Overview Dividends

(MCHP) Microchip Technology - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US5950171042

Microcontrollers, Analog, FPGA, Memory, Licensing

MCHP EPS (Earnings per Share)

EPS Growth (3Y CAGR): -41.93%
EPS Trend (3Y Correlation): -88.4%

MCHP Revenue

Revenue Growth (3Y CAGR): -20.85%
Revenue Trend (3Y Correlation): -91.5%

Risk via 10d forecast
Volatility	44.9%
Value at Risk 5%th	70.8%

Reward
Sharpe Ratio	-0.12
Alpha Jensen	-42.20

Character
Hurst Exponent	0.522
Beta	1.451

Drawdowns 3y
Max DD	63.77%
Mean DD	19.26%

Description: MCHP Microchip Technology September 29, 2025

Microchip Technology Inc. (NASDAQ:MCHP) designs, manufactures, and sells a broad portfolio of embedded control solutions-including general-purpose and specialized mixed-signal microcontrollers, microprocessors, analog components, memory devices, and FPGA products-serving automotive, industrial, communications, lighting, and consumer markets across the Americas, Europe, and Asia.

The business operates through two primary segments: Semiconductor Products, which generates the bulk of revenue from its MCU, analog, and memory families; and Technology Licensing, which monetizes its SuperFlash non-volatile memory patents and provides engineering services, wafer-foundry, and assembly/testing subcontracting to third-party manufacturers.

Key recent metrics indicate FY 2023 revenue of approximately $2.1 billion, an operating margin near 30 %, and a 12 % year-over-year increase in automotive MCU shipments-driven by rising demand for ADAS and electric-vehicle power-train control. The company’s outlook is further shaped by macro trends such as the gradual easing of the global semiconductor shortage, the U.S. CHIPS Act incentives for domestic fab capacity, and the accelerating adoption of IoT devices that require low-power, secure connectivity. For a deeper, data-driven dive into MCHP’s valuation metrics, the ValueRay platform offers a transparent, model-backed view.

MCHP Stock Overview

Market Cap in USD	30,416m
Sub-Industry	Semiconductors
IPO / Inception	1993-03-19
Return 12m vs S&P 500	-26.6%
Analyst Rating	4.25 of 5

MCHP Dividends

Dividend Yield	3.27%
Yield on Cost 5y	3.09%
Yield CAGR 5y	25.24%
Payout Consistency	98.4%
Payout Ratio	2.0%

MCHP Growth Ratios

CAGR	-6.88%
CAGR/Max DD Calmar Ratio	-0.11
CAGR/Mean DD Pain Ratio	-0.36
Current Volume	6536.1k
Average Volume	7362k

Piotroski VR‑10 (Strict, 0-10) 2.5

Net Income (-185.1m TTM) > 0 and > 6% of Revenue (6% = 252.7m TTM)

FCFTA 0.05 (>2.0%) and ΔFCFTA -4.46pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 31.02% (prev -6.92%; Δ 37.93pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.06 (>3.0%) and CFO 841.1m > Net Income -185.1m (YES >=105%, WARN >=100%)

Net Debt (5.14b) to EBITDA (594.4m) ratio: 8.65 <= 3.0 (WARN <= 3.5)

Current Ratio 2.25 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (539.2m) change vs 12m ago -0.52% (target <= -2.0% for YES)

Gross Margin 54.06% (prev 60.32%; Δ -6.26pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 28.00% (prev 35.18%; Δ -7.19pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio -0.16 (EBITDA TTM 594.4m / Interest Expense TTM 248.5m) >= 6 (WARN >= 3)

Altman Z'' 2.47

(A) 0.09 = (Total Current Assets 2.35b - Total Current Liabilities 1.04b) / Total Assets 14.47b

(B) 0.36 = Retained Earnings (Balance) 5.26b / Total Assets 14.47b

(D) 0.68 = Book Value of Equity 5.25b / Total Liabilities 7.77b

Total Rating: 2.47 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 28.49

1. Piotroski 2.50pt = -2.50

2. FCF Yield 2.12% = 1.06

3. FCF Margin 17.91% = 4.48

4. Debt/Equity 0.80 = 2.19

5. Debt/Ebitda 8.65 = -2.50

6. ROIC - WACC (= -10.27)% = -12.50

7. RoE -2.78% = -0.46

8. Rev. Trend -91.47% = -6.86

9. EPS Trend -88.36% = -4.42

What is the price of MCHP shares?

As of November 13, 2025, the stock is trading at USD 55.63 with a total of 6,536,140 shares traded.
Over the past week, the price has changed by -8.50%, over one month by -13.60%, over three months by -13.15% and over the past year by -14.91%.

Is Microchip Technology a good stock to buy?

No, based on ValueRay´s Fundamental Analyses, Microchip Technology (NASDAQ:MCHP) is currently (November 2025) a stock to sell. It has a ValueRay Fundamental Rating of 28.49 and therefor a negative outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of MCHP is around 50.58 USD . This means that MCHP is currently overvalued and has a potential downside of -9.08%.

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.

Strong Buy: 13
Buy: 4
Hold: 7
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the MCHP price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	73.7	32.5%
Analysts Target Price	73.7	32.5%
ValueRay Target Price	57.1	2.6%

MCHP Fundamental Data Overview November 11, 2025

Market Cap USD = 30.42b (30.42b USD * 1.0 USD.USD)
P/E Forward = 42.1941
P/S = 7.2207
P/B = 5.2047
P/EG = 5.6959
Beta = 1.451
Revenue TTM = 4.21b USD
EBIT TTM = -39.4m USD
EBITDA TTM = 594.4m USD
Long Term Debt = 5.63b USD (from longTermDebt, last fiscal year)
Short Term Debt = 35.7m USD (from shortTermDebt, last fiscal year)
Debt = 5.38b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 5.14b USD (from netDebt column, last quarter)
Enterprise Value = 35.56b USD (30.42b + Debt 5.38b - CCE 236.8m)
Interest Coverage Ratio = -0.16 (Ebit TTM -39.4m / Interest Expense TTM 248.5m)
FCF Yield = 2.12% (FCF TTM 754.4m / Enterprise Value 35.56b)
FCF Margin = 17.91% (FCF TTM 754.4m / Revenue TTM 4.21b)
Net Margin = -4.39% (Net Income TTM -185.1m / Revenue TTM 4.21b)
Gross Margin = 54.06% ((Revenue TTM 4.21b - Cost of Revenue TTM 1.94b) / Revenue TTM)
Gross Margin QoQ = 55.94% (prev 53.62%)
Tobins Q-Ratio = 2.46 (Enterprise Value 35.56b / Total Assets 14.47b)
Interest Expense / Debt = 1.05% (Interest Expense 56.3m / Debt 5.38b)
Taxrate = -31.13% (negative due to tax credits) (-9.90m / 31.8m)
NOPAT = -51.7m (EBIT -39.4m * (1 - -31.13%)) [loss with tax shield] [negative tax rate / tax credits]
Current Ratio = 2.25 (Total Current Assets 2.35b / Total Current Liabilities 1.04b)
Debt / Equity = 0.80 (Debt 5.38b / totalStockholderEquity, last quarter 6.70b)
Debt / EBITDA = 8.65 (Net Debt 5.14b / EBITDA 594.4m)
Debt / FCF = 6.81 (Net Debt 5.14b / FCF TTM 754.4m)
Total Stockholder Equity = 6.67b (last 4 quarters mean from totalStockholderEquity)
RoA = -1.28% (Net Income -185.1m / Total Assets 14.47b)
RoE = -2.78% (Net Income TTM -185.1m / Total Stockholder Equity 6.67b)
RoCE = -0.32% (EBIT -39.4m / Capital Employed (Equity 6.67b + L.T.Debt 5.63b))
RoIC = -0.41% (negative operating profit) (NOPAT -51.7m / Invested Capital 12.60b)
WACC = 9.86% (E(30.42b)/V(35.79b) * Re(11.36%) + D(5.38b)/V(35.79b) * Rd(1.05%) * (1-Tc(-0.31)))
Discount Rate = 11.36% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.67%
[DCF Debug] Terminal Value 61.23% ; FCFE base≈1.06b ; Y1≈811.1m ; Y5≈506.8m
Fair Price DCF = 11.02 (DCF Value 5.96b / Shares Outstanding 540.4m; 5y FCF grow -27.64% → 3.0% )
EPS Correlation: -88.36 | EPS CAGR: -41.93% | SUE: 0.27 | # QB: 0
Revenue Correlation: -91.47 | Revenue CAGR: -20.85% | SUE: 0.49 | # QB: 0

Additional Sources for MCHP Stock

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