Is MCHP a good stock to buy right now?

Based on our 6-factor quantitative model, MICROCHIP TECHNOLOGY INC (MCHP) receives a "Reduce" rating with a composite score of 45.6/100. It is ranked #2,146 out of 4,446 stocks. Key factor scores: Quality 50/100, Value 39/100, Momentum 54/100. The timing signal is "Neutral". This is quantitative analysis only — not investment advice.

What is the stock rating for MCHP?

MICROCHIP TECHNOLOGY INC (MCHP) has a "Reduce" rating and 2-star score. The composite score of 45.6 ranks it #2,146 among 4,446 U.S. stocks. Ratings are updated weekly using academically-proven factor models.

What sector is MCHP in?

MICROCHIP TECHNOLOGY INC operates in the Technology sector (Electronic Equipment industry) with a market cap of $35.38 billion. It is classified as a large-cap stock.

Does MCHP pay a dividend?

Yes, MCHP pays a dividend with a current yield of 2.83%. For every $1,000 invested, you would receive approximately $28.30 in annual dividend income.

What is MCHP's P/E ratio?

MCHP has a trailing P/E ratio of 222.49x. The Technology sector average is 45.3x. This above-average P/E reflects growth expectations or premium valuation.

How profitable is MCHP?

MCHP's quality factor score is 50/100. Gross margin: 56.6%. ROE: 2.5% vs sector average -1.4%. High margins suggest pricing power and competitive moats.

How is MCHP valued compared to peers?

MCHP's value factor score is 39/100 (higher = cheaper). Key multiples: P/E 222.5x, EV/EBITDA 99.9x. Trading at a premium relative to peers.

What is MCHP's debt level?

MCHP's debt-to-equity ratio is 82%. Sector average: 43%. Moderate leverage is normal for established companies.

MCHP has a beta of 2.16, meaning it amplifies market moves. Stability score: 39/100.

Does MCHP have high short interest?

MCHP's short interest factor score is 38/100 (higher = less short selling). Elevated short interest may indicate bearish sentiment or short squeeze potential.

MCHP Stock Analysis: Reduce (Score 45.6/100) | Blank Capital Research

Data Series	1D	5D	1M	YTD	1Y	3Y	5Y	10Y
MCHP	+0.48%	+9.09%	+9.54%	+12.30%	+84.39%	-	-	-
Industry Proxy XLK	+0.39%	+4.88%	+2.05%	-0.94%	-26.62%	-	-	-
U.S. Market SPY	-0.07%	+3.60%	+0.34%	-0.36%	+29.52%	-	-	-
Alpha vs Market	+0.54%	+5.48%	+9.20%	+12.66%	+54.86%	-	-	-
Alpha vs Sector	+0.09%	+4.21%	+7.49%	+13.24%	+111.01%	-	-	-

Metric	MCHP	Benchmark
P/E Ratio	222.5x	+392%
EV/EBITDA	99.9x	+682%
Price / Book	5.6x

Stock Entity	Score▼	Quality	Value	Momentum	P/E Ratio	ROE	Gross Margin	Net Margin	Rev Growth	D/E Ratio	Market Cap	Compare
VRSN VERISIGN INC/CA	56	79	59	40	30.3x	-41.1%	88.0%	50.6%	8.3%	-87.0x	$23.0B	VS
IHS IHS Holding Ltd	55	42	63	63	-	-616.0%	48.0%	-96.1%	-	365.0x	$2.8B	VS
LHX L3HARRIS TECHNOLOGIES, INC. /DE/	55	50	52	66	38.3x	9.0%	25.5%	8.1%	10.3%	110.0x	$66.1B	VS
ESP ESPEY MFG & ELECTRONICS CORP	53	48	44	71	26.3x	12.8%	29.0%	17.1%	-11.7%	66.0x	$169M	VS
NYAX Nayax Ltd.	52	38	46	78	-	-13.6%	44.6%	-1.8%	-	30.0x	$2.2B	VS
ESE ESCO TECHNOLOGIES INC	52	49	40	69	69.6x	7.4%	40.8%	10.4%	16.3%	9.0x	$7.6B	VS
INTT INTEST CORP	52	50	32	72	-	-3.2%	43.1%	-3.1%	-22.8%	46.0x	$179M	VS
KARO Karooooo Ltd.	49	50	72	53	-	117.1%	69.5%	20.3%	-	10.0x	$1.6B	VS
MTC MMTec, Inc.	47	32	40	96	-	-1,370.8%	81.6%	-4,879.7%	-	120.0x	$136M	VS
CCLD CareCloud, Inc.	47	38	71	60	11.9x	18.5%	48.0%	9.6%	10.6%	47.0x	$154M	VS
MCHP MICROCHIP TECHNOLOGY INC	46	50	39	54	222.5x	2.5%	56.7%	3.5%	-4.5%	82.0x	$35.4B

Key Ratio	TTM	2026	2025	2024	2023	2022	2021	2020	2019	2018	2017
Gross Margin %	0.6%	0.6%	0.6%	0.7%	0.7%	0.7%	0.6%	0.6%	0.5%	0.6%	0.5%
Operating Margin %	0.1%	0.1%	0.1%	0.3%	0.4%	0.3%	0.2%	0.1%	0.1%	0.2%	0.1%
EBITDA Margin %	0.1%	0.1%	0.1%	0.3%	0.4%	0.3%	0.4%	0.4%	0.3%	0.4%	0.2%
Net Margin %	0.0%	0.1%	-0.0%	0.2%	0.3%	0.2%	0.1%	0.1%	0.1%	0.1%	0.0%
FCF Margin %	-	-	-	-	-	-	31.9%	26.6%	26.7%	30.3%	28.6%
ROE %	0.0%	0.0%	-0.0%	0.3%	0.3%	0.2%	0.1%	0.1%	0.1%	0.1%	0.1%
ROA %	0.0%	0.0%	-0.0%	0.1%	0.1%	0.1%	0.0%	0.0%	0.0%	0.0%	0.0%
ROIC %	0.0%	1.0%	1.8%	16.0%	19.0%	10.8%	5.6%	3.5%	3.7%	13.6%	4.1%

Key Ratio

TTM

2026

2025

2024

2023

2022

2021

2020

2019

2018

2017

Gross Margin %

0.6%

0.7%

0.6%

0.5%

0.6%

0.5%

Operating Margin %

0.1%

0.3%

0.4%

0.3%

0.2%

0.1%

0.2%

0.1%

EBITDA Margin %

0.1%

0.3%

0.4%

0.3%

0.4%

0.3%

0.4%

0.2%

Net Margin %

0.0%

0.1%

-0.0%

0.2%

0.3%

0.2%

0.1%

0.0%

FCF Margin %

31.9%

26.6%

26.7%

30.3%

28.6%

ROE %

0.0%

-0.0%

0.3%

0.2%

0.1%

ROA %

0.0%

-0.0%

0.1%

0.0%

ROIC %

0.0%

1.0%

1.8%

16.0%

19.0%

10.8%

5.6%

3.5%

3.7%

13.6%

4.1%

Line Item	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
	$4.6B	$4.4B	$7.6B	$8.4B	$6.8B	$5.4B	$5.3B	$5.3B	$4.0B	$3.4B	$2.2B	$2.1B
	—	$1.9B	$2.6B	$2.7B	$2.4B	—	—	—	—	—	—	—
	$2.6B	$2.5B	$5.0B	$5.7B	$4.4B	$3.4B	$3.2B	$2.9B	$2.4B	$1.8B	$1.2B	$1.2B
Gross Margin	56.6%	56.1%	65.4%	67.5%	65.2%	62.1%	61.5%	54.8%	60.8%	51.6%	55.5%	57.3%
	—	$618M	$734M	$798M	$719M	—	—	—	—	—	—	—
Research & Development	—	$984M	$1.1B	$1.1B	$989M	$836M	$878M	$826M	$529M	$545M	$373M	$350M
Depreciation	—	—	—	—	—	$1.2B	$1.4B	$1.0B	$729M	$530M	$335M	$296M
Total Operating Expenses	—	$2.2B	$2.4B	$2.6B	$2.6B	—	—	—	—	—	—	—
	$419M	$296M	$2.6B	$3.1B	$1.8B	$998M	$647M	$714M	$936M	$276M	$352M	$426M
EBIT	$419M	$296M	$2.6B	$3.1B	$1.8B	$998M	$647M	$714M	$936M	$276M	$352M	$426M
EBITDA	$419M	$296M	$2.6B	$3.1B	$1.8B	$2.2B	$2.0B	$1.7B	$1.7B	$807M	$696M	$735M
Operating Margin	9.0%	6.7%	33.7%	36.9%	27.1%	18.4%	12.3%	13.4%	23.5%	8.1%	16.2%	19.8%
EBITDA Margin	9.2%	6.7%	33.7%	36.9%	27.1%	41.1%	38.0%	32.1%	41.7%	23.7%	32.0%	34.2%
	—	—	$198M	$204M	$257M	$657M	$503M	$516M	$215M	$190M	$104M	$113M
	—	$39M	$2.4B	$2.9B	$1.5B	—	—	—	—	—	—	—
Income Tax Expense	—	$39M	$459M	$672M	$197M	-$10M	-$420M	-$151M	$482M	-$81M	-$43M	-$19M
	$164M	-$500K	$1.9B	$2.2B	$1.3B	$349M	$571M	$356M	$255M	$165M	$324M	$365M
Net Margin	3.5%	-0.0%	25.0%	26.5%	18.9%	6.4%	10.8%	6.7%	6.4%	4.8%	14.9%	17.0%
	$0.06	$-0.01	$3.52	$4.07	$2.33	$0.67	$2.39	$1.51	$1.10	$0.76	$1.59	$1.84
Diluted EPS	$0.06	$-0.01	$3.48	$4.02	$2.27	$0.67	$2.39	$1.51	$1.10	$0.76	$1.59	$1.84
Weighted Avg Basic	—	537M	542M	550M	552M	—	—	—	—	—	—	—
Weighted Avg Diluted	—	537M	548M	557M	566M	—	—	—	—	—	—	—

Line Item

TTM

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

$4.6B

$4.4B

$7.6B

$8.4B

$6.8B

$5.4B

$5.3B

$4.0B

$3.4B

$2.2B

$2.1B

—

$1.9B

$2.6B

$2.7B

$2.4B

—

$2.6B

$2.5B

$5.0B

$5.7B

$4.4B

$3.4B

$3.2B

$2.9B

$2.4B

$1.8B

$1.2B

Gross Margin

56.6%

56.1%

65.4%

67.5%

65.2%

62.1%

61.5%

54.8%

60.8%

51.6%

55.5%

57.3%

—

$618M

$734M

$798M

$719M

—

Research & Development

—

$984M

$1.1B

$989M

$836M

$878M

$826M

$529M

$545M

$373M

$350M

Depreciation

—

$1.2B

$1.4B

$1.0B

$729M

$530M

$335M

$296M

Total Operating Expenses

—

$2.2B

$2.4B

$2.6B

—

$419M

$296M

$2.6B

$3.1B

$1.8B

$998M

$647M

$714M

$936M

$276M

$352M

$426M

EBIT

$419M

$296M

$2.6B

$3.1B

$1.8B

$998M

$647M

$714M

$936M

$276M

$352M

$426M

EBITDA

$419M

$296M

$2.6B

$3.1B

$1.8B

$2.2B

$2.0B

$1.7B

$807M

$696M

$735M

Operating Margin

9.0%

6.7%

33.7%

36.9%

27.1%

18.4%

12.3%

13.4%

23.5%

8.1%

16.2%

19.8%

EBITDA Margin

9.2%

6.7%

33.7%

36.9%

27.1%

41.1%

38.0%

32.1%

41.7%

23.7%

32.0%

34.2%

—

$198M

$204M

$257M

$657M

$503M

$516M

$215M

$190M

$104M

$113M

—

$39M

$2.4B

$2.9B

$1.5B

—

Income Tax Expense

—

$39M

$459M

$672M

$197M

-$10M

-$420M

-$151M

$482M

-$81M

-$43M

-$19M

$164M

-$500K

$1.9B

$2.2B

$1.3B

$349M

$571M

$356M

$255M

$165M

$324M

$365M

Net Margin

3.5%

-0.0%

25.0%

26.5%

18.9%

6.4%

10.8%

6.7%

6.4%

4.8%

14.9%

17.0%

$0.06

$-0.01

$3.52

$4.07

$2.33

$0.67

$2.39

$1.51

$1.10

$0.76

$1.59

$1.84

Diluted EPS

$0.06

$-0.01

$3.48

$4.02

$2.27

$0.67

$2.39

$1.51

$1.10

$0.76

$1.59

$1.84

Weighted Avg Basic

—

537M

542M

550M

552M

—

Weighted Avg Diluted

—

537M

548M

557M

566M

—

MICROCHIP TECHNOLOGY INC (MCHP) Stock Analysis — April 2026 Rating, Price, and Forecast

Last updated: April 2026

Company Overview — What Does MICROCHIP TECHNOLOGY INC Do?

Microchip Technology Incorporated develops, manufactures, and sells semiconductor products for various embedded control applications in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit microcontrollers; 32-bit embedded microprocessors markets; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications. It also provides development tools that enable system designers to program microcontroller products for specific applications; field-programmable gate array (FPGA) products; and analog, interface, mixed signal, and timing products comprising power management, linear, mixed-signal, high-voltage, thermal management, discrete diodes and metal oxide semiconductor field effect transistors (MOSFETS), radio frequency (RF), drivers, safety, security, timing, USB, Ethernet, wireless, and other interface products. In addition, the company offers memory products consisting of serial electrically erasable programmable read-only memory, serial flash memories, parallel flash memories, serial static random access memories, and serial electrically erasable random access memories for the production of very small footprint devices; and licenses its SuperFlash embedded flash and Smartbits one time programmable NVM technologies to foundries, integrated device manufacturers, and design partners for use in the manufacture of microcontroller products, gate array, RF, analog, and neuromorphic compute products that require embedded non-volatile memory, as well as provides engineering services. Further, it offers wafer foundry and assembly, and test subcontracting manufacturing services; and timing systems products, application specific integrated circuits, and aerospace products. Microchip Technology Incorporated was incorporated in 1989 and is headquartered in Chandler, Arizona. MICROCHIP TECHNOLOGY INC (MCHP) is classified as a large-cap stock in the Technology sector, specifically within the Electronic Equipment industry. The company is led by CEO Ganesh Moorthy and employs approximately 21,000 people, headquartered in Wilmington, Arizona. With a market capitalization of $35.4B, MCHP is one of the prominent companies in the Technology sector.

MICROCHIP TECHNOLOGY INC (MCHP) Stock Rating — Reduce (April 2026)

As of April 2026, MICROCHIP TECHNOLOGY INC receives a Reduce rating with a composite score of 45.6/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.MCHP ranks #2,146 out of 4,446 stocks in our coverage universe. Within the Technology sector, MICROCHIP TECHNOLOGY INC ranks #232 of 584 stocks, placing it in the upper half of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

MCHP Stock Price and 52-Week Range

MICROCHIP TECHNOLOGY INC (MCHP) currently trades at $71.69. The stock gained $0.47 (0.7%) in the most recent trading session. The 52-week high for MCHP is $83.35, which means the stock is currently trading -14.0% from its annual peak. The 52-week low is $34.13, putting the stock 110.1% above its annual trough. Recent trading volume was 8.1M shares, reflecting moderate market activity.

Is MCHP Overvalued or Undervalued? — Valuation Analysis

MICROCHIP TECHNOLOGY INC (MCHP) carries a value factor score of 39/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The trailing price-to-earnings ratio is 222.49x, compared to the Technology sector average of 45.27x — a premium of 392%. The price-to-book ratio stands at 5.57x, versus the sector average of 3.16x. The price-to-sales ratio is 8.00x, compared to 1.06x for the average Technology stock. On an enterprise value basis, MCHP trades at 99.92x EV/EBITDA, versus 12.79x for the sector.

At current multiples, MICROCHIP TECHNOLOGY INC trades at a premium to most Technology peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.

MICROCHIP TECHNOLOGY INC Profitability — ROE, Margins, and Quality Score

MICROCHIP TECHNOLOGY INC (MCHP) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 2.5%, compared to the Technology sector average of -1.4%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 1.1% versus the sector average of -1.0%.

On a margin basis, MICROCHIP TECHNOLOGY INC reports gross margins of 56.6%, compared to 50.9% for the sector. The operating margin is 9.0% (sector: -0.5%). Net profit margin stands at 3.5%, versus -1.5% for the average Technology stock. Revenue growth is running at -4.5% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.

MCHP Debt, Balance Sheet, and Financial Health

MICROCHIP TECHNOLOGY INC has a debt-to-equity ratio of 82.0%, compared to the Technology sector average of 43.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 2.16x, indicating strong short-term liquidity. Total debt on the balance sheet is $5.37B.

MCHP has a beta of 2.16, meaning it is more volatile than the broader market — a $10,000 investment in MCHP would be expected to move 115.6% more than the S&P 500 on any given day. The stability factor score for MICROCHIP TECHNOLOGY INC is 39/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.

MICROCHIP TECHNOLOGY INC Revenue and Earnings History — Quarterly Trend

In TTM 2026, MICROCHIP TECHNOLOGY INC reported revenue of $4.57B and earnings per share (EPS) of $0.06. Net income for the quarter was $164M. Gross margin was 56.6%. Operating income came in at $419M.

In Q3 2026, MICROCHIP TECHNOLOGY INC reported revenue of $1.19B and earnings per share (EPS) of $0.06. Net income for the quarter was $63M. Gross margin was 59.6%. Operating income came in at $152M.

In Q2 2026, MICROCHIP TECHNOLOGY INC reported revenue of $1.14B and earnings per share (EPS) of $0.03. Net income for the quarter was $42M. Gross margin was 55.9%. Revenue grew -2.0% year-over-year compared to Q2 2025. Operating income came in at $89M.

In Q1 2026, MICROCHIP TECHNOLOGY INC reported revenue of $1.08B and earnings per share (EPS) of $-0.09. Net income for the quarter was $-19M. Gross margin was 53.6%. Revenue grew -13.4% year-over-year compared to Q1 2025. Operating income came in at $32M.

Over the past 8 quarters, MICROCHIP TECHNOLOGY INC has experienced revenue contraction from $7.63B to $4.57B. Investors analyzing MCHP stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

MCHP Dividend Yield and Income Analysis

MICROCHIP TECHNOLOGY INC (MCHP) currently pays a dividend yield of 2.8%. At this yield, a $10,000 investment in MCHP stock would generate approximately $$283.00 in annual dividend income.

MCHP Momentum and Technical Analysis Profile

MICROCHIP TECHNOLOGY INC (MCHP) has a momentum factor score of 54/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 35/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 38/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.

MCHP vs Competitors — Technology Sector Ranking and Peer Comparison

Within the Technology sector, MICROCHIP TECHNOLOGY INC (MCHP) ranks #232 out of 584 stocks based on the Blank Capital composite score. This places MCHP in the upper half of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.

Comparing MCHP against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full MCHP vs S&P 500 (SPY) comparison to assess how MICROCHIP TECHNOLOGY INC stacks up against the broader market across all factor dimensions.

MCHP Next Earnings Date

No upcoming earnings date has been announced for MICROCHIP TECHNOLOGY INC (MCHP) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy MCHP? — Investment Thesis Summary

The quantitative profile for MICROCHIP TECHNOLOGY INC suggests caution. The value score of 39/100 indicates premium valuation. High volatility (stability score 39/100) increases portfolio risk.

In summary, MICROCHIP TECHNOLOGY INC (MCHP) earns a Reduce rating with a composite score of 45.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on MCHP stock.

Related Resources for MCHP Investors

Explore more research and tools: MCHP vs S&P 500 comparison, top Technology stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare MCHP head-to-head with peers: MCHP vs IHS, MCHP vs VRSN, MCHP vs ESE.

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MICROCHIP TECHNOLOGY INC (MCHP) Stock Analysis — April 2026 Rating, Price, and Forecast

Company Overview — What Does MICROCHIP TECHNOLOGY INC Do?

MICROCHIP TECHNOLOGY INC (MCHP) Stock Rating — Reduce (April 2026)

MCHP Stock Price and 52-Week Range

Is MCHP Overvalued or Undervalued? — Valuation Analysis

MICROCHIP TECHNOLOGY INC Profitability — ROE, Margins, and Quality Score

MCHP Debt, Balance Sheet, and Financial Health

MICROCHIP TECHNOLOGY INC Revenue and Earnings History — Quarterly Trend

MCHP Dividend Yield and Income Analysis

MCHP Momentum and Technical Analysis Profile

MCHP vs Competitors — Technology Sector Ranking and Peer Comparison

MCHP Next Earnings Date

Should You Buy MCHP? — Investment Thesis Summary

Related Resources for MCHP Investors

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