MCHP
Microchip Technology
$83.47
▲ 12.3%Updated Today 11:30 AM ET
MCHP at a glance — five pillars scored 0–100 from real filed financials.
Overall: Weak · 32/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 46.7% over the last 12 months
Market Cap
$45.88B
P/E
—
Forward P/E (est.)
—
ROE
3.5%
Revenue Growth
7.1%
EPS Growth
-52.8%
Profit Margin
4.9%
FCF Yield
6.5%
Debt / Equity
0.85x
ROIC
3.0%
Interest Coverage
2.47x
Current Ratio
2.09x
Dividend Yield
1.8%
Implied Growth (rev. DCF)
7.0%
Rating Score
32/100
Microchip Technology (MCHP) is a large-cap company in the Semiconductors industry, part of the Information Technology sector of the S&P 500, with a market value around $45.88B.
In its latest reported year it generated about $4.71B in revenue and $230.00M in net profit.
Our model rates MCHP Weak (32/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (9 years of history).
Some durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
59.7% average over the last 3 years
±4.1 pts around 61.2% across 9 years
grew in 5 of the last 8 year-over-year periods
positive in 9 of 9 years
3.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what MCHP's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. MCHP trades near $83.47, around its 50-day average ($93.67) and 200-day average ($73.76). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 42 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. MCHP's is $5.44 (~6.5% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month MCHP found buyers near $82.85 (support) and sellers near $104.03 (resistance); its 52-week range is $48.52–$105.91. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 1.1× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
-8.8%
Revenue moved from $3.98B in 2018 to $4.71B in 2026, a 2.1% compound annual growth rate. The most recent year grew a steady 7.1% year over year. Slower, mature growth is common for established businesses.
Gross Margin
57.7%
Operating Margin
10.4%
Net Margin
4.9%
ROE
3.5%
Microchip Technology keeps about 4.9% of each sales dollar as net profit, with a 57.7% gross margin and 10.4% operating margin. Return on equity is 3.5% and return on invested capital about 3.0%. Thin margins leave less cushion if costs rise.
Total Debt
$5.50B
Net Debt
$5.26B
Net Debt / EBITDA
10.72x
Debt / Equity
0.85x
Leverage: debt-to-equity is 0.9x, and operating profit covers interest about 2.5x, with a current ratio of 2.1x. That is a moderate, manageable debt load for most businesses. It carries roughly $5.50B of total debt against $240.30M of cash.
Operating CF
$962.10M
Free Cash Flow
$871.00M
FCF Margin
18.5%
In the latest year Microchip Technology produced about $962.10M of operating cash flow and $871.00M of free cash flow after capital spending. That is a free-cash-flow yield of about 6.5% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The dividend is being paid, but coverage or consistency is thinner than an income investor should rely on without a closer look.
Dividend yield
1.8%
Per share (latest FY)
$1.82
Total paid (latest FY)
$984.00M
History on record
9 years
dividend uses 113% of free cash flow
428% of net income paid out
total dividends increased 8 years in a row
no cuts in the last 9 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
—
P/S
11.19x
P/B
4.74x
EV / EBITDA
—
MCHP trades at n/a trailing earnings, 11.2x sales, and 4.7x book value. Reverse-engineering today's price implies the market expects roughly 7.0% long-term free-cash-flow growth. With no positive trailing earnings, value it on sales, cash flow, or growth rather than P/E.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$32.81
Current price
$83.47
Starting FCF (latest 10-K)
$871.00M
Growth, years 1–5
7.1%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where MCHP sits versus its Information Technology sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 98 Information Technology companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How MCHP stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.
In the Information Technology sector (230 S&P 500 companies), MCHP ranks #90 of 230 by our overall rating.
P/E vs sector
—
median 38.9x
ROE vs sector
3.5%
median 17.5%
Growth vs sector
7.1%
median 17.7%
Sector rank
#90
of 230 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 230 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $83.47 today · expected CAGR -39% – -32%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $5.04B | $5.40B | $5.77B | $6.18B | $6.61B |
| Net income | $252.15M | $269.80M | $288.69M | $308.90M | $330.52M |
| EPS | $0.46 | $0.49 | $0.53 | $0.56 | $0.60 |
| Share price (low) | $5.50 | $5.89 | $6.30 | $6.74 | $7.22 |
| Share price (high) | $9.17 | $9.82 | $10.50 | $11.24 | $12.03 |
| CAGR (low–high) | -93% / -89% | -73% / -66% | -58% / -50% | -47% / -39% | -39% / -32% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for MCHP:
- Healthy free-cash-flow yield (~6.5%) funds buybacks and dividends.
- As an established S&P 500 member in Information Technology, it brings scale and a long operating history.
The case against MCHP:
- Thin net margins (4.9%) leave little room for error.
- Interest coverage is thin (2.5x), so debt costs bite.
- Our model's overall read is Weak (32/100).
Margin risk — thin profitability (4.9%) is vulnerable to cost or pricing pressure.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen weakly: Microchip Technology is a large-cap information technology business growing at a mature pace, with modest profitability, and a heavier debt load to watch. It trades at n/a earnings, which our model scores Weak (32/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 32 Wall Street analysts covering MCHP recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more cautious over the last three months (-3 pts of buy ratings).
Latest SEC Filings
MCHP's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
MCHP — frequently asked questions
Is MCHP a good stock to buy?
We don't give buy or sell advice. Our model rates Microchip Technology Weak (32/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is MCHP's rating on The Stocks School?
Microchip Technology currently scores 32/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does MCHP's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Microchip Technology's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for MCHP calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this MCHP analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell MCHP. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.