MCHP Microchip Technology Incorporated - Fundamental Analysis
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MCHP Stock | Fundamental Analysis & Investment Insights
NASDAQ
Technology
Semiconductors
Current Price
Live
$74.7
Analyst Target
$79.84
+6.9%
Upside
52W High
$77.2
52W Low
$34.13
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
AI-powered fundamental assessment
Confidence
65%
The Advanced Deterministic Scorecard shows a Piotroski F-Score of 5/9, indicating stable financial health, but the absence of an Altman Z-Score limits distress risk assessment. Despite strong gross margins and a solid track record of earnings beats, profitability metrics are concerning with negative net income and ROE, while earnings growth has sharply declined year-over-year. Valuation multiples are elevated relative to peers, though insider selling and a dangerously high payout ratio raise sustainability concerns. The stock trades near analyst targets with mixed technical signals, balancing fundamental weaknesses against sector positioning and historical resilience.
Key Strengths
Consistent history of beating earnings estimates (22 out of 25 quarters)
High gross margin of 54.06%, indicating strong pricing power and cost control
Solid current ratio of 2.25, suggesting adequate short-term liquidity
Dividend yield of 244% above sector average despite payout ratio concerns
Analyst recommendation consensus is 'buy' with 25 analysts covering
Key Risks
Profit margin at -4.39% and ROE at -2.85%, signaling underlying profitability crisis
Earnings growth down 81.6% YoY and payout ratio at 317.72%, threatening dividend sustainability
Forward P/E of 29.04 is high given negative earnings growth and declining fundamentals
Insider activity shows net selling of $1.4M in last 6 months, indicating lack of confidence
Technical trend score of 10/100 suggests strong bearish momentum near-term
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare MCHP against industry averages and similar companies
Insider Trading & Analyst Ratings
Track insider transactions and Wall Street analyst recommendations
Past News Coverage
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