Microchip Technology Incorporated presents a mixed outlook with strong operational metrics and customer relationship strategies, but faces challenges with high inventory and expenses. The company's future prospects hinge on the successful execution of its nine-point plan and its ability to innovate in a competitive landscape.
Analysis Date: February 6, 2025 Last Updated: May 29, 2025
+175%
+10.7% per year
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
CountryUS
ExchangeNASDAQ
IndustrySemiconductors
SectorTechnology
Market Cap$31.30B
CEOMr. Stephen Sanghi
Microchip Technology Incorporated is a company that creates small computer chips used in a wide range of devices. These chips help control everything from cars and home appliances to industrial machines and communication systems. They also provide tools that help engineers design and program these chips for specific needs. Founded in 1989 and based in Chandler, Arizona, Microchip plays a key role in making technology smarter and more connected.
Streams of revenue
Semiconductor Products Member:97%
Technology Licensing Member:3%
Geographic Distribution
Asia:0%
Other:0%
Europe:0%
Americas:0%
Estimations for reference only
Core Products
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Analog ProductsSignal processing
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Memory ProductsData storage
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MicrocontrollersEmbedded control
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Timing SolutionsClock management
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Wireless SolutionsConnectivity tech
Business Type
Business to Business
Competitive Advantages
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Graham Value Metrics
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Income Statement Flow
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Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
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MCHP (Microchip Technology Incorporated) is a Technology company listed on NASDAQ Global Select. The stock has generated 10.7% annual returns with an overall investment score of None/100.
Microchip Technology Incorporated presents a mixed outlook with strong operational metrics and customer relationship strategies, but faces challenges with high inventory and expenses. The company's future prospects hinge on the successful execution of its nine-point plan and its ability to innovate in a competitive landscape.
MCHP Key Financial Metrics
MCHP financial analysis includes comprehensive valuation ratios, profitability metrics, and financial health indicators. The company has a valuation score of 5.0/100 with financial health rated 6.9/100.
About Microchip Technology Incorporated
Microchip Technology Incorporated is a company that creates small computer chips used in a wide range of devices. These chips help control everything from cars and home appliances to industrial machines and communication systems. They also provide tools that help engineers design and program these chips for specific needs. Founded in 1989 and based in Chandler, Arizona, Microchip plays a key role in making technology smarter and more connected.
MCHP Investment Recommendation
Based on our comprehensive analysis of MCHP, investors should consider the company's strong performance track record, earnings consistency (6/10 quarters beat expectations), and current valuation metrics when making investment decisions.
Technology Sector Analysis
MCHP operates in the Semiconductors industry within the Technology sector. This analysis compares Microchip Technology Incorporated performance against industry and sector benchmarks to provide context for investment decisions.
Frequently Asked Questions about MCHP Stock
Is MCHP a good investment?
MCHP (Microchip Technology Incorporated) has generated 10.7% annual returns with an overall score of None/100. Microchip Technology Incorporated presents a mixed outlook with strong operational metrics and customer relationship strategies, but faces challenges with high inventory and expenses. The company's future prospects hinge on the … Investors should consider their risk tolerance and investment goals when evaluating MCHP.
What is MCHP P/E ratio and valuation?
MCHP valuation metrics including P/E ratio, price-to-book ratio, and price-to-sales ratio are analyzed on this page with comparisons to Semiconductors industry and Technology sector benchmarks. The company currently has a valuation score of 5.0/100.
Should I buy MCHP stock now?
The decision to buy MCHP stock should be based on comprehensive analysis of financial metrics, market conditions, and individual investment goals. Our analysis provides , financial health score of 6.9/100, and detailed performance metrics to help inform your investment decision.
What are MCHP financial health indicators?
MCHP financial health analysis includes liquidity ratios, debt levels, cash flow metrics, and profitability indicators. The company has a financial health score of 6.9/100 based on comprehensive analysis of balance sheet strength and operational efficiency.
How does MCHP compare to competitors?
MCHP performance is benchmarked against Semiconductors industry peers and Technology sector averages. Our analysis includes comparative valuation ratios, profitability metrics, and growth indicators to provide context for Microchip Technology Incorporated's market position.
What are MCHP historical returns?
MCHP has generated 10.7% annual returns over the 10Y. Historical performance analysis includes price appreciation, dividend yields, and total shareholder returns compared to market benchmarks.
MCHP Key Investment Metrics Summary
Annual Return: 10.7%
Valuation Score: 5.0/100
Financial Health Score: 6.9/100
Growth Score: -27.787287997020105/100
Earnings Beat Rate: 6/10 quarters
Sector: Technology
Industry: Semiconductors
Exchange: NASDAQ Global Select
Market Cap: 31302312900
MCHP Investment Thesis
Microchip Technology Incorporated (MCHP) represents a strong investment opportunity in the Technology sector. With an overall score of None/100, the company demonstrates areas for financial improvement.
Investment Strengths
High Gross Profit Margin
Strong Current Ratio
Operating Profit Margin
Adequate Liquidity Ratios
Manageable Debt Levels
Strong Gross Margins
Diverse Product Portfolio
Commitment to Customer Relationships
Nine-Point Plan for Improvement
Innovation in Product Development
Investment Risks
Extremely High Price Ratios
High Price to Sales Ratio
Negative Net Profit Margin
Low Return on Equity
High Debt to Assets
Low Interest Coverage Ratio
Inventory Challenges
High Operating Expenses
Weak Current Demand
Low Visibility in Bookings
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