Fundamental analysis · SEC EDGAR · TTM through 30/06/2026
MCHP · Nasdaq · Technology
Fundamental quality
55
out of 100
Microchip Technology Inc is a mature, stable business: it earns money solidly (net margin 9.3%) but grows slowly (-1.1% a year). On fundamental quality it scores 55 out of 100, profiling it as a company of reasonable quality. Its weakest area is its growth (revenue -1.1%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.
Microchip Technology makes microcontrollers: the cheap, simple chips running everything from a microwave to a car. Thousands of industrial and auto customers, very long product cycles, and considerable debt from past acquisitions.
EPS growth: 0.9% · Revenue growth: -1.1%
Net margin: 9.3% · ROE: 7.4% · ROIC: 5.7%
Net debt/EBITDA: 3.46x · FCF: 21.7%
Source: SEC EDGAR · TTM through 30/06/2026
The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.
Percentile against the other 100 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).
Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.
Key concepts
What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow
| Year | Revenue | Net income | Free cash flow | Net debt |
|---|---|---|---|---|
| 2021 | 5,438 | 349 | 1,824 | 8,624 |
| 2022 | 6,821 | 1,286 | 2,473 | 7,370 |
| 2023 | 8,439 | 2,238 | 3,135 | 6,206 |
| 2024 | 7,634 | 1,907 | 2,608 | 5,680 |
| 2025 | 4,402 | 0 | 772 | 4,859 |
| 2026 | 4,713 | 230 | 871 | 5,256 |
Between 2021 and 2026, revenue went from $5,438M to $4,713M (-13%) and net income went from $349M to $230M (-34%). It has also reduced its net debt over the period.
Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.
Latest results
Figures for the quarter ended June 30, 2026, versus the quarter ended June 30, 2025 (SEC filings):
Compared with the previous close (March 31, 2026), this is what moved in its accounts:
Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.
$1.82
per share, yearly
113% of free cash flow
Payout
at least 6 straight years raising it
Growth
That is what we can verify in the SEC filings, whose structured data only starts in 2008 and which many companies begin tagging later. The real streak may be considerably longer.
The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →
Open your account in minutes with regulated brokers and buy U.S. and European stocks from small amounts. No paperwork.
The serious investor's standard
Open free account →Anyone who wants low commissions and access to almost any market in the world.
Popular in the U.S.
Open free account →Anyone investing in the U.S. who wants a powerful, commission-free stock app.
Investing carries risk of loss.
Is Microchip Technology Inc cheap or expensive?
That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).
Compute the valuation →Is Microchip Technology Inc a good company to invest in?
In terms of business quality, Microchip Technology Inc scores 55 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.
Is Microchip Technology Inc a profitable company?
Microchip Technology Inc is profitable, with a net margin of 9.3%, though a thin one.
Does Microchip Technology Inc have a lot of debt?
Yes, its leverage is high: net debt is 3.46 times its EBITDA.
Is Microchip Technology Inc growing?
Its revenue has fallen 1.1% annualized in recent years.
Does Microchip Technology Inc generate cash?
Yes. It converts about 21.7% of its revenue into free cash flow, and has done so positively year after year.
The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.
More Technology companies
Emerson Electric (EMR) · Fortinet (FTNT) · Workday (WDAY) · Autodesk (ADSK) · Snowflake (SNOW) · HP Inc. (HPQ) · see more →
The best Technology stocks by our model →
Compare Microchip Technology Inc with 500+ companies in the screener →
Who's behind the methodology and model · how the score is computed
Data: see Microchip Technology Inc's filings on EDGAR
Spotted a figure that looks wrong? Report it and we'll review it.