# Microchip Technology Inc (MCHP) — Stock CV

Microchip Technology Inc 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.

> 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.

## Identity

- **Ticker**: MCHP
- **Sector**: Technology
- **Industry**: Semiconductors & Related Devices
- **Headquarters**: CHANDLER, AZ
- **Employees**: 17 900
- **Website**: https://www.microchip.com
- **Market cap**: $41.1B
- **Last price**: $75.71
- **Financial profile**: Solid

## Vitals (TTM)

- **Revenue**: $5.12B
- **Net income**: $478M
- **Free cash flow**: $1.11B
- **Net debt**: $5.40B
- **P/E**: 85.8
- **Revenue growth (YoY)**: 20.9%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 27 |
| Growth | 25 |
| Profitability | 43 |
| Health | 58 |
| Quality | 77 |
| Moat | 61 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [x] Revenue growing — +20.9% YoY
- [x] Profitable — $478M TTM
- [ ] Profit growing — -52.8% YoY
- [x] Generates cash — $1.11B TTM
- [x] Debt under control — ~4.9y of cash flow to repay
- [x] Established company — $41.1B market cap
- [x] Not printing shares — +0.7% shares over ~5y
- [x] Proven track record — 10/11 profitable years
- [x] Financially stable — Altman Z 3.9 — safe
- [x] Pays a dividend — yield 2.67%
- [ ] Valuation not extreme — P/E 85.8

## Experience (career milestones)

- **2026** — Ltd. and Neuronix AI Labs. * In September 2026, Microchip acquired Israeli AI company Hailo
- **2024** — Sanghi announced the closure of Fab 2 in Tempe, Arizona and also announced that Microchip…
- **FY2023** — Best year on record: $2.24B net income
- **2018** — JPMorgan Chase advised Microchip while Qatalyst Partners advised Atmel
- **FY2018** — Became debt-free: cash now exceeds total debt
- **FY2016** — First recorded profitable year: $324M net income
- **FY2016** — Revenue already above $1B: $2.17B in first reported year
- **FY2016** — Positive free cash flow every year since: 11-year streak
- **2010** — The deal allowed Microchip to provide a Wi-Fi product for its PIC microcontrollers
- **Oct 19, 2007** — Due to the great recession, the facility, known as Fab 3, was sold for $30M from an unsolicited…
- **May 24, 2000** — Microchip Technology used the purchase to create the Secure Data Products Group
- **1995** — Microchip acquired KeeLoq technology from Nanoteq of South Africa for $10M in cash
- **1989** — Microchip Technology became an independent company in 1989 when it was acquired by a group of venture capitalists…
- **Feb 14, 1989** — Microchip Technology was founded in February 14, 1989 when General Instrument spun off its microelectronics division…
- **1987** — An initial public offering (IPO) later in the year was canceled because of the October 1987 stock market crash

## 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

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2022 | $6.82B | $1.29B | $2.47B |
| FY2023 | $8.44B | $2.24B | $3.13B |
| FY2024 | $7.63B | $1.91B | $2.61B |
| FY2025 | $4.40B | -$500K | $772M |
| FY2026 | $4.71B | $230M | $871M |

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Source: https://stockcv.com/MCHP — derived from company filings; may be delayed or incomplete. Information, not investment advice.