(MCHP) Microchip Technology - Overview
Exchange: NASDAQ •
Country: United States •
Currency: USD •
Type: Common Stock •
ISIN: US5950171042
Stock: Microcontrollers, Analog components
Total Rating 65
Risk 91
Buy Signal 0.77
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 3.08% |
| Yield on Cost 5y | 2.64% |
| Yield CAGR 5y | 5.45% |
| Payout Consistency | 98.4% |
| Payout Ratio | 1.6% |
| Risk 5d forecast | |
|---|---|
| Volatility | 41.4% |
| Relative Tail Risk | -8.99% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.87 |
| Alpha | 17.07 |
| Character TTM | |
|---|---|
| Beta | 2.200 |
| Beta Downside | 2.669 |
| Drawdowns 3y | |
|---|---|
| Max DD | 63.77% |
| CAGR/Max DD | -0.01 |
Description: MCHP Microchip Technology January 28, 2026
Microchip Technology Inc. (NASDAQ:MCHP) designs, manufactures, and sells a broad portfolio of embedded control solutions-including 8-, 16-, 32- and 64-bit microcontrollers, mixed-signal microprocessors, analog power-management ICs, RF components, memory devices, FPGAs, and related development tools-serving automotive, industrial, communications, IoT, and aerospace markets worldwide. The business is split between Semiconductor Products (hardware) and Technology Licensing (intellectual-property and services).
In its latest fiscal quarter (Q4 FY 2025, reported Jan 2026), Microchip posted revenue of **$2.02 billion**, up **7 % YoY**, with a **gross margin of 58 %** and free cash flow of **$520 million**. R&D spending remained steady at **≈15 % of revenue**, underscoring continued investment in AI-enabled MCU architectures. The embedded MCU market is projected to grow at a **CAGR of 6 % through 2028**, driven by rising automotive electrification and IoT device deployments-key demand tailwinds for Microchip’s automotive-grade and low-power product lines.
For a deeper, data-rich assessment of Microchip’s valuation and risk profile, you may want to explore the analyst tools on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 3.5
| Net Income: -96.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA -0.48 > 1.0 |
| NWC/Revenue: 28.16% < 20% (prev 35.01%; Δ -6.85% < -1%) |
| CFO/TA 0.06 > 3% & CFO 911.0m > Net Income -96.6m |
| Net Debt (5.12b) to EBITDA (887.0m): 5.77 < 3 |
| Current Ratio: 2.16 > 1.5 & < 3 |
| Outstanding Shares: last quarter (545.5m) vs 12m ago 1.51% < -2% |
| Gross Margin: 51.57% > 18% (prev 0.58%; Δ 5099 % > 0.5%) |
| Asset Turnover: 29.19% > 50% (prev 30.43%; Δ -1.24% > 0%) |
| Interest Coverage Ratio: 0.78 > 6 (EBITDA TTM 887.0m / Interest Expense TTM 237.5m) |
Altman Z'' 2.48
| A: 0.09 (Total Current Assets 2.29b - Total Current Liabilities 1.06b) / Total Assets 14.33b |
| B: 0.35 (Retained Earnings 5.05b / Total Assets 14.33b) |
| C: 0.01 (EBIT TTM 184.4m / Avg Total Assets 14.98b) |
| D: 0.65 (Book Value of Equity 5.04b / Total Liabilities 7.77b) |
| Altman-Z'' Score: 2.48 = A |
Beneish M -3.08
| DSRI: 0.93 (Receivables 731.2m/857.2m, Revenue 4.37b/4.76b) |
| GMI: 1.12 (GM 51.57% / 57.95%) |
| AQI: 1.04 (AQ_t 0.76 / AQ_t-1 0.73) |
| SGI: 0.92 (Revenue 4.37b / 4.76b) |
| TATA: -0.07 (NI -96.6m - CFO 911.0m) / TA 14.33b) |
| Beneish M-Score: -3.08 (Cap -4..+1) = AA |
What is the price of MCHP shares?
As of February 07, 2026, the stock is trading at USD 76.01 with a total of 20,208,243 shares traded.
Over the past week, the price has changed by +0.12%, over one month by +1.52%, over three months by +29.23% and over the past year by +47.64%.
Over the past week, the price has changed by +0.12%, over one month by +1.52%, over three months by +29.23% and over the past year by +47.64%.
Is MCHP a buy, sell or hold?
Microchip Technology has received a consensus analysts rating of 4.25.
Therefore, it is recommended to buy MCHP.
- StrongBuy: 13
- Buy: 4
- Hold: 7
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the MCHP price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 83.7 | 10.1% |
| Analysts Target Price | 83.7 | 10.1% |
| ValueRay Target Price | 82.1 | 8% |
MCHP Fundamental Data Overview February 07, 2026
P/E Forward = 31.25
P/S = 10.0125
P/B = 6.3146
P/EG = 5.6959
Revenue TTM = 4.37b USD
EBIT TTM = 184.4m USD
EBITDA TTM = 887.0m USD
Long Term Debt = 5.63b USD (from longTermDebt, last fiscal year)
Short Term Debt = 71.4m USD (from shortTermDebt, last fiscal year)
Debt = 5.37b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 5.12b USD (from netDebt column, last quarter)
Enterprise Value = 47.29b USD (42.18b + Debt 5.37b - CCE 250.7m)
Interest Coverage Ratio = 0.78 (Ebit TTM 184.4m / Interest Expense TTM 237.5m)
EV/FCF = 57.68x (Enterprise Value 47.29b / FCF TTM 819.9m)
FCF Yield = 1.73% (FCF TTM 819.9m / Enterprise Value 47.29b)
FCF Margin = 18.75% (FCF TTM 819.9m / Revenue TTM 4.37b)
Net Margin = -2.21% (Net Income TTM -96.6m / Revenue TTM 4.37b)
Gross Margin = 51.57% ((Revenue TTM 4.37b - Cost of Revenue TTM 2.12b) / Revenue TTM)
Gross Margin QoQ = 59.60% (prev 41.23%)
Tobins Q-Ratio = 3.30 (Enterprise Value 47.29b / Total Assets 14.33b)
Interest Expense / Debt = 1.04% (Interest Expense 55.9m / Debt 5.37b)
Taxrate = 33.01% (30.9m / 93.6m)
NOPAT = 123.5m (EBIT 184.4m * (1 - 33.01%))
Current Ratio = 2.16 (Total Current Assets 2.29b / Total Current Liabilities 1.06b)
Debt / Equity = 0.82 (Debt 5.37b / totalStockholderEquity, last quarter 6.56b)
Debt / EBITDA = 5.77 (Net Debt 5.12b / EBITDA 887.0m)
Debt / FCF = 6.24 (Net Debt 5.12b / FCF TTM 819.9m)
Total Stockholder Equity = 6.80b (last 4 quarters mean from totalStockholderEquity)
RoA = -0.64% (Net Income -96.6m / Total Assets 14.33b)
RoE = -1.42% (Net Income TTM -96.6m / Total Stockholder Equity 6.80b)
RoCE = 1.48% (EBIT 184.4m / Capital Employed (Equity 6.80b + L.T.Debt 5.63b))
RoIC = 1.00% (NOPAT 123.5m / Invested Capital 12.37b)
WACC = 12.52% (E(42.18b)/V(47.54b) * Re(14.02%) + D(5.37b)/V(47.54b) * Rd(1.04%) * (1-Tc(0.33)))
Discount Rate = 14.02% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.09%
[DCF Debug] Terminal Value 57.17% ; FCFF base≈880.1m ; Y1≈675.3m ; Y5≈421.0m
Fair Price DCF = N/A (negative equity: EV 4.37b - Net Debt 5.12b = -746.0m; debt exceeds intrinsic value)
EPS Correlation: -82.35 | EPS CAGR: -25.84% | SUE: 1.52 | # QB: 1
Revenue Correlation: -84.69 | Revenue CAGR: -11.11% | SUE: 0.06 | # QB: 0
EPS next Quarter (2026-06-30): EPS=0.57 | Chg30d=+0.029 | Revisions Net=+15 | Analysts=22
EPS next Year (2027-03-31): EPS=2.64 | Chg30d=+0.142 | Revisions Net=+18 | Growth EPS=+72.0% | Growth Revenue=+20.7%
P/S = 10.0125
P/B = 6.3146
P/EG = 5.6959
Revenue TTM = 4.37b USD
EBIT TTM = 184.4m USD
EBITDA TTM = 887.0m USD
Long Term Debt = 5.63b USD (from longTermDebt, last fiscal year)
Short Term Debt = 71.4m USD (from shortTermDebt, last fiscal year)
Debt = 5.37b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 5.12b USD (from netDebt column, last quarter)
Enterprise Value = 47.29b USD (42.18b + Debt 5.37b - CCE 250.7m)
Interest Coverage Ratio = 0.78 (Ebit TTM 184.4m / Interest Expense TTM 237.5m)
EV/FCF = 57.68x (Enterprise Value 47.29b / FCF TTM 819.9m)
FCF Yield = 1.73% (FCF TTM 819.9m / Enterprise Value 47.29b)
FCF Margin = 18.75% (FCF TTM 819.9m / Revenue TTM 4.37b)
Net Margin = -2.21% (Net Income TTM -96.6m / Revenue TTM 4.37b)
Gross Margin = 51.57% ((Revenue TTM 4.37b - Cost of Revenue TTM 2.12b) / Revenue TTM)
Gross Margin QoQ = 59.60% (prev 41.23%)
Tobins Q-Ratio = 3.30 (Enterprise Value 47.29b / Total Assets 14.33b)
Interest Expense / Debt = 1.04% (Interest Expense 55.9m / Debt 5.37b)
Taxrate = 33.01% (30.9m / 93.6m)
NOPAT = 123.5m (EBIT 184.4m * (1 - 33.01%))
Current Ratio = 2.16 (Total Current Assets 2.29b / Total Current Liabilities 1.06b)
Debt / Equity = 0.82 (Debt 5.37b / totalStockholderEquity, last quarter 6.56b)
Debt / EBITDA = 5.77 (Net Debt 5.12b / EBITDA 887.0m)
Debt / FCF = 6.24 (Net Debt 5.12b / FCF TTM 819.9m)
Total Stockholder Equity = 6.80b (last 4 quarters mean from totalStockholderEquity)
RoA = -0.64% (Net Income -96.6m / Total Assets 14.33b)
RoE = -1.42% (Net Income TTM -96.6m / Total Stockholder Equity 6.80b)
RoCE = 1.48% (EBIT 184.4m / Capital Employed (Equity 6.80b + L.T.Debt 5.63b))
RoIC = 1.00% (NOPAT 123.5m / Invested Capital 12.37b)
WACC = 12.52% (E(42.18b)/V(47.54b) * Re(14.02%) + D(5.37b)/V(47.54b) * Rd(1.04%) * (1-Tc(0.33)))
Discount Rate = 14.02% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.09%
[DCF Debug] Terminal Value 57.17% ; FCFF base≈880.1m ; Y1≈675.3m ; Y5≈421.0m
Fair Price DCF = N/A (negative equity: EV 4.37b - Net Debt 5.12b = -746.0m; debt exceeds intrinsic value)
EPS Correlation: -82.35 | EPS CAGR: -25.84% | SUE: 1.52 | # QB: 1
Revenue Correlation: -84.69 | Revenue CAGR: -11.11% | SUE: 0.06 | # QB: 0
EPS next Quarter (2026-06-30): EPS=0.57 | Chg30d=+0.029 | Revisions Net=+15 | Analysts=22
EPS next Year (2027-03-31): EPS=2.64 | Chg30d=+0.142 | Revisions Net=+18 | Growth EPS=+72.0% | Growth Revenue=+20.7%