MICROCHIP TECHNOLOGY INC (MCHP) Fundamental Analysis & Valuation

NASDAQ:MCHP • US5950171042

Current stock price

73.63 USD
-0.87 (-1.17%)
Last:

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

  • 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

  • The Return On Assets of MCHP (-1.09%) is comparable to the rest of the industry.
  • MCHP has a Return On Equity of -2.39%. This is comparable to the rest of the industry: MCHP outperforms 46.09% of its industry peers.
  • MCHP has a Return On Invested Capital (1.65%) which is comparable to the rest of the industry.
  • 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 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 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.
  • 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.
  • 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

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MCHP is creating some value.
  • The number of shares outstanding for MCHP has been increased compared to 1 year ago.
  • Compared to 5 years ago, MCHP has more shares outstanding
  • 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 4.08 indicates that MCHP is not in any danger for bankruptcy at the moment.
  • With a Altman-Z score value of 4.08, MCHP perfoms like the industry average, outperforming 46.96% 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 49.57% 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 has a Debt to Equity ratio of 0.82. This is amonst the worse of the industry: MCHP underperforms 81.74% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.54
Altman-Z 4.08
ROIC/WACC0.14
WACC11.39%
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.
  • The Current ratio of MCHP (2.16) is worse than 74.78% 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 86.09% 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%.
  • The earnings per share for MCHP have been decreasing by -14.29% on average. This is quite bad
  • The Revenue has decreased by -8.08% in the past year.
  • 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

  • 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.
  • MCHP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.84% yearly.
EPS Next Y23.17%
EPS Next 2Y44.92%
EPS Next 3Y43.03%
EPS Next 5Y32.12%
Revenue Next Year6.11%
Revenue Next 2Y13.99%
Revenue Next 3Y15.43%
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

4

4. MCHP Valuation Analysis

4.1 Price/Earnings Ratio

  • MCHP is valuated quite expensively with a Price/Earnings ratio of 62.93.
  • The rest of the industry has a similar Price/Earnings ratio as MCHP.
  • When comparing the Price/Earnings ratio of MCHP to the average of the S&P500 Index (27.33), we can say MCHP is valued expensively.
  • MCHP is valuated quite expensively with a Price/Forward Earnings ratio of 26.97.
  • Based on the Price/Forward Earnings ratio, MCHP is valued a bit cheaper than 75.65% of the companies in the same industry.
  • MCHP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 38.16, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 62.93
Fwd PE 26.97
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

  • Based on the Enterprise Value to EBITDA ratio, MCHP is valued a bit cheaper than 62.61% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of MCHP indicates a somewhat cheap valuation: MCHP is cheaper than 73.91% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 48.6
EV/EBITDA 46.36
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 43.03% in the coming years.
PEG (NY)2.72
PEG (5Y)N/A
EPS Next 2Y44.92%
EPS Next 3Y43.03%

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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 2.56%.
  • 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.
  • MCHP's Dividend Yield is a higher than the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.56%

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 Years14
Div Non Decr Years14
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

  • 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-678.74%
EPS Next 2Y44.92%
EPS Next 3Y43.03%
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

MCHP Fundamentals: All Metrics, Ratios and Statistics

MICROCHIP TECHNOLOGY INC

NASDAQ:MCHP (4/15/2026, 12:18:04 PM)

73.63

-0.87 (-1.17%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-05
Earnings (Next)05-06
Inst Owners99.75%
Inst Owner Change-0.02%
Ins Owners1.92%
Ins Owner Change-3.24%
Market Cap39.84B
Revenue(TTM)4.37B
Net Income(TTM)-156.60M
Analysts81.88
Price Target88.38 (20.03%)
Short Float %5.21%
Short Ratio2.99
Dividend
Industry RankSector Rank
Dividend Yield 2.56%
Yearly Dividend1.81
Dividend Growth(5Y)20.15%
DP-678.74%
Div Incr Years14
Div Non Decr Years14
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)0.08%
PT rev (3m)15.12%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)10.44%
EPS NY rev (1m)1.62%
EPS NY rev (3m)8.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.38%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.41%
Valuation
Industry RankSector Rank
PE 62.93
Fwd PE 26.97
P/S 9.11
P/FCF 48.6
P/OCF 43.74
P/B 6.07
P/tB N/A
EV/EBITDA 46.36
EPS(TTM)1.17
EY1.59%
EPS(NY)2.73
Fwd EY3.71%
FCF(TTM)1.52
FCFY2.06%
OCF(TTM)1.68
OCFY2.29%
SpS8.08
BVpS12.12
TBVpS-4.13
PEG (NY)2.72
PEG (5Y)N/A
Graham Number17.8647 (-75.74%)
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 4.08
F-Score4
WACC11.39%
ROIC/WACC0.14
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 Y23.17%
EPS Next 2Y44.92%
EPS Next 3Y43.03%
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 2Y13.99%
Revenue Next 3Y15.43%
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 3Y42.57%
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%.