# Microchip Technology Incorporated (MCHP) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Semiconductors & Semiconductor Equipment. Price $74.17, market value $40.3 billion.

## Valuation
- **P/E (trailing): 109.1×** (5-yr avg 91.5×, 3-yr avg 158.3×). Microchip Technology Incorporated trades at 109.1× trailing earnings, close to its own five-year average of 91.5×. The Technology median in the September 2026 study was 32.1×. Forward P/E is 16.2×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.01**. A PEG of 0.01 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 7.9×**. Each dollar of revenue is priced at 7.9×.
- **Price / book: 6.2×**. The shares trade at 6.2× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 31.0×**. Enterprise value is 31.0× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 2.8%** (5-yr avg 5.0%). Free cash flow equals 2.8% of the market value, below its five-year average of 5.0%, so the shares are pricier on cash than usual.
- **Earnings yield: 0.9%**. The inverse of the P/E: 0.9% of the price is earned each year.

## Profitability
- **Gross margin: 60.2%**. Microchip Technology Incorporated keeps 60.2% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 15.5%**. 15.5% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 4.9%**. 4.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 3.6%**. 3.6% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 5.4%**. Return on all capital, debt included, is 5.4%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 3.3%**. Each dollar of assets produces 3.3% of profit.

## Growth
- **Revenue growth (1 yr): 7.1%** (3-yr -17.6%/yr, 5-yr -2.8%/yr). Revenue grew 7.1% over the last year, against -2.8% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 2300.0%** (3-yr -62.0%/yr, 5-yr -19.5%/yr). Earnings per share rose 2300.0%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -34.7%/yr**. Free cash flow has compounded at -34.7% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.85**. Debt is 0.85 times equity, moderate leverage.
- **Net debt / EBITDA: 3.6×**. It would take 3.6 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.45%** ($1.82 per share, trailing). Microchip Technology Incorporated yields 2.45%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 428%** (89% of free cash flow). The dividend exceeds earnings (428% payout), though free cash flow still covers it.
- **Consecutive years of increases: 14**. 14 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 19.9%/yr** (1-yr 0.5%). The dividend has compounded at 19.9% a year over five years, doubling roughly every 4 years at that pace.

## Analyst view
- **Analyst consensus: buy** (25 analysts). 25 analysts cover Microchip Technology Incorporated; the consensus is buy, with an average price target of $108.64 (+46% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 17.4%** (YTD 17.7%, 3-mo -16.0%). The shares are up 17.4% over twelve months including dividends.
- **From 52-week high: -30.0%** (52.9% above the low). Trading 30% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 45**. An RSI of 45 is neutral.
- **Beta (1 yr): 2.09** (volatility 50%). Beta of 2.09 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=MCHP · Page: https://foliofundamentals.com/stocks/mchp

Not investment advice.