Microchip Technology Incorporated
Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. It operates through two segments, Semiconductor Products and Technology Licensing. The company offers general purpose 8-bit, 16-bit, 32-bit, …
What to know about MCHP
Microchip Technology Incorporated is a large Technology company with a mixed financial profile. It scores well on size and health, but risk is worth keeping an eye on.
Should you consider MCHP?
Based on 31 financial metrics and sector comparison. Not financial advice.
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Microchip Technology Incorporated is a large-cap Technology company with a mixed overall financial profile — it ranks near the bottom of Technology stocks (80 of 82).
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Profit margins are thin compared to most S&P 500 peers — the company keeps less of each dollar it earns than the average. Watch for signs of margin improvement.
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The stock trades at a premium — investors are paying more per dollar of earnings than most S&P 500 companies. That's fine if strong growth justifies it, but leaves little room for disappointment.
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The company is growing at a reasonable pace — not the fastest, but consistently moving in the right direction.
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There is a small dividend (0.02%), but income-focused investors will likely find better yields elsewhere in the market.
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The stock is more volatile than most S&P 500 names — it can swing sharply in both directions. This suits investors comfortable with bigger short-term moves.
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There are several areas of concern. This may suit investors with a higher risk tolerance or a specific contrarian view on the Technology sector.
At a glance
How it scores
We look at 31 different financial metrics and group them into categories. Here's how MCHP compares to the other S&P 500 stocks.
Dive deeper — all 31 metrics 9 categories · valuation, growth, health, dividends & more Show all Hide
Valuation
Is the stock cheap or expensive relative to its earnings, sales, and assets? Lower multiples often mean better value.
| Metric | Value | vs S&P 500 |
|---|---|---|
| P/E Ratio (Trailing) | 453.50 | Below avg |
| Forward P/E | 24.39 | Below avg |
| PEG Ratio | 0.35 | Top 25% |
| Price to Sales | 11.48 | Below avg |
| Price to Book | 8.41 | Below avg |
| EV/EBITDA | 46.95 | Below avg |
| Earnings Yield | 0.22% | Below avg |
Profitability
How efficiently does the company turn revenue into profit? Higher margins mean more money kept from each dollar earned.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Gross Margin | 57.73% | Above avg |
| Operating Margin | 17.07% | Average |
| Net Profit Margin | 4.88% | Below avg |
| Return on Equity | 3.40% | Below avg |
| Return on Invested Capital | 2.23% | Below avg |
Growth
How fast is the business expanding? Strong growth in revenue and earnings signals increasing market demand.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Revenue Growth (YoY) | 35.10% | Top 25% |
| Revenue Growth (3Y CAGR) | -17.65% | Below avg |
| EPS Growth (YoY) | — | N/A |
| Free Cash Flow Growth | 12.81% | Above avg |
Health
Can the company cover its debts and obligations? A healthy balance sheet reduces the risk of financial trouble.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Current Ratio | 2.09 | Top 25% |
| Debt to Equity | 0.88 | Average |
| Interest Coverage | 2.27 | Below avg |
| Altman Z-Score | 5.11 | Above avg |
Dividends
Does the company pay shareholders, and is that payment growing and sustainable?
| Metric | Value | vs S&P 500 |
|---|---|---|
| Dividend Yield | 1.90% | Average |
| Payout Ratio | 827.27% | Below avg |
| Dividend Growth (5Y) | 1.33% | Top 25% |
Cash Flow
Is real cash flowing into the business — not just accounting profits? Strong cash flow funds growth and dividends.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Free Cash Flow Yield | 1.61% | Below avg |
| OCF to Sales | 20.41% | Average |
Risk
How volatile is the stock compared to the broader market? Lower beta and volatility mean a smoother ride.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Beta (1-Year) | 1.73 | Below avg |
| Volatility (30-Day) | 54.91% | Below avg |
Sentiment
What do analysts and short-sellers think? High analyst ratings and low short interest signal broad confidence.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Short % of Float | 7.04% | Below avg |
| Avg. Analyst Rating | 1.62 | Top 25% |
| Target Upside % | 13.50% | Above avg |
Size
How large is the company by market value? Size affects stability, growth potential, and index inclusion.
| Metric | Value | vs S&P 500 |
|---|---|---|
| Market Capitalization | 54.08B | Above avg |
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