Stock Analysis
Microchip Technology IncMCHP
P/E 83.82×· 5Y range 15.45–156.19×· 76th percentile of history
Sector: Technology · Industry: Semiconductors & Related Devices
AnalystsStrong Buy33 analystsP/E 83.8× sits at the 76th percentile of its 5.086926762491444-year history.
Cash covers 5% of debt · Q1 2027.
PMP Verdict
Mixed fundamentals, expensive valuation
Strengths
- Quality77
Risks
- Valuation22
- Growth25
Mixed fundamentals at a demanding price.
Bull Case
- ✓Altman Z 3.8 — safe-zone balance sheet
What's happening with MCHP
Profile
Strong earnings quality; valuation, growth and profitability lag behind.
How is each axis scored?
- Valuation22/100 · Weak
- P/E vs own history (76th pct)5/25
- FCF yield (2.8%)5/25
- P/S (7.8x)12/25
- EV/EBIT (56.8x)0/25
- Growth25/100 · Weak
- Revenue CAGR (-8.8%)0/25
- Net income CAGR (-35.0%)0/25
- EPS CAGR 5Y (-34.4%)0/25
- Fwd implied growth (348.7%)25/25
- Profitability43/100 · Weak
- ROIC (5.4%)5/25
- ROE (7.4%)5/25
- Net margin (9.3%)13/25
- Operating margin (15.5%)20/25
- Financial Health58/100 · Moderate
- Altman Z (3.81)25/25
- Current ratio (1.92)18/25
- Interest coverage (3.0x)10/25
- Net cash / debt (D/A 36%)5/25
- Quality77/100 · Strong
- Piotroski F (6/9)15/25
- Beneish M (-2.91)25/25
- FCF conversion (232%)25/25
- Margin stability (σ 11.0%)12/25
- Moat61/100 · Moderate
- ROIC >12% years (3/10 yrs)6/25
- Median gross margin (61.1%)25/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst -0.0%)5/25
Risk Flags
- ⚠SBC 5.4% of revenue — real dilution cost
- ⚠Revenue shrinking 8.8%/yr
About Microchip Technology Inc
Microchip Technology became an independent company in 1989 when it was spun off from General Instrument. Show more
More than half of revenue comes from MCUs, which are used in a wide array of electronic devices from remote controls to garage door openers to power windows in autos. The company's strength lies in lower-end 8-bit MCUs that are suitable for a wider range of less technologically advanced devices, but the firm has expanded its presence in higher-end MCUs and analog chips as well.
Headquarters: CHANDLER, AZ · Employees: 17,900 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
22EP/E (TTM)83.7xD
Grade D: ExpensivePrice / TTM EPS (own statements) — vs own 5Y history: 15.4x–156.2x · 76th pct
P/FCF35.5xC
Grade C: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield2.8%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 1.5%–8.7% · 30th pct
P/S (TTM)7.82xC
Grade C: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 4.0x–16.7x · 71st pct
EV/EBIT56.8xD
Grade D: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 12.5x–822.1x · 68th pct
EV/Sales8.7xC
Grade C: ExpensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E18.7xB
Grade B: FairPrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio6.21xC
Grade C: ExpensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio2.48C
Grade C: ExpensiveFinnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield2.78%A
Grade A: PaysTTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio229.2%D
Grade D: UnsustainableDividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
43D+ROIC5.4%D
Grade D: LowNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE7.4%D
Grade D: WeakReturn on Equity. Neg. equity = heavy buybacks
ROA3.3%D
Grade D: WeakReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin9.3%C
Grade C: AverageNet Income / Revenue
Operating Margin15.5%C
Grade C: AverageTTM EBIT / TTM Revenue
Gross Margin60.2%A
Grade A: PremiumGross Profit / Revenue
FCF Margin21.7%A
Grade A: HighFCF / Revenue
True FCF Margin16.3%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
25ERevenue CAGR-8.8%D
Grade D: LowCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR-35.0%D
Grade D: LowCompound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)-34.4%D
Grade D: LowCompound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth348.7%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)-3.9%A
Grade A: BuybacksShare count change over 5Y
SBC / Net Income58.0%D
Grade D: HighStock-based comp/Net income. >30% = dilution risk
SBC / Revenue5.4%C
Grade C: MedTTM stock-based comp / TTM Revenue
Financial Health
58CAltman Z-Score3.81A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio1.92xC
Grade C: OkCurrent Assets/Liabilities
Quick Ratio1.11xA
Grade A: High(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage3.0xC
Grade C: OkEBIT/Interest. >10 Strong
Debt Repayment4.6yC
Grade C: AverageYears to repay net debt via FCF
Net Debt/EBIT6.4xD
Grade D: HighLeverage. <2x Low, >4x High
Debt/Equity0.84xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt0.05xD
Grade D: ThinCash covers how much of total debt. >1 = could repay all debt from cash
Quality
77B+Piotroski F-Score6/9C
Grade C: AverageFinancial strength 0–9. >7 Strong
Beneish M-Score-2.91A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion232.2%A
Grade A: StrongFCF / Net Income
Margin Stability11.0%C
Grade C: AverageEBIT margin std deviation. Lower = stable
Capex / Revenue1.7%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.36xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Duvenhage Stephanus Filed | Duvenhage Stephanus | Grant / award | +1.6K | |
Duvenhage Stephanus Filed | Duvenhage Stephanus | Grant / award | +1.6K | |
Krawczyk Joseph R II Filed | Krawczyk Joseph R II | Grant / award | +1.7K | |
Bunker Mathew B Filed | Bunker Mathew B | Grant / award | +1.9K | |
Bjornholt James Eric Filed | Bjornholt James Eric | Grant / award | +3.4K |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Bjornholt James Eric Filed | Bjornholt James Eric | Grant / award | +3.4K | |
Sanghi Steve Filed | Sanghi Steve | Grant / award | +24.8K | |
Sanghi Steve Filed | Sanghi Steve | Grant / award | +16.6K |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
61BROIC >12% Years3/10 yrsD
Grade D: WeakShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)61.1%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor-0.0%D
Grade D: WeakWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$0.88
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$0.50
Cash & short-term investments per share (Finnhub)
Book Value / Share$11.88
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$5.40B
Total debt obligations (short + long term)
Cash & Equiv.$272.30M
Cash and short-term investments
Net Debt$5.13B
Total Debt minus Cash. Negative = Net Cash position
Total Equity$6.45B
Shareholders' equity (book value)
Asset / Liability1.81xC
Grade C: AdequateTotal Assets / Total Liabilities
Market
Market Cap$40.05B
Current Market Capitalization
Beta1.86D
Grade D: High volatilityPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jun 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Microchip Technology Inc (MCHP)
MCHP is down 0.55% at the last close. Piotroski F-Score of 6/9 indicates mixed fundamentals for Microchip Technology Inc. Altman Z-Score of 3.81 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -2.91 suggests a low likelihood of earnings manipulation. Revenue has been contracting (CAGR ≈ -9%), which weighs on the growth outlook.
- Microchip Technology Inc converts about 22% of revenue into free cash flow — strong cash generation.
- Takes ~4.6 years to repay net debt from free cash flow.
- Microchip Technology Inc posted a net loss in 1 of 10 available completed fiscal years (2017–2026).
- At a valuation score of 22/100, MCHP trades at a premium to its historical multiples (P/E 83.7).
- The stock currently yields 2.8% in dividends.
See how MCHP ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all MCHP moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 14 | After-hours | 70.15 | -5.41% | -2.61 |
| Sep 25 | Regular | 78.47 | +5.05% | 2.31 |
| Sep 25 | After-hours | 78.42 | +5.00% | 2.29 |
Frequently Asked Questions about MCHP
What is the current Microchip Technology Inc (MCHP) stock price?
MCHP is trading at $73.85 at the last market close, down 0.55% on the session. PreMarketPrice tracks MCHP pre-market, intraday and after-hours prices.
Is MCHP stock a buy right now?
PreMarketPrice's quantitative model rates Microchip Technology Inc's financial health at 58/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is MCHP stock overvalued?
Microchip Technology Inc trades at a trailing P/E of 83.7 and our valuation score rates it 22/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Microchip Technology Inc report earnings?
No confirmed earnings date is currently scheduled for MCHP. The Earnings section lists recent reports and updates as dates are announced.
What sector does Microchip Technology Inc operate in?
Microchip Technology Inc operates in the Technology sector, within the Semiconductors & Related Devices industry. The Related Stocks section lists sector peers for comparison.
What does Microchip Technology Inc do?
Microchip Technology became an independent company in 1989 when it was spun off from General Instrument.
About Microchip Technology Inc (MCHP) Stock
Microchip Technology Inc (MCHP) is a US-listed stock operating in the Technology sector, specifically the Semiconductors & Related Devices industry. As of the latest update, Microchip Technology Inc is trading at $73.85, down 0.55% on the day with a market capitalization of $40.0 billion. The financial health score for MCHP is 58/100, which indicates moderate financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for MCHP stock.
MCHP Stock Analysis & Key Metrics
On PreMarketPrice, you can track Microchip Technology Inc (MCHP) across multiple dimensions:
- Pre-market price & movement: Real-time MCHP stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for MCHP with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Microchip Technology Inc across multiple reporting periods.
- Financial health score: A composite score of 58/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for MCHP.
- Sector peers: Compare MCHP against 6 other technology stocks on key financial metrics.
Is MCHP a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Microchip Technology Inc (MCHP) as an investment. The financial health score of 58/100 suggests moderate financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Microchip Technology Inc (MCHP) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.