Microchip Technology Incorporat (MCHP) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Microchip Technology Incorporat

NasdaqGS•Technology•Semiconductors

$70.82+1.23(0.02%)After hours

Market Cap

$38.42B

P/E

80.3x

P/S

7.5x

P/B

6.0x

Microchip Technology Incorporated develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. It operates in two segments, Semiconductor Products and Technology Licensing. The company offers general-purpose 8-bit, 16-bit, 32-bit, and 64-bit mixed-signal microcontrollers; 32-bit and 64-bit embedded mixed-signal microprocessors; and specialized mixed-signal microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human-machine interface, security, wired connectivity, and wireless connectivity applications. It also provides analog products, including power management, linear, mixed-signal, high voltage, thermal management, discrete diodes and MOSFETs, radio frequency (RF), gate drivers, safety, security, timing, application-specific standard products, USB, Ethernet, wireless, and other interface products; field-programmable gate array (FPGA) products; and application development tools that enable system designers to program mixed-signal microcontroller, FPGA, and microprocessor products. In addition, the company offers memory products consisting of serial electrically erasable programmable read-only memory, serial flash memories, parallel flash memories, serial static random-access memory, and electrically erasable random-access memory for footprint devices. Further, it licenses its SuperFlash embedded flash and non-volatile memory technologies to foundries, integrated device manufacturers, and design partners for use in the manufacture of microcontroller products, gate arrays, RF, analog, and neuromorphic compute products. Additionally, the company offers engineering services; wafer foundry, assembly, and test subcontracting manufacturing services; and timing systems, application-specific integrated circuits, and products for aerospace applications. The company was incorporated in 1989 and is headquartered in Chandler, Arizona.

How this company scores

ExcellentMetricSide Score: 80/100

Strongest: Cash & Earnings Quality (23/25); weakest: Balance Sheet & Red Flags (14/25).

Profitability21/25

Growth22/25

Balance Sheet & Red Flags14/25

Cash & Earnings Quality23/25

Strengths

Growing revenueRising free cash flowStrong marginsRising earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 80.3x5y range 16.8x – 141.4x

Currently above its 16-quarter median.

P/S · 7.5x5y range 4.5x – 9.0x

Currently near its 20-quarter median.

P/B · 6.0x5y range 3.7x – 8.3x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $38.42B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $5.12B
Q. Revenue: $1.48B
TTM EBITDA: $1.81B
TTM Op. Income: $794.80M
Q. Op. Income: $336.80M
TTM Net Income: $478.40M
Q. Net Income: $229.80M
EPS: $0.37
Shares Out.: $542.50M

$5.12B in TTM revenue grew 20.9% YoY, reaching $1.48B last quarter. TTM EBITDA of $1.81B and TTM operating income of $794.80M show growth is flowing through to the bottom line. TTM net income of $478.40M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 3 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 63.2%
EBITDA Margin: 33.2%
Op. Margin: 22.7%
Net Margin: 15.5%

Op. margin of 22.7% is up 19.7% YoY — cost efficiency is improving. Net margin at 15.5% and gross margin of 63.2% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 5 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 80.3x
P/S Ratio: 7.5x
P/B Ratio: 6.0x

At 80.3x P/E, the stock trades above typical market levels — the market expects above-average growth. P/S of 7.5x and P/B of 6.0x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is up 0% — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $14.41B
Cash: $272.30M
Long-Term Debt: $5.36B
Book Value: $6.45B
D/E Ratio: 0.8
Debt/EBITDA: 10.9

With $14.41B in assets and $5.36B in long-term debt, D/E is 0.8and book value is $6.45B — a conservative capital structure with a cushion to weather downturns. Over the past year, debt/equity is up 4% — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $511.50M
TTM Free Cash Flow: $1.11B
FCF Margin: 21.7%
FCF / Net Income: 2.3

TTM FCF of $1.11B on $511.50M in operating cash flow. The FCF / Net Income ratio of 2.3x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 4 consecutive quarters — an improving trend.