MICROCHIP TECHNOLOGY INC (MCHP) Fundamental Analysis & Valuation

NASDAQ:MCHP • US5950171042

Current stock price

65.6 USD
+0.22 (+0.34%)
At close:
65.6 USD
0 (0%)
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

  • 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.
  • 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

  • MCHP has a Return On Assets (-1.09%) which is in line with its industry peers.
  • MCHP has a Return On Equity (-2.39%) which is in line with its industry peers.
  • MCHP's Return On Invested Capital of 1.65% is in line compared to the rest of the industry. MCHP outperforms 52.17% of its industry peers.
  • MCHP had an Average Return On Invested Capital over the past 3 years of 11.93%. This is in line with the industry average of 10.70%.
  • 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's Operating Margin of 6.34% is in line compared 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.
  • With a decent Gross Margin value of 55.41%, MCHP is doing good in the industry, outperforming 75.65% of the companies in the same industry.
  • MCHP's Gross Margin has declined in the last couple of years.
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

  • 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.
  • 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

  • MCHP has an Altman-Z score of 3.71. This indicates that MCHP is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of MCHP (3.71) 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.
  • 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.
  • MCHP has a Debt/Equity ratio of 0.82. This is a neutral value indicating 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 80.87% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.54
Altman-Z 3.71
ROIC/WACC0.15
WACC11.09%
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.
  • MCHP has a Current ratio of 2.16. This is in the lower half of the industry: MCHP underperforms 73.04% 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 has a Quick ratio of 1.16. This is amonst the worse of the industry: MCHP underperforms 83.48% 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%.
  • 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.
  • 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 Y23.2%
EPS Next 2Y44.89%
EPS Next 3Y42.88%
EPS Next 5Y32.12%
Revenue Next Year6.11%
Revenue Next 2Y14%
Revenue Next 3Y15.44%
Revenue Next 5Y13.84%

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.
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

  • Based on the Price/Earnings ratio of 56.07, the valuation of MCHP can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of MCHP is on the same level as its industry peers.
  • MCHP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.60.
  • MCHP is valuated rather expensively with a Price/Forward Earnings ratio of 24.04.
  • Based on the Price/Forward Earnings ratio, MCHP is valued a bit cheaper than the industry average as 74.78% of the companies are valued more expensively.
  • MCHP is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.84, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 56.07
Fwd PE 24.04
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 indicates a somewhat cheap valuation: MCHP is cheaper than 62.61% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, MCHP is valued a bit cheaper than 73.91% of the companies in the same industry.
Industry RankSector Rank
P/FCF 43.3
EV/EBITDA 41.45
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 42.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.42
PEG (5Y)N/A
EPS Next 2Y44.89%
EPS Next 3Y42.88%

More info and screens

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

7

5. MCHP Dividend Analysis

5.1 Amount

  • MCHP has a Yearly Dividend Yield of 2.83%.
  • MCHP's Dividend Yield is rather good when compared to the industry average which is at 0.50. MCHP pays more dividend than 94.78% of the companies in the same industry.
  • MCHP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.88.
Industry RankSector Rank
Dividend Yield 2.83%

5.2 History

  • On average, the dividend of MCHP grows each year by 20.15%, which is quite nice.
  • MCHP has been paying a dividend for at least 10 years, so it has 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 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 2Y44.89%
EPS Next 3Y42.88%
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 (4/2/2026, 8:00:01 PM)

After market: 65.6 0 (0%)

65.6

+0.22 (+0.34%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-05
Earnings (Next)05-06
Inst Owners99.68%
Inst Owner Change0.54%
Ins Owners1.92%
Ins Owner Change-3.24%
Market Cap35.50B
Revenue(TTM)4.37B
Net Income(TTM)-156.60M
Analysts81.82
Price Target88.38 (34.73%)
Short Float %4.73%
Short Ratio2.65
Dividend
Industry RankSector Rank
Dividend Yield 2.83%
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)4.71%
PT rev (3m)15.03%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)10.44%
EPS NY rev (1m)1.64%
EPS NY rev (3m)8.68%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)4.38%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)2.41%
Valuation
Industry RankSector Rank
PE 56.07
Fwd PE 24.04
P/S 8.12
P/FCF 43.3
P/OCF 38.97
P/B 5.41
P/tB N/A
EV/EBITDA 41.45
EPS(TTM)1.17
EY1.78%
EPS(NY)2.73
Fwd EY4.16%
FCF(TTM)1.52
FCFY2.31%
OCF(TTM)1.68
OCFY2.57%
SpS8.08
BVpS12.12
TBVpS-4.13
PEG (NY)2.42
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 3.71
F-Score4
WACC11.09%
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 Y23.2%
EPS Next 2Y44.89%
EPS Next 3Y42.88%
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 2Y14%
Revenue Next 3Y15.44%
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 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%.