Stock · MCHP · Technology

Microchip Technology Inc

United States · Large Cap · listed since 1993 · Revenue 12 mo. $5.1B

Price as of 11/06/2026

StockScorer score
0.0
of 10 0 of 11 points Low Match To the score
Price
$58.35
1 Y −11.3%
Market cap
$32.2B
Phase
Payout
core business profitable, at least half of operating cash flow goes to shareholders
Revenue −17.6% a year (3 years)EBIT margin 10.4%Payout 123.3% of operating cash flow

Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia.

moreless

Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. It operates in two segments, Semiconductor Products and Technology Licensing. The company offers general-purpose 8-bit, 16-bit, 32-bit, and 64-bit mixed-signal microcontrollers; 32-bit and 64-bit embedded mixed-signal microprocessors; and specialized mixed-signal microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human-machine interface, security, wired connectivity, and wireless connectivity applications. It also provides analog products, including power management, linear, mixed-signal, high voltage, thermal management, discrete diodes and MOSFETs, radio frequency (RF), gate drivers, safety, security, timing, application-specific standard products, USB, Ethernet, wireless, and other interface products; field-programmable gate array (FPGA) products; and application development tools that enable system designers to program mixed-signal microcontroller, FPGA, and microprocessor products. In addition, the company offers memory products consisting of serial electrically erasable programmable read-only memory, serial flash memories, parallel flash memories, serial static random-access memory, and electrically erasable random-access memory for footprint devices. Further, it licenses its SuperFlash embedded flash and non-volatile memory technologies to foundries, integrated device manufacturers, and design partners for use in the manufacture of microcontroller products, gate arrays, RF, analog, and neuromorphic compute products. Additionally, the company offers engineering services; wafer foundry, assembly, and test subcontracting manufacturing services; and timing systems, application-specific integrated circuits, and products for aerospace applications. The company was incorporated in 1989 and is headquartered in Chandler, Arizona.

Original text from the data provider

Summary

Microchip Technology Inc is below the middle of the Technology sector overall

34.9 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Analysis

What the price requires

The price requires 16.8% FCF growth a year, more than achieved over the last 5 and 10 years.

If free cash flow stays at €781.6M (2026), it supports €8.7B. The remaining €20.2B of the market value assume it grows 16.8% a year for 10 years and not at all afterwards.

Required FCF growth per year

16.8%

no growth afterwards

Market value breakdown€28.9B market value, price as of 11/06/2026

€8.7B without growth
€20.2B priced-in growth
  • 5 yrs achieved −17.0%
  • 10 yrs achieved 5.2%
  • priced in 16.8%

Valuation against its own history

Price to operating cash flow 26.8×, within its usual range.

Middle half of 20 quarters: 13.0× to 30.9×, median 19.6×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

1 sign supports the expectation, 4 speak against it.

What supports it

with respect to the priced-in expectation

  • Low capital needs capex median 3.3% of revenue (10 years)

What speaks against it

with respect to the priced-in expectation

  • Expectation above the company's own record priced in 16.8%, achieved at most 5.2%
  • Share count rising despite money spent on own shares shares +2.0% year on year
  • Dividend above free cash flow payout 115.3% of FCF
1 more
  • Volatile earnings 3 drops or sign changes in up to 10 years

Since the last quarter

Q1 → Q2 2026

Mostly better than the previous quarter: 6 of 6 changes for the better.

  • Revenue, 12 mo.$4.7B → $5.1B+8.7%better
  • FCF, 12 mo.$871.0M → $1.1B+27.5%better
  • Gross margin57.7% → 60.2%+2.5 ppbetter
  • EBIT margin10.4% → 15.5%+5.1 ppbetter
  • FCF margin18.5% → 21.7%+3.2 ppbetter
  • Return on equity3.1% → 7.0%+3.8 ppbetter

2 more unchanged: Net debt, Shares outstanding

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability40.3around the middleEarns about as much as the sector.
MetricStockSector medianPosition in sector
Return on equity3.14%14.60%Rank 18
Return on capital (Greenblatt)20.87%29.77%Rank 39
EBIT margin10.40%17.40%Rank 32
FCF margin18.48%18.54%Rank 50
Gross margin57.73%48.47%Rank 62
Growth20.1below the middleGrows more slowly than the sector: Earnings growth, 3 years per year −54.87%, sector 9.54%.
MetricStockSector medianPosition in sector
Revenue growth, 1 year7.08%12.70%Rank 30
Earnings growth, 3 years per year−54.87%9.54%Rank 2
Earnings growth, 5 years per year−10.58%14.07%Rank 9
Sustainable growth (ROE × retained earnings)1.93%2.87%Rank 39
Valuation28.4below the middleValued higher than the sector: EV/EBIT 76.50, sector 26.24.
MetricStockSector medianPosition in sector
Earnings yield0.63%2.64%Rank 18
FCF yield2.71%3.06%Rank 47
EV/saleslower is better7.955.18Rank 33
EV/EBITlower is better76.5026.24Rank 16
Momentum24.1below the middleShare price doing worse than the sector: Share price, 6 months −40.63%, sector −4.46%.
MetricStockSector medianPosition in sector
Share price, 1 year−11.29%−0.59%Rank 36
Share price, 6 months−40.63%−4.46%Rank 10
Share price, 3 months−25.97%−5.84%Rank 18
Distance from 52-week high−43.31%−33.23%Rank 33
Quality68.4above the middleQuality above the sector: Price reaction to results, market-adjusted 13.01%, sector −1.57%.
MetricStockSector medianPosition in sector
Accruals (Sloan)lower is better−3.79%1.65%Rank 81
Change in share countlower is better1.97%−0.17%Rank 17
Dividend streak in years148Rank 84
Price reaction to results, market-adjusted13.01%−1.57%Rank 92
Balance sheet & risk28.1below the middleMore risk than the sector: Net debt/EBITDA 3.78, sector −0.20.
MetricStockSector medianPosition in sector
Equity ratio44.76%53.98%Rank 36
Net debt/EBITDAlower is better3.78−0.20Rank 5
Debt to equitylower is better0.860.33Rank 20
Volatility, 1 yearlower is better50.07%50.37%Rank 51

Ten years in figures

Revenue from $3.4B (2017) to $4.7B (2026), 3.7% a year.

Fiscal years, amounts in USD
YearRevenue, $BEBIT marginFCFSharesNet debt, $B
20173.48.1%$984.1M470M2.0
20184.023.5%$1.2B498M2.2
20195.313.4%$1.4B500M9.9
20205.312.3%$1.5B512M9.2
20215.418.4%$1.8B541M8.8
20226.827.1%$2.5B566M7.4
20238.436.9%$3.1B557M6.4
20247.633.7%$2.6B548M5.7
20254.46.7%$772.1M537M4.9
20264.710.4%$871.0M548M5.3
0.0 / 10Low MatchStockScorer score0 of 11 points

0 of 7 StockScorer Score rules met · How the score is built

Microchip Technology Inc mainly meets criteria in the Profitability category. Result from 18 strategies checked.

This stock · Profitability: 0%This stock · Growth: 0%This stock · Valuation: 0%This stock · Momentum: 0%Median of all stocks · Profitability: 33%Median of all stocks · Growth: 0%Median of all stocks · Valuation: 0%Median of all stocks · Momentum: 0%50%100%ProfitabilityGrowthValuationMomentumThis stockMedian of all stocks

How Microchip Technology Inc's score is built

Microchip Technology Inc is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.

0 of 7 rules met

0 of 11 points

  1. Free cash flow yield above the sector mediannot met0 of 2 points
  2. Return on capital (Greenblatt ROC) above the sector mediannot met0 of 2 points
  3. Return on equity above the sector mediannot met0 of 1 point
  4. Free cash flow margin above the sector mediannot met0 of 2 points
  5. Revenue growth above 15%not met0 of 2 points
  6. 3-year earnings growth above 12% p.a.not met0 of 1 point
  7. 12-month share price more than 20 percentage points ahead of the marketnot met0 of 1 point
  8. Exclusion: financial and real estate stocksdoes not apply

Detail data

How does Microchip Technology Inc stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

12 more strategies locked

With a free account, you can see the match across all strategies checked in one complete overview.

  • Undervalued Stocks: Multi-Factor Check
  • High-Growth / Rule of 40
  • Moat Quality
  • Acquirer's Multiple: EV/EBIT Deep Value
  • Defensive: Low Volatility
  • Balanced GARP
  • Levermann Strategy (13 Criteria)
  • Magic Formula: Value + Quality
  • PEG Strategy (inspired by Peter Lynch)
  • StockScorer Score
  • Trending Value: Value + Momentum
  • Growth Momentum (CAN SLIM principle)

Microchip Technology Inc key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for Microchip Technology Inc.

MetricStockSector
P/E ratio158.135.1
P/B ratio5.05.5
Return on equity (ROE)3.1%14.6%
Equity ratio44.8%54.0%
Debt-to-equity (D/E)0.860.33
Dividend yield3.1%0.9%

Similar stocks in Technology

How comparable stocks in the same sector score in the StockScorer model.

SymbolCompanyRating
MCHPMicrochip Technology Incthis page
ALABAstera Labs, Inc.Low4.5
ONON Semiconductor CorporationLow4.5
CBRSCerebras Systems Inc. Class A Common Stocklocked
GFSGlobalfoundries Inclocked
SWKSSkyworks Solutions Inclocked

Frequently asked questions about Microchip Technology Inc stock

How does Microchip Technology Inc stock (MCHP) score in the StockScorer model?
Microchip Technology Inc stock reaches a StockScorer score of 0.0 out of 10, which is a low match with the rule-based strategies. 0 out of 7 flagship profile rules are met.
What is Microchip Technology Inc's P/E ratio?
Microchip Technology Inc's P/E ratio is 158.1. The Technology sector median is 35.1.
What sector is Microchip Technology Inc in?
Microchip Technology Inc is assigned to the Technology sector. Its rank within the sector is 34.9 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

Unlock the full analysis for free

Signed up in 30 seconds, free.

  • More metrics: FCF margin, cash flow yield and more
  • Full peer comparison within the same sector
  • See the match across all strategies in detail
  • Apply your own scoring profile to any stock
  • Add the stock to your watchlist and track score changes
  • Daily updated ratings, rule-based and transparent

Learn more about the metrics in the metrics glossary or all rated stocks in the stock overview.

How StockScorer rates every stock is explained on the methodology page.