MICROCHIP TECHNOLOGY INC (MCHP)
Semiconductors & Related Devices · Semiconductors & Related Devices · NASDAQ
$77.08
-1.42%
Investingg Score
39.2 / 100
Sell
Business overview
- Gross margin is reported at 57.7%.
- Operating margin stands at 10.4%.
- Free cash flow margin reaches 18.5%.
These margins reflect healthy top-line profitability and cash generation capacity, though the operating margin indicates notable operating expenses relative to gross profit.
Financial health
- Financial Quality pillar score is 31.
- Balance Sheet pillar score is 32.
- Risk pillar score is 70.
These scores indicate moderate financial health and a heightened risk profile based on the supplied framework.
- Gross Margin
- 57.7%
- Operating Margin
- 10.4%
- Current Ratio
- 2.1x
- Debt / Equity
- 0.85
- Free Cash Flow (TTM)
- $0.9B
- Interest Coverage
- 2x
Valuation
- Price-to-earnings ratio is 132.39.
- Forward price-to-earnings ratio is 21.53.
- Free cash flow yield is 2.1%.
High trailing P/E multiples suggest investors are paying a premium based on past results, while the forward P/E reflects lower expected earnings multiples ahead.
- P/E (TTM)
- 132.4x
- Forward P/E
- 21.5x
- Price / Sales
- 8.6x
- EV / EBITDA
- 36.2x
- FCF Yield
- 2.1%
Key risks
- High trailing valuation multiples such as a P/E of 132.39 introduce downside valuation risk.
- A low overall Investingg Score of 39.2 and a 'Sell' verdict highlight underlying fundamental or technical headwinds.
- The risk pillar score stands at 70, reflecting elevated overall uncertainty.
Market cap $41.8B · data as of 2026-08-19
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Analyze MCHP with Investingg AINot investment advice. Investingg AI summarizes public data and AI-generated analysis for informational purposes only.