Overview Dividends

(MCHP) Microchip Technology - Ratings and Ratios

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

Microcontrollers, Analog, Memory, FPGA, Licensing

Semiconductors
Market Cap in USD: 35,615m

IPO / Inception: 1993-03-19
Return 12m vs S&P 500: 1.34%

EPS (Earnings per Share)

EPS CAGR: -28.00%
EPS Trend: -82.8%

Last SUE: 0.27
Qual. Beats: 0

Revenue

Rev. CAGR: -10.89%
Rev. Trend: -81.4%

Last SUE: 0.49
Qual. Beats: 0

Dividends

Dividend Yield	2.75%
Yield on Cost 5y	2.94%
Yield CAGR 5y	5.32%
Payout Consistency	97.1%
Payout Ratio	2.0%

Risk via 5d forecast
Volatility	39.3%
Value at Risk 5%th	61.4%
Relative Tail Risk	-4.92%

Reward TTM
Sharpe Ratio	0.56
Alpha	-13.75
CAGR/Max DD	0.02

Character TTM
Hurst Exponent	0.657
Beta	2.174
Beta Downside	2.641

Drawdowns 3y
Max DD	63.77%
Mean DD	20.28%
Median DD	16.95%

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

(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 (= -11.85)%

7. RoE -2.78%

8. Rev. Trend -81.40%

9. EPS Trend -82.78%

What is the price of MCHP shares?

As of December 23, 2025, the stock is trading at USD 66.24 with a total of 5,867,715 shares traded.
Over the past week, the price has changed by -1.40%, over one month by +29.25%, over three months by +2.20% and over the past year by +18.08%.

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	73.9	11.6%
Analysts Target Price	73.9	11.6%
ValueRay Target Price	69.3	4.6%

MCHP Fundamental Data Overview December 18, 2025

Market Cap USD = 35.62b (35.62b USD * 1.0 USD.USD)
P/E Forward = 27.3973
P/S = 8.4549
P/B = 5.4226
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 = 40.79b USD (35.62b + 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 40.79b)
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 40.79b / 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 = 12.36% (E(35.62b)/V(41.03b) * Re(14.03%) + D(5.41b)/V(41.03b) * Rd(1.04%) * (1-Tc(-0.31)))
Discount Rate = 14.03% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.67%
[DCF Debug] Terminal Value 53.02% ; FCFE base≈1.06b ; Y1≈811.1m ; Y5≈506.8m
Fair Price DCF = 8.57 (DCF Value 4.63b / 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=+0.002 | Revisions Net=-3 | Growth EPS=+11.0% | Growth Revenue=+3.4%
EPS next Year (2027-03-31): EPS=2.50 | Chg30d=-0.048 | Revisions Net=-15 | Growth EPS=+71.8% | Growth Revenue=+20.0%

Additional Sources for MCHP Stock

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Fund Manager Positions: Dataroma | Stockcircle