MCHP Stock Analysis: Microchip Technology | NASDAQ

Microcontrollers, Analog Semiconductors, Memory Devices, FPGAs

Total Rating 43

Safety 75

Buy Signal -0.48

Semiconductors
Industry Rotation: -6.3

Market Cap: 41.0B
Avg Turnover: 612M

Risk 3d forecast

Volatility47.2%

VaR 5^th Pctl7.78%

VaR vs Median0.11%

Choppyness73.7%

Reward TTM

Sharpe Ratio0.41

Rel. Str. IBD28.4

Rel. Str. Peer Group32.1

Character TTM

Beta2.488

Beta Downside2.763

Hurst Exponent0.566

Drawdowns 3y

Max DD63.77%

CAGR/Max DD-0.01

CAGR/Mean DD-0.02

EPS (Earnings per Share)

EPS CAGR: -48.18%
EPS Trend: -81.6%

Last SUE: 0.48
Qual. Beats: 0

Revenue

Rev. CAGR: -22.78%
Rev. Trend: -83.3%

Last SUE: 1.24
Qual. Beats: 2

Warnings

P/E Ratio 111.1

Choppy

Below Avwap Earnings

Below Sma 200d

Tailwinds

Confidence

Seasonality 11.7 years of data

Jan -1.2% 8

Feb +1.8% 18

Mar -0.3% 14

Apr -0.5% 7

May +5.2% 62

Jun -2.2% 18

Jul +0.6% 8

Aug +0.6% 5

Sep -1.6% 48

Oct -3.3% 16

Nov +11.0% 16

Dec +0.7% 14

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.

Description: MCHP Microchip Technology

Microchip Technology Incorporated (NASDAQ: MCHP) is a U.S.-based semiconductor company that designs, manufactures, and sells embedded control solutions serving customers across the Americas, Europe, and Asia. Founded in 1989 and headquartered in Chandler, Arizona, the company has been publicly traded since 1993 and is classified as a large-cap Information Technology company within the GICS Semiconductors sub-industry.

The company operates through two reportable segments: Semiconductor Products and Technology Licensing. Its semiconductor portfolio spans general-purpose and specialized mixed-signal microcontrollers (8-bit through 64-bit), embedded microprocessors, analog and interface products, FPGAs, and a range of memory devices. These products target diverse end markets including automotive, industrial, computing, communications, lighting, power supplies, motor control, security, and both wired and wireless connectivity applications.

In addition to selling chips, Microchip licenses its SuperFlash embedded flash and non-volatile memory technology to foundries, integrated device manufacturers, and design partners. The company also offers application development tools, engineering services, and wafer foundry, assembly, and test subcontracting services to external customers.

As a semiconductor company, Microchip sits within a cyclical industry where demand is driven by trends such as automotive electrification, industrial automation, and the proliferation of connected devices. Its mix of proprietary intellectual property licensing alongside in-house chip production reflects a hybrid business model that combines integrated device manufacturing with technology IP monetization.

Headlines to Watch Out For

Industrial and automotive demand recovery drives sequential revenue growth
Inventory destocking pressures gross margins and factory utilization rates
MCU pricing competition intensifies from Chinese semiconductor rivals

Piotroski VR-10 (Strict) 6.5

Net Income: 450.6m TTM > 0 and > 6% of Revenue
FCF/TA: 0.08 > 0.02 and ΔFCF/TA 2.87 > 1.0
NWC/Revenue: 23.27% < 20% (prev 36.91%; Δ -13.64% < -1%)
CFO/TA 0.08 > 3% & CFO 1.20b > Net Income 450.6m
Net Debt (5.16b) to EBITDA (1.68b): 3.06 < 3
Current Ratio: 1.92 > 1.5 & < 3
Outstanding Shares: last quarter (550.5m) vs 12m ago 2.10% < -2%
Gross Margin: 60.19% > 18% (prev 54.48%; Δ 5.71% > 0.5%)
Asset Turnover: 34.86% > 50% (prev 28.28%; Δ 6.58% > 0%)
Interest Coverage Ratio: 4.75 > 6 (EBIT TTM 1.01b / Interest Expense TTM 212.7m)

Altman Z'' 2.96

A: 0.08 (Total Current Assets 2.49b - Total Current Liabilities 1.29b) / Total Assets 14.4b
B: 0.34 (Retained Earnings 4.87b / Total Assets 14.4b)
C: 0.07 (EBIT TTM 1.01b / Avg Total Assets 14.7b)
D: 0.81 (Book Value of Equity 6.45b / Total Liabilities 7.96b)
Altman-Z'' = 2.96 = A

Beneish M -2.92

DSRI: 1.05 (Receivables 967.7m/765.5m, Revenue 5.12b/4.24b)
GMI: 0.91 (GM 54.48% / 60.19%)
AQI: 1.02 (AQ_t 0.75 / AQ_t-1 0.74)
SGI: 1.21 (Revenue 5.12b / 4.24b)
TATA: -0.05 (NI 450.6m - CFO 1.20b) / TA 14.4b)
Beneish M = -2.92 (Cap -4..+1) = A

What is the price of MCHP shares?

As of October 15, 2026, the stock is trading at USD 71.25 with a total of 14,380,005 shares traded. Over the past week, the price has changed by -8.68%, over one month by -0.32%, over three months by -17.71% and over the past year by +13.18%.

Current recommended Stop Loss: 67.70 (which is 5% or 1.3 ATR below the current price).

Is MCHP a buy, sell or hold?

Microchip Technology has received a consensus analysts rating of 4.46. Therefore, it is recommended to buy MCHP.

StrongBuy: 18
Buy: 2
Hold: 6
Sell: 0
StrongSell: 0

What are the forecasts/targets for the MCHP price?

Analysts Target Price	107.8	51.4%

Microchip Technology (MCHP) - Fundamental Data Overview as of 13 October 2026

Market Cap USD = 41.0b (41.0b USD * 1.0 USD.USD)
P/E Trailing = 111.1029
P/E Forward = 20.5339
P/S = 8.009
P/B = 6.3821
P/EG = 0.226
Revenue TTM = 5.12b USD
EBIT TTM = 1.01b USD
EBITDA TTM = 1.68b USD
Long Term Debt = 5.36b USD (from longTermDebt, last quarter)
Short Term Debt = 37.4m USD (from shortTermDebt, last quarter)
Debt = 5.44b USD (from shortLongTermDebtTotal, last quarter) + Leases 37.4m
Net Debt = 5.16b USD (calculated: Debt 5.44b - CCE 272.3m)
Enterprise Value = 46.2b USD (41.0b + Debt 5.44b - CCE 272.3m)
Interest Coverage Ratio = 4.75 (Ebit TTM 1.01b / Interest Expense TTM 212.7m)
EV/FCF = 41.58x (Enterprise Value 46.2b / FCF TTM 1.11b)
FCF Yield = 2.41% (FCF TTM 1.11b / Enterprise Value 46.2b)
FCF Margin = 21.69% (FCF TTM 1.11b / Revenue TTM 5.12b)
Net Margin = 8.80% (Net Income TTM 450.6m / Revenue TTM 5.12b)
Gross Margin = 60.19% ((Revenue TTM 5.12b - Cost of Revenue TTM 2.04b) / Revenue TTM)
Gross Margin QoQ = 63.24% (prev 60.98%)
Tobins Q-Ratio = 3.21 (Enterprise Value 46.2b / Total Assets 14.4b)
Interest Expense / Debt = 3.91% (Interest Expense 212.7m / Debt 5.44b)
Taxrate = 17.40% (100.8m / 579.2m)
NOPAT = 834.1m (EBIT 1.01b * (1 - 17.40%))
Current Ratio = 1.92 (Total Current Assets 2.49b / Total Current Liabilities 1.29b)
Debt / Equity = 0.84 (Debt 5.44b / totalStockholderEquity, last quarter 6.45b)
Debt / EBITDA = 3.06 (Net Debt 5.16b / EBITDA 1.68b)
Debt / FCF = 4.65 (Net Debt 5.16b / FCF TTM 1.11b)
Total Stockholder Equity = 6.53b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.07% (Net Income 450.6m / Total Assets 14.4b)
RoE = 6.90% (Net Income TTM 450.6m / Total Stockholder Equity 6.53b)
RoCE = 8.49% (EBIT 1.01b / Capital Employed (Equity 6.53b + L.T.Debt 5.36b))
RoIC = 6.47% (NOPAT 834.1m / Invested Capital 12.9b)
WACC = 13.38% (E(41.0b)/V(46.5b) * Re(14.73%) + D(5.44b)/V(46.5b) * Rd(3.91%) * (1-Tc(0.17)))
Discount Rate = 14.73% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 45.67 | Cagr: 0.46%
[DCF] Terminal Value 63.45% ; FCFF base≈956.8m ; Y1≈1.10b ; Y5≈1.61b
[DCF] Fair Price = 14.03 (EV 12.8b - Net Debt 5.16b = Equity 7.62b / Shares 543.0m; r=13.38% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -81.62 | EPS CAGR: -48.18% | SUE: 0.48 | # QB: 0
Revenue Correlation: -83.25 | Revenue CAGR: -22.78% | SUE: 1.24 | # QB: 2
EPS current Quarter (2026-09-30): EPS=0.93 | Chg30d=-0.02% | Revisions=+84% | Analysts=22
EPS next Quarter (2026-12-31): EPS=0.94 | Chg30d=-0.20% | Revisions=+84% | Analysts=22
EPS current Year (2027-03-31): EPS=3.65 | Chg30d=-0.02% | Revisions=+0% | GrowthEPS=+122.3% | GrowthRev=+35.7%
EPS next Year (2028-03-31): EPS=4.58 | Chg30d=+0.40% | Revisions=+25% | GrowthEPS=+25.7% | GrowthRev=+16.2%
[Analyst] Revisions Ratio: +92% (up=33, down=0)