Microchip TechnologyFRA:MCP -4.53%71 Interest Coverage is 4.49 as of Mar. 2026, which is 63% above its 10-year median of 2.75. GuruFocus rates FRA:MCP with a GF Score™ of 71/100 and a GF Value™ of €53.71 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 638 Semiconductors companies, Microchip Technology ranks worse than 85.58% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Microchip Technology's
Operating Income
for the
three
months ended in Mar. 2026 was €194 Mil. Microchip Technology's Interest Expense for the
three
months ended in Mar. 2026 was €-43 Mil.
Microchip Technology's interest coverage for the quarter that ended in Mar. 2026 was 4.49.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Microchip Technology's Interest Coverage or its related term are showing as below:
FRA:MCP'
s Interest Coverage Range Over the Past 10 Years
Min: 1.44 Med: 2.75 Max: 16.01
Current: 2.46
FRA:MCP's Interest Coverage is ranked worse than 85.58% of 638
companies
in the Semiconductors industry
Industry Median: 20.225
vs FRA:MCP: 2.46
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Microchip Technology Interest Coverage Related Terms
Microchip Technology Interest Coverage Historical Data
* Premium members only.
The historical data trend for Microchip Technology's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:MCP vs CBRS, ON, GFS: Interest Coverage Comparison
For the Semiconductors subindustry, Microchip Technology's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Microchip Technology Interest Coverage vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Microchip Technology's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Microchip Technology's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Microchip Technology (FRA:MCP) has a Interest Coverage of 4.49 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Microchip Technology and its competitors. This is 63% above median its historical median of 2.75. Over the past decade, Microchip Technology's Interest Coverage has ranged from 1.44 to 16.01. According to the industry distribution chart, Microchip Technology ranks #546 out of 638 companies in the Semiconductors industry, placing it in the top 85.6%.
Is Microchip Technology's Interest Coverage too high?
Microchip Technology's current Interest Coverage of 4.49 is 63% above median its 10-year median of 2.75. Over the past 10 years, this metric has ranged from a low of 1.44 to a high of 16.01. The Semiconductors industry median Interest Coverage is 20.23. Microchip Technology's value of 4.49 is 77.8% below this industry median. Based on the distribution chart, Microchip Technology ranks #546 out of 638 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Microchip Technology has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Microchip Technology's Interest Coverage compare to CBRS and ON?
According to the Semiconductors industry distribution chart, Microchip Technology ranks #546 out of 638 companies for Interest Coverage. This places Microchip Technology in the lower half of its industry. The industry median Interest Coverage is 20.23. Microchip Technology's value of 4.49 is 77.8% below this benchmark. Historically, Microchip Technology's own Interest Coverage has ranged from 1.44 to 16.01 over the past decade. While the company's 10-year median is 2.75 vs. the industry median of 20.23, Microchip Technology has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Semiconductors company?
The median Interest Coverage among Semiconductors companies is 20.23, based on 638 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microchip Technology's current Interest Coverage of 4.49 is 77.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Microchip Technology and its competitors. For the Semiconductors industry, the median Interest Coverage is 20.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microchip Technology's current Interest Coverage is 4.49, which is 63% above median its own 10-year median of 2.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Microchip Technology stock overvalued right now?
Based on GuruFocus' analysis, Microchip Technology (FRA:MCP) is currently considered Significantly Overvalued. The stock's GF Value™ is €53.71, compared to a current price of €80.72 — trading 50.3% above its estimated fair value. The current Interest Coverage is 4.49, which is 63% above median its 10-year median of 2.75 and 77.8% below the Semiconductors industry median of 20.23. Microchip Technology's overall GF Score™ is 71/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Microchip Technology (FRA:MCP), the current Interest Coverage is 4.49 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Microchip Technology (FRA:MCP) Overvalued in 2026?
Based on GuruFocus' analysis, Microchip Technology stock appears to be overvalued.
The current stock price of €80.72 is trading 50.3% above its estimated GF Value™ of €53.71.
GuruFocus considers Microchip Technology to be Significantly Overvalued.
Key valuation signals for FRA:MCP:
Interest Coverage: 4.49 (63% above median its 10-year median of 2.75)
GF Value™: €53.71 vs. price of €80.72 (50.3% above fair value)
Industry Position: 77.8% below the Semiconductors median (#546 of 638)
No single metric tells the full story. See the FRA:MCP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Microchip Technology became an independent company in 1989 when it was spun off from General Instrument. More than half of revenue comes from MCUs, which are used in a wide array of electronic devices from remote controls to garage door openers to power windows in autos. The company's strength lies in lower-end 8-bit MCUs that are suitable for a wider range of less technologically advanced devices, but the firm has expanded its presence in higher-end MCUs and analog chips as well.
71GF Score
Get the complete analysis for FRA:MCP
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