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The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Good Sign:
Beneish M-Score -2.51 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Microchip Technology's Beneish M-Score or its related term are showing as below:
MEX:MCHP'
s Beneish M-Score Range Over the Past 10 Years
Min: -3.09 Med: -2.72 Max: -2.01
Current: -2.51
During the past 13 years, the highest Beneish M-Score of Microchip Technology was -2.01. The lowest was -3.09. And the median was -2.72.
Microchip Technology Beneish M-Score Related Terms
Microchip Technology Beneish M-Score Historical Data
* Premium members only.
The historical data trend for Microchip Technology's Beneish M-Score 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.
MEX:MCHP vs CBRS, CRDO, ALAB: Beneish M-Score Comparison
For the Semiconductors subindustry, Microchip Technology's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Microchip Technology's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Microchip Technology's Beneish M-Score falls into.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of Microchip Technology for today is based on a combination of the following eight different indices:
M
=
-4.84
+
0.92 * DSRI
+
0.528 * GMI
+
0.404 * AQI
+
0.892 * SGI
+
0.115 * DEPI
=
-4.84
+
0.92 * 1.077
+
0.528 * 0.9056
+
0.404 * 1.0176
+
0.892 * 1.0877
+
0.115 * 1.0305
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.9232
+
4.679 * -0.047636
-
0.327 * 1.0408
=
-2.59
* 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.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
DEPI
=
(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))
/
(Depreciation_t / (Depreciaton_t + PPE_t))
=
(14637.104 / (14637.104 + 21727.014))
/
(12127.96 / (12127.96 + 18921.696))
=
0.402515
/
0.390599
=
1.0305
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
TATA
=
(IncomefromContinuingOperations_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(NetIncome_t - NonOperatingIncome_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(8504.005 - -843.512
-
21322.837)
/
251394.723
=
-0.047636
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Microchip Technology has a M-score of -2.59 suggests that the company is unlikely to be a manipulator.
Microchip Technology (MEX:MCHP) has a Beneish M-Score of -2.51 as of Aug. 08, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Microchip Technology and its competitors. According to the industry distribution chart, Microchip Technology ranks #453 out of 984 companies in the Semiconductors industry, placing it in the top 46%.
Is Microchip Technology's Beneish M-Score too high?
Microchip Technology's current Beneish M-Score is -2.51. Based on the distribution chart, Microchip Technology ranks #453 out of 984 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Microchip Technology has a GF Score™ of 71/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Microchip Technology's Beneish M-Score compare to CBRS and CRDO?
According to the Semiconductors industry distribution chart, Microchip Technology ranks #453 out of 984 companies for Beneish M-Score. This puts Microchip Technology in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Semiconductors company?
A good Beneish M-Score depends on the Semiconductors industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Microchip Technology and its competitors. Microchip Technology's current Beneish M-Score is -2.51. 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 (MEX:MCHP) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN969.38, compared to a current price of MXN1,290.42 — trading 33.1% above its estimated fair value. The current Beneish M-Score is -2.51. 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 Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Microchip Technology (MEX:MCHP), the current Beneish M-Score is -2.51 as of Aug. 08, 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 (MEX:MCHP) Overvalued in 2026?
Based on GuruFocus' analysis, Microchip Technology stock appears to be overvalued.
The current stock price of MXN1,290.42 is trading 33.1% above its estimated GF Value™ of MXN969.38.
GuruFocus considers Microchip Technology to be Modestly Overvalued.
Key valuation signals for MEX:MCHP:
Beneish M-Score: -2.51
GF Value™: MXN969.38 vs. price of MXN1,290.42 (33.1% above fair value)
No single metric tells the full story. See the MEX:MCHP 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 MEX:MCHP
Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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