MCHP

Microchip Technology Incorporated

Fundamental data last updated:June 19, 2026

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company profile

SECTOR

Technology

industry

Semiconductors

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

08/06/2026

Business Summary

Microchip Technology Incorporated creates, produces, and sells intelligent, interconnected, and secure embedded control solutions to customers throughout the Americas, Europe, and Asia. The company's core offerings include a range of microcontrollers, such as general-purpose 8-bit, 16-bit, and 32-bit models, as well as 32-bit embedded microprocessors. These specialized microcontrollers are designed for numerous applications across industries like automotive, industrial, computing, communications, lighting, power supplies, motor control, human-machine interfaces, security, and various wired and wireless connectivity needs. Beyond its processors, Microchip provides development tools that enable system designers to program its microcontroller and microprocessor units for specific tasks. Its product lineup also features Field-Programmable Gate Arrays (FPGAs) and a broad selection of analog, interface, mixed-signal, and timing components. This extensive category encompasses power management, linear, high-voltage, thermal management, discrete diodes and MOSFETs, radio frequency (RF), drivers, safety, security, USB, Ethernet, wireless, and other interface products. For compact device applications, the company supplies memory products such as serial EEPROM, serial and parallel flash, serial SRAM, and serial EERAM. A significant aspect of Microchip's business involves licensing its SuperFlash embedded flash and NVM technologies. These are provided to foundries, integrated device manufacturers, and design partners for use in manufacturing their own microcontrollers, gate arrays, RF, analog, and neuromorphic computing products that require integrated non-volatile memory. Moreover, Microchip delivers engineering services, along with wafer foundry, assembly, and test subcontracting manufacturing services. It also produces specialized timing systems, application-specific integrated circuits (ASICs), and aerospace products. Microchip Technology Incorporated was established in 1989 and is headquartered in Chandler, Arizona.

 


VALUATION

P/E

267.19

Market Cap ($M USD)

$54.08B

Forward P/E

22.14

PEG

0.02

PRICE TO SALES

11.48

PRICE TO BOOK

8.40

EV / EBITDA

42.39

5-Year Average P/E

Free Cash Flow Yield

1.61%

DCF Value

$11.36

Graham Number

$9.99

Price to FCF

62.09

EV to FCF

68.17

Earnings Yield

0.37%

FCF Yield

1.61%

DIVIDEND

Yield

1.82%

Annual Payout

$1.82

Payout Ratio

540.31%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.37

Next Year EPS Growth Estimate

$4.51

Next Year Revenue Growth Estimate

$773.50B

Return on Equity (ROE)

3.05%

FREE CASH FLOW

Operating Margin

10.40%

Debt-to-Equity

0.86

Piotroski F-Score

7

Altman Z-Score

5.00

Return on Invested Capital (ROIC)

3.70%

Current Ratio

2.09

Quick Ratio

1.18

Net Debt to EBITDA

3.78

Interest Coverage

2.21

Gross Profit margin

57.73%

FCF PER SHARE

$1.61

REVENUE PER SHARE

$8.70

Gainseekers Quantitative Analysis

Summary

MCHP’s valuation is a paradox. Despite a staggering Price/Earnings ratio of 265.37, its Forward P/E of 21.99 suggests the market expects explosive growth. Yet, the stock trades dramatically above its DCF Value and Graham Number, indicating potential overvaluation. The Altman Z-score of 5.36 signals financial stability, but an Earnings Yield of just 0.38% raises questions about immediate returns. This is a stock priced for perfection, with the market banking on future performance to justify its current levels.

AI Exposure / Tech Reliance

In the rapidly evolving semiconductor industry, MCHP is well-positioned to capitalize on AI advancements. As a key player in technology, its adaptability to modern shifts is crucial. The company's industry presence suggests it can leverage AI to enhance product offerings and operational efficiencies.

The Bull Case

For GARP investors, MCHP offers compelling reasons to buy. A Piotroski F-Score of 7 indicates strong financial health, while a robust ROIC of 3.75% showcases effective capital deployment. Its Gross Profit Margin of 57.73% underscores significant pricing power, and the company's ability to generate cash is evident despite a modest FCF Yield of 1.53%. These metrics paint a picture of a company with solid fundamentals and potential for growth.

The Bear Case

However, the bear case is hard to ignore. The Price/Sales ratio of 11.38 and Price/Book of 6.96 suggest a stock that's potentially overvalued. The EV to EBITDA of 57.85 further highlights this concern. Additionally, the stock's proximity to its 52-week high, just 6.88% away, indicates it may be technically overextended. These factors, combined with a low Earnings Yield, suggest caution for those wary of paying a premium.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$107.82

Institutional Ownership %

1-Year Beta

1.73

Insider Buying % (6 Mo)

Distance to 52-Week High

6.15%

Distance to 52-Week Low

51.37%

EARNINGS SURPRISE %

12.87%

50-DAY SMA

$90.26

200-DAY SMA

$72.37

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.