Fact based stock research
Microchip Technology (NasdaqGS:MCHP)

US5950171042

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Microchip Technology stock research in summary

microchip.com

ANALYSIS: With an Obermatt Combined Rank of 34 (worse than 66% compared with investment alternatives), Microchip Technology (Semiconductors, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Microchip Technology are a good value (attractively priced) with a consolidated Value Rank of 53 (better than 53% of alternatives), show above-average growth (Growth Rank of 73) but are riskily financed (Safety Rank of 14), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 34, is a hold recommendation based on Microchip Technology's financial characteristics. As the company Microchip Technology's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 53) and above-average growth (Obermatt Growth Rank of 73), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 14) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	53
Growth Rank	73
Safety Rank	14
Combined Rank	34

Country	USA
Industry	Semiconductors
Index	Artificial Intelligence, Low Emissions, Dividends USA, Electromobility, Human Rights, NASDAQ 100, NASDAQ, S&P 500
Size class	Large

This stock has achievements: Top 10 Stock.

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Microchip Technology

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	79	65	49	53
GROWTH
GROWTH	15	45	5	73
SAFETY
SAFETY	1	14	22	14
SENTIMENT
SENTIMENT	84	71	15	^new
360° VIEW
360° VIEW	35	55	1	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 31-Mar-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better Microchip Technology is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	79	65	49	53
GROWTH
GROWTH	15	45	5	73
SAFETY
SAFETY	1	14	22	14
COMBINED
COMBINED	6	24	4	34

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of Microchip Technology the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 53 (better than 53% compared with alternatives), Microchip Technology shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Microchip Technology. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 96% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 24 which means that the stock price compared with what market professionals expect for future profits is higher than 76% of comparable companies, indicating a low value concerning Microchip Technology's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 27 which means that the stock price compared with what market professionals expect for future profit levels is higher than 73% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 34 is also low. Compared with invested capital, the stock price is higher than for 66% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 53, is a buy recommendation based on Microchip Technology's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Microchip Technology? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Microchip Technology only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	37	29	24	24
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	63	67	21	27
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	47	13	30	34
DIVIDEND YIELD
DIVIDEND YIELD	89	95	98	96
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	79	65	49	53

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Microchip Technology; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 73 (better than 73% compared with alternatives), Microchip Technology shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Microchip Technology. Sales Growth has a rank of 82 which means that currently, professionals expect the company to grow more than 82% of its competitors. Capital Growth is also above 45% of competitors with a rank of 88. But Profit Growth only has a rank of 45, which means that currently professionals expect the company to grow its profits less than 55% of its competitors. And Stock Returns have also been below average with a rank of only 45. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 73, is a buy recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	28	12	12	82
PROFIT GROWTH
PROFIT GROWTH	46	54	14	45
CAPITAL GROWTH
CAPITAL GROWTH	23	57	20	88
STOCK RETURNS
STOCK RETURNS	51	69	31	45
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	15	45	5	73

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Microchip Technology.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 14 (better than 14% compared with alternatives), the company Microchip Technology has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Microchip Technology is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Microchip Technology. Liquidity is at 42, meaning that the company generates less profit to service its debt than 58% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 20, meaning the company has an above-average debt-to-equity ratio. It has more debt than 80% of its competitors. Finally, Refinancing is at a rank of 17 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 83% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 14 (worse than 86% compared with alternatives), Microchip Technology has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Microchip Technology because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	4	16	19	20
REFINANCING
REFINANCING	3	5	19	17
LIQUIDITY
LIQUIDITY	37	65	68	42
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	1	14	22	14

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Microchip Technology and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	60	59	^new
OPINIONS CHANGE
OPINIONS CHANGE	53	50	5	^new
PRO HOLDINGS
PRO HOLDINGS	94	97	9	^new
MARKET PULSE
MARKET PULSE	62	34	38	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	84	71	15	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Microchip Technology.
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