Microchip Technology, Inc.
MCHP
Market Cap$35.45B
Close$
Earnings Call Q4 2025
May 8, 2025 - AI Summary
Financial Performance and Guidance: Microchip reported Q4 net sales of $970.5 million, down 5.4% sequentially and 26.8% year-over-year. For Q1 FY2026, they forecast net sales guidance of $1.045 billion, indicating a potential recovery as inventory destocking occurs across customers and distributors.
Inventory Reduction Strategy: The company aims to reduce inventory from 251 days in Q4 FY2025 to between 215-225 days by Q1 FY2026, and has a goal to decrease total inventory by over $350 million during FY2026. Successful execution of this strategy is critical to improving cash flow and profitability.
Operational Efficiency Measures: Microchip has completed restructuring efforts, including closing Tempe Fab 2 and reducing the workforce by 10%. The company expects to save approximately $90-100 million in operating expenses as a result, which will enhance margins in the coming quarters.
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$26.20
60.1% downside
Current Fair Value
60.1% downsideOvervalued by 60.1% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $35.45 Billion |
|---|---|
| Enterprise Value | $42.22 Billion |
| Dividend Yield | $1.819 (2.76738171306861%) |
| Earnings per Share | $-0.01 |
| Beta | 1.46 |
| Outstanding Shares | 537,400,000 |
Return
| Return on Equity | - |
|---|---|
| Return on Assets | - |
| Return on Invested Capital | - |
Valuation & Multiples
| P/E Ratio | -13082.7 |
|---|---|
| PEG | 6497.25 |
| Price to Sales | 8.22 |
| Price to Book Ratio | 5.98 |
| Enterprise Value to Revenue | 9.59 |
| Enterprise Value to EBIT | 428.16 |
| Enterprise Value to Net Income | -15636 |
| Total Debt to Enterprise | 0.17 |
| Debt to Equity | 1.22 |
Revenue Sources
No data
Insider Trades
ESG Score
No data
About Microchip Technology, Inc.
CEO: Steve Sanghi