Microchip Technology Incorporated (MCHP) is a publicly traded company in the Technology — Semiconductors industry listed on NASDAQ. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Microchip Technology Incorporated creates, produces, and sells intelligent, interconnected, and secure embedded control solutions to customers throughout the Americas, Europe, and Asia. The company's core offerings include a range of microcontrollers, such as general-purpose 8-bit, 16-bit, and 32-bit models, as well as 32-bit embedded microprocessors.
Analysis Summary
Microchip Technology Incorporated reported revenue of $4.71B in the most recent fiscal year, growing at a 5-year CAGR of -2.8%. Net income reached $202.2M, with a -10.4% 5-year CAGR.
Trailing-twelve-month margins: gross margin 60.2%, operating margin 15.5%, net margin 8.8%. Free cash flow grew at -13.7% CAGR over 5 years.
At the current price of $70.54, MCHP trades at a P/E of 96.29 and an ROE of 6.90%. Market capitalisation stands at $38.3B, placing it among large-cap names.
Balance sheet quality for MCHP: current ratio of 2.1, net debt of $5.29B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $871.0M represents 431% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Price
| Price | $70.54 |
| Market Cap | $38.3B |
| Exchange | NASDAQ |
| Country | US |
Valuation Ratios
| P/E Ratio | 96.29 |
| Price / Book | 5.84 |
| EV / EBITDA | 25.94 |
| Dividend Yield | 2.62% |
Profitability
| Return on Equity | 6.90% |
| Return on Invested Capital | 4.99% |
| Return on Assets | 3.13% |
| Gross Margin | 60.19% |
| Operating Margin | 15.52% |
| Net Margin | 8.80% |
Financial Health
| Debt / Equity | 0.84 |
| Current Ratio | 1.92 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 3.67 |
What to look at in Technology companies
- Revenue growth 3y (>=15%/year) — Validates sustained traction, not a one-off.
- Gross margin (Sub-sector dependent) — SaaS >=70%, Internet >=55%, Semis >=45%, Hardware >=35%.
- FCF / Revenue (>=20%) — Real cash generated. Many tech firms dress up non-GAAP earnings.
- ROIC (>=15%) — Capital reinvested efficiency — Buffett's first metric.
- SBC / Revenue (<10% healthy) — Stock-based compensation. Silent dilution: >20% destroys value.
- Net Debt / EBITDA (<=2x (1.5x SaaS)) — Resilience in downturns and rate hikes.
Peer Comparison
| Symbol | Company | Market Cap | P/E | P/B | ROE |
|---|---|---|---|---|---|
| MCHP | Microchip Technology Incorporated | $37.8B | 96.29 | 5.84 | 6.9% |
| ERIC | Telefonaktiebolaget LM Ericsson (publ) | $32.9B | 13.13 | 3.10 | 23.6% |
| CTSH | Cognizant Technology Solutions Corporation | $27.9B | 13.21 | 1.98 | 14.9% |
| GFS | GLOBALFOUNDRIES Inc. | $23.6B | 30.96 | 1.86 | 6.1% |
| ALAB | Astera Labs, Inc. Common Stock | $46.1B | 105.38 | 22.73 | 25.2% |
| KEYS | Keysight Technologies, Inc. | $55.0B | 41.76 | 7.98 | 20.1% |
| ASX | ASE Technology Holding Co., Ltd. | $90.6B | 43.71 | 6.86 | 17.3% |
| HPE | Hewlett Packard Enterprise Company | $74.0B | 28.23 | 2.86 | 10.9% |
Price Performance
| 1 month | -11.00% |
| 3 months | -30.25% |
| Year-to-date | +9.21% |
| 1 year | +5.79% |
| 3 years | -10.72% |
52-Week Range
| 52-week High | $105.91 |
| 52-week Low | $48.52 |
| Avg Volume (90d) | 10.9M |
Dividend History
| Date | Amount | Yield |
|---|---|---|
| 2026-08-24 | $0.4550 | 2.58% |
| 2026-05-22 | $0.4550 | 2.58% |
| 2026-02-23 | $0.4550 | 2.58% |
| 2025-11-24 | $0.4550 | 2.58% |
| 2025-08-22 | $0.4550 | 2.58% |
| 2025-05-22 | $0.4550 | 2.58% |
| 2025-02-24 | $0.4550 | 2.58% |
| 2024-11-22 | $0.4550 | 2.58% |
| 2024-08-22 | $0.4540 | 2.57% |
| 2024-05-21 | $0.4520 | 2.56% |
Related companies: ALAB · ASX · CTSH · ERIC · FI · GFS · HPE
Explore sector: Technology · Semiconductors
More sections of MCHP: Financials · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
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