NASDAQ: MCHP
Microchip Technology Incorporated
Technology · Semiconductors
Market Cap
$54.08B
52w High
$105.91
52w Low
$48.52
P/E
270.35
Volume
15.30M
Outstanding Shares
542.08M
Price vs Fundamentals
Why The Stock Is Moving
What changed
The stock rose 46.68% over the last year. Revenue grew 7.08% over the trailing twelve months. Operating margin moved from 6.73% to 10.4%. Free cash flow grew 12.81% over the trailing twelve months.
What the market seems to be pricing
The stock is trading toward the richer end of its historical P/FCF range (100th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.
What would invalidate this read
Operating margin is at 10.4% — continued expansion would be needed to justify the premium. Revenue growth of 7.08% is encouraging, but any deceleration puts the stretched multiple at risk. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.
Company profile
Microchip Technology Incorporated creates, produces, and sells intelligent, interconnected, and secure embedded control solutions to customers throughout the Americas, Europe, and Asia.
Valuation
Stock splits
Every 1 shares became 2
Every 2 shares became 3
Every 2 shares became 3
Every 2 shares became 3
Every 2 shares became 3
Every 2 shares became 3
Every 2 shares became 3
Every 1 shares became 2
Profitability & growth
Analyst consensus
32
Buy
14
Hold
0
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Aug 6, 2026
Q3 FY26 · EPS est $0.66 · Revenue est $1.46B
View
Dividends
$1.82/shareQuarterlyDividend Achiever · 14yrStretchedMCHP pays a dividend with a 1.82% dividend yield, 14 consecutive years of growth, growing at 19.86% annually, covered 0.8× by free cash flow.
Dividend Yield
1.82%
Annual Div / Share
$1.82
5yr CAGR
+19.86%
Doubles every ~3.8yr
Payout Ratio
—
Stretched
Dividend Growth Rate
3yr CAGR
+16.27%
5yr CAGR
+19.86%
10yr CAGR
+9.78%
Dividend History
Annual dividends paid per share
Income Projection
Today
$2/mo
In 5 yrs
$3/mo
In 10 yrs
$5/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$18/yr $2/mo | $32/yr+76% $3/mo | $57/yr+211% $5/mo |
Long-range projections use a capped 12% annual growth assumption.
Yield-on-cost grows from 1.82% → 5.67% over 10yr
Analysis
Dividend Strengths
Dividend Achiever
MCHP has raised its dividend for 14 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.
Strong dividend growth rate
The 5-year CAGR of 19.86% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
Dividend exceeds free cash flow
Free cash flow covers only 0.80× the dividend. The company is paying out more than it generates in cash, which is unsustainable without borrowing or asset sales.