Microchip Technology Incorporated

MCHP: NasdaqGS
41Total

Lowest reading is at 11 out of 100. All scores are out of 100.

About The Company

CEO

Mr. Stephen Sanghi

Market Cap

42.73 Billion USD

Sector

Technology

Website

https://www.microchip.com

Last Update

26/09/2026, 10:13:59

Description

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

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Strongest readings

  • ✔Cashflow and earnings growth is strong (growth score 64 out of 100)
  • ✔Altman-Z score of 4.25 sits above the distress range
  • ✔Debt is low at 0.85 times equity

Weakest readings

  • ✘Price-to-earnings of 212.7 is above the market average of 19.6
  • ✘Earnings have fallen this year (-65.42%)
  • ✘A high share of income is paid out as dividend (311.88%)
  • ✘Returns on capital have declined over five years (6.90% lower)
  • ✘Priced well above the cashflow it produces (value score 11 out of 100)

Key Figures

StatusMetricValueReadingMarket avg
✘
Price / earnings (TTM)
212.68x
19.60x
✘
Margin of safety (DCF)
-49.32%
17.95%
✘
Revenue growth (5y average)
7.08%
10.97%
✔
Dividend yield (TTM)
2.30%
1.85%
✘
Share count, per year
0.80%
0.00%
✘Return on capital employed3.70%
10.00%

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

Valuation

11 / 100

Priced above the market on most measures.

StatusMetricValueReadingMarket avg
✘
Price / earnings
212.68x
19.60x
✘Free cashflow yield2.63%
4.70%
Price / earnings growthN/A1.50x
Price / book6.62x
—
✘
Margin of safety
-49.32%
17.95%

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

  • ✘Estimated intrinsic value of 39.88 USD is below the current price of 78.69 USD

Desired Margin Of Safety

0%

▼

Tip: Set your desired Margin Of Safety

Free Cash Flow Type

Annual Cashflow Growth

0%

Discount Rate

0%

Estimated Fair Value: 68.4 USD ✘

Current Price: 78.7 USD

How Does This Work?

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This calculator helps investors estimate the Intrinsic Value of a company based on the current value of future cash flows. To use the tool, simply input a desired Margin Of Safety, which is an additional discount applied to the present value of the expected future cash flows. The tool calculates the present value using a discount rate that reflects the risk and time value of money, and provides an estimated fair value for the company based on the selected margin of safety. The calculator defaults to using 5 Year Free Cash Flow Growth % and a discount rate based on the US 10-year treasury bond coupon rate. Use our performance analyser to get a feel for the impact this has on longterm investment returns and find a margin of safety you are comfortable with.

Growth

64 / 100

Growing faster than the market on most measures.

StatusMetricValueReadingMarket avg
✘
Revenue growth
7.08%
10.97%
✔Earnings growth74.68%
14.48%
✔Cashflow growth12.81%
12.35%

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

  • ✘Revenue growth has slowed this year (-5.97% against a five year average of 7.08%)
  • ✘Earnings growth has slowed this year (-65.42% against a five year average of 74.68%)
  • ✘Free cashflow growth has slowed this year

Health

52 / 100

Balance sheet covers its obligations.

Measured on Leverage and capital, Funding and liquidity, Earnings quality.

StatusMetricValueReadingThreshold
✔Altman-Z score4.25
3.00
✔Piotroski score6.00
5.00
✘Debt / equity0.85x
0.80x
✔Current ratio2.09x
1.00x
✘Interest coverage2.21x
2.50x
✔Free cashflow / debt0.16x
0.15x
✔Debt / capital0.46x
1.00x

The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    Dividend

    44 / 100

    Cover is thin on at least one measure.

    StatusMetricValueReadingMarket avg
    ✔
    Dividend yield
    2.30%
    1.85%
    ✔Dividend growth0.85%
    0.00%
    ✘Payout ratio (earnings)311.88%
    40.00%
    ✘Payout ratio (cashflow)87.43%
    65.00%
    ✔Worst year, last 5 years0.27%
    -2.00%

    The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    • ✘Dividend growth has been slowing recently

    Management

    35 / 100

    Returns on capital are below the market.

    StatusMetricValueReadingMarket avg
    ✘Return on equity3.58%
    15.00%
    ✘Return on capital employed3.70%
    10.00%
    Return on assets1.60%
    —
    Free cashflow return on capital6.58%
    —
    ✘Return on capital, 5y change-6.90%
    0.00%
    ✘
    Share count, per year
    0.80%
    0.00%
    ✘Share count, recent0.48%
    0.00%
    ✘Realized buyback return-61.78%
    0.00%
    ✔Goodwill erosion / equity0.00%
    2.00%
    Price volatility, 5 year45.46%
    —

    The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    • ✔New shares were issued while the value score was 11 out of 100

    Analysts

    not enough data
    StatusMetricValueReadingNeutral
    Analyst opinion scoreN/A50

    The bar shows how good a reading is, so a longer bar is always better. The tick marks the benchmark.

    Financial History

    Annual figures across the full reporting history we hold.

    Market Peers

    MCHP

    SEC Filings

    Find yearly (10-K), quaterly (10-Q) and disclosure (8-K) report here, on the Securities and Exchange Commission's EDGAR database. If reading through reports isn't your cup of tea, don't worry. We've made it easy for you by summarizing all the important bits.

    See 35+ Years Annual Reports

    Other Information

    Company Name

    Microchip Technology Incorporated

    Currency

    USD

    Beta

    1.736

    Vol Avg

    9884242

    Ceo

    Mr. Stephen Sanghi

    Cik

    0000827054

    Cusip

    Exchange

    NasdaqGS

    Full Time Employees

    17900

    Industry

    Semiconductors

    Sector

    Technology

    Ipo Date

    Address

    2355 West Chandler Boulevard

    City

    Chandler

    State

    AZ

    Country

    United States

    Zip

    85224-6199

    Phone

    480 792 7200

    Analysis Last Updated

    26/09/2026, 10:13:59

    Financial data compiled from SEC EDGAR filings and Yahoo Finance.

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