Microchip Technology Incorporated

MCHP

Semiconductors · Technology

Also trades as: 0K19.L

Price

$76.08

+0.27 (+0.36%)

Market Cap

$41.31B

Exchange

NASDAQ

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Mixed

Cash Flow

Exceptional

Stability

Good

Valuation

Good

Dividends

Mixed

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Share count falling — buybacks

−3.2% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 565.9M (2022) → 547.9M (2026)

Winston Score History

The full picture

Microchip Technology makes tiny computer chips called microcontrollers and microprocessors. These chips act like small brains inside everyday products — things like car dashboards, factory machines, medical devices, and home appliances. The company is one of the largest suppliers of 8-bit and 32-bit microcontrollers in the world, and it also sells chips used to connect devices to networks.

Microchip earns money by selling chips directly to manufacturers and through electronics distributors. It operates globally, with customers across North America, Europe, and Asia, and generates several billion dollars in annual revenue. Its competitive edge comes from a huge catalog of chips that work well together, plus strong customer loyalty since engineers tend to stick with familiar chip families once they design them into a product. The main risk the company faces is a prolonged downturn in chip demand — Microchip has been working through a significant inventory correction that has pressured sales and profit margins in recent periods.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+35.1% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+172.4% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$1.1B/ year

↑ Rising (+10% vs prior year)

23.0% of revenue

1.5x the sector average (15%)

Investing heavily in future products and technology

Insider Activity

2.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$240M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Microchip Technology Incorporated grew revenue 35% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

63.2%

Premium pricing power — 63.2% gross margin

Profit after running costs

Operating Margin

22.7%

Excellent — 22.7% operating margin

Return on the money invested

ROCE

6.7%

Weak — 6.7% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+20.9%

Fast-growing sales (+20.9% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash

Cash Conversion

266%

Turns 266% of profit into real cash

Spare cash per sale

FCF Margin

21.7%

Converts sales into free cash efficiently (21.7%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

0.83

Moderate — manageable debt (0.83)

Covers its interest

Interest Cover

3.74x

Tight — interest eats into profit (3.7x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

105.4x

Expensive — P/E 105.4

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+78.9

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (105.4 → 26.5)

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Dividends

Dividend

Dividend Yield

2.15%

Moderate income — 2.15% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record

Dividend Growth

+0.0%

Dividend flat

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