Microchip Technology IncorporatedMCHP
NasdaqGS•Technology•Semiconductors
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, 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 offers 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 that consist 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 production of footprint devices; and 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 array, RF, analog, and neuromorphic compute products, as well as provides engineering services. Further, it provides wafer foundry and 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.
as of March 2026
Are revenues and earnings expanding?
$4.71B in TTM revenue grew 7.1% YoY, reaching $1.31B last quarter. TTM EBITDA of $1.52B on operating income of $217.40M shows growth is flowing through. Net income of $230.00M TTM confirms the company is converting revenue into profit. Revenue is growing at a healthy pace — a signal to hold.
Is revenue turning into profit effectively?
Op. margin of 16.6% is up 26.9% YoY — cost efficiency is improving. Net margin at 11.0% and gross margin of 61.0%. ROE of 3.6% shows the company generates solid returns on shareholder equity.
Is the stock cheap or expensive?
At 234.9x P/E, the stock trades at a premium — the market expects above-average growth. P/S of 11.5x and P/B of 8.4x provide additional context. Assess whether the current multiple is justified by the company's growth and profitability trajectory.
Is the company financially stable?
With $14.37B in assets and $5.50B in long-term debt, the D/E of 0.9 shows a conservative capital structure — the company has a strong financial cushion to weather downturns.
Is the business self-funding?
FCF of $242.80M on $257.00M in operating cash flow. The FCF / Net Income ratio of 1.1x means earnings are well backed by actual cash — high-quality earnings. Cash reserves of $240.30M provide financial flexibility. Share count is stable — no dilution or buyback activity.
Competitive analysis based on 66 quarters of fundamental data
Operating margins are under pressure, averaging 7.9%. The business may lack pricing power or face rising costs.'
ROE is low or negative, suggesting limited competitive advantage or capital allocation challenges.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.
Data-driven red flags and warnings across 66 quarters
The company posted negative operating margins in recent quarters — core operations are unprofitable.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
D/E ratio is 0.9 — conservative capital structure with low financial risk.
TTM revenue has contracted 17.5% — significant decline indicating deteriorating demand.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.