Microchip Technology Inc (MCHP)
Information Technology · Semiconductors · US stock · S&P 500 component
$74.05
▼ -0.47 (0.63%)
Fair valueOvervalued
$55 −25.2% to fair value
$28fair band $47–$67$83
Day's range
$73.67 – $75.50
52-week range
$48.52 – $105.91
About Microchip Technology Inc
Microchip Technology designs and makes microcontrollers, analog and mixed-signal chips, programmable logic devices, memory products and related development tools. Its chips are embedded in equipment that needs simple control and connectivity, such as industrial machines, vehicles, aerospace and defense systems, consumer devices and data centre gear. Customers are electronics makers of all sizes, which it reaches through direct sales and distributors. It also earns income from technology licensing.
Revenue came to $5.1 billion over the last twelve months, earned by supplying chips and development tools to equipment makers. Revenue has changed at -17.6% a year across the last three years, a steep decline. The operating margin is 15.5%, the business earns 6% on the capital invested in it, and net debt is 3.5 times EBITDA. The dividend yield is 2.5%. On the site's X-Ray Score it receives 24 out of 100.
Price chart
52-wk range $48.52 – $105.91Volume 7,183,297Daily, split-adjusted
Vitals
Market cap$40.8B
52-week range$48.52 – $105.91
Volume (last day)7,183,297
P/E (TTM)84.6
EBIT / EV yield1.7%
Free-cash-flow yield2.7%
Dividend yield2.5%
Revenue (TTM)$5.1B
Net income (TTM)$478M
Operating margin15.5%
Return on capital5.7%
Debt incl. leases$5.4B
Cash & securities$272M
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$55middle half of models $48 – $63
Overvalued
−25.2% to fair value
Average of the 12 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is Medium, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $74
Undervalued < $47Fair $47 – $67Overvalued > $67
P/E multiple
$67
P/B multiple
$74
P/S multiple
$62
EV/EBITDA multiple
$63
EV/EBIT multiple
$54
EV/revenue multiple
$64
10-year DCF, EBITDA exit
$48
5-year DCF, EBITDA exit
$58
10-year DCF, revenue exit
$48
5-year DCF, revenue exit
$58
10-year DCF, growth exit · not used
$12
5-year DCF, growth exit · not used
$9
Dividend discount, stable
$32
Dividend discount, multi-stage
$36
Earnings power value · not used
$17
Growth the price implies
35.5%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 4.96%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, priced high
Our models put fair value below today's price, so a lot of good news may already be in the price. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
19/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield1.7%
Free-cash-flow yield2.7%
Fair value vs price0.7×
Growth
Weak
6/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)-17.6%
EPS growth (3y)-62.0%
Growth consistency30%
Profitability
Weak
26/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital5.7%
Operating margin15.5%
Gross profitability21.4%
Financial health
Weak
29/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score6 / 9
Net debt / EBITDA3.5×
Interest cover3.7×
Dividends
Fair
60/100
Dividend is typical for its sector.
See the numbers →
Dividend yield2.5%
Dividends vs free cash flow90%
Dividend growth12.3%
Quarterly results: last 6 quarters
-26.8%
Mar '25
-13.4%
Jun '25
-2.0%
Sep '25
+15.6%
Dec '25
+35.1%
Mar '26
+38.0%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $1.5B, diluted EPS $0.37.
Compare with peers
MU Micron Technology Inc79 FSLR First Solar, Inc.70 NVDA Nvidia Corp67 AVGO Broadcom Inc.60Other Semiconductors companies by X-Ray Score.
SWOT analysis: Microchip Technology Inc
Strengthsinside the company
- No standout strength in the figures we track.
Weaknessesinside the company
- Return on invested capital is only 5.7% (median 16.7% for industry peers), so the business earns little above its cost of capital.
- Operating margin of 15.5% is thin against 29.5% for industry peers.
- Revenue has fallen 17.6% a year over three years while industry peers grew 5.8%.
- Earnings per share have declined 62.0% a year over three years.
Opportunitiesvaluation and setting
- Revenue growth picked up to 7.1% last year from -17.6% a year over three years.
- Our Market Compass rates the backdrop for Information Technology as favourable.
Threatsvaluation and setting
- Trades at 85.2x earnings, 97% above the 43.3x median of industry peers, so the price already assumes better results.
- The price is 25% above our fair value estimate, so there is little room for disappointment.
- The price trend is down on the daily and weekly signals.
- Earnings in Semiconductors follow the industry cycle, so margins and profits can swing from year to year.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare MCHP with peers and sector
Medians of 14 Semiconductors peers and of 74 Information Technology stocks in our universe.
Largest peers (X-Ray Score): NVDA 67, AVGO 60, MU 79, AMD 48, INTC 17, TXN 44.
| Metric | MCHP | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 24 | 46 | 50 |
| Valuation | 19 | 34 | 50 |
| Growth | 6 | 44 | 54 |
| Profitability | 26 | 45 | 50 |
| Financial health | 29 | 61 | 50 |
| Dividends | 60 | 52 | 50 |
Sector leaders: highest X-Ray Score in Information Technology
MCHP ranks #74 of 75 in Information Technology and #14 of 15 in Semiconductors by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for MCHP
Each factor is rated by where MCHP stands among the 75 Information Technology stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 1 Good · 11 Average · 11 Bad of 23
Growth: 0 · 0 · 3
Profitability: 0 · 2 · 3
Financial strength: 0 · 2 · 2
Valuation: 0 · 4 · 1
Cash flow: 1 · 2 · 1
Efficiency: 0 · 1 · 1
| Factor | MCHP | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | −17.6% | Bad beats 1% | +9.7% | – | – |
| Revenue growth, last year | +7.1% | Bad beats 22% | +13.7% | +7.1% | ≈ In line |
| EPS growth, 3 years a year | −62.0% | Bad beats 1% | +5.9% | – | – |
| Profitability | |||||
| Gross margin | 60.2% | Average beats 55% | 57.8% | 65.2% | ≈ In line |
| Operating margin | 15.5% | Average beats 34% | 20.3% | 27.1% | ▼ Worse |
| Net margin | 9.3% | Bad beats 23% | 17.8% | 18.8% | ▼ Worse |
| Return on invested capital | 5.7% | Bad beats 9% | 19.4% | – | – |
| Return on equity | 7.4% | Bad beats 15% | 21.0% | 21.8% | ▼ Worse |
| Financial strength | |||||
| Net debt / EBITDA | 3.5x | Bad beats 6% | 0.8x | 2.5x | ▼ Worse |
| Interest cover | 3.7x | Bad beats 6% | 23.0x | 7.2x | ▼ Worse |
| Current ratio | 1.92 | Average beats 62% | 1.57 | 1.75 | ≈ In line |
| Piotroski F-score | 6 / 9 | Average beats 43% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 85.2x | Bad beats 12% | 34.2x | 29.4x | ▼ Worse |
| Price / book | 6.3x | Average beats 61% | 8.4x | 7.2x | ▲ Better |
| Price / sales | 8.0x | Average beats 39% | 6.8x | 6.2x | ▼ Worse |
| EV / EBITDA | 31.2x | Average beats 38% | 24.9x | 16.7x | ▼ Worse |
| Free cash flow yield | 2.7% | Average beats 43% | 3.3% | 5.3% | ▼ Worse |
| Cash flow | |||||
| Free cash flow margin | 21.7% | Average beats 46% | 22.3% | 34.2% | ▼ Worse |
| Cash from operations / net income | 2.50 | Good beats 88% | 1.39 | 1.91 | ▲ Better |
| Free cash flow growth, 3 years a year | −34.7% | Bad beats 1% | +15.4% | – | – |
| Accruals (lower is better) | −5.0% | Average beats 58% | −4.4% | – | – |
| Efficiency | |||||
| Inventory turnover | 1.9x | Bad beats 11% | 3.9x | 2.0x | ≈ In line |
| Days sales outstanding | 69 days | Average beats 40% | 63 days | 57 days | ▼ Worse |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 0 Good · ● 6 Average · ● 10 BadCash quality
Earnings backed by cashAverage
Free-cash-flow yieldAverage
Risk models
Altman Z''Average
Piotroski F-ScoreAverage
Growth
EPS growth (3y)Bad
Free-cash-flow growth (3y)Bad
Revenue growth (3y)Bad
Growth consistencyBad
Balance sheet
Current ratioAverage
Net debt / EBITDABad
Interest coverBad
Valuation
Fair value vs priceBad
EBIT / EV yieldBad
Profitability
Return on invested capitalBad
Operating marginAverage
Gross profitabilityBad
Each check is graded against the company's sector, not a fixed number. Checklist score 22/100.
Financials
| FY22 | FY23 | FY24 | FY25 | FY26 | |
|---|---|---|---|---|---|
| Revenue | $6.8B | $8.4B | $7.6B | $4.4B | $4.7B |
| Operating income | $1.8B | $3.1B | $2.6B | $296M | $490M |
| Net income | $1.3B | $2.2B | $1.9B | −$500,000 | $230M |
| Operating cash flow | $2.8B | $3.6B | $2.9B | $898M | $962M |
| Operating margin | 27.1% | 36.9% | 33.7% | 6.7% | 10.4% |
| Free cash flow | $2.5B | $3.1B | $2.6B | $772M | $871M |
| Diluted EPS | $2.27 | $4.02 | $3.48 | $-0.01 | $0.22 |
Fiscal years, from SEC filings.
Technical summary
Daily
Strongly bearish
0 bullish · 4 neutral · 12 bearish
Weekly
Bearish
4 bullish · 1 neutral · 7 bearish
Monthly
Bullish
5 bullish · 1 neutral · 2 bearish
Moving averages (daily)
| SMA 10 | 74.34 | Bearish |
| EMA 10 | 75.06 | Bearish |
| SMA 20 | 76.48 | Bearish |
| EMA 20 | 75.40 | Bearish |
| SMA 50 | 75.13 | Bearish |
| EMA 50 | 76.34 | Bearish |
| SMA 100 | 80.35 | Bearish |
| EMA 100 | 77.79 | Bearish |
| SMA 200 | 78.97 | Bearish |
| EMA 200 | 76.68 | Bearish |
Oscillators (daily)
| RSI (14) | 46.06 | Neutral |
| MACD (12, 26) | -0.35 | Bearish |
| Momentum (12) | -5.09 | Bearish |
| Stochastic %K (14) | 33.52 | Neutral |
| Williams %R (14) | -66.48 | Neutral |
| CCI (20) | -55.91 | Neutral |
Pivot points (classic, last session)
S3 71.48 | S2 72.58 | S1 73.31 | Pivot 74.41 | R1 75.14 | R2 76.24 | R3 76.97 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
1.82 USD
Yield on today's price
2.46%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.4550 | |
| 0.4550 | |
| 0.4550 | |
| 0.4550 | |
| 0.4550 | |
| 0.4550 | |
| 0.4550 | |
| 0.4550 | |
| 0.4540 | |
| 0.4520 | |
| 0.4500 | |
| 0.4390 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold MCHP
| ETF | Share of the fund |
|---|---|
| CHPY YieldMax Semiconductor Portfolio Optio... | 2.37% |
| XSD SPDR S&P Semiconductor | 2.19% |
| SOXX iShares Semiconductor | 2.17% |
| QTEC First Trust NASDAQ-100-Technology Sect... | 2.02% |
| DTCR Global X Data Center & Digital Infrast... | 1.93% |
| SOXQ Invesco PHLX Semiconductor | 1.88% |
| SOXL Direxion Daily Semiconductor Bull 3X | 1.55% |
| FTXL First Trust Nasdaq Semiconductor | 1.54% |
The eight funds with the largest weight in MCHP among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
MCHP stock splits
MCHP has split its stock 8 times since 1993. The latest was a 2-for-1 split on 13 Oct 2021.
Full MCHP stock split history →MCHP SEC filings
8-KSEC EDGAR
Director or officer change; Shareholder vote results
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Director or officer change
DEF 14ASEC EDGAR
Proxy statement
8-KSEC EDGAR
Director or officer change
10-KSEC EDGAR
Annual report
8-KSEC EDGAR
Results of operations
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.