Microchip Technology Incorporated Stock Price and Value Analysis

Should you buy Microchip Technology Incorporated stock? (NasdaqGS:MCHP). Let's see how it does in our automated value investing analysis system.

MCHP Free Cash Flow Trend

Free Cash Flow trendline for MCHP
Free Cash Flow trendline for Microchip Technology Incorporated

Based on historical returns, we believe that Microchip Technology Incorporated can grow its free cash at a rate of about 1%. That's positive!

AdvantagesDisadvantages
  • This company is very stable.
  • This company has wild ups and downs.
  • This company has a low dividend yield.
  • This company is making money at a modest rate.
  • This stock looks overpriced.

Inside the MCHP Numbers

MCHP Price
(Microchip Technology Incorporated stock price per share)
$145.44
[?] MCHP Fair Price
(based on intrinsic value)
$39.85
[?] MCHP Safety Price (based on a variable margin of safety) $31.88
[?] PE Ratio versus Sector 602% higher than other Technology stocks
[?] PE Ratio versus Industry 0% lower than other Semiconductors stocks
[?] Cash Yield 2.17%
[?] Free Cash Flow Jitter 41%
[?] Dividend Yield 1%
Shares Shorted 6,688,196

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 6,688,196 shares shorted. With 263,709,830 shares available for purchase and an average trading volume over the past 10 trading days of 2,482,985, it would take at least 2.694 days for all of the short holders to cover their shorts.

Is Microchip Technology Incorporated Stock on Sale?

We believe that Microchip Technology Incorporated may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Microchip Technology Incorporated looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy MCHP Stock?

Does Microchip Technology Incorporated have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.