Microchip Technology (STU:MCP) ROCE %: 6.49% (As of Mar. 2026)


STU:MCP Microchip Technology Inc STU:MCP
75 GF Score
Price €82.56
GF Value €51.32
Valuation Significantly Overvalued
! 11 Warning Signs
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What is Microchip Technology ROCE %?

Microchip Technology STU:MCP +1.89% 75 ROCE % is 6.49% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Microchip Technology's annualized ROCE % for the quarter that ended in Mar. 2026 was 6.49%.

Microchip Technology  (STU:MCP) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Microchip Technology ROCE % Related Terms

Microchip Technology ROCE % Historical Data

* Premium members only.

The historical data trend for Microchip Technology's ROCE % 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.

Microchip Technology ROCE % Chart

Microchip Technology Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.42 22.46 19.08 2.11 3.44

Microchip Technology Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.77 1.11 2.53 4.45 6.49
STU:MCP
75GF Score
Microchip Technology Inc STU:MCP
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Microchip Technology ROCE % Calculation

Microchip Technology's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=422.898/( ( (14221.505 - 1068.467) + (12430.136 - 982.899) )/ 2 )
=422.898/( (13153.038+11447.237)/ 2 )
=422.898/12300.1375
=3.44 %

Microchip Technology's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=739.4/( ( (12233.977 - 904.642) + (12430.136 - 982.899) )/ 2 )
=739.4/( ( 11329.335 + 11447.237 )/ 2 )
=739.4/11388.286
=6.49 %

(1) 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 6.49% mean?
Microchip Technology (STU:MCP) has a ROCE % of 6.49% as of Mar. 2026.
Is Microchip Technology's ROCE % too high?
Microchip Technology's current ROCE % is 6.49%. The Semiconductors industry median ROCE % is 4.81. Microchip Technology's value of 6.49% is 35.1% above this industry median. 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 ROCE % compare to CBRS and ON?
Microchip Technology's ROCE % of 6.49% can be compared against companies in the Semiconductors industry. The industry median ROCE % is 4.81. Microchip Technology's value of 6.49% is 35.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Semiconductors company?
The median ROCE % among Semiconductors companies is 4.81, based on 1,018 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microchip Technology's current ROCE % of 6.49% is 35.1% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Semiconductors industry, the median ROCE % is 4.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microchip Technology's current ROCE % is 6.49%. 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 ROCE % is 6.49% and 35.1% above the Semiconductors industry median of 4.81. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Microchip Technology (STU:MCP), the current ROCE % is 6.49% 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 (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:

  • ROCE %: 6.49%
  • GF Value™: €51.32 vs. price of €82.56 (60.9% above fair value)
  • GF Score™: 75/100 with 11 warning signs
  • Industry Position: 35.1% above the Semiconductors median

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 Business Description

Address 2355 W. Chandler Boulevard, Chandler, AZ, USA, 85224-6199
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

Get the complete analysis for STU:MCP

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€82.56
Price
€51.32
GF Value