Microchip TechnologyHAM:MCP -1.67%75 ROC (Joel Greenblatt) % is 40.41% as of Mar. 2026, which is 7% below its 10-year median of 43.43. GuruFocus rates HAM:MCP with a GF Score™ of 75/100 and a GF Value™ of €52.01 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,025 Semiconductors companies, Microchip Technology ranks better than 68.59% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Microchip Technology's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 40.41%.
The historical rank and industry rank for Microchip Technology's ROC (Joel Greenblatt) % or its related term are showing as below:
HAM:MCP'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 12.41 Med: 43.43 Max: 153.21
Current: 22.3
During the past 13 years, Microchip Technology's highest ROC (Joel Greenblatt) % was 153.21%. The lowest was 12.41%. And the median was 43.43%.
HAM:MCP's ROC (Joel Greenblatt) % is ranked better than 68.59% of 1025
companies
in the Semiconductors industry
Industry Median: 8.35
vs HAM:MCP: 22.30
Microchip Technology's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -24.10% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Microchip Technology ROC (Joel Greenblatt) % Related Terms
Microchip Technology ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Microchip Technology's ROC (Joel Greenblatt) % 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.
HAM:MCP vs CRDO, GFS, CBRS: ROC (Joel Greenblatt) % Comparison
For the Semiconductors subindustry, Microchip Technology's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Microchip Technology's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Microchip Technology's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 40.41% mean?
Microchip Technology (HAM:MCP) has a ROC (Joel Greenblatt) % of 40.41% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Microchip Technology and its competitors. This is near median its historical median of 43.43. Over the past decade, Microchip Technology's ROC (Joel Greenblatt) % has ranged from 12.41 to 153.21. According to the industry distribution chart, Microchip Technology ranks #322 out of 1025 companies in the Semiconductors industry, placing it in the top 31.4%.
Is Microchip Technology's ROC (Joel Greenblatt) % too high?
Microchip Technology's current ROC (Joel Greenblatt) % of 40.41% is near median its 10-year median of 43.43. Over the past 10 years, this metric has ranged from a low of 12.41 to a high of 153.21. The Semiconductors industry median ROC (Joel Greenblatt) % is 8.35. Microchip Technology's value of 40.41% is 384% above this industry median. Based on the distribution chart, Microchip Technology ranks #322 out of 1025 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 ROC (Joel Greenblatt) % compare to CRDO and GFS?
According to the Semiconductors industry distribution chart, Microchip Technology ranks #322 out of 1025 companies for ROC (Joel Greenblatt) %. This puts Microchip Technology in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 8.35. Microchip Technology's value of 40.41% is 384% above this benchmark. Historically, Microchip Technology's own ROC (Joel Greenblatt) % has ranged from 12.41 to 153.21 over the past decade. While the company's 10-year median is 43.43 vs. the industry median of 8.35, 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 ROC (Joel Greenblatt) % for a Semiconductors company?
The median ROC (Joel Greenblatt) % among Semiconductors companies is 8.35, based on 1,025 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microchip Technology's current ROC (Joel Greenblatt) % of 40.41% is 384% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Microchip Technology and its competitors. For the Semiconductors industry, the median ROC (Joel Greenblatt) % is 8.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microchip Technology's current ROC (Joel Greenblatt) % is 40.41%, which is near median its own 10-year median of 43.43. 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 (HAM:MCP) is currently considered Significantly Overvalued. The stock's GF Value™ is €52.01, compared to a current price of €77.60 — trading 49.2% above its estimated fair value. The current ROC (Joel Greenblatt) % is 40.41%, which is near median its 10-year median of 43.43 and 384% above the Semiconductors industry median of 8.35. Microchip Technology's overall GF Score™ is 75/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Microchip Technology (HAM:MCP), the current ROC (Joel Greenblatt) % is 40.41% 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 (HAM:MCP) Overvalued in 2026?
Based on GuruFocus' analysis, Microchip Technology stock appears to be overvalued.
The current stock price of €77.60 is trading 49.2% above its estimated GF Value™ of €52.01.
GuruFocus considers Microchip Technology to be Significantly Overvalued.
Key valuation signals for HAM:MCP:
ROC (Joel Greenblatt) %: 40.41% (near median its 10-year median of 43.43)
GF Value™: €52.01 vs. price of €77.60 (49.2% above fair value)
Industry Position: 384% above the Semiconductors median (#322 of 1025)
No single metric tells the full story. See the HAM: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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