(MCHP) Microchip Technology - Ratings and Ratios
Exchange: NASDAQ •
Country: United States •
Currency: USD •
Type: Common Stock •
ISIN: US5950171042
Microcontrollers, Analog, FPGA, Memory, Licensing
Dividends
| Dividend Yield | 3.40% |
| Yield on Cost 5y | 3.00% |
| Yield CAGR 5y | 5.32% |
| Payout Consistency | 97.1% |
| Payout Ratio | 2.0% |
| Risk via 10d forecast | |
|---|---|
| Volatility | 41.2% |
| Value at Risk 5%th | 65.2% |
| Relative Tail Risk | -3.96% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.15 |
| Alpha | -49.65 |
| CAGR/Max DD | -0.15 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.425 |
| Beta | 2.126 |
| Beta Downside | 2.522 |
| Drawdowns 3y | |
|---|---|
| Max DD | 63.77% |
| Mean DD | 19.81% |
| Median DD | 15.58% |
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.
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 (5.18b) to EBITDA (766.3m) ratio: 6.75 <= 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 50.08% (prev 60.32%; Δ -10.24pp) >=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 0.20 (EBITDA TTM 766.3m / Interest Expense TTM 248.5m) >= 6 (WARN >= 3) |
Altman Z'' 2.51
| (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 |
| (C) 0.00 = EBIT TTM 48.7m / Avg Total Assets 15.05b |
| (D) 0.68 = Book Value of Equity 5.25b / Total Liabilities 7.77b |
| Total Rating: 2.51 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 29.64
| 1. Piotroski 2.50pt |
| 2. FCF Yield 2.31% |
| 3. FCF Margin 17.91% |
| 4. Debt/Equity 0.81 |
| 5. Debt/Ebitda 6.75 |
| 6. ROIC - WACC (= -11.28)% |
| 7. RoE -2.78% |
| 8. Rev. Trend -81.05% |
| 9. EPS Trend -82.78% |
What is the price of MCHP shares?
As of November 30, 2025, the stock is trading at USD 53.58 with a total of 3,754,975 shares traded.
Over the past week, the price has changed by +6.21%, over one month by -15.05%, over three months by -17.14% and over the past year by -18.92%.
Over the past week, the price has changed by +6.21%, over one month by -15.05%, over three months by -17.14% and over the past year by -18.92%.
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 | 73.6 | 37.4% |
| Analysts Target Price | 73.6 | 37.4% |
| ValueRay Target Price | 54.7 | 2% |
MCHP Fundamental Data Overview November 24, 2025
Market Cap USD = 27.51b (27.51b USD * 1.0 USD.USD)
P/E Forward = 35.5872
P/S = 6.5304
P/B = 4.1085
P/EG = 5.6959
Beta = 1.451
Revenue TTM = 4.21b USD
EBIT TTM = 48.7m USD
EBITDA TTM = 766.3m USD
Long Term Debt = 5.38b USD (from longTermDebt, last quarter)
Short Term Debt = 36.8m USD (from shortTermDebt, last quarter)
Debt = 5.41b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 5.18b USD (from netDebt column, last quarter)
Enterprise Value = 32.68b USD (27.51b + Debt 5.41b - CCE 236.8m)
Interest Coverage Ratio = 0.20 (Ebit TTM 48.7m / Interest Expense TTM 248.5m)
FCF Yield = 2.31% (FCF TTM 754.4m / Enterprise Value 32.68b)
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 = 50.08% ((Revenue TTM 4.21b - Cost of Revenue TTM 2.10b) / Revenue TTM)
Gross Margin QoQ = 41.23% (prev 53.62%)
Tobins Q-Ratio = 2.26 (Enterprise Value 32.68b / Total Assets 14.47b)
Interest Expense / Debt = 1.04% (Interest Expense 56.3m / Debt 5.41b)
Taxrate = -31.13% (negative due to tax credits) (-9.90m / 31.8m)
NOPAT = 63.9m (EBIT 48.7m * (1 - -31.13%)) [negative tax rate / tax credits]
Current Ratio = 2.25 (Total Current Assets 2.35b / Total Current Liabilities 1.04b)
Debt / Equity = 0.81 (Debt 5.41b / totalStockholderEquity, last quarter 6.70b)
Debt / EBITDA = 6.75 (Net Debt 5.18b / EBITDA 766.3m)
Debt / FCF = 6.86 (Net Debt 5.18b / 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 = 0.40% (EBIT 48.7m / Capital Employed (Equity 6.67b + L.T.Debt 5.38b))
RoIC = 0.51% (NOPAT 63.9m / Invested Capital 12.47b)
WACC = 11.80% (E(27.51b)/V(32.92b) * Re(13.85%) + D(5.41b)/V(32.92b) * Rd(1.04%) * (1-Tc(-0.31)))
Discount Rate = 13.85% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.67%
[DCF Debug] Terminal Value 53.53% ; FCFE base≈1.06b ; Y1≈811.1m ; Y5≈506.8m
Fair Price DCF = 8.69 (DCF Value 4.70b / Shares Outstanding 540.4m; 5y FCF grow -27.64% → 3.0% )
EPS Correlation: -82.78 | EPS CAGR: -28.00% | SUE: 0.27 | # QB: 0
Revenue Correlation: -81.05 | Revenue CAGR: -10.89% | SUE: 0.49 | # QB: 0
EPS next Quarter (2025-12-31): EPS=0.37 | Chg30d=-0.031 | Revisions Net=-15 | Analysts=21
EPS current Year (2026-03-31): EPS=1.43 | Chg30d=-0.030 | Revisions Net=-12 | Growth EPS=+9.0% | Growth Revenue=+3.0%
EPS next Year (2027-03-31): EPS=2.47 | Chg30d=-0.116 | Revisions Net=-16 | Growth EPS=+72.9% | Growth Revenue=+19.7%
P/E Forward = 35.5872
P/S = 6.5304
P/B = 4.1085
P/EG = 5.6959
Beta = 1.451
Revenue TTM = 4.21b USD
EBIT TTM = 48.7m USD
EBITDA TTM = 766.3m USD
Long Term Debt = 5.38b USD (from longTermDebt, last quarter)
Short Term Debt = 36.8m USD (from shortTermDebt, last quarter)
Debt = 5.41b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 5.18b USD (from netDebt column, last quarter)
Enterprise Value = 32.68b USD (27.51b + Debt 5.41b - CCE 236.8m)
Interest Coverage Ratio = 0.20 (Ebit TTM 48.7m / Interest Expense TTM 248.5m)
FCF Yield = 2.31% (FCF TTM 754.4m / Enterprise Value 32.68b)
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 = 50.08% ((Revenue TTM 4.21b - Cost of Revenue TTM 2.10b) / Revenue TTM)
Gross Margin QoQ = 41.23% (prev 53.62%)
Tobins Q-Ratio = 2.26 (Enterprise Value 32.68b / Total Assets 14.47b)
Interest Expense / Debt = 1.04% (Interest Expense 56.3m / Debt 5.41b)
Taxrate = -31.13% (negative due to tax credits) (-9.90m / 31.8m)
NOPAT = 63.9m (EBIT 48.7m * (1 - -31.13%)) [negative tax rate / tax credits]
Current Ratio = 2.25 (Total Current Assets 2.35b / Total Current Liabilities 1.04b)
Debt / Equity = 0.81 (Debt 5.41b / totalStockholderEquity, last quarter 6.70b)
Debt / EBITDA = 6.75 (Net Debt 5.18b / EBITDA 766.3m)
Debt / FCF = 6.86 (Net Debt 5.18b / 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 = 0.40% (EBIT 48.7m / Capital Employed (Equity 6.67b + L.T.Debt 5.38b))
RoIC = 0.51% (NOPAT 63.9m / Invested Capital 12.47b)
WACC = 11.80% (E(27.51b)/V(32.92b) * Re(13.85%) + D(5.41b)/V(32.92b) * Rd(1.04%) * (1-Tc(-0.31)))
Discount Rate = 13.85% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.67%
[DCF Debug] Terminal Value 53.53% ; FCFE base≈1.06b ; Y1≈811.1m ; Y5≈506.8m
Fair Price DCF = 8.69 (DCF Value 4.70b / Shares Outstanding 540.4m; 5y FCF grow -27.64% → 3.0% )
EPS Correlation: -82.78 | EPS CAGR: -28.00% | SUE: 0.27 | # QB: 0
Revenue Correlation: -81.05 | Revenue CAGR: -10.89% | SUE: 0.49 | # QB: 0
EPS next Quarter (2025-12-31): EPS=0.37 | Chg30d=-0.031 | Revisions Net=-15 | Analysts=21
EPS current Year (2026-03-31): EPS=1.43 | Chg30d=-0.030 | Revisions Net=-12 | Growth EPS=+9.0% | Growth Revenue=+3.0%
EPS next Year (2027-03-31): EPS=2.47 | Chg30d=-0.116 | Revisions Net=-16 | Growth EPS=+72.9% | Growth Revenue=+19.7%
Additional Sources for MCHP Stock
News:
Wall Street Journal |
Benzinga |
Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle