Microchip Technology Incorporated

MCHP

Semiconductors · Technology

Also trades as: 0K19.L

Price

$80.50

-0.52 (-0.64%)

Market Cap

$43.71B

Exchange

NASDAQ

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 12, 2026 · filings through Jun 30, 2026

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)

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.

Winston Score History

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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

Gross Margin

63.2%

Premium pricing power — 63.2% gross margin

Operating Margin

22.7%

Excellent — 22.7% operating margin

ROCE

2.9%

Weak — 2.9% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+20.9%

Fast-growing sales (+20.9% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

266%

Turns 266% of profit into real cash

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

Debt / Equity

0.83

Moderate — manageable debt (0.83)

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

P/E Ratio (TTM)

111.5x

Expensive — P/E 111.5

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

P/E vs Forward

+85.0

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (111.5 → 26.5)

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Dividends

Dividend Yield

2.15%

Moderate income — 2.15% yield

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

Dividend Growth

+0.0%

Dividend flat

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