MICROCHIP TECHNOLOGY INC (MCHP) Stock Fundamental Analysis

NASDAQ:MCHP • US5950171042

78.92 USD
-1.83 (-2.27%)
At close: Feb 12, 2026
79.01 USD
+0.09 (+0.11%)
Pre-Market: 2/13/2026, 4:50:44 AM
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 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 quite expensive at the moment. 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.
  • MCHP had a positive operating cash flow in the past year.
  • MCHP had positive earnings in 4 of the past 5 years.
  • 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

  • Looking at the Return On Assets, with a value of -1.09%, MCHP is in line with its industry, outperforming 40.71% of the companies in the same industry.
  • MCHP has a Return On Equity (-2.39%) which is in line with its industry peers.
  • Looking at the Return On Invested Capital, with a value of 1.65%, MCHP is in line with its industry, outperforming 52.21% 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 10.76%.
  • 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

  • The Operating Margin of MCHP (6.34%) is comparable to the rest of the industry.
  • MCHP's Operating Margin has declined in the last couple of years.
  • MCHP's Gross Margin of 55.41% is fine compared to the rest of the industry. MCHP outperforms 75.22% of its industry peers.
  • 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. 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.
  • Compared to 1 year ago, MCHP has more shares outstanding
  • 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

  • An Altman-Z score of 4.27 indicates that MCHP is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.27, MCHP is in line with its industry, outperforming 53.10% 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 has a Debt to FCF ratio of 6.54. This is comparable to the rest of the industry: MCHP outperforms 50.44% of its industry peers.
  • MCHP has a Debt/Equity ratio of 0.82. This is a neutral value indicating MCHP is somewhat dependend on debt financing.
  • The Debt to Equity ratio of MCHP (0.82) is worse than 80.53% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.54
Altman-Z 4.27
ROIC/WACC0.15
WACC10.7%
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'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 has a worse Quick ratio (1.16) than 81.42% 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. Growth

3.1 Past

  • The earnings per share for MCHP have decreased strongly by -33.52% in the last year.
  • 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.
  • MCHP shows a decrease in Revenue. In the last year, the revenue decreased by -8.08%.
  • 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

  • The Earnings Per Share is expected to grow by 32.12% 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 13.84% on average per year.
EPS Next Y21.21%
EPS Next 2Y42.77%
EPS Next 3Y42.44%
EPS Next 5Y32.12%
Revenue Next Year5.37%
Revenue Next 2Y12.33%
Revenue Next 3Y14.62%
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

  • The Price/Earnings ratio is 67.45, which means the current valuation is very expensive for MCHP.
  • The rest of the industry has a similar Price/Earnings ratio as MCHP.
  • The average S&P500 Price/Earnings ratio is at 27.67. MCHP is valued rather expensively when compared to this.
  • The Price/Forward Earnings ratio is 29.79, which means the current valuation is very expensive for MCHP.
  • Based on the Price/Forward Earnings ratio, MCHP is valued a bit cheaper than the industry average as 72.57% 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 27.69, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 67.45
Fwd PE 29.79
MCHP Price Earnings VS Forward Price EarningsMCHP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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 the industry average as 70.80% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 52.09
EV/EBITDA 48.8
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.
  • MCHP's earnings are expected to grow with 42.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.18
PEG (5Y)N/A
EPS Next 2Y42.77%
EPS Next 3Y42.44%

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 2.25%.
  • MCHP's Dividend Yield is rather good when compared to the industry average which is at 0.53. MCHP pays more dividend than 92.04% 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 RankSector Rank
Dividend Yield 2.25%

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 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

  • MCHP has negative earnings and hence a negative payout ratio. The dividend may be in danger.
  • 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%
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 (2/12/2026, 8:00:00 PM)

Premarket: 79.01 +0.09 (+0.11%)

78.92

-1.83 (-2.27%)

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-1.1%
Ins Owners1.93%
Ins Owner Change2.41%
Market Cap42.71B
Revenue(TTM)4.37B
Net Income(TTM)-156.60M
Analysts81.21
Price Target84.34 (6.87%)
Short Float %4.98%
Short Ratio2.95
Dividend
Industry RankSector Rank
Dividend Yield 2.25%
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 RankSector Rank
PE 67.45
Fwd PE 29.79
P/S 9.77
P/FCF 52.09
P/OCF 46.88
P/B 6.51
P/tB N/A
EV/EBITDA 48.8
EPS(TTM)1.17
EY1.48%
EPS(NY)2.65
Fwd EY3.36%
FCF(TTM)1.52
FCFY1.92%
OCF(TTM)1.68
OCFY2.13%
SpS8.08
BVpS12.12
TBVpS-4.13
PEG (NY)3.18
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 4.27
F-Score4
WACC10.7%
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 Year5.37%
Revenue Next 2Y12.33%
Revenue Next 3Y14.62%
Revenue Next 5Y13.84%
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 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 67.45 and the Price/Book (PB) ratio is 6.51.


Is the dividend of MICROCHIP TECHNOLOGY INC sustainable?

The dividend rating of MICROCHIP TECHNOLOGY INC (MCHP) is 8 / 10 and the dividend payout ratio is -678.74%.