MICROCHIP TECHNOLOGY INC (MCHP) Stock Fundamental Analysis

NASDAQ:MCHP • US5950171042

78.94 USD
+0.38 (+0.48%)
At close: Feb 17, 2026
78.94 USD
0 (0%)
After Hours: 2/17/2026, 8:00:02 PM
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. MCHP has an average financial health and profitability rating. MCHP is quite expensive at the moment. It does show a decent growth rate. Finally MCHP also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • In the past year MCHP was profitable.
  • 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

  • MCHP has a Return On Assets (-1.09%) which is in line with its industry peers.
  • 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 53.10% of the companies in the same 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 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

  • MCHP's Operating Margin of 6.34% is in line compared to the rest of the industry. MCHP outperforms 54.87% of its industry peers.
  • MCHP's Operating Margin has declined in the last couple of years.
  • With a decent Gross Margin value of 55.41%, MCHP is doing good in the industry, outperforming 75.22% of the companies in the same industry.
  • 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

  • With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MCHP 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.
  • MCHP has a better debt/assets ratio than last year.
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 4.25 indicates that MCHP is not in any danger for bankruptcy at the moment.
  • MCHP has a Altman-Z score (4.25) which is in line with its industry peers.
  • 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.
  • MCHP's Debt to FCF ratio of 6.54 is in line compared to the rest of the industry. MCHP outperforms 51.33% 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.
  • Looking at the Debt to Equity ratio, with a value of 0.82, MCHP is doing worse than 80.53% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF 6.54
Altman-Z 4.25
ROIC/WACC0.16
WACC10.49%
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.
  • Looking at the Current ratio, with a value of 2.16, MCHP is doing worse than 72.57% of the companies in the same industry.
  • MCHP has a Quick Ratio of 1.16. This is a normal value and indicates that MCHP is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 1.16, MCHP is doing worse than 81.42% of the companies in the same industry.
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.
  • Looking at the last year, MCHP shows a decrease in Revenue. The Revenue has decreased by -8.08% in the last year.
  • 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.
  • The Revenue is expected to grow by 13.84% on average over the next years. This is quite good.
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.
  • 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

  • Based on the Price/Earnings ratio of 67.47, the valuation of MCHP can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of MCHP is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Earnings ratio of 27.16, MCHP is valued quite expensively.
  • The Price/Forward Earnings ratio is 29.79, which means the current valuation is very expensive for MCHP.
  • MCHP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MCHP is cheaper than 72.57% 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 28.10.
Industry RankSector Rank
PE 67.47
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.
  • 69.91% of the companies in the same industry are more expensive than MCHP, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 52.1
EV/EBITDA 48.6
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 2.31%. Purely for dividend investing, there may be better candidates out there.
  • 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.
  • MCHP's Dividend Yield is a higher than the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.31%

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.
  • 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 (2/17/2026, 8:00:02 PM)

After market: 78.94 0 (0%)

78.94

+0.38 (+0.48%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-05
Earnings (Next)05-06
Inst Owners98.58%
Inst Owner Change0.35%
Ins Owners1.93%
Ins Owner Change1.16%
Market Cap42.72B
Revenue(TTM)4.37B
Net Income(TTM)-156.60M
Analysts81.21
Price Target84.34 (6.84%)
Short Float %4.88%
Short Ratio2.7
Dividend
Industry RankSector Rank
Dividend Yield 2.31%
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)4.36%
EPS NQ rev (3m)9.42%
EPS NY rev (1m)1.79%
EPS NY rev (3m)4.97%
Revenue NQ rev (1m)2.72%
Revenue NQ rev (3m)3.79%
Revenue NY rev (1m)0.94%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 67.47
Fwd PE 29.79
P/S 9.77
P/FCF 52.1
P/OCF 46.89
P/B 6.51
P/tB N/A
EV/EBITDA 48.6
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 4.25
F-Score4
WACC10.49%
ROIC/WACC0.16
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 67.47 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 7 / 10 and the dividend payout ratio is -678.74%.