Microchip TechnologyFRA:MCP -4.53%74 Pretax Margin % is 12.50% as of Mar. 2026, which is 108% above its 10-year median of 6.02. GuruFocus rates FRA:MCP with a GF Score™ of 74/100 and a GF Value™ of €53.71 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,021 Semiconductors companies, Microchip Technology ranks better than 52.6% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Microchip Technology Pretax Margin % Related Terms
Microchip Technology Pretax Margin % Historical Data
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The historical data trend for Microchip Technology's Pretax 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.
FRA:MCP vs CBRS, ON, GFS: Pretax Margin % Comparison
For the Semiconductors subindustry, Microchip Technology's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Microchip Technology's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Microchip Technology's Pretax 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 (FRA:MCP) has a Pretax Margin % of 12.50% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Microchip Technology and its competitors. This is 108% above median its historical median of 6.02. Over the past decade, Microchip Technology's Pretax Margin % has ranged from 0.88 to 34.48. According to the industry distribution chart, Microchip Technology ranks #484 out of 1021 companies in the Semiconductors industry, placing it in the top 47.4%.
Is Microchip Technology's Pretax Margin % too high?
Microchip Technology's current Pretax Margin % of 12.50% is 108% above median its 10-year median of 6.02. Over the past 10 years, this metric has ranged from a low of 0.88 to a high of 34.48. The Semiconductors industry median Pretax Margin % is 5.07. Microchip Technology's value of 12.50% is 146.5% above this industry median. Based on the distribution chart, Microchip Technology ranks #484 out of 1021 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Microchip Technology has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Microchip Technology's Pretax Margin % compare to CBRS and ON?
According to the Semiconductors industry distribution chart, Microchip Technology ranks #484 out of 1021 companies for Pretax Margin %. This puts Microchip Technology in the upper half of its industry. The industry median Pretax Margin % is 5.07. Microchip Technology's value of 12.50% is 146.5% above this benchmark. Historically, Microchip Technology's own Pretax Margin % has ranged from 0.88 to 34.48 over the past decade. While the company's 10-year median is 6.02 vs. the industry median of 5.07, 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 Pretax Margin % for a Semiconductors company?
The median Pretax Margin % among Semiconductors companies is 5.07, based on 1,021 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microchip Technology's current Pretax Margin % of 12.50% is 146.5% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Microchip Technology and its competitors. For the Semiconductors industry, the median Pretax Margin % is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microchip Technology's current Pretax Margin % is 12.50%, which is 108% above median its own 10-year median of 6.02. 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 Pretax Margin % is 12.50%, which is 108% above median its 10-year median of 6.02 and 146.5% above the Semiconductors industry median of 5.07. Microchip Technology's overall GF Score™ is 74/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Microchip Technology (FRA:MCP), the current Pretax Margin % is 12.50% 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:
Pretax Margin %: 12.50% (108% above median its 10-year median of 6.02)
GF Value™: €53.71 vs. price of €80.72 (50.3% above fair value)
Industry Position: 146.5% above the Semiconductors median (#484 of 1021)
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.
74GF Score
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