MCHP Stock Analysis: Microchip Technology | NASDAQ
Semiconductors | NASDAQ, USA | Market Cap: 48.105m USD | 12M Return: 12.7% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 1.05B
EPS Trend: -95.1%
Qual. Beats: 1
Rev. Trend: -92.2%
Qual. Beats: 1
Warnings
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Microchip Technology Incorporated is a US-based semiconductor company that designs, manufactures, and sells embedded control solutions across the Americas, Europe, and Asia. It operates through two segments, Semiconductor Products and Technology Licensing, and is headquartered in Chandler, Arizona, having been incorporated in 1989. The company is listed on NASDAQ under the ticker MCHP within the GICS Semiconductors sub-industry.
The companys product portfolio spans 8-bit, 16-bit, 32-bit, and 64-bit microcontrollers and microprocessors, analog products (including power management, RF, and interface products), field-programmable gate arrays (FPGAs), application development tools, and memory products. These components are used across automotive, industrial, computing, communications, lighting, power, motor control, security, and connectivity applications. The embedded semiconductor industry serves a broad set of end markets, with microcontrollers being a foundational building block of modern electronic devices.
In addition to product sales, Microchip licenses its SuperFlash embedded flash and non-volatile memory technology to foundries, integrated device manufacturers, and design partners, and provides wafer foundry, assembly, and test subcontracting services. It also supplies timing systems and application-specific integrated circuits for aerospace applications. The technology licensing model allows semiconductor firms to monetize intellectual property independently of chip fabrication, providing a higher-margin revenue stream that complements direct product sales.
- Industrial and automotive end-market demand recovery fuels microcontroller revenue growth
- Inventory destocking cycle ends as book-to-bill ratio returns above parity
- Analog and mixed-signal product margins pressured by intensifying competition and pricing
| Net Income: 202.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 1.04 > 1.0 |
| NWC/Revenue: 26.34% < 20% (prev 41.72%; Δ -15.38% < -1%) |
| CFO/TA 0.07 > 3% & CFO 962.1m > Net Income 202.2m |
| Net Debt (5.33b) to EBITDA (1.40b): 3.81 < 3 |
| Current Ratio: 2.09 > 1.5 & < 3 |
| Outstanding Shares: last quarter (547.9m) vs 12m ago 1.95% < -2% |
| Gross Margin: 57.73% > 18% (prev 56.07%; Δ 1.67% > 0.5%) |
| Asset Turnover: 31.69% > 50% (prev 28.63%; Δ 3.06% > 0%) |
| Interest Coverage Ratio: 3.21 > 6 (EBIT TTM 711.4m / Interest Expense TTM 221.3m) |
| A: 0.09 (Total Current Assets 2.38b - Total Current Liabilities 1.14b) / Total Assets 14.4b |
| B: 0.34 (Retained Earnings 4.92b / Total Assets 14.4b) |
| C: 0.05 (EBIT TTM 711.4m / Avg Total Assets 14.9b) |
| D: 0.81 (Book Value of Equity 6.43b / Total Liabilities 7.93b) |
| Altman-Z'' = 2.85 = A |
| DSRI: 1.21 (Receivables 894.7m/689.7m, Revenue 4.71b/4.40b) |
| GMI: 0.97 (GM 56.07% / 57.73%) |
| AQI: 1.04 (AQ_t 0.76 / AQ_t-1 0.73) |
| SGI: 1.07 (Revenue 4.71b / 4.40b) |
| TATA: -0.05 (NI 202.2m - CFO 962.1m) / TA 14.4b) |
| Beneish M = -2.81 (Cap -4..+1) = A |
As of July 17, 2026, the stock is trading at USD 81.68 with a total of 11,268,003 shares traded. Over the past week, the price has changed by -7.46%, over one month by -14.59%, over three months by +6.79% and over the past year by +12.72%.
Current recommended Stop Loss: 70.50 (which is 13.7% or 2.3 ATR below the current price).
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
| Analysts Target Price | 114 | 39.6% |
P/E Trailing = 402.6818
P/E Forward = 28.5714
P/S = 10.2067
P/B = 7.4786
P/EG = 0.3204
Revenue TTM = 4.71b USD
EBIT TTM = 711.4m USD
EBITDA TTM = 1.40b USD
Long Term Debt = 5.50b USD (from longTermDebt, last quarter)
Short Term Debt = 38.8m USD (from shortTermDebt, last quarter)
Debt = 5.57b USD (from shortLongTermDebtTotal, last quarter) + Leases 38.8m
Net Debt = 5.33b USD (calculated: Debt 5.57b - CCE 240.3m)
Enterprise Value = 53.4b USD (48.1b + Debt 5.57b - CCE 240.3m)
Interest Coverage Ratio = 3.21 (Ebit TTM 711.4m / Interest Expense TTM 221.3m)
EV/FCF = 61.35x (Enterprise Value 53.4b / FCF TTM 871.0m)
FCF Yield = 1.63% (FCF TTM 871.0m / Enterprise Value 53.4b)
FCF Margin = 18.48% (FCF TTM 871.0m / Revenue TTM 4.71b)
Net Margin = 4.29% (Net Income TTM 202.2m / Revenue TTM 4.71b)
Gross Margin = 57.73% ((Revenue TTM 4.71b - Cost of Revenue TTM 1.99b) / Revenue TTM)
Gross Margin QoQ = 60.98% (prev 59.60%)
Tobins Q-Ratio = 3.72 (Enterprise Value 53.4b / Total Assets 14.4b)
Interest Expense / Debt = 3.97% (Interest Expense 221.3m / Debt 5.57b)
Taxrate = 15.90% (43.5m / 273.5m)
NOPAT = 598.3m (EBIT 711.4m * (1 - 15.90%))
Current Ratio = 2.09 (Total Current Assets 2.38b / Total Current Liabilities 1.14b)
Debt / Equity = 0.87 (Debt 5.57b / totalStockholderEquity, last quarter 6.43b)
Debt / EBITDA = 3.81 (Net Debt 5.33b / EBITDA 1.40b)
Debt / FCF = 6.12 (Net Debt 5.33b / FCF TTM 871.0m)
Total Stockholder Equity = 6.64b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.36% (Net Income 202.2m / Total Assets 14.4b)
RoE = 3.05% (Net Income TTM 202.2m / Total Stockholder Equity 6.64b)
RoCE = 5.86% (EBIT 711.4m / Capital Employed (Equity 6.64b + L.T.Debt 5.50b))
RoIC = 4.59% (NOPAT 598.3m / Invested Capital 13.0b)
WACC = 13.39% (E(48.1b)/V(53.7b) * Re(14.56%) + D(5.57b)/V(53.7b) * Rd(3.97%) * (1-Tc(0.16)))
Discount Rate = 14.56% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: -4.25 | Cagr: 0.11%
[DCF] Terminal Value 62.94% ; FCFF base≈831.4m ; Y1≈935.4m ; Y5≈1.31b
[DCF] Fair Price = 9.44 (EV 10.5b - Net Debt 5.33b = Equity 5.13b / Shares 543.0m; r=13.39% [WACC]; 5y FCF grow 12.81% → 2.50% )
EPS Correlation: -95.15 | EPS CAGR: -53.50% | SUE: 2.10 | # QB: 1
Revenue Correlation: -92.22 | Revenue CAGR: -27.01% | SUE: 3.34 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.70 | Chg30d=+0.00% | Revisions=+88% | Analysts=21
EPS next Quarter (2026-09-30): EPS=0.79 | Chg30d=+0.06% | Revisions=+25% | Analysts=21
EPS current Year (2027-03-31): EPS=3.16 | Chg30d=+0.13% | Revisions=+25% | GrowthEPS=+92.8% | GrowthRev=+31.1%
EPS next Year (2028-03-31): EPS=4.13 | Chg30d=+0.97% | Revisions=+25% | GrowthEPS=+30.7% | GrowthRev=+15.5%
[Analyst] Revisions Ratio: +89% (up=24, down=0)