MCHP Stock Analysis: Microchip Technology | NASDAQ

Microcontrollers, Microprocessors, Analog, FPGAs

Total Rating 45

Safety 82

Buy Signal 0.13

Semiconductors
Industry Rotation: +10.7

Market Cap: 43.1B
Avg Turnover: 853M

Risk 3d forecast

Volatility56.7%

VaR 5^th Pctl9.41%

VaR vs Median0.70%

Reward TTM

Sharpe Ratio0.58

Rel. Str. IBD39.1

Rel. Str. Peer Group21.5

Character TTM

Beta2.414

Beta Downside2.718

Hurst Exponent0.562

Drawdowns 3y

Max DD63.77%

CAGR/Max DD0.04

CAGR/Mean DD0.11

EPS (Earnings per Share)

EPS CAGR: -48.18%
EPS Trend: -81.6%

Last SUE: 0.48
Qual. Beats: 0

Revenue

Rev. CAGR: -22.78%
Rev. Trend: -83.3%

Last SUE: 1.24
Qual. Beats: 2

Warnings

P/E Ratio 118.6

Below Avwap Earnings

Tailwinds

Confidence

Seasonality 11.6 years of data

Jan -1.2% 8

Feb +1.8% 18

Mar -0.3% 14

Apr -0.5% 7

May +5.2% 62

Jun -2.2% 18

Jul +0.6% 8

Aug -0.3% 2

Sep -1.6% 48

Oct -3.3% 16

Nov +11.0% 16

Dec +0.7% 14

How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.

Description: MCHP Microchip Technology

Microchip Technology Incorporated is a US-based semiconductor company that designs, manufactures, and sells embedded control solutions across the Americas, Europe, and Asia. It operates through two segments, Semiconductor Products and Technology Licensing, and is headquartered in Chandler, Arizona, having been incorporated in 1989. The company is listed on NASDAQ under the ticker MCHP within the GICS Semiconductors sub-industry.

The companys product portfolio spans 8-bit, 16-bit, 32-bit, and 64-bit microcontrollers and microprocessors, analog products (including power management, RF, and interface products), field-programmable gate arrays (FPGAs), application development tools, and memory products. These components are used across automotive, industrial, computing, communications, lighting, power, motor control, security, and connectivity applications. The embedded semiconductor industry serves a broad set of end markets, with microcontrollers being a foundational building block of modern electronic devices.

In addition to product sales, Microchip licenses its SuperFlash embedded flash and non-volatile memory technology to foundries, integrated device manufacturers, and design partners, and provides wafer foundry, assembly, and test subcontracting services. It also supplies timing systems and application-specific integrated circuits for aerospace applications. The technology licensing model allows semiconductor firms to monetize intellectual property independently of chip fabrication, providing a higher-margin revenue stream that complements direct product sales.

Headlines to Watch Out For

Industrial and automotive end-market demand recovery fuels microcontroller revenue growth
Inventory destocking cycle ends as book-to-bill ratio returns above parity
Analog and mixed-signal product margins pressured by intensifying competition and pricing

Piotroski VR-10 (Strict) 6.5

Net Income: 450.6m TTM > 0 and > 6% of Revenue
FCF/TA: 0.08 > 0.02 and ΔFCF/TA 2.87 > 1.0
NWC/Revenue: 23.27% < 20% (prev 36.91%; Δ -13.64% < -1%)
CFO/TA 0.08 > 3% & CFO 1.20b > Net Income 450.6m
Net Debt (5.16b) to EBITDA (1.68b): 3.06 < 3
Current Ratio: 1.92 > 1.5 & < 3
Outstanding Shares: last quarter (550.5m) vs 12m ago 2.10% < -2%
Gross Margin: 60.19% > 18% (prev 54.48%; Δ 5.71% > 0.5%)
Asset Turnover: 34.86% > 50% (prev 28.28%; Δ 6.58% > 0%)
Interest Coverage Ratio: 4.75 > 6 (EBIT TTM 1.01b / Interest Expense TTM 212.7m)

Altman Z'' 2.96

A: 0.08 (Total Current Assets 2.49b - Total Current Liabilities 1.29b) / Total Assets 14.4b
B: 0.34 (Retained Earnings 4.87b / Total Assets 14.4b)
C: 0.07 (EBIT TTM 1.01b / Avg Total Assets 14.7b)
D: 0.81 (Book Value of Equity 6.45b / Total Liabilities 7.96b)
Altman-Z'' = 2.96 = A

Beneish M -2.92

DSRI: 1.05 (Receivables 967.7m/765.5m, Revenue 5.12b/4.24b)
GMI: 0.91 (GM 54.48% / 60.19%)
AQI: 1.02 (AQ_t 0.75 / AQ_t-1 0.74)
SGI: 1.21 (Revenue 5.12b / 4.24b)
TATA: -0.05 (NI 450.6m - CFO 1.20b) / TA 14.4b)
Beneish M = -2.92 (Cap -4..+1) = A

What is the price of MCHP shares?

As of August 16, 2026, the stock is trading at USD 79.17 with a total of 7,756,389 shares traded. Over the past week, the price has changed by -6.52%, over one month by -9.11%, over three months by -18.01% and over the past year by +23.23%.

Current recommended Stop Loss: 70.70 (which is 10.7% or 1.8 ATR below the current price).

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.

StrongBuy: 13
Buy: 4
Hold: 7
Sell: 0
StrongSell: 0

What are the forecasts/targets for the MCHP price?

Analysts Target Price	109.2	37.9%

Microchip Technology (MCHP) - Fundamental Data Overview as of 14 August 2026

Market Cap USD = 43.1b (43.1b USD * 1.0 USD.USD)
P/E Trailing = 118.5672
P/E Forward = 26.2467
P/S = 8.4213
P/B = 6.851
P/EG = 0.2943
Revenue TTM = 5.12b USD
EBIT TTM = 1.01b USD
EBITDA TTM = 1.68b USD
Long Term Debt = 5.36b USD (from longTermDebt, last quarter)
Short Term Debt = 37.4m USD (from shortTermDebt, last quarter)
Debt = 5.44b USD (from shortLongTermDebtTotal, last quarter) + Leases 37.4m
Net Debt = 5.16b USD (calculated: Debt 5.44b - CCE 272.3m)
Enterprise Value = 48.3b USD (43.1b + Debt 5.44b - CCE 272.3m)
Interest Coverage Ratio = 4.75 (Ebit TTM 1.01b / Interest Expense TTM 212.7m)
EV/FCF = 43.48x (Enterprise Value 48.3b / FCF TTM 1.11b)
FCF Yield = 2.30% (FCF TTM 1.11b / Enterprise Value 48.3b)
FCF Margin = 21.69% (FCF TTM 1.11b / Revenue TTM 5.12b)
Net Margin = 8.80% (Net Income TTM 450.6m / Revenue TTM 5.12b)
Gross Margin = 60.19% ((Revenue TTM 5.12b - Cost of Revenue TTM 2.04b) / Revenue TTM)
Gross Margin QoQ = 63.24% (prev 60.98%)
Tobins Q-Ratio = 3.35 (Enterprise Value 48.3b / Total Assets 14.4b)
Interest Expense / Debt = 3.91% (Interest Expense 212.7m / Debt 5.44b)
Taxrate = 17.40% (100.8m / 579.2m)
NOPAT = 834.1m (EBIT 1.01b * (1 - 17.40%))
Current Ratio = 1.92 (Total Current Assets 2.49b / Total Current Liabilities 1.29b)
Debt / Equity = 0.84 (Debt 5.44b / totalStockholderEquity, last quarter 6.45b)
Debt / EBITDA = 3.06 (Net Debt 5.16b / EBITDA 1.68b)
Debt / FCF = 4.65 (Net Debt 5.16b / FCF TTM 1.11b)
Total Stockholder Equity = 6.53b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.07% (Net Income 450.6m / Total Assets 14.4b)
RoE = 6.90% (Net Income TTM 450.6m / Total Stockholder Equity 6.53b)
RoCE = 8.49% (EBIT 1.01b / Capital Employed (Equity 6.53b + L.T.Debt 5.36b))
RoIC = 6.47% (NOPAT 834.1m / Invested Capital 12.9b)
WACC = 13.21% (E(43.1b)/V(48.6b) * Re(14.47%) + D(5.44b)/V(48.6b) * Rd(3.91%) * (1-Tc(0.17)))
Discount Rate = 14.47% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 45.67 | Cagr: 0.46%
[DCF] Terminal Value 63.90% ; FCFF base≈956.8m ; Y1≈1.10b ; Y5≈1.61b
[DCF] Fair Price = 14.43 (EV 13.0b - Net Debt 5.16b = Equity 7.83b / Shares 543.0m; r=13.21% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -81.62 | EPS CAGR: -48.18% | SUE: 0.48 | # QB: 0
Revenue Correlation: -83.25 | Revenue CAGR: -22.78% | SUE: 1.24 | # QB: 2
EPS current Quarter (2026-09-30): EPS=0.93 | Chg30d=+18.70% | Revisions=+50% | Analysts=21
EPS next Quarter (2026-12-31): EPS=0.94 | Chg30d=+17.03% | Revisions=+40% | Analysts=21
EPS current Year (2027-03-31): EPS=3.65 | Chg30d=+15.42% | Revisions=+50% | GrowthEPS=+122.5% | GrowthRev=+35.7%
EPS next Year (2028-03-31): EPS=4.54 | Chg30d=+9.94% | Revisions=+57% | GrowthEPS=+24.5% | GrowthRev=+16.0%
[Analyst] Revisions Ratio: +80% (up=12, down=0)