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Microchip Technology

MCHP on Nasdaq. Semiconductors & related devices. Market value $44.2bn.

Watch this stockFree. We tell you when something changes.

Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to March 2026.

Should I look at this?

Good business, but not cheap right now

Why it could be worth it

What to watch out for

See cheaper Technology stocks on the list

This is not advice. Check the numbers below.

Compare with another stock

Cash yield
past 12 months to June 2026
2.5%low

For every $100 of what the whole company costs, it produced $2.52 of spare cash in the past 12 months. A savings account pays about $4.

Price to profit
past 12 months to June 2026
61.9×full

You pay 61.9 years of operating profit for the business. The average large US company costs around 18.

Return on capital
five annual reports to March 2026
11.0%five-year median

Each dollar kept in the business earns 11 cents a year. Above 10 is good.

Quality score: 74 of 100. Price score: 20 of 100. Our list needs 70 on quality and 60 on price.

$81.26 a share, 67% above its 1-year low

Over the past year the price has ranged from $48.52 to $105.91.

Dividend: 2.2% a year

Paid every year for at least 5 years

Prices from Tuesday’s close (6 October).

Five years of cash, in billions

2.5
3.1
2.6
0.8
0.9
1.1
2022202320242025202612 monthsto Jun '26
Revenue
$6.8bn$8.4bn$7.6bn$4.4bn$4.7bn
Operating margin
27.1%36.9%33.7%6.7%10.4%
Debt to equity
1.300.990.900.800.85
Shares outstanding
0.55bn0.54bn0.54bn0.54bn0.54bn

Health checks

  • Free cash flow positive5 of 5 years
  • Accounting looks honest (Beneish)Nothing unusual
  • Financial strength (Piotroski)7 of 9
  • Profit backed by cash (accruals)Yes
  • Debt0.85× equity
  • Revenue growth, five yearsShrinking, 2.8% a year
  • Buying back its own sharesRoughly flat

The quarter to June 2026

How the business did, compared with the same quarter a year earlier.

  • Sales: $1.5 billion last quarter, up 38% on a year ago.
  • Profit: $230 million, after a loss of $19 million a year ago.
  • It keeps 16 cents of each $1 of sales as operating profit, up from 3 cents a year earlier.
  • Spare cash over the past 12 months: $1.1 billion, up from $726 million.
  • 2% more shares than a year ago. Each share owns a bit less of the company.
  • Debt is $5.1 billion more than cash, up from $4.9 billion a year ago.
  • Sales grew on a year ago in 3 of the last 4 quarters.
Sales by quarter
Sales by quarter
Quarter toAmount
September 2024$1.2bn
December 2024$1.0bn
March 2025$971m
June 2025$1.1bn
September 2025$1.1bn
December 2025$1.2bn
March 2026$1.3bn
June 2026$1.5bn
Profit by quarter
Profit by quarter
Quarter toAmount
September 2024$78m
December 2024-$54m
March 2025-$155m
June 2025-$19m
September 2025$42m
December 2025$63m
March 2026$144m
June 2026$230m

From the company's quarterly reports to the SEC.

Dates

Next results (estimated)
5 November 2026
Last annual report (10-K)
21 May 2026
Next quarterly (estimated, 10-Q)
5 November 2026

Who owns it

10 long-term investors we follow own it, up from 9 last quarter. 1,283 funds in all.

Jun '25
Dec '25
Jun '26

Sold out this quarter

Largest holders overall

From 13F filings for the quarter ended 30 June 2026.

Big holders and activists

4 investors own more than 5%.

From Schedule 13D and 13G filings: anyone owning more than 5% must file one.

What insiders did

No insider bought shares on the open market in the last 12 months. 6 sold $71m, $66m of it under preset trading plans.

  • Bjornholt James Eric
    SENIOR CORPORATE VP AND CFO
    Sold
    under a preset trading plan
    Date
    25 August 2026
    Shares
    4,112
    Price
    $75.32
    Value
    $309,716
  • Simoncic Richard J
    CHIEF OPERATING OFFICER
    Sold
    Date
    4 June 2026
    Shares
    5,000
    Price
    $97.52
    Value
    $487,600
  • CHAPMAN MATTHEW W
    Director
    Sold
    Date
    28 May 2026
    Shares
    3,000
    Price
    $97.52
    Value
    $292,560
  • Bjornholt James Eric
    SENIOR VP AND CFO
    Sold
    under a preset trading plan
    Date
    22 May 2026
    Shares
    3,667
    Price
    $90.86
    Value
    $333,202
  • Simoncic Richard J
    CHIEF OPERATING OFFICER
    Sold
    Date
    22 May 2026
    Shares
    5,000
    Price
    $93.44
    Value
    $467,200
  • CHAPMAN MATTHEW W
    Director
    Sold
    Date
    15 May 2026
    Shares
    10,000
    Price
    $95.48
    Value
    $954,800
  • Simoncic Richard J
    CHIEF OPERATING OFFICER
    Sold
    Date
    15 May 2026
    Shares
    83
    Price
    $93.85
    Value
    $7,790
  • Bunker Mathew B
    SENIOR VP, OPERATIONS
    Sold
    Date
    13 May 2026
    Shares
    10,571
    Price
    $96.88
    Value
    $1m
  • Simoncic Richard J
    CHIEF OPERATING OFFICER
    Sold
    Date
    13 May 2026
    Shares
    10,000
    Price
    $97.55
    Value
    $975,500
  • Sanghi Steve
    President, CEO and Chair of Bd, Director
    Sold
    under a preset trading plan
    Date
    1 May 2026
    Shares
    76,469
    Price
    $93.58
    Value
    $7m

From Form 4 filings: insiders must report trades in their own company's shares within two days.

Warning signs in its filings

Problems the company itself reported to the SEC, in its own words.

None of the warning signs we check for were found.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 21 May 2026, plus the 10-Q filed 6 Aug 2026 and 4 later 8-Ks.

A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.

What could go wrong

  • Sales have shrunk: 2.8% a year.
  • It isn't cheap on profits: 61.9× operating profit.

Whether the price already reflects the risks is what the deep dive is for.

The deep dive

Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.

  • What the business is worth, as a range, and the margin of safety at today’s price
  • Prices to start buying, buy, and buy hard
  • The three things that would make this a mistake
  • Every number footnoted to the filing it came from
Create a free account to run it

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What a finished deep dive looks like

Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.