October 10, 2025 a 01:01 pm
MCHP: Fundamental Ratio Analysis - Microchip Technology Incorporated
Microchip Technology Incorporated has established itself as a leading developer and manufacturer of embedded control solutions worldwide. Despite its strong market presence, the stock's overall performance has been moderate, with mixed ratings on key financial metrics. Investors should consider both the potential for growth in emerging tech sectors and inherent risks in semiconductor demand fluctuations.
Fundamentals Rating
Microchip Technology's fundamental evaluation reveals room for improvement, particularly in profitability and efficiency metrics. Despite this, certain aspects like its discounted cash flow score reflect areas of stability.
| Category | Score | Visual |
|---|---|---|
| Discounted Cash Flow | 3 | |
| Return on Equity | 1 | |
| Return on Assets | 1 | |
| Debt to Equity | 1 | |
| Price to Earnings | 1 | |
| Price to Book | 2 |
Historical Rating
The historical ratings indicate minimal changes, showing steady scores across most metrics, which may appeal to long-term investors focused on stable growth rather than rapid changes.
| Date | Overall | DCF | ROE | ROA | D/E | P/E | P/B |
|---|---|---|---|---|---|---|---|
| 2025-10-09 | 1 | 3 | 1 | 1 | 1 | 1 | 2 |
| Previous | 0 | 3 | 1 | 1 | 1 | 1 | 2 |
Analyst Price Targets
Analysts provide promising projections with a median price target suggesting significant upside potential. However, differences in high and low targets indicate differing opinions on market conditions.
| High | Low | Median | Consensus |
|---|---|---|---|
| 83 | 43 | 75 | 69.6 |
Analyst Sentiment
Overall, the market sentiment leans towards a positive outlook for MCHP, with a strong majority leaning towards buying recommendations.
| Recommendation | Count | Visual |
|---|---|---|
| Strong Buy | 2 | |
| Buy | 29 | |
| Hold | 13 | |
| Sell | 1 | |
| Strong Sell | 0 |
Conclusion
Microchip Technology Incorporated remains a compelling choice for technology investors focused on stable, long-term growth. Nonetheless, caution is advised due to potential market volatility and variations in analyst assessments. Opportunity lies in capitalizing on its strength in the embedded control and semiconductor domain while keenly observing industry shifts and demand changes. A mixed fundamental rating and varied analyst opinions necessitate a balanced approach.