Does Microchip Technology Incorporated have an economic moat?

Based on its FY2026 SEC filings, the Moat Index scores Microchip Technology Incorporated (MCHP) 43.8 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 94, returns on capital 19, balance-sheet safety 1, capital discipline 49.

Is MCHP stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $42.20 per share versus a recent price of $80.96 — 92% above value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has MCHP's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 43.8 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

Microchip Technology Incorporated

MCHP · Technology · $43.9B mkt cap · FY2026 filings · Shallow moat ·

Doesn't clear the bar

Shallow moat

The four filters

Pricing power94

Median gross margin 61.1% over 10y, stable.

Returns on capital19

Median ROIC 6.2%, above the 9% hurdle in 40% of years.

Balance-sheet safety1

Net debt/EBITDA 4.5x, interest coverage 2x.

Capital discipline49

Owner earnings +3.2%/yr, share count n/a.

Margin of safety

Above valueOn sale

92% above value

Owner earnings (normalized): $2.1B
Est. intrinsic value / share: $42.20
Recent price: $80.96
Discount to value: 92% above value

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

20 years of fundamentals

The business, in plain English

Microchip Technology Incorporated booked $4.7B of revenue in FY2026 in the Technology sector and kept 57.7% of it as gross profit — a high-margin business by that measure. After every other cost, 4.9% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $1.0B (FY2008) to $4.7B (FY2026) — about 8.8% a year compounded over 18 years.

It earned 3.5% on invested capital in FY2026, with a median of 14.4% across 18 filed years. The Returns on Capital filter above scores it 19/100.

The balance sheet carried $5.5B of total debt in FY2026 against $828.2M of owner earnings — roughly 6.6 years of owner earnings to retire it all. Balance-Sheet Safety scores it 1/100.

The share count rose 192.5% between FY2010 and FY2026 — existing owners have been diluted over the record. Capital Discipline scores it 49/100.

Put together: Pricing Power is the strongest of the four filters (94/100) and Balance-Sheet Safety the weakest (1/100), which is how MCHP lands at 44/100 — a Shallow moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$4.7B FY2026

Gross marginRevenue kept after cost of goods57.7% FY2026

Return on invested capitalOperating profit on the capital employed3.5% FY2026

Owner earningsCash an owner could take out$828.2M FY2026

Gaps in a line mean that item isn’t in MCHP’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale43.8 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — MCHP has read Shallow moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Technology context

#259 of 532 scored Technology companies, ranked by Moat Score.

Nearest peers by Moat Score

#257BYRN Byrna Technologies Inc.44.0 out of 100, Shallow moatShallow moat
#258ZDGE ZEDGE, INC.44.0 out of 100, Shallow moatShallow moat
#260SSTI SoundThinking, Inc.43.8 out of 100, Shallow moatShallow moat
#261PENG PENGUIN SOLUTIONS, INC.43.8 out of 100, Shallow moatShallow moat

Compare MCHP with its nearest peers →All Technology companies on the Index →

Common questions about MCHP

Does Microchip Technology Incorporated have an economic moat?: Based on its FY2026 SEC filings, the Moat Index scores Microchip Technology Incorporated (MCHP) 43.8 out of 100 — a Shallow moat. The four filters behind that score (each 0–100): pricing power 94, returns on capital 19, balance-sheet safety 1, capital discipline 49.
Is MCHP stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $42.20 per share versus a recent price of $80.96 — 92% above value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has MCHP's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 43.8 out of 100 (shallow moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell MCHP. See the disclaimer.