Microchip TechnologySTU:MCP +1.89%75 Net Margin % is 11.00% as of Mar. 2026, which is 68% above its 10-year median of 6.54. GuruFocus rates STU:MCP with a GF Score™ of 75/100 and a GF Value™ of €51.32 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 1,023 Semiconductors companies, Microchip Technology ranks better than 52.39% on this metric.
The historical rank and industry rank for Microchip Technology's Net Margin % or its related term are showing as below:
STU:MCP'
s Net Margin % Range Over the Past 10 Years
Min: -0.01 Med: 6.54 Max: 26.52
Current: 4.88
STU:MCP's Net Margin % is ranked better than 52.39% of 1023
companies
in the Semiconductors industry
Industry Median: 4.17
vs STU:MCP: 4.88
Microchip Technology (STU:MCP) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Microchip Technology Net Margin % Related Terms
Microchip Technology Net Margin % Historical Data
* Premium members only.
The historical data trend for Microchip Technology's Net Margin % 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.
For the Semiconductors subindustry, Microchip Technology's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Microchip Technology's Net Margin % distribution charts can be found below:
* The bar in red indicates where Microchip Technology's Net Margin % falls into.
* 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 (STU:MCP) has a Net Margin % of 11.00% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Microchip Technology and its competitors. This is 68% above median its historical median of 6.54. According to the industry distribution chart, Microchip Technology ranks #487 out of 1023 companies in the Semiconductors industry, placing it in the top 47.6%.
Is Microchip Technology's Net Margin % too high?
Microchip Technology's current Net Margin % of 11.00% is 68% above median its 10-year median of 6.54. The Semiconductors industry median Net Margin % is 4.17. Microchip Technology's value of 11.00% is 163.8% above this industry median. Based on the distribution chart, Microchip Technology ranks #487 out of 1023 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Microchip Technology has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Microchip Technology's Net Margin % compare to CBRS and ON?
According to the Semiconductors industry distribution chart, Microchip Technology ranks #487 out of 1023 companies for Net Margin %. This puts Microchip Technology in the upper half of its industry. The industry median Net Margin % is 4.17. Microchip Technology's value of 11.00% is 163.8% above this benchmark. While the company's 10-year median is 6.54 vs. the industry median of 4.17, Microchip Technology has consistently been above 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 Net Margin % for a Semiconductors company?
The median Net Margin % among Semiconductors companies is 4.17, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microchip Technology's current Net Margin % of 11.00% is 163.8% above 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Microchip Technology and its competitors. For the Semiconductors industry, the median Net Margin % is 4.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microchip Technology's current Net Margin % is 11.00%, which is 68% above median its own 10-year median of 6.54. 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 (STU:MCP) is currently considered Significantly Overvalued. The stock's GF Value™ is €51.32, compared to a current price of €82.56 — trading 60.9% above its estimated fair value. The current Net Margin % is 11.00%, which is 68% above median its 10-year median of 6.54 and 163.8% above the Semiconductors industry median of 4.17. Microchip Technology's overall GF Score™ is 75/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Microchip Technology (STU:MCP), the current Net Margin % is 11.00% 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 (STU:MCP) Overvalued in 2026?
Based on GuruFocus' analysis, Microchip Technology stock appears to be overvalued.
The current stock price of €82.56 is trading 60.9% above its estimated GF Value™ of €51.32.
GuruFocus considers Microchip Technology to be Significantly Overvalued.
Key valuation signals for STU:MCP:
Net Margin %: 11.00% (68% above median its 10-year median of 6.54)
GF Value™: €51.32 vs. price of €82.56 (60.9% above fair value)
Industry Position: 163.8% above the Semiconductors median (#487 of 1023)
No single metric tells the full story. See the STU: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.
75GF Score
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