MICROCHIP TECHNOLOGY INC (MCHP) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:MCHP • US5950171042

78.04 USD
-0.19 (-0.24%)
At close: Feb 5, 2026
73.56 USD
-4.48 (-5.74%)
After Hours: 2/5/2026, 9:40:46 PM
Fundamental Rating

4

Overall MCHP gets a fundamental rating of 4 out of 10. We evaluated MCHP against 113 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. MCHP is valied quite expensively at the moment, while it does show a decent growth rate. MCHP also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

4

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.
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 -1.69%, MCHP perfoms like the industry average, outperforming 40.71% of the companies in the same industry.
  • MCHP's Return On Equity of -3.66% is in line compared to the rest of the industry. MCHP outperforms 40.71% of its industry peers.
  • MCHP has a Return On Invested Capital (0.91%) which is in line with its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital 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(0.91%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA -1.69%
ROE -3.66%
ROIC 0.91%
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 3.68%. This is comparable to the rest of the industry: MCHP outperforms 53.98% of its industry peers.
  • MCHP's Operating Margin has declined in the last couple of years.
  • With a decent Gross Margin value of 54.06%, MCHP is doing good in the industry, outperforming 70.80% of the companies in the same industry.
  • MCHP's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 3.68%
PM (TTM) N/A
GM 54.06%
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.
  • MCHP has more shares outstanding than it did 1 year ago.
  • MCHP has more shares outstanding than it did 5 years ago.
  • 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

  • An Altman-Z score of 4.21 indicates that MCHP is not in any danger for bankruptcy at the moment.
  • MCHP's Altman-Z score of 4.21 is in line compared to the rest of the industry. MCHP outperforms 55.75% of its industry peers.
  • MCHP has a debt to FCF ratio of 7.13. This is a slightly negative value and a sign of low solvency as MCHP would need 7.13 years to pay back of all of its debts.
  • MCHP has a Debt to FCF ratio (7.13) which is comparable to the rest of the industry.
  • MCHP has a Debt/Equity ratio of 0.80. This is a neutral value indicating MCHP is somewhat dependend on debt financing.
  • MCHP has a worse Debt to Equity ratio (0.80) than 80.53% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.8
Debt/FCF 7.13
Altman-Z 4.21
ROIC/WACC0.09
WACC10.68%
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 2.25 indicates that MCHP has no problem at all paying its short term obligations.
  • With a Current ratio value of 2.25, MCHP is not doing good in the industry: 69.91% of the companies in the same industry are doing better.
  • A Quick Ratio of 1.20 indicates that MCHP should not have too much problems paying its short term obligations.
  • MCHP has a Quick ratio of 1.20. This is amonst the worse of the industry: MCHP underperforms 81.42% of its industry peers.
Industry RankSector Rank
Current Ratio 2.25
Quick Ratio 1.2
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 -64.77% 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 very negative growth in Revenue. The Revenue has decreased by -23.36% in the last year.
  • The Revenue has been decreasing by -3.55% on average over the past years.
EPS 1Y (TTM)-64.77%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%-23.91%
Revenue 1Y (TTM)-23.36%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%-2.01%

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 Y19.08%
EPS Next 2Y44.43%
EPS Next 3Y41.69%
EPS Next 5Y29.55%
Revenue Next Year5.22%
Revenue Next 2Y12.73%
Revenue Next 3Y14.58%
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.
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

  • The Price/Earnings ratio is 83.91, which means the current valuation is very expensive for MCHP.
  • MCHP's Price/Earnings is on the same level as the industry average.
  • The average S&P500 Price/Earnings ratio is at 27.67. MCHP is valued rather expensively when compared to this.
  • A Price/Forward Earnings ratio of 28.78 indicates a quite expensive valuation of MCHP.
  • MCHP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MCHP is cheaper than 69.03% 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 27.20.
Industry RankSector Rank
PE 83.91
Fwd PE 28.78
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

  • MCHP's Enterprise Value to EBITDA is on the same level as the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of MCHP indicates a somewhat cheap valuation: MCHP is cheaper than 64.60% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 55.91
EV/EBITDA 54.33
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 41.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.4
PEG (5Y)N/A
EPS Next 2Y44.43%
EPS Next 3Y41.69%

More info and screens

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

7

5. Dividend

5.1 Amount

  • MCHP has a Yearly Dividend Yield of 2.33%.
  • MCHP's Dividend Yield is rather good when compared to the industry average which is at 0.50. MCHP pays more dividend than 93.81% 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 2.33%

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.
  • The dividend of MCHP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-421.71%
EPS Next 2Y44.43%
EPS Next 3Y41.69%
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 (2/5/2026, 9:40:46 PM)

After market: 73.56 -4.48 (-5.74%)

78.04

-0.19 (-0.24%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-05
Earnings (Next)05-06
Inst Owners98.58%
Inst Owner Change-1.42%
Ins Owners1.93%
Ins Owner Change2.41%
Market Cap42.18B
Revenue(TTM)4.21B
Net Income(TTM)-245.10M
Analysts79.39
Price Target84.34 (8.07%)
Short Float %4.98%
Short Ratio2.95
Dividend
Industry RankSector Rank
Dividend Yield 2.33%
Yearly Dividend1.81
Dividend Growth(5Y)20.15%
DP-421.71%
Div Incr Years13
Div Non Decr Years13
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.19%
Min EPS beat(2)2.58%
Max EPS beat(2)11.8%
EPS beat(4)3
Avg EPS beat(4)-2.68%
Min EPS beat(4)-27.71%
Max EPS beat(4)11.8%
EPS beat(8)5
Avg EPS beat(8)-0.82%
EPS beat(12)5
Avg EPS beat(12)-1.03%
EPS beat(16)7
Avg EPS beat(16)-0.46%
Revenue beat(2)0
Avg Revenue beat(2)-0.83%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)-0.05%
Revenue beat(4)0
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-4.74%
Max Revenue beat(4)-0.05%
Revenue beat(8)0
Avg Revenue beat(8)-1.9%
Revenue beat(12)0
Avg Revenue beat(12)-1.88%
Revenue beat(16)0
Avg Revenue beat(16)-1.69%
PT rev (1m)3.27%
PT rev (3m)2.04%
EPS NQ rev (1m)4.11%
EPS NQ rev (3m)3.13%
EPS NY rev (1m)5.04%
EPS NY rev (3m)3.1%
Revenue NQ rev (1m)2.12%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)1.55%
Revenue NY rev (3m)-0.13%
Valuation
Industry RankSector Rank
PE 83.91
Fwd PE 28.78
P/S 10.01
P/FCF 55.91
P/OCF 50.14
P/B 6.3
P/tB N/A
EV/EBITDA 54.33
EPS(TTM)0.93
EY1.19%
EPS(NY)2.71
Fwd EY3.48%
FCF(TTM)1.4
FCFY1.79%
OCF(TTM)1.56
OCFY1.99%
SpS7.79
BVpS12.39
TBVpS-4.01
PEG (NY)4.4
PEG (5Y)N/A
Graham Number16.1
Profitability
Industry RankSector Rank
ROA -1.69%
ROE -3.66%
ROCE 1.16%
ROIC 0.91%
ROICexc 0.93%
ROICexgc 2.84%
OM 3.68%
PM (TTM) N/A
GM 54.06%
FCFM 17.91%
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-Score3
Asset Turnover0.29
Health
Industry RankSector Rank
Debt/Equity 0.8
Debt/FCF 7.13
Debt/EBITDA 6.16
Cap/Depr 12.08%
Cap/Sales 2.06%
Interest Coverage 250
Cash Conversion 96.37%
Profit Quality N/A
Current Ratio 2.25
Quick Ratio 1.2
Altman-Z 4.21
F-Score3
WACC10.68%
ROIC/WACC0.09
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)-64.77%
EPS 3Y-34.42%
EPS 5Y-14.29%
EPS Q2Q%-23.91%
EPS Next Y19.08%
EPS Next 2Y44.43%
EPS Next 3Y41.69%
EPS Next 5Y29.55%
Revenue 1Y (TTM)-23.36%
Revenue growth 3Y-13.58%
Revenue growth 5Y-3.55%
Sales Q2Q%-2.01%
Revenue Next Year5.22%
Revenue Next 2Y12.73%
Revenue Next 3Y14.58%
Revenue Next 5Y12.88%
EBIT growth 1Y-86.35%
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-76.11%
FCF growth 3Y-32.16%
FCF growth 5Y-12.16%
OCF growth 1Y-76.62%
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 83.91 and the Price/Book (PB) ratio is 6.3.


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 -421.71%.