MCHP
Microchip Technology
$102.71
▲ 2.9%Updated Today 7:15 PM ET
▲ Up 46.7% over the last 12 months
Market Cap
$54.08B
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)
7.3%
Rating Score
32/100
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 $102.71, above its 50-day average ($90.84) and 200-day average ($72.55). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
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 55 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 positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. MCHP's is $5.72 (~5.6% 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 $85.28 (support) and sellers near $101.93 (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 1.4× the 20-day average — heavier than usual, which adds conviction to the move. 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.
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 $54.08B.
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.
4Y CAGR
-8.8%
Revenue moved from $6.82B in 2022 to $4.71B in 2026, a -8.8% 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.
P/E
—
P/S
11.19x
P/B
5.67x
EV / EBITDA
48.41x
MCHP trades at n/a trailing earnings, 11.2x sales, and 5.7x book value. Reverse-engineering today's price implies the market expects roughly 7.3% long-term free-cash-flow growth. With no positive trailing earnings, value it on sales, cash flow, or growth rather than P/E.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. 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 (72 S&P 500 companies), MCHP ranks #69 of 72 by our overall rating.
P/E vs sector
—
median 35.6x
ROE vs sector
3.5%
median 25.6%
Growth vs sector
7.1%
median 17.4%
Sector rank
#69
of 72 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 72 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)
$7.32 – $12.19
vs. $102.71 today · expected CAGR -41% – -35%
| 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 | $0.47 | $0.50 | $0.53 | $0.57 | $0.61 |
| Share price (low) | $5.58 | $5.97 | $6.39 | $6.84 | $7.32 |
| Share price (high) | $9.30 | $9.95 | $10.65 | $11.40 | $12.19 |
| CAGR (low–high) | -95% / -91% | -76% / -69% | -60% / -53% | -49% / -42% | -41% / -35% |
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.
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.