Microchip Technology became an independent company in 1989 when it was spun off from General Instrument. More than half of revenue comes from MCUs, which are used in a wide array of electronic devices from remote controls to garage door openers to power windows in autos.
It is a $41.1B technology company. Revenue grew 20.9% over the last year, it keeps 9¢ of every dollar of sales as profit, and its net debt equals ~4.9 years of free cash flow. It trades at 85.8× earnings — in the most expensive third of its own history.
- Website
- microchip.com
- Location
- Chandler, AZ
- Employees
- 17 900
- Sector
- Technology
- Founded
- 1989
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong quality; Valuation, Growth and Profitability lag behind.
Valuation27
- P/E vs own history80th pct · 5/25
- FCF yield2.7% · 5/25
- P/S8.0x · 12/25
- EV/EBITDA38.2x · 5/25
Growth25
- Revenue CAGR-8.8% · 0/25
- Net income CAGR-35.0% · 0/25
- EPS CAGR ~5Y-8.2% · 0/25
- Fwd implied growth359.6% · 25/25
Profitability43
- ROIC1.9% · 5/25
- ROE7.3% · 5/25
- Net margin9.3% · 13/25
- Operating margin15.5% · 20/25
Health58
- Altman Z3.90 · 25/25
- Current ratio1.92 · 18/25
- Interest coverage2.3x · 10/25
- Net cash / debtD/A 38% · 5/25
Quality77
- Piotroski F6/9 · 15/25
- Beneish M-2.91 · 25/25
- FCF conversion232% · 25/25
- Margin stabilityσ 11.0% · 12/25
Moat61
- ROIC >12% years4/11 yrs · 6/25
- Median gross margin60.8% · 25/25
- FCF-positive years11/11 yrs · 25/25
- Worst-year net marginworst -0.0% · 5/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- 2026AcquisitionLtd. and Neuronix AI Labs. * In September 2026, Microchip acquired Israeli AI company Hailo
- 2024ProductSanghi announced the closure of Fab 2 in Tempe, Arizona and also announced that Microchip…
- FY2023FinancialBest year on record$2.24B net income
- 2018AcquisitionJPMorgan Chase advised Microchip while Qatalyst Partners advised Atmel
- FY2018FinancialBecame debt-freecash now exceeds total debt
- FY2016FinancialFirst recorded profitable year$324M net income
- FY2016FinancialRevenue already above $1B$2.17B in first reported year
- FY2016FinancialPositive free cash flow every year since11-year streak
- 2010AcquisitionThe deal allowed Microchip to provide a Wi-Fi product for its PIC microcontrollers
- Oct 19, 2007AcquisitionDue to the great recession, the facility, known as Fab 3, was sold for $30M from an unsolicited…
- May 24, 2000AcquisitionMicrochip Technology used the purchase to create the Secure Data Products Group
- 1995AcquisitionMicrochip acquired KeeLoq technology from Nanoteq of South Africa for $10M in cash
- 1989AcquisitionMicrochip Technology became an independent company in 1989 when it was acquired by a group of venture capitalists…
- Feb 14, 1989FoundedMicrochip Technology was founded in February 14, 1989 when General Instrument spun off its microelectronics division…
- 1987IPOAn initial public offering (IPO) later in the year was canceled because of the October 1987 stock market crash
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (60.2%)
- Revenue growing 20.9% year over year
- Strong cash conversion — FCF is 21.7% of revenue
- Altman Z-Score 3.90 — low bankruptcy-risk zone
Watch-outs
- Loss-making in 1 of the recent years
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+20.9% YoY
- Profitable — makes more than it spends$478M TTM
- Profit growing — earnings are higher than last year-52.8% YoY
- Generates cash — cash left after running and investing$1.11B TTM
- Debt under control — could handle its obligations~4.9y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$41.1B market cap
- Not printing shares — share count not ballooning — you keep your slice+0.7% shares over ~5y
- Proven track record — years of profitability behind it10/11 profitable years
- Financially stable — balance sheet not near distressAltman Z 3.9 — safe
- Pays a dividend — returns cash to shareholdersyield 2.67%
- Valuation not extreme — price not wildly above earningsP/E 85.8
Peer comparisonMicrochip Technology Inc vs 6 largest technology peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| MCHP this company | $41.1B | 85.8 | +20.9% | 9.3% | Solid |
| NVDA Nvidia Corp | $5.5T | 28.6 | +83.4% | 63.7% | Mixed |
| AAPL Apple Inc. | $4.9T | 38.1 | +14.2% | 27.6% | Strong |
| GOOGL Alphabet Inc. | $4.3T | 17.6 | +20.1% | 54.8% | Mixed |
| MSFT Microsoft Corp | $4.0T | 29.7 | +17.8% | 40.3% | Strong |
| SPCX Space Exploration Technologies Corp. | $2.1T | — | +33.2% | -34.0% | Strained |
| META Meta Platforms, Inc. | $1.8T | 26.9 | +27.7% | 29.8% | Mixed |
Head-to-head: MCHP vs NVDA · MCHP vs AAPL · MCHP vs GOOGL
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2026. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/MCHP
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of MCHP on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $75.71 · market cap $41.1B.