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): -45.87%
EPS Trend (3Y Correlation): -90.6%

MCHP Revenue

Revenue Growth (3Y CAGR): -21.23%
Revenue Trend (3Y Correlation): -92.3%

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	34,092m
Sub-Industry	Semiconductors
IPO / Inception	1993-03-19

MCHP Stock Ratings

Growth Rating	9.04%
Fundamental	29.1%
Dividend Rating	74.6%
Return 12m vs S&P 500	-31.9%
Analyst Rating	4.25 of 5

MCHP Dividends

Dividend Yield 12m	2.91%
Yield on Cost 5y	3.81%
Annual Growth 5y	25.24%
Payout Consistency	98.4%
Payout Ratio	1.8%

MCHP Growth Ratios

Growth Correlation 3m	-18.7%
Growth Correlation 12m	34.1%
Growth Correlation 5y	6.5%
CAGR 5y	3.40%
CAGR/Max DD 3y (Calmar Ratio)	0.05
CAGR/Mean DD 3y (Pain Ratio)	0.18
Sharpe Ratio 12m	-0.59
Alpha	-44.31
Beta	1.535
Volatility	43.21%
Current Volume	9882.3k
Average Volume 20d	6410.2k
Stop Loss	59.6 (-4.7%)
Signal	-0.33

Piotroski VR‑10 (Strict, 0-10) 2.5

Net Income (-148.4m TTM) > 0 and > 6% of Revenue (6% = 254.1m TTM)

FCFTA 0.05 (>2.0%) and ΔFCFTA -7.97pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 36.91% (prev 21.68%; Δ 15.23pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.05 (>3.0%) and CFO 796.6m > Net Income -148.4m (YES >=105%, WARN >=100%)

Net Debt (4.93b) to EBITDA (841.4m) ratio: 5.86 <= 3.0 (WARN <= 3.5)

Current Ratio 2.31 (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 -0.66% (target <= -2.0% for YES)

Gross Margin 54.48% (prev 63.37%; Δ -8.89pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 27.49% (prev 41.59%; Δ -14.10pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 0.44 (EBITDA TTM 841.4m / Interest Expense TTM 249.0m) >= 6 (WARN >= 3)

Altman Z'' 2.64

(A) 0.10 = (Total Current Assets 2.75b - Total Current Liabilities 1.19b) / Total Assets 14.98b

(B) 0.37 = Retained Earnings (Balance) 5.49b / Total Assets 14.98b

(D) 0.68 = Book Value of Equity 5.48b / Total Liabilities 8.12b

Total Rating: 2.64 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 29.06

1. Piotroski 2.50pt = -2.50

2. FCF Yield 1.86% = 0.93

3. FCF Margin 17.13% = 4.28

4. Debt/Equity 0.80 = 2.19

5. Debt/Ebitda 5.86 = -2.50

6. ROIC - WACC (= -9.21)% = -11.51

7. RoE -2.26% = -0.38

8. Rev. Trend -92.33% = -6.92

9. EPS Trend -90.61% = -4.53

What is the price of MCHP shares?

As of October 30, 2025, the stock is trading at USD 62.54 with a total of 9,882,348 shares traded.
Over the past week, the price has changed by -3.04%, over one month by -2.39%, over three months by -10.90% and over the past year by -18.56%.

Is Microchip Technology a good stock to buy?

No, based on ValueRay´s Fundamental Analyses, Microchip Technology (NASDAQ:MCHP) is currently (October 2025) a stock to sell. It has a ValueRay Fundamental Rating of 29.06 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 56.65 USD . This means that MCHP is currently overvalued and has a potential downside of -9.42%.

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	76.2	21.8%
Analysts Target Price	76.2	21.8%
ValueRay Target Price	64.1	2.6%

MCHP Fundamental Data Overview October 27, 2025

Market Cap USD = 34.09b (34.09b USD * 1.0 USD.USD)
P/E Forward = 42.1941
P/S = 8.0484
P/B = 5.2047
P/EG = 5.6959
Beta = 1.535
Revenue TTM = 4.24b USD
EBIT TTM = 108.9m USD
EBITDA TTM = 841.4m USD
Long Term Debt = 5.46b USD (from longTermDebt, last quarter)
Short Term Debt = 36.4m USD (from shortTermDebt, last quarter)
Debt = 5.49b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 4.93b USD (from netDebt column, last quarter)
Enterprise Value = 39.02b USD (34.09b + Debt 5.49b - CCE 566.5m)
Interest Coverage Ratio = 0.44 (Ebit TTM 108.9m / Interest Expense TTM 249.0m)
FCF Yield = 1.86% (FCF TTM 725.6m / Enterprise Value 39.02b)
FCF Margin = 17.13% (FCF TTM 725.6m / Revenue TTM 4.24b)
Net Margin = -3.50% (Net Income TTM -148.4m / Revenue TTM 4.24b)
Gross Margin = 54.48% ((Revenue TTM 4.24b - Cost of Revenue TTM 1.93b) / Revenue TTM)
Gross Margin QoQ = 53.62% (prev 51.63%)
Tobins Q-Ratio = 2.60 (Enterprise Value 39.02b / Total Assets 14.98b)
Interest Expense / Debt = 1.04% (Interest Expense 57.4m / Debt 5.49b)
Taxrate = -17.72% (negative due to tax credits) (2.80m / -15.8m)
NOPAT = 128.2m (EBIT 108.9m * (1 - -17.72%)) [negative tax rate / tax credits]
Current Ratio = 2.31 (Total Current Assets 2.75b / Total Current Liabilities 1.19b)
Debt / Equity = 0.80 (Debt 5.49b / totalStockholderEquity, last quarter 6.86b)
Debt / EBITDA = 5.86 (Net Debt 4.93b / EBITDA 841.4m)
Debt / FCF = 6.79 (Net Debt 4.93b / FCF TTM 725.6m)
Total Stockholder Equity = 6.56b (last 4 quarters mean from totalStockholderEquity)
RoA = -0.99% (Net Income -148.4m / Total Assets 14.98b)
RoE = -2.26% (Net Income TTM -148.4m / Total Stockholder Equity 6.56b)
RoCE = 0.91% (EBIT 108.9m / Capital Employed (Equity 6.56b + L.T.Debt 5.46b))
RoIC = 1.02% (NOPAT 128.2m / Invested Capital 12.63b)
WACC = 10.22% (E(34.09b)/V(39.59b) * Re(11.67%) + D(5.49b)/V(39.59b) * Rd(1.04%) * (1-Tc(-0.18)))
Discount Rate = 11.67% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.67%
[DCF Debug] Terminal Value 63.60% ; FCFE base≈1.25b ; Y1≈1.11b ; Y5≈920.2m
Fair Price DCF = 18.34 (DCF Value 9.90b / Shares Outstanding 539.7m; 5y FCF grow -14.03% → 3.0% )
EPS Correlation: -90.61 | EPS CAGR: -45.87% | SUE: 0.83 | # QB: 0
Revenue Correlation: -92.33 | Revenue CAGR: -21.23% | SUE: 1.46 | # QB: 2

Additional Sources for MCHP Stock

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