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Microchip Technology Incorporated (MCHP) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Microchip Technology Incorporated

MCHPMarket cap $44BPrice $81.3

Country🇺🇸United States

SectorTechnology

IndustrySemiconductors

Makes microcontrollers and analog chips that power everything from car engines to smart home devices. Controls nearly 20% of the global microcontroller market, making them essential for the Internet of Things revolution.

In Bastion Portfolios?

52W Return+27%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)-18%1

Revenue Forecast

Rev CAGR (1y)+36%9

Rev CAGR (3y)+19%9

Rev CAGR (5y)+15%9

Earnings Forecast

EPS Growth Y+1+1642%10

EPS Growth Y+2+23%8

EPS Growth Y+3+12%7

Quality

Margins

EBIT Margin16%6

Net Income Margin9%5

Free Cash Flow Margin22%8

Debt

Net Debt/EBITDA3.33

Efficiency

ROE6%3

ROA3%5

Earnings Stability55

GEAR+AVERAGE43

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)204

P/E Ratio (Forward 3y)155

P/BV6.82

EV Multiples

EV/EBITDA Fwd183

EV/EBIT Fwd204

Yield

Free Cash Flow Yield2.5%4

Dividend Yield2.2%6

Momentum

Short term

1 month return+10%10

3 month return-3%5

YTD return+30%8

Mid term

Price vs 52wHigh78%5

1 year return+28%8

Long term

3 year return+10%3

5 year return+21%4

Risk Shield

Price Risk

Beta2.11

Volatility50%3

Free Cash Flow

Free Cash Flow Margin22%8

Free Cash Flow Yield2.5%4

Quality

ROCE6%4

Earnings Stability55

Net Debt/EBITDA3.33

02Growth

Is it actually growing, and how fast?

MCHPMicrochip Technology

Revenue FY26$4.7B

GROWTH RATING↗

STRONG82 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-18%1

Revenue, next 1Y+36%9

Revenue, next 3Y, CAGR+19%9

Revenue, next 5Y, CAGR+15%9

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+1642%10

EPS growth, FY28E+23%8

EPS growth, FY29E+12%7

GROWTH ASSESSMENT

STRENGTHS

It out-grows 82% of companies worldwide.

Revenue is set to grow 19%/yr over the next 3 years, ahead of most of the market.9/10

After shrinking over the last 3 years, revenue is set to grow 19%/yr from here.

The runway holds up: revenue is set to grow 15%/yr over five years.9/10

Earnings are set to grow in step with sales (EPS about 23%/yr vs revenue 19%/yr).

WATCH

None flagged.

WEAKNESSES

Revenue fell 18%/yr over the last 3 years, behind 90% of companies worldwide.1/10

BOTTOM LINE

Hyper Compounder

A top-tier grower that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE53 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+10%10

3-month return-3%5

YTD return+30%8

MID & LONG-TERM▾SCORE

% of 52-week high78%5

1-year return+28%8

3-year return+10%3

5-year return+21%4

MOMENTUM ASSESSMENT

STRENGTHS

It's up 28% over the past year, but 22% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+10%) and so far this year (+30%).

WATCH

Returns sit at the market level over three months (-3%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (+10% over three years and +21% over five), behind 60% of the market.

BOTTOM LINE

Early Turnaround

A poor multi-year track record but a sharp recent rally. Momentum is turning up, yet the trend is young and unproven — it needs follow-through to confirm rather than fade. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Microchip. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

MCHPMicrochip Technology

Revenue FY26$4.7B

GROWTH RATING↗

STRONG82 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-18%1

Revenue, next 1Y+36%9

Revenue, next 3Y, CAGR+19%9

Revenue, next 5Y, CAGR+15%9

EARNINGS FORECAST▾SCORE

EPS growth, FY27E+1642%10

EPS growth, FY28E+23%8

EPS growth, FY29E+12%7

GROWTH ASSESSMENT

STRENGTHS

It out-grows 82% of companies worldwide.

Revenue is set to grow 19%/yr over the next 3 years, ahead of most of the market.9/10

After shrinking over the last 3 years, revenue is set to grow 19%/yr from here.

The runway holds up: revenue is set to grow 15%/yr over five years.9/10

Earnings are set to grow in step with sales (EPS about 23%/yr vs revenue 19%/yr).

WATCH

None flagged.

WEAKNESSES

Revenue fell 18%/yr over the last 3 years, behind 90% of companies worldwide.1/10

BOTTOM LINE

Hyper Compounder

A top-tier grower that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

AVERAGE53 / 100

SHORT-TERM RETURNS▾SCORE

1-month return+10%10

3-month return-3%5

YTD return+30%8

MID & LONG-TERM▾SCORE

% of 52-week high78%5

1-year return+28%8

3-year return+10%3

5-year return+21%4

MOMENTUM ASSESSMENT

STRENGTHS

It's up 28% over the past year, but 22% below its 52-week high. That is clearly ahead of the market.

Strong recent results. The stock is outperforming over the past month (+10%) and so far this year (+30%).

WATCH

Returns sit at the market level over three months (-3%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (+10% over three years and +21% over five), behind 60% of the market.

BOTTOM LINE

Early Turnaround

04Value

Are you paying a fair price for it?

Stop guessing on Microchip. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community