How to buy Microchip Technology (MCHP) stocks

Microchip Technology is a semiconductors business based in the US. Microchip Technology shares (MCHP) are listed on the NASDAQ and all prices are listed in US Dollars.

Its last market close was $55.51 – a decrease of 7.38% over the previous week. Microchip Technology employs 22,300 staff and has a trailing 12-month revenue of around $5.5 billion.

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Microchip Technology stock price (NASDAQ: MCHP)

Use our graph to track the performance of MCHP stocks over time.

Microchip Technology stocks at a glance

• Key figures

Information last updated 2024-12-19.

Latest market close	$55.51
52-week range	$55.90 - $99.33
50-day moving average more info button	$69.95
200-day moving average more info button	$82.66
Wall St. target price	$84.48
PE ratio more info button	38.9861
Dividend yield more info button	$1.795 (3.24%)
Earnings per share (TTM) more info button	$1.44

Is it a good time to buy Microchip Technology stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

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Microchip Technology price performance over time

Historical closes compared with the close of $55.99 from 2024-12-19

1 week (2024-12-13)	-6.57%
1 month (2024-11-21)	-15.82%
3 months (2024-09-20)	-27.30%
6 months (2024-06-21)	-38.86%

1 year (2023-12-21)	-37.71%
2 years (2022-12-21)	-19.97%
3 years (2021-12-21)	80.502
5 years (2019-12-20)	16.29%

Is Microchip Technology stock undervalued or overvalued?

Valuing Microchip Technology stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Microchip Technology's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Microchip Technology's P/E ratio

Microchip Technology's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 39x. In other words, Microchip Technology shares trade at around 39x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the stock or simply that they're over-valued.

Microchip Technology's PEG ratio

Microchip Technology's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 6.937. A low ratio can be interpreted as meaning the stocks offer better value, while a higher ratio can be interpreted as meaning the stocks offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Microchip Technology's future profitability. By accounting for growth, it could also help you if you're comparing the stock prices of multiple high-growth companies.

Microchip Technology's EBITDA

Microchip Technology's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $2 billion.

The EBITDA is a measure of a Microchip Technology's overall financial performance and is widely used to measure a its profitability.

Microchip Technology financials

Revenue TTM	$5.5 billion
Operating margin TTM	12.73%
Gross profit TTM	$4.4 billion
Return on assets TTM	4.41%
Return on equity TTM	11.8%
Profit margin	14.22%
Book value	$11.69
Market Capitalization more info button	$30.1 billion

TTM: trailing 12 months

Microchip Technology stock dividends

Dividend payout ratio: 68.6% of net profits

Recently Microchip Technology has paid out, on average, around 100% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Microchip Technology shareholders could enjoy a 0% return on their shares, in the form of dividend payments. In Microchip Technology's case, that would currently equate to about $1.795 per share.

Microchip Technology's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

Microchip Technology's most recent dividend payout was on 5 December 2024. The latest dividend was paid out to all shareholders who bought their stocks by 21 November 2024 (the "ex-dividend date").

Have Microchip Technology's stocks ever split?

Microchip Technology's stocks were split on a 2:1 basis on 12 October 2021 . So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Microchip Technology stocks – just the quantity. However, indirectly, the new 50% lower stock price could have impacted the market appetite for Microchip Technology stocks, which in turn could have impacted Microchip Technology's stock price.

Microchip Technology stock price volatility

Over the last 12 months, Microchip Technology's stocks have ranged in value from as little as $55.9 up to $99.3294. A popular way to gauge a stock's volatility is its "beta."

Beta is a measure of a stocks volatility in relation to the market. The market (NASDAQ average) beta is 1, while Microchip Technology's is 1.526. This would suggest that Microchip Technology's stocks are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

Microchip Technology overview

Microchip Technology Incorporated engages in the development, manufacture, and sale of smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. The company offers general purpose 8-bit, 16-bit, and 32-bit mixed-signal microcontrollers; 32-bit embedded mixed-signal microprocessors; and specialized microcontrollers for automotive, industrial, computing, communications, lighting, power supplies, motor control, human machine interface, security, wired connectivity, and wireless connectivity applications. It also provides analog, interface, mixed signal, and timing products comprising power management, linear, mixed-signal, high-voltage, thermal management, discrete diodes, and metal oxide semiconductor field effect transistors (MOSFETS), radio frequency (RF), drivers, safety, security, timing, USB, Ethernet, wireless, and other interface products; field-programmable gate array (FPGA) products; and application development tools that enable system designers to program microcontroller, FPGA, and microprocessor products for specific applications. In addition, the company offers serial electrically erasable programmable read-only memory, serial flash memories, parallel flash memories, serial static random access memories, and serial electrically erasable random access memories for the production of very small footprint devices; and licenses its SuperFlash embedded flash and non-volatile memory technologies to foundries, integrated device manufacturers, and design partners for use in the manufacture of microcontroller products, gate array, RF, analog, and neuromorphic compute products that require embedded non-volatile memory, as well as provides engineering services. Further, it offers wafer foundry and assembly, and test subcontracting manufacturing services; and timing systems products, application specific integrated circuits, and aerospace products. The company was incorporated in 1989 and is headquartered in Chandler, Arizona..

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Frequently asked questions

What percentage of Microchip Technology is owned by insiders or institutions?
Currently 2.106% of Microchip Technology stocks are held by insiders and 97.769% by institutions. How many people work for Microchip Technology?
Latest data suggests 22,300 work at Microchip Technology. When does the fiscal year end for Microchip Technology?
Microchip Technology's fiscal year ends in March. Where is Microchip Technology based?
Microchip Technology's address is: 2355 West Chandler Boulevard, Chandler, AZ, United States, 85224-6199 What is Microchip Technology's ISIN number?
Microchip Technology's international securities identification number is: US5950171042 What is Microchip Technology's CUSIP number?
Microchip Technology's Committee on Uniform Securities Identification Procedures number is: 595017104

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