78.205 USD
+1.55 (+2.02%)
Last: Feb 4, 2026, 10:43 AM
MCHP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. MCHP has only an average score on both its financial health and profitability. MCHP is valied quite expensively at the moment, while it does show a decent growth rate. Finally MCHP also has an excellent dividend rating.
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.
1.2 Ratios
- MCHP has a Return On Assets (-1.69%) which is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of -3.66%, MCHP is in line with its industry, outperforming 40.71% of the companies in the same industry.
- MCHP has a Return On Invested Capital of 0.91%. This is comparable to the rest of the industry: MCHP outperforms 49.56% of 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 10.66%.
- The last Return On Invested Capital (0.91%) 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 Rank | Sector 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%
1.3 Margins
- The Operating Margin of MCHP (3.68%) is comparable to the rest of the industry.
- MCHP's Operating Margin has declined in the last couple of years.
- MCHP has a Gross Margin of 54.06%. This is in the better half of the industry: MCHP outperforms 70.80% of its industry peers.
- MCHP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector 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%
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.
- 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.
2.2 Solvency
- An Altman-Z score of 4.14 indicates that MCHP is not in any danger for bankruptcy at the moment.
- MCHP has a Altman-Z score (4.14) which is in line with its industry peers.
- The Debt to FCF ratio of MCHP is 7.13, which is on the high side as it means it would take MCHP, 7.13 years of fcf income to pay off all of its debts.
- MCHP has a Debt to FCF ratio (7.13) which is in line with its industry peers.
- A Debt/Equity ratio of 0.80 indicates that MCHP is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.80, MCHP is not doing good in the industry: 80.53% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 7.13 | ||
| Altman-Z | 4.14 |
ROIC/WACC0.09
WACC10.69%
2.3 Liquidity
- MCHP has a Current Ratio of 2.25. This indicates that MCHP is financially healthy and has no problem in meeting its short term obligations.
- MCHP has a worse Current ratio (2.25) than 70.80% of its industry peers.
- MCHP has a Quick Ratio of 1.20. This is a normal value and indicates that MCHP is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of MCHP (1.20) is worse than 81.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
- The earnings per share for MCHP have decreased strongly by -64.77% 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 very negative growth in Revenue. In the last year, the Revenue has decreased by -23.36%.
- 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)-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
- Based on estimates for the next years, MCHP will show a very strong growth in Earnings Per Share. The EPS will grow by 29.55% on average per year.
- MCHP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.88% yearly.
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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- MCHP is valuated quite expensively with a Price/Earnings ratio of 84.09.
- MCHP's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of MCHP to the average of the S&P500 Index (28.18), we can say MCHP is valued expensively.
- With a Price/Forward Earnings ratio of 28.84, MCHP can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MCHP indicates a somewhat cheap valuation: MCHP is cheaper than 73.45% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.51. MCHP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.09 | ||
| Fwd PE | 28.84 |
4.2 Price Multiples
- MCHP's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, MCHP is valued a bit cheaper than the industry average as 67.26% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.03 | ||
| EV/EBITDA | 53.36 |
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)4.41
PEG (5Y)N/A
EPS Next 2Y44.43%
EPS Next 3Y41.69%
5. Dividend
5.1 Amount
- MCHP has a Yearly Dividend Yield of 2.29%.
- 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 1.83, MCHP pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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 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
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-421.71%
EPS Next 2Y44.43%
EPS Next 3Y41.69%
NASDAQ:MCHP (2/4/2026, 10:43:10 AM)
78.205
+1.55 (+2.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)02-05 2026-02-05/amc
Inst Owners98.58%
Inst Owner Change-1.42%
Ins Owners1.93%
Ins Owner Change2.41%
Market Cap42.27B
Revenue(TTM)4.21B
Net Income(TTM)-245.10M
Analysts79.39
Price Target79.28 (1.37%)
Short Float %4.98%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.09 | ||
| Fwd PE | 28.84 | ||
| P/S | 10.03 | ||
| P/FCF | 56.03 | ||
| P/OCF | 50.25 | ||
| P/B | 6.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 53.36 |
EPS(TTM)0.93
EY1.19%
EPS(NY)2.71
Fwd EY3.47%
FCF(TTM)1.4
FCFY1.78%
OCF(TTM)1.56
OCFY1.99%
SpS7.79
BVpS12.39
TBVpS-4.01
PEG (NY)4.41
PEG (5Y)N/A
Graham Number16.1
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 4.14 |
F-Score3
WACC10.69%
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 84.09 and the Price/Book (PB) ratio is 6.31.
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%.