MICROCHIP TECHNOLOGY INC (MCHP) Stock Fundamental Analysis

NASDAQ:MCHP • US5950171042

71.39 USD
-2.92 (-3.93%)
At close: Mar 3, 2026
71.3 USD
-0.09 (-0.13%)
After Hours: 3/3/2026, 5:31:51 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Overall MCHP gets a fundamental rating of 4 out of 10. We evaluated MCHP against 115 industry peers in the Semiconductors & Semiconductor Equipment industry. MCHP has only an average score on both its financial health and profitability. While showing a medium growth rate, MCHP is valued expensive at the moment. 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.
  • In the past year MCHP had a positive cash flow from operations.
  • MCHP had positive earnings in 4 of the past 5 years.
  • Each year in the past 5 years MCHP had a positive operating cash flow.
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

  • Looking at the Return On Assets, with a value of -1.09%, MCHP is in line with its industry, outperforming 43.48% 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 42.61% of its industry peers.
  • MCHP has a Return On Invested Capital (1.65%) which is comparable to the rest of the industry.
  • 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 last Return On Invested Capital (1.65%) for MCHP is well below the 3 year average (11.93%), which needs to be investigated, but indicates that MCHP had better years and this may not be a problem.
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.
  • In the last couple of years the Operating Margin of MCHP has declined.
  • MCHP has a Gross Margin of 55.41%. This is in the better half of the industry: MCHP outperforms 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. 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.
  • Compared to 1 year ago, MCHP has more shares outstanding
  • Compared to 5 years ago, MCHP has more shares outstanding
  • 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 4.07. 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 54.78% 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 50.43% of the companies in the same industry.
  • A Debt/Equity ratio of 0.82 indicates that MCHP is somewhat dependend on debt financing.
  • MCHP's Debt to Equity ratio of 0.82 is on the low side compared to the rest of the industry. MCHP is outperformed by 80.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.54
Altman-Z 4.07
ROIC/WACC0.15
WACC10.78%
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: 73.04% 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.
  • Looking at the Quick ratio, with a value of 1.16, MCHP is doing worse than 81.74% 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

  • 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
  • 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

  • MCHP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.12% yearly.
  • Based on estimates for the next years, MCHP will show a quite strong growth in Revenue. The Revenue will grow by 13.84% on average per year.
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.
  • 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

  • MCHP is valuated quite expensively with a Price/Earnings ratio of 61.02.
  • MCHP's Price/Earnings is on the same level as the industry average.
  • The average S&P500 Price/Earnings ratio is at 26.83. MCHP is valued rather expensively when compared to this.
  • Based on the Price/Forward Earnings ratio of 26.94, the valuation of MCHP can be described as expensive.
  • 74.78% of the companies in the same industry are more expensive than MCHP, based on the Price/Forward Earnings ratio.
  • MCHP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.95, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 61.02
Fwd PE 26.94
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MCHP is on the same level as its industry peers.
  • Based on the Price/Free Cash Flow ratio, MCHP is valued a bit cheaper than 69.57% of the companies in the same industry.
Industry RankSector Rank
P/FCF 47.12
EV/EBITDA 46.26
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)2.88
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 2.43%.
  • MCHP's Dividend Yield is rather good when compared to the industry average which is at 0.47. MCHP pays more dividend than 93.91% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, 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

  • 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 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

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Find the best dividend stocksShow peers with best dividend

MICROCHIP TECHNOLOGY INC

NASDAQ:MCHP (3/3/2026, 5:31:51 PM)

After market: 71.3 -0.09 (-0.13%)

71.39

-2.92 (-3.93%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-05
Earnings (Next)05-06
Inst Owners98.58%
Inst Owner Change0.56%
Ins Owners1.93%
Ins Owner Change-3.49%
Market Cap38.63B
Revenue(TTM)4.37B
Net Income(TTM)-156.60M
Analysts81.21
Price Target88.31 (23.7%)
Short Float %4.93%
Short Ratio2.94
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)11.39%
PT rev (3m)17.12%
EPS NQ rev (1m)4.39%
EPS NQ rev (3m)13.34%
EPS NY rev (1m)1.79%
EPS NY rev (3m)4.97%
Revenue NQ rev (1m)2.88%
Revenue NQ rev (3m)5.57%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)0.7%
Valuation
Industry RankSector Rank
PE 61.02
Fwd PE 26.94
P/S 8.84
P/FCF 47.12
P/OCF 42.41
P/B 5.89
P/tB N/A
EV/EBITDA 46.26
EPS(TTM)1.17
EY1.64%
EPS(NY)2.65
Fwd EY3.71%
FCF(TTM)1.52
FCFY2.12%
OCF(TTM)1.68
OCFY2.36%
SpS8.08
BVpS12.12
TBVpS-4.13
PEG (NY)2.88
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 4.07
F-Score4
WACC10.78%
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 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 61.02 and the Price/Book (PB) ratio is 5.89.


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%.