71.68% 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 81.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
- MCHP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.52%.
- Measured over the past years, MCHP shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -14.29% on average per year.
- Looking at the last year, MCHP shows a decrease in Revenue. The Revenue has decreased by -8.08% in the last 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
- The Earnings Per Share is expected to grow by 29.55% on average over the next years. This is a very strong growth
- Based on estimates for the next years, MCHP will show a quite strong growth in Revenue. The Revenue will grow by 12.88% on average per year.
EPS Next Y21.21%
EPS Next 2Y42.77%
EPS Next 3Y42.44%
EPS Next 5Y29.55%
Revenue Next Year5.37%
Revenue Next 2Y12.33%
Revenue Next 3Y14.62%
Revenue Next 5Y12.88%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 63.60, 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 28.06. MCHP is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 28.08, MCHP can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MCHP indicates a somewhat cheap valuation: MCHP is cheaper than 76.11% of the companies listed in the same industry.
- MCHP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.6 | ||
| Fwd PE | 28.08 |
4.2 Price Multiples
- 60.18% of the companies in the same industry are more expensive than MCHP, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, MCHP is valued a bit cheaper than the industry average as 71.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.05 | ||
| EV/EBITDA | 46.26 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- MCHP's earnings are expected to grow with 42.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)3
PEG (5Y)N/A
EPS Next 2Y42.77%
EPS Next 3Y42.44%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.39%, MCHP has a reasonable but not impressive dividend return.
- MCHP's Dividend Yield is rather good when compared to the industry average which is at 0.51. MCHP pays more dividend than 92.92% of the companies in the same industry.
- MCHP's Dividend Yield is a higher than the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
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
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%
74.41
-1.6 (-2.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-05 2026-02-05/amc
Earnings (Next)05-06 2026-05-06/amc
Inst Owners98.58%
Inst Owner Change-1.1%
Ins Owners1.93%
Ins Owner Change2.41%
Market Cap40.21B
Revenue(TTM)4.37B
Net Income(TTM)-156.60M
Analysts79.39
Price Target84.34 (13.34%)
Short Float %4.98%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
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)9.85%
PT rev (3m)8.25%
EPS NQ rev (1m)4.45%
EPS NQ rev (3m)3.85%
EPS NY rev (1m)6.92%
EPS NY rev (3m)4.95%
Revenue NQ rev (1m)2.29%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)1.7%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.6 | ||
| Fwd PE | 28.08 | ||
| P/S | 9.2 | ||
| P/FCF | 49.05 | ||
| P/OCF | 44.14 | ||
| P/B | 6.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 46.26 |
EPS(TTM)1.17
EY1.57%
EPS(NY)2.65
Fwd EY3.56%
FCF(TTM)1.52
FCFY2.04%
OCF(TTM)1.69
OCFY2.27%
SpS8.09
BVpS12.14
TBVpS-4.13
PEG (NY)3
PEG (5Y)N/A
Graham Number17.88
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.07 |
F-Score4
WACC10.73%
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 5Y29.55%
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 5Y12.88%
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 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 63.6 and the Price/Book (PB) ratio is 6.13.
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%.