(MCHP) Microchip Technology - NASDAQ
Sector: Technology | Industry: Semiconductors | Exchange: NASDAQ (USA) | Market Cap: 51.628m USD | Total Return: 42.8% in 12m
Avg Turnover: 1.07B
EPS Trend: -94.8%
Qual. Beats: 1
Rev. Trend: -92.2%
Qual. Beats: 1
Warnings
P/E ratio 432.9
Below Avwap Earnings
Tailwinds
Confidence
Microchip Technology Inc. (MCHP) is a global designer and manufacturer of embedded control solutions, focusing on microcontrollers (MCU), mixed-signal microprocessors, and analog semiconductors. The company operates through two primary segments: Semiconductor Products and Technology Licensing, serving diverse end-markets including automotive, industrial, aerospace, and telecommunications.
The business model relies on a high-margin licensing strategy for its SuperFlash technology alongside physical hardware production, which reduces capital intensity compared to pure-play foundries. In the semiconductor sector, integrated device manufacturers like Microchip often benefit from long product lifecycles, as embedded controllers are frequently designed into industrial and automotive systems for ten years or more.
Investors can further evaluate these operational metrics and valuation trends by visiting ValueRay.
Headquartered in Chandler, Arizona, the company also provides field-programmable gate arrays (FPGAs) and specialized memory products such as EEPROMs and Flash memory. Its portfolio is supported by a suite of application development tools designed to integrate its hardware into complex human-machine interfaces and secure connectivity applications.
- Industrial and automotive demand cycles dictate core microcontroller revenue growth
- High inventory levels at distributors pressure short-term gross margin performance
- Expansion of FPGA and analog portfolios diversifies revenue beyond traditional microcontrollers
- Rising interest rates impact debt servicing costs for aggressive acquisition strategy
- Geopolitical trade restrictions limit semiconductor equipment exports to key Asian markets
| Net Income: 202.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA 1.04 > 1.0 |
| NWC/Revenue: 26.34% < 20% (prev 41.72%; Δ -15.38% < -1%) |
| CFO/TA 0.07 > 3% & CFO 962.1m > Net Income 202.2m |
| Net Debt (5.33b) to EBITDA (1.40b): 3.81 < 3 |
| Current Ratio: 2.09 > 1.5 & < 3 |
| Outstanding Shares: last quarter (547.9m) vs 12m ago 1.95% < -2% |
| Gross Margin: 57.73% > 18% (prev 56.07%; Δ 1.67% > 0.5%) |
| Asset Turnover: 31.69% > 50% (prev 28.63%; Δ 3.06% > 0%) |
| Interest Coverage Ratio: 3.21 > 6 (EBIT TTM 711.4m / Interest Expense TTM 221.3m) |
| A: 0.09 (Total Current Assets 2.38b - Total Current Liabilities 1.14b) / Total Assets 14.4b |
| B: 0.34 (Retained Earnings 4.92b / Total Assets 14.4b) |
| C: 0.05 (EBIT TTM 711.4m / Avg Total Assets 14.9b) |
| D: 0.81 (Book Value of Equity 6.43b / Total Liabilities 7.93b) |
| Altman-Z'' = 2.85 = A |
| DSRI: 1.21 (Receivables 894.7m/689.7m, Revenue 4.71b/4.40b) |
| GMI: 0.97 (GM 56.07% / 57.73%) |
| AQI: 1.04 (AQ_t 0.76 / AQ_t-1 0.73) |
| SGI: 1.07 (Revenue 4.71b / 4.40b) |
| TATA: -0.05 (NI 202.2m - CFO 962.1m) / TA 14.4b) |
| Beneish M = -2.81 (Cap -4..+1) = A |
As of June 18, 2026, the stock is trading at USD 94.11 with a total of 9,429,301 shares traded.
Over the past week, the price has changed by +7.05%,
over one month by +1.96%,
over three months by +46.44% and
over the past year by +42.80%.
Microchip Technology has received a consensus analysts rating of 4.25. Therefore, it is recommended to buy MCHP.
- StrongBuy: 13
- Buy: 4
- Hold: 7
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 113.2 | 20.3% |
P/E Trailing = 432.9091
P/E Forward = 30.7692
P/S = 10.9541
P/B = 8.0262
P/EG = 0.3444
Revenue TTM = 4.71b USD
EBIT TTM = 711.4m USD
EBITDA TTM = 1.40b USD
Long Term Debt = 5.50b USD (from longTermDebt, last quarter)
Short Term Debt = 38.8m USD (from shortTermDebt, last quarter)
Debt = 5.57b USD (from shortLongTermDebtTotal, last quarter) + Leases 38.8m
Net Debt = 5.33b USD (calculated: Debt 5.57b - CCE 240.3m)
Enterprise Value = 57.0b USD (51.6b + Debt 5.57b - CCE 240.3m)
Interest Coverage Ratio = 3.21 (Ebit TTM 711.4m / Interest Expense TTM 221.3m)
EV/FCF = 65.40x (Enterprise Value 57.0b / FCF TTM 871.0m)
FCF Yield = 1.53% (FCF TTM 871.0m / Enterprise Value 57.0b)
FCF Margin = 18.48% (FCF TTM 871.0m / Revenue TTM 4.71b)
Net Margin = 4.29% (Net Income TTM 202.2m / Revenue TTM 4.71b)
Gross Margin = 57.73% ((Revenue TTM 4.71b - Cost of Revenue TTM 1.99b) / Revenue TTM)
Gross Margin QoQ = 60.98% (prev 59.60%)
Tobins Q-Ratio = 3.96 (Enterprise Value 57.0b / Total Assets 14.4b)
Interest Expense / Debt = 3.97% (Interest Expense 221.3m / Debt 5.57b)
Taxrate = 15.90% (43.5m / 273.5m)
NOPAT = 598.3m (EBIT 711.4m * (1 - 15.90%))
Current Ratio = 2.09 (Total Current Assets 2.38b / Total Current Liabilities 1.14b)
Debt / Equity = 0.87 (Debt 5.57b / totalStockholderEquity, last quarter 6.43b)
Debt / EBITDA = 3.81 (Net Debt 5.33b / EBITDA 1.40b)
Debt / FCF = 6.12 (Net Debt 5.33b / FCF TTM 871.0m)
Total Stockholder Equity = 6.64b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.36% (Net Income 202.2m / Total Assets 14.4b)
RoE = 3.05% (Net Income TTM 202.2m / Total Stockholder Equity 6.64b)
RoCE = 5.86% (EBIT 711.4m / Capital Employed (Equity 6.64b + L.T.Debt 5.50b))
RoIC = 4.59% (NOPAT 598.3m / Invested Capital 13.0b)
WACC = 13.51% (E(51.6b)/V(57.2b) * Re(14.61%) + D(5.57b)/V(57.2b) * Rd(3.97%) * (1-Tc(0.16)))
Discount Rate = 14.61% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: -6.82 | Cagr: 0.11%
[DCF] Terminal Value 62.64% ; FCFF base≈831.4m ; Y1≈935.4m ; Y5≈1.31b
[DCF] Fair Price = 9.25 (EV 10.3b - Net Debt 5.33b = Equity 5.01b / Shares 542.1m; r=13.51% [WACC]; 5y FCF grow 12.81% → 2.50% )
EPS Correlation: -94.84 | EPS CAGR: -51.50% | SUE: 1.99 | # QB: 1
Revenue Correlation: -92.22 | Revenue CAGR: -27.01% | SUE: 3.34 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.70 | Chg30d=+18.94% | Revisions=+84% | Analysts=21
EPS next Quarter (2026-09-30): EPS=0.79 | Chg30d=+18.59% | Revisions=+84% | Analysts=21
EPS current Year (2027-03-31): EPS=3.16 | Chg30d=+18.59% | Revisions=+79% | GrowthEPS=+92.5% | GrowthRev=+30.9%
EPS next Year (2028-03-31): EPS=4.09 | Chg30d=+9.73% | Revisions=+70% | GrowthEPS=+29.6% | GrowthRev=+15.2%
[Analyst] Revisions Ratio: +84%