Forensic Analysis · Semiconductors · as of Aug 7, 2026

Microchip Technology Inc (MCHP)

A forensic read on Microchip Technology Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.

B · Sound & dependable

Forensic grade

Safe

Financial health

7.3

Distress distance

Clean

Earnings quality

Forensic signals

198.6

P / E (ttm)

3.6%

ROE

$44.7B

Market cap

2.45%

Dividend yield

7.1%

Revenue growth

This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.

Microchip Technology Inc earns a B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 7.2, placing it in the Safe zone. 2 forensic signals were flagged in its latest SEC filings, led by return on invested capital.

What the filings flag

3.2%

FY2026

Return on invested capital. Return on invested capital is 3.2% in the latest fiscal year and slipping from 17% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.

113% of FCF

FY2026

Shareholder returns. Returned $984M to shareholders (buybacks + dividends) in FY2026 — 113% of free cash flow. More than free cash flow generated — and beyond operating cash too, so the extra is coming from debt or cash reserves, which isn't sustainable indefinitely. Counting the $255M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 142%.

Key fundamentals

Latest Revenue$4.71B

Revenue Growth YoY+7.1%

Net Margin4.9%

Free Cash Flow$871.0M

Return on Equity3.6%

Debt / Equity0.85x

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Data from SEC EDGAR public filings · metrics as of Aug 7, 2026. Forensic signals flag probability, not certainty.