MICROCHIP TECHNOLOGY INC (MCHP) Fundamental Analysis & Valuation
NASDAQ:MCHP • US5950171042
65.085 USD
+0.08 (+0.13%)
Last: Mar 10, 2026, 09:57 AM
This MCHP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, MCHP scores 4 out of 10 in our fundamental rating. MCHP was compared to 115 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 has a correct valuation and a medium growth rate. Finally MCHP also has an excellent dividend rating.
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.
- Of the past 5 years MCHP 4 years were profitable.
- MCHP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- MCHP's Return On Assets of -1.09% is in line compared to the rest of the industry. MCHP outperforms 43.48% of its industry peers.
- With a Return On Equity value of -2.39%, MCHP perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
- MCHP has a Return On Invested Capital (1.65%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years for MCHP is in line with the industry average of 10.52%.
- 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 Rank | Sector 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%
1.3 Margins
- With a Operating Margin value of 6.34%, MCHP perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
- In the last couple of years the Operating Margin of MCHP has declined.
- MCHP's Gross Margin of 55.41% is fine compared to the rest of the industry. MCHP outperforms 75.65% of its industry peers.
- In the last couple of years the Gross Margin of MCHP has declined.
| Industry Rank | Sector 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%
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.
2.2 Solvency
- MCHP has an Altman-Z score of 3.68. This indicates that MCHP is financially healthy and has little risk of bankruptcy at the moment.
- MCHP's Altman-Z score of 3.68 is in line compared to the rest of the industry. MCHP outperforms 49.57% of its industry peers.
- 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.
- The Debt to FCF ratio of MCHP (6.54) is comparable to the rest of the 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 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 6.54 | ||
| Altman-Z | 3.68 |
ROIC/WACC0.15
WACC11.02%
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 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.
- With a Quick ratio value of 1.16, MCHP is not doing good in the industry: 81.74% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.16 |
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%.
- 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%.
- The Revenue has been decreasing by -3.55% on average over the past years.
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 Y21.21%
EPS Next 2Y42.77%
EPS Next 3Y42.44%
EPS Next 5Y32.12%
Revenue Next Year6.11%
Revenue Next 2Y13.95%
Revenue Next 3Y15.31%
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.
- 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.
4. MCHP Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 55.63, MCHP can be considered very expensive at the moment.
- 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 (26.45), we can say MCHP is valued expensively.
- With a Price/Forward Earnings ratio of 24.56, MCHP is valued on the expensive side.
- 73.91% of the companies in the same industry are more expensive than MCHP, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.65. MCHP is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.63 | ||
| Fwd PE | 24.56 |
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 61.74% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, MCHP is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.96 | ||
| EV/EBITDA | 41.12 |
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)2.62
PEG (5Y)N/A
EPS Next 2Y42.77%
EPS Next 3Y42.44%
5. MCHP Dividend Analysis
5.1 Amount
- MCHP has a Yearly Dividend Yield of 2.43%.
- Compared to an average industry Dividend Yield of 0.49, MCHP pays a better dividend. On top of this MCHP pays more dividend than 93.04% of the companies listed in the same industry.
- MCHP's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
5.2 History
- On average, the dividend of MCHP grows each year by 20.15%, which is quite nice.
- MCHP has paid a dividend for at least 10 years, which is 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
- The earnings of MCHP are negative and hence is the payout ratio. MCHP will probably not be able to sustain this dividend level.
- 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 Fundamentals: All Metrics, Ratios and Statistics
NASDAQ:MCHP (3/10/2026, 9:57:09 AM)
65.085
+0.08 (+0.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-05 2026-02-05/amc
Earnings (Next)05-06 2026-05-06/amc
Inst Owners98.58%
Inst Owner Change0.54%
Ins Owners1.93%
Ins Owner Change-3.24%
Market Cap35.22B
Revenue(TTM)4.37B
Net Income(TTM)-156.60M
Analysts81.21
Price Target88.31 (35.68%)
Short Float %4.93%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.43% |
Yearly Dividend1.81
Dividend Growth(5Y)20.15%
DP-678.74%
Div Incr Years13
Div Non Decr Years13
Ex-Date02-23 2026-02-23 (0.455)
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)16.97%
EPS NQ rev (1m)4.39%
EPS NQ rev (3m)13.34%
EPS NY rev (1m)0%
EPS NY rev (3m)7.47%
Revenue NQ rev (1m)2.88%
Revenue NQ rev (3m)5.57%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)2.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.63 | ||
| Fwd PE | 24.56 | ||
| P/S | 8.06 | ||
| P/FCF | 42.96 | ||
| P/OCF | 38.66 | ||
| P/B | 5.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 41.12 |
EPS(TTM)1.17
EY1.8%
EPS(NY)2.65
Fwd EY4.07%
FCF(TTM)1.52
FCFY2.33%
OCF(TTM)1.68
OCFY2.59%
SpS8.08
BVpS12.12
TBVpS-4.13
PEG (NY)2.62
PEG (5Y)N/A
Graham Number17.86
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.68 |
F-Score4
WACC11.02%
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 Year6.11%
Revenue Next 2Y13.95%
Revenue Next 3Y15.31%
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 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.
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 55.63 and the Price/Book (PB) ratio is 5.37.
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%.