Microchip Technology Inc (MCHP) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Microchip Technology Inc stock (MCHP) is currently trading at $65.16. Microchip Technology Inc PS ratio (Price-to-Sales) is 8.12. Analyst consensus price target for MCHP is $86.67. WallStSmart rates MCHP as Sell.
- MCHP PE ratio analysis and historical PE chart
- MCHP PS ratio (Price-to-Sales) history and trend
- MCHP intrinsic value — DCF, Graham Number, EPV models
- MCHP stock price prediction 2025 2026 2027 2028 2029 2030
- MCHP fair value vs current price
- MCHP insider transactions and insider buying
- Is MCHP undervalued or overvalued?
- Microchip Technology Inc financial analysis — revenue, earnings, cash flow
- MCHP Piotroski F-Score and Altman Z-Score
- MCHP analyst price target and Smart Rating
Microchip Technology Inc
📊 No data available
Try selecting a different time range
Smart Analysis
Microchip Technology Inc (MCHP) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, institutional own.. Concerns around return on equity and price/sales. Mixed signals suggest waiting for clearer direction before acting.
Microchip Technology Inc (MCHP) Key Strengths (3)
Growing significantly faster than its price suggests
99.70% of shares held by major funds and institutions
Large-cap company with substantial market presence
Supporting Valuation Data
Microchip Technology Inc (MCHP) Areas to Watch (7)
Company is destroying shareholder value
Earnings declining -81.60%, profits shrinking
Company is losing money with a negative profit margin
Very expensive at 8.1x annual revenue
Very expensive at 5.4x book value
Thin operating margins with cost pressures present
Solid revenue growth at 15.60% per year
Supporting Valuation Data
Microchip Technology Inc (MCHP) Detailed Analysis Report
Overall Assessment
This company scores 39/100 in our Smart Analysis, earning a F grade. Out of 10 metrics analyzed, 3 register as strengths (avg 9.7/10) while 7 fall into concern territory (avg 2.0/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on PEG Ratio, Institutional Own., Market Cap. Valuation metrics including PEG Ratio (0.81) suggest the stock is attractively priced.
The Bear Case
The primary concerns are Return on Equity, EPS Growth, Profit Margin. Some valuation metrics including Price/Sales (8.12), Price/Book (5.41) suggest expensive pricing. Growth concerns include Revenue Growth at 15.60%, EPS Growth at -81.60%, which may limit upside. Profitability pressure is visible in Return on Equity at -1.09%, Operating Margin at 13.20%, Profit Margin at -1.57%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at -1.09% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 15.60% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. Return on Equity and EPS Growth are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
MCHP Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
MCHP's Price-to-Sales ratio of 8.12x trades 24% below its historical average of 10.74x (8th percentile). The current valuation is 53% below its historical high of 17.35x set in Apr 2007, and 24% above its historical low of 6.57x in Dec 2008. Over the past 12 months, the PS ratio has compressed from ~9.2x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for Microchip Technology Inc (MCHP) · TECHNOLOGY › SEMICONDUCTORS
The Big Picture
Microchip Technology Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 4.4B with 16% growth year-over-year. The company is currently unprofitable, posting a -157.0% profit margin.
Key Findings
Generating 319M in free cash flow and 341M in operating cash flow. Earnings are translating into actual cash generation.
The company is unprofitable with a -157.0% profit margin. The path to breakeven will be the key catalyst.
Earnings fell 82% YoY while revenue grew 16%. This gap usually reflects one-time items (tax benefits, write-offs) in the prior period, not an operational decline.
What to Watch Next
Debt management: total debt of 5.4B is significantly higher than cash (251M). Monitor refinancing risk.
Sector dynamics: monitor SEMICONDUCTORS industry trends, competitive moves, and regulatory changes that could impact Microchip Technology Inc.
Bottom Line
Microchip Technology Inc offers an attractive blend of growth (16% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
Loading insider activity...
About Microchip Technology Inc(MCHP)
NASDAQ
TECHNOLOGY
SEMICONDUCTORS
USA
Microchip Technology Inc. is a publicly-listed American corporation that manufactures microcontroller, mixed-signal, analog and Flash-IP integrated circuits.