Score Your Stock

US stock · figures in US dollars · scored on full-year results

Microchip Technology Microchip Technology Incorporated

MCHP · Technology · Semiconductors
Bottom 11% of scored stocks
WeakBottom 11% of scored stocks
Weak SpotRecent Loss

Microchip Technology scores 38/100 on fundamentals: in the bottom 11% of 503 scored S&P 500 stocks. Its strongest area is Financial Safety (67/100); its weakest is Price Fairness (0/100). It carries 2 warning flags: Weak Spot, Recent Loss.

Best
Financial 67
Weakest
Price 0
  • Carries a Weak Spot flag
  • Carries a Recent Loss flag

An expensively priced stock with shrinking sales, but price fairness needs attention.

What looks good
What to watch
Mkt capUS$ 42.0b#266 of 503 in the S&P 500EPSUS$ 0.68P/E87.8×✗ vs sector median 31.5×P/B6.5×✓ vs sector median 7.4×Div yield2%✓ Top 28% in the S&P 50052w range · 50% of range48.52105.91
as of 31 Oct 2026

Nearby peers

Ranks #81 of 86 in Technology by score

#1First Solar87#79CDW39#80Lumentum38
#81Microchip Technology38
#82Fortive37#83Palo Alto Networks37

One-Minute Summary

Why Microchip Technology scores 38

An expensively priced stock with shrinking sales, but price fairness needs attention.

What looks good
What to watch

Business Strength

30
Why 30?
Pillar score: (0 + 0 + 0 + 1 + 2) = 3 of 10 points → 30
Return on Equity (ROE)7%Weak4-Year Revenue Growth-12%/yrWeak4-Year Profit Growthn/m (loss-making)WeakNet Profit Margin9%OkayQuarterly Momentum+21%Strong
Show 3 charts

Net Profit & Equity, with ROE

Net Profit ↓ -74.9%Equity ↓ -3.1%ROE % 7.4%
Net ProfitEquityROE %
1.9b0m230m478m6.7b7.1b6.4b6.5b202420252026TTM28.6%-0%3.6%7.4%

Revenue & Net Profit, with Net Margin

Revenue ↓ -32.9%Net Profit ↓ -74.9%Net Margin % 9.3%
RevenueNet ProfitNet Margin %
7.6b4.4b4.7b5.1b1.9b0m230m478m202420252026TTM25%-0%4.9%9.3%

Sales shrank about 32.9% over 4 years: the business is getting smaller, which needs a good explanation.

The company lost money in recent years: the bars below zero are losses, not profits.

Recent Quarters: Revenue & Net Profit (the last 8 quarters, scored)

Revenue ↑ +27.6%Net Profit ↑ +193.1%Net Margin % 15.5%
RevenueNet ProfitNet Margin %
1.2b1.0b971m1.1b1.1b1.2b1.3b1.5b78m-54m-155m-19m42m63m144m230mQ3'24Q4'24Q1'25Q2'25Q3'25Q4'25Q1'26Q2'266.7%-5.2%-15.9%-1.7%3.7%5.3%11%15.5%
▼▼▼▼▼▲▲▲

Sales grew about 27.6% over the last 8 quarters: customers keep spending more with this company.

The company made a loss in at least one of the last 8 quarters: the bars below zero are losses, not profits.

Why 67?
Pillar score: (1 + 2 + 1) = 4 of 6 points → 67
Debt-to-Equity0.8×OkayCurrent Ratio1.9×StrongInterest Coverage3.8×Okay
Show 2 charts

Debt vs Equity, with D/E ratio

Total Debt ↓ -10.5%Equity ↓ -3.1%D/E 0.8×
Total DebtEquityD/E
6.0b5.7b5.5b5.4b6.7b7.1b6.4b6.5b202420252026TTM0.9×0.8×0.9×0.8×

Borrowings fell about 10.5% over 4 years: the company is steadily getting safer.

Short-term assets vs bills, with Current Ratio

Current Assets ↓ -17.5%Current Liabilities ↓ -48.6%Current Ratio 1.9×
Current AssetsCurrent LiabilitiesCurrent Ratio
3.0b3.0b2.4b2.5b2.5b1.2b1.1b1.3b202420252026TTM1.2×2.6×2.1×1.9×
Why 50?
Pillar score: (0 + 1 + 2 + 1) = 4 of 8 points → 50
Dividend Quality2%Weak
Payout ratio: 229%
Operating Cash FlowPositive but bumpyOkayFree Cash FlowPositive & growingStrongCash & Cash EquivalentsPartly healthyOkay
Show 3 charts

Operating vs Free Cash Flow

Operating CF ↓ -58.6%Free CF ↓ -57.4%
Operating CFFree CF
2.9b898m962m1.2b2.6b772m871m1.1b202420252026TTM

Cash keeps coming in, though unevenly: fine, but worth keeping an eye on.

Cash vs Total Debt

Cash ↓ -14.8%Total Debt ↓ -10.5%
CashTotal Debt
320m772m240m272m6.0b5.7b5.5b5.4b202420252026TTM

Dividends per Share, with Yield

DPS (cents) ↑ +44.1%Yield % 2.4%
DPS (cents)Yield %
32.835.84545.245.445.545.545.5126.3168.2181.618220232024202520262%2.2%2.6%2.4%

Dividends per share have been maintained or raised: management shares the rewards with you.

Why 0?
Pillar score: (0 + 0 + 0) = 0 of 6 points → 0
P/E Ratio87.8×WeakP/B Ratio6.5×WeakPEG Ration/m (growth not measurable)Weak
Show chart

Share Price: Weekly Closes (not part of the score)

US$ 99.17US$ 74.39US$ 49.60Oct '25Feb '26Jun '26Oct '26

The share price is up about 27.1% over the past year.

Why 42?
Pillar score: (0 + 2 + 2 + 1 + 0 + 0) = 5 of 12 points → 42
Earnings ConsistencyVery bumpyWeakDebt Trend (4yr)FallingStrongShare Count Trend (4yr)+0%/yrStrongInventory vs Sales (4yr)+5.1 pp/yr vs salesOkayAsset Turnover Trend (4yr)-26.1%WeakQuarterly ConsistencyLoss in 3 of 8 quartersWeak
Show chart

Revenue vs Inventory, with Inventory % of Revenue

Revenue ↓ -32.9%Inventory ↓ -20.4%Inv. % of Rev. 20.4%
RevenueInventoryInv. % of Rev.
7.6b4.4b4.7b5.1b1.3b1.3b1.0b1.0b202420252026TTM17.2%29.4%22%20.4%
Ranks #81 of 86 in Technology by score

Sector peers

#1First Solar87#79CDW39#80Lumentum38
#81Microchip Technology (you)38
#82Fortive37#83Palo Alto Networks37

Full Financial History

Every reported figure behind the score, year by year. Download it, or check it against the company's own annual report.

Financial YearRevenueNet ProfitOperating Cash FlowFree Cash FlowCapExCashTotal DebtShort-Term DebtEquityCurrent AssetsCurrent LiabilitiesTotal AssetsTotal LiabilitiesInventoryDividendsReturn on Equity (ROE)Net Profit MarginDebt-to-EquityCurrent RatioInterest CoverageDividend Payout RatioDiv yieldP/E RatioP/B Ratio
2027US$ 5.1bUS$ 478.4mUS$ 1.2bUS$ 1.1bUS$ -87.1mUS$ 272.3mUS$ 5.4bUS$ 37.4mUS$ 6.5bUS$ 2.5bUS$ 1.3bUS$ 14.4bUS$ 8.0bUS$ 1.0b-7%9%0.8×1.9×3.8×229%---
2026US$ 4.7bUS$ 230.0mUS$ 962.1mUS$ 871.0mUS$ -91.1mUS$ 240.3mUS$ 5.5b-US$ 6.4bUS$ 2.4bUS$ 1.1bUS$ 14.4bUS$ 7.9bUS$ 1.0bUS$ 182.0m4%5%0.9×2.1×2.3×475%2%182.3×6.5×
2025US$ 4.4bUS$ -0.5mUS$ 898.1mUS$ 772.1mUS$ -126.0mUS$ 771.7mUS$ 5.7b-US$ 7.1bUS$ 3.0bUS$ 1.2bUS$ 15.4bUS$ 8.3bUS$ 1.3bUS$ 181.6m0%0%0.8×2.6×1.2×-195140%3%-68891.7×4.9×
2024US$ 7.6bUS$ 1.9bUS$ 2.9bUS$ 2.6bUS$ -285.1mUS$ 319.7mUS$ 6.0bUS$ 999.4mUS$ 6.7bUS$ 3.0bUS$ 2.5bUS$ 15.9bUS$ 9.2bUS$ 1.3bUS$ 168.2m29%25%0.9×1.2×13.4×48%3%15.5×4.4×