(MCHP) Microchip Technology - Ratings and Ratios
Microcontrollers, Analog, Memory, FPGA, Licensing
Dividends
| Dividend Yield | 2.71% |
| Yield on Cost 5y | 2.84% |
| Yield CAGR 5y | 5.32% |
| Payout Consistency | 97.1% |
| Payout Ratio | 2.0% |
| Risk via 5d forecast | |
|---|---|
| Volatility | 40.3% |
| Value at Risk 5%th | 62.9% |
| Relative Tail Risk | -5.12% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.42 |
| Alpha | -14.33 |
| CAGR/Max DD | 0.00 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.669 |
| Beta | 2.146 |
| Beta Downside | 2.553 |
| Drawdowns 3y | |
|---|---|
| Max DD | 63.77% |
| Mean DD | 20.08% |
| Median DD | 16.63% |
Description: MCHP Microchip Technology December 03, 2025
Microchip Technology Inc. (NASDAQ:MCHP) designs, manufactures, and sells a broad portfolio of embedded control solutions-including 8-, 16-, 32- and 64-bit microcontrollers, microprocessors, analog and power-management ICs, RF components, and memory devices-serving automotive, industrial, communications, lighting, and consumer markets worldwide.
The business is split into two operating segments: (1) Semiconductor Products, which generates the bulk of revenue through direct sales of mixed-signal MCUs, processors, analog, and memory parts; and (2) Technology Licensing, which monetizes its SuperFlash non-volatile memory IP and provides engineering, wafer-foundry, and assembly services to third-party fabs and design partners.
Key recent performance indicators (FY 2023) show revenue of roughly $3.9 billion, a gross margin of ~62 %, and earnings per share of $5.70, while cash flow from operations exceeded $1 billion, underscoring a strong balance sheet and capacity to fund R&D and acquisitions.
Sector drivers that materially affect Microchip’s outlook include the accelerating adoption of IoT and edge-computing devices, the shift toward electric-vehicle power-train electronics, and the ongoing global semiconductor supply-chain tightening, which together boost demand for low-power, high-integration MCUs and mixed-signal solutions.
For a deeper quantitative view, the ValueRay platform offers detailed valuation models and scenario analysis that can help you assess MCHP’s upside potential.
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) 29.38
| 1. Piotroski 2.50pt |
| 2. FCF Yield 1.85% |
| 3. FCF Margin 17.91% |
| 4. Debt/Equity 0.81 |
| 5. Debt/Ebitda 6.75 |
| 6. ROIC - WACC (= -11.75)% |
| 7. RoE -2.78% |
| 8. Rev. Trend -81.40% |
| 9. EPS Trend -82.78% |
What is the price of MCHP shares?
Over the past week, the price has changed by -0.25%, over one month by +26.75%, over three months by +7.31% and over the past year by +17.30%.
Is MCHP a buy, sell or hold?
- 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 | 73.9 | 10% |
| Analysts Target Price | 73.9 | 10% |
| ValueRay Target Price | 70.2 | 4.5% |
MCHP Fundamental Data Overview December 09, 2025
P/E Forward = 42.1941
P/S = 8.4434
P/B = 5.312
P/EG = 5.6959
Beta = 1.463
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 = 40.74b USD (35.57b + Debt 5.41b - CCE 236.8m)
Interest Coverage Ratio = 0.20 (Ebit TTM 48.7m / Interest Expense TTM 248.5m)
FCF Yield = 1.85% (FCF TTM 754.4m / Enterprise Value 40.74b)
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 = 2.82 (Enterprise Value 40.74b / 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 = 12.26% (E(35.57b)/V(40.98b) * Re(13.92%) + D(5.41b)/V(40.98b) * Rd(1.04%) * (1-Tc(-0.31)))
Discount Rate = 13.92% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.67%
[DCF Debug] Terminal Value 53.33% ; FCFE base≈1.06b ; Y1≈811.1m ; Y5≈506.8m
Fair Price DCF = 8.64 (DCF Value 4.67b / 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: -81.40 | Revenue CAGR: -10.89% | SUE: 0.49 | # QB: 0
EPS current Year (2026-03-31): EPS=1.45 | Chg30d=+0.000 | Revisions Net=-10 | Growth EPS=+10.8% | Growth Revenue=+3.4%
EPS next Year (2027-03-31): EPS=2.50 | Chg30d=-0.049 | Revisions Net=-16 | Growth EPS=+71.9% | Growth Revenue=+19.8%
Additional Sources for MCHP Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle