Microchip Technology Inc
MCHP—
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Microchip Technology Inc AI Insights
Informational only. Not investment advice.Snapshot
- Goodwill of 6.7B equals 100% of equity - tangible book value is NEGATIVE (-2.2B), creating material impairment risk if semiconductor cycle worsens[Goodwill]
- FCF of 754M TTM despite -185M net loss - cash generation masks accounting losses, but 5.4B debt at 0.81 D/E strains balance sheet[Free Cash Flow TTM]
- EPS collapsed -73% 1Y and -66% 3Y while revenue only -2% 1Y - severe operating deleverage as fixed costs crush margins[EPS Growth 1Y]
Watch Triggers
- Gross Margin TTM: Falls below 50% — Would signal pricing power erosion, not just volume decline - thesis invalidating
- Inventory: Rises above 1.2B or DSI exceeds 120 days — Current 1.1B inventory already elevated - further buildup signals demand worse than expected
- Interest Expense TTM: Exceeds 300M or EBITDA coverage falls below 2.5x — Current 3.1x coverage adequate but thin - refinancing risk if rates stay high
Bull Case
Gross margin of 54% (vs 42% industry median) proves pricing power intact - operating leverage works both ways, recovery could drive 20%+ op margins
Gross Margin TTMOperating Margin TTM
FCF of 754M at 18% margin with only 87M capex - capital-light model generates cash even in downturn, supporting 1.82 dividend
Free Cash Flow TTMCapital Expenditure TTMDividends Paid Per Share TTM
Bear Case
Goodwill 6.7B = 100% of equity with negative tangible book - any impairment directly hits equity, covenant risk if cycle extends
GoodwillTangible Book ValueTotal Debt
Revenue -18% 3Y CAGR with EPS -66% 3Y shows structural demand decline, not just cycle - market share loss to competitors possible
Total Revenue 3Y GrowthEPS Growth 3Y
Bull vs Bear Balance
AI-generated sentiment analysis based on fundamental metrics and market conditions.
35%
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Forward Thesis
Margin recovery to 15%+ operating margin likely as semiconductor inventory correction ends
1-3ymed
- Gross margin 54% intact vs 3.7% operating margin - cost structure fixable
- R&D at 1B (24% of revenue) positions for cycle upturn
- FCF positive enables debt paydown without dilution
Gross margin TTM 54% vs industry median 42%FCF 754M vs net loss 185M - cash positiveInterest expense 246M manageable vs 765M EBITDA
Valuation Context
Caveats
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MCHP Fundamentals
Manufacturing → Computer and Electronic Product Manufacturing
| Metric | Value | YoY Growth | Industry Percentile |
|---|---|---|---|
$35.78B | — | ||
$40.94B | — | ||
0.00 | — | ||
$4.37B | -8.1% | — | |
$-0.30 | — | ||
6.34% | -7.1% | — | |
-1.57% | -8.1% | — | |
$819.9M | -15.5% | — | |
-1.09% | -5.8% | — | |
Beta 5Y (Monthly) | unknown | — |
MCHP Dividend History
94 dividends
2026
$0.455002/23/26$0.4550
2025
$1.820011/24/25$0.4550
08/22/25$0.4550
05/22/25$0.4550
02/24/25$0.4550
2024
$1.811011/22/24$0.4550
08/22/24$0.4540
05/21/24$0.4520
02/22/24$0.4500
2023
$1.590011/21/23$0.4390
08/21/23$0.4100
05/19/23$0.3830
02/17/23$0.3580
2022
$1.158011/21/22$0.3280
08/18/22$0.3010
05/19/22$0.2760
02/18/22$0.2530
2021
$0.852011/18/21$0.2320
08/19/21$0.2185
05/20/21$0.2065
02/19/21$0.1950
2020
$0.735511/19/20$0.1842
08/20/20$0.1840
05/20/20$0.1837
02/20/20$0.1835
2019
$0.731511/20/19$0.1832
08/20/19$0.1830
05/20/19$0.1827
02/20/19$0.1825
2018
$0.727511/20/18$0.1822
08/20/18$0.1820
05/18/18$0.1817
02/20/18$0.1815
2017
$0.723511/20/17$0.1812
08/17/17$0.1810
05/19/17$0.1807
02/16/17$0.1805
2016
$0.719811/17/16$0.1805
08/18/16$0.1800
05/19/16$0.1797
02/18/16$0.1795
2015
$0.715511/18/15$0.1792
09/09/15$0.1790
05/19/15$0.1787
02/19/15$0.1785
2014
$0.711511/19/14$0.1782
08/19/14$0.1780
05/19/14$0.1777
02/19/14$0.1775
2013
$0.707511/19/13$0.1772
08/19/13$0.1770
05/17/13$0.1767
02/19/13$0.1765
2012
$0.701011/19/12$0.1760
08/20/12$0.1755
05/15/12$0.1750
02/16/12$0.1745
2011
$0.520511/17/11$0.1740
08/16/11$0.1735
05/17/11$0.1730
2010
$0.857512/09/10$0.1725
11/16/10$0.1720
08/17/10$0.1715
05/17/10$0.1710
02/16/10$0.1705
2009
$0.678511/16/09$0.1700
08/18/09$0.1695
05/19/09$0.1695
02/11/09$0.1695
2008
$0.663511/12/08$0.1695
08/05/08$0.1690
05/08/08$0.1650
02/05/08$0.1600
2007
$0.575011/02/07$0.1550
08/07/07$0.1475
05/08/07$0.1400
02/12/07$0.1325
2006
$0.445011/06/06$0.1250
08/01/06$0.1175
05/05/06$0.1075
01/31/06$0.0950
2005
$0.225011/01/05$0.0800
08/10/05$0.0625
05/11/05$0.0475
02/09/05$0.0350
2004
$0.086511/10/04$0.0260
08/06/04$0.0230
05/11/04$0.0200
02/10/04$0.0175
2003
$0.049011/06/03$0.0150
08/06/03$0.0120
05/06/03$0.0120
02/05/03$0.0100
2002
$0.010011/05/02$0.0100
MCHP Stock Splits
4 stock splits
10/13/211:2 split
05/09/020.666667:1 split
09/27/000.666667:1 split
02/08/000.666667:1 split
MCHP SEC Filings
| Filing Date | Report Date | Report Type | Filing Link |
|---|---|---|---|
02/05/26 | 12/31/25 | 10-Q | |
11/06/25 | 09/30/25 | 10-Q | |
08/07/25 | 06/30/25 | 10-Q | |
05/23/25 | 03/31/25 | 10-K | |
02/06/25 | 12/31/24 | 10-Q | |
11/05/24 | 09/30/24 | 10-Q | |
08/01/24 | 06/30/24 | 10-Q | |
05/23/24 | 03/31/24 | 10-K | |
02/01/24 | 12/31/23 | 10-Q | |
11/02/23 | 09/30/23 | 10-Q | |
08/03/23 | 06/30/23 | 10-Q | |
05/25/23 | 03/31/23 | 10-K | |
02/02/23 | 12/31/22 | 10-Q | |
11/03/22 | 09/30/22 | 10-Q | |
08/02/22 | 06/30/22 | 10-Q | |
05/20/22 | 03/31/22 | 10-K | |
02/03/22 | 12/31/21 | 10-Q | |
11/04/21 | 09/30/21 | 10-Q | |
08/03/21 | 06/30/21 | 10-Q | |
05/18/21 | 03/31/21 | 10-K | |
02/04/21 | 12/31/20 | 10-Q | |
11/05/20 | 09/30/20 | 10-Q | |
08/04/20 | 06/30/20 | 10-Q | |
05/22/20 | 03/31/20 | 10-K | |
02/04/20 | 12/31/19 | 10-Q | |
11/06/19 | 09/30/19 | 10-Q | |
08/07/19 | 06/30/19 | 10-Q | |
05/30/19 | 03/31/19 | 10-K | |
02/06/19 | 12/31/18 | 10-Q | |
11/07/18 | 09/30/18 | 10-Q | |
08/09/18 | 06/30/18 | 10-Q | |
05/18/18 | 03/31/18 | 10-K | |
02/07/18 | 12/31/17 | 10-Q | |
11/07/17 | 09/30/17 | 10-Q | |
08/04/17 | 06/30/17 | 10-Q | |
05/30/17 | 03/31/17 | 10-K | |
02/08/17 | 12/31/16 | 10-Q | |
11/08/16 | 09/30/16 | 10-Q | |
08/09/16 | 06/30/16 | 10-Q | |
05/24/16 | 03/31/16 | 10-K | |
02/05/16 | 12/31/15 | 10-Q | |
11/09/15 | 09/30/15 | 10-Q | |
08/06/15 | 06/30/15 | 10-Q | |
05/27/15 | 03/31/15 | 10-K | |
02/03/15 | 12/31/14 | 10-Q | |
11/10/14 | 09/30/14 | 10-Q | |
08/11/14 | 06/30/14 | 10-Q | |
05/30/14 | 03/31/14 | 10-K | |
02/07/14 | 12/31/13 | 10-Q | |
11/08/13 | 09/30/13 | 10-Q | |
08/09/13 | 06/30/13 | 10-Q | |
05/30/13 | 03/31/13 | 10-K | |
02/11/13 | 12/31/12 | 10-Q | |
11/09/12 | 09/30/12 | 10-Q | |
08/09/12 | 06/30/12 | 10-Q | |
05/30/12 | 03/31/12 | 10-K | |
02/06/12 | 12/31/11 | 10-Q | |
11/07/11 | 09/30/11 | 10-Q | |
08/09/11 | 06/30/11 | 10-Q | |
05/31/11 | 03/31/11 | 10-K | |
02/06/12 | 12/31/10 | 10-Q | |
11/07/11 | 09/30/10 | 10-Q | |
08/09/10 | 06/30/10 | 10-Q | |
06/02/10 | 03/31/10 | 10-K | |
02/09/10 | 12/31/09 | 10-Q | |
02/08/11 | 12/31/09 | 10-Q | |
11/06/09 | 09/30/09 | 10-Q | |
11/08/10 | 09/30/09 | 10-Q | |
08/10/09 | 06/30/09 | 10-Q | |
05/29/09 | 03/30/09 | 10-K | |
02/09/09 | 12/31/08 | 10-Q | |
11/07/08 | 09/30/08 | 10-Q | |
08/07/08 | 06/30/08 | 8-K | |
05/28/08 | 03/30/08 | Unknown | -- |
02/07/08 | 12/31/07 | 8-K | |
11/07/07 | 09/30/07 | 8-K | |
08/07/07 | 06/30/07 | 8-K | |
05/25/07 | 03/30/07 | Unknown | -- |
02/06/07 | 12/31/06 | 10-Q | |
11/08/06 | 09/30/06 | 10-Q | |
08/08/06 | 06/30/06 | 8-K | |
05/31/06 | 03/30/06 | Unknown | -- |
02/09/06 | 12/31/05 | 10-Q | |
11/04/05 | 09/30/05 | 10-Q | |
08/09/05 | 06/30/05 | 10-Q | |
05/23/05 | 03/30/05 | Unknown | -- |
02/08/05 | 12/31/04 | 10-Q | |
11/03/04 | 09/30/04 | 10-Q | |
08/06/04 | 06/30/04 | 10-Q | |
06/03/04 | 03/30/04 | Unknown | -- |
02/09/04 | 12/31/03 | 10-Q | |
11/14/03 | 09/30/03 | 4 | |
08/12/03 | 06/30/03 | 10-Q | |
06/05/03 | 03/30/03 | Unknown | -- |
02/07/03 | 12/31/02 | 10-Q | |
11/12/02 | 09/30/02 | 10-Q | |
08/09/02 | 06/30/02 | 10-Q | |
06/03/02 | 03/30/02 | Unknown | -- |
02/12/02 | 12/31/01 | 10-Q | |
11/07/01 | 09/30/01 | 10-Q | |
08/10/01 | 06/30/01 | 10-Q | |
05/15/01 | 03/30/01 | Unknown | -- |
02/14/01 | 12/31/00 | 10-Q | |
11/14/00 | 09/30/00 | 10-Q | |
08/07/00 | 06/30/00 | 10-Q | |
06/07/00 | 03/30/00 | Unknown | -- |