MCHPMICROCHIP TECHNOLOGY INC

Semiconductors & Related Devices

Revenue: $4.7B; 7.1% YoY
Operating margin: 10.4%; 54% YoY
EBITDA: $1.2B; 13% YoY
Market cap: $42.0B
Employees: 17,900; $263K revenue each
Net debt / EBITDA: 4.3×; $5.1B net debt
AI in 10-K: 10.5; mentions per 10K words

Takeover score 4 of 13

Fixable underperformance 3 of 7

TSR below peersYes
4 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
418% of net income
Cash flow under 80% of net income
Dilutive SBCNo
5% of revenue
Over 10% of revenue
Payouts exceed cash flowYes
102% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyYes
46% of assets
Over 40% of assets
Shareholder dissentNo
83% lowest support
Any vote under 80% support

Buyer economics 0 of 4

Low revenue per employeeNo
$263K · 27th pct
Bottom quartile of its SIC industry
Quiet on AINo
10.5 per 10K words · 93rd pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
4.3× EBITDA net debt
More cash than debt, positive EBITDA
Buyout-sizedNo
$42.0B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$71M net
Net sales over $10M in 12 months

Financials

Metric	FY2022	FY2023	FY2024	FY2025	FY2026	YoY	Trend
Revenue	$6.8B	$8.4B	$7.6B	$4.4B	$4.7B	7.1%
Operating income	$1.8B	$3.1B	$2.6B	$296M	$490M	65%
Net income	$1.3B	$2.2B	$1.9B	−$500K	$230M	46100%
Operating cash flow	$2.8B	$3.6B	$2.9B	$898M	$962M	7.1%
Capex	$370M	$486M	$285M	$126M	$91M	28%
Stock-based comp	$210M	$170M	$178M	$180M	$255M	42%
Buybacks	$426M	$946M	$982M	$97M	$0	100%
Dividends	—	—	$912M	$976M	$984M	0.9%

Deal filings

None.

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $71M · 22
Net: −$71M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2026	—	—	92	257
FY2025	—	—	67	143
FY2024	—	—	122	163
FY2023	—	—	111	106
FY2022	—	—	98	111