5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Microchip Technology's 5-Year ROIIC % for the quarter that ended in Mar. 2026 was 21.89%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Microchip Technology's 5-Year ROIIC % or its related term are showing as below:
XSWX:MCHP's 5-Year ROIIC % is ranked better than 78.1% of 918
companies
in the Semiconductors industry
Industry Median: 2.21
vs XSWX:MCHP: 21.89
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Microchip Technology 5-Year ROIIC % Related Terms
Microchip Technology 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Microchip Technology's 5-Year ROIIC % 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.
XSWX:MCHP vs CRDO, GFS, CBRS: 5-Year ROIIC % Comparison
For the Semiconductors subindustry, Microchip Technology's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Microchip Technology's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Microchip Technology's 5-Year ROIIC % falls into.
Microchip Technology's 5-Year ROIIC % for the quarter that ended in Mar. 2026 is calculated as:
5-Year ROIIC %
=
5-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
5-Year Incremental Invested Capital**
=
( 350.7494808 (Mar. 2026) - 929.614 (Mar. 2021) )
/
( 10771.918 (Mar. 2026) - 15075.498 (Mar. 2021) )
=
-578.8645192
/
-4303.58
=
13.45%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Microchip Technology (XSWX:MCHP) has a 5-Year ROIIC % of 21.89 as of Mar. 2026. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Microchip Technology and its competitors. According to the industry distribution chart, Microchip Technology ranks #201 out of 918 companies in the Semiconductors industry, placing it in the top 21.9%.
Is Microchip Technology's 5-Year ROIIC % too high?
Microchip Technology's current 5-Year ROIIC % is 21.89. The Semiconductors industry median 5-Year ROIIC % is 2.21. Microchip Technology's value of 21.89 is 890.5% above this industry median. Based on the distribution chart, Microchip Technology ranks #201 out of 918 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Microchip Technology has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Microchip Technology's 5-Year ROIIC % compare to CRDO and GFS?
According to the Semiconductors industry distribution chart, Microchip Technology ranks #201 out of 918 companies for 5-Year ROIIC %. This places Microchip Technology in the top 22% of its industry — outperforming the majority of peers. The industry median 5-Year ROIIC % is 2.21. Microchip Technology's value of 21.89 is 890.5% 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 5-Year ROIIC % for a Semiconductors company?
The median 5-Year ROIIC % among Semiconductors companies is 2.21, based on 918 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microchip Technology's current 5-Year ROIIC % of 21.89 is 890.5% 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Microchip Technology and its competitors. For the Semiconductors industry, the median 5-Year ROIIC % is 2.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microchip Technology's current 5-Year ROIIC % is 21.89. 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 (XSWX:MCHP) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF48.07, compared to a current price of CHF72.24 — trading 50.3% above its estimated fair value. The current 5-Year ROIIC % is 21.89 and 890.5% above the Semiconductors industry median of 2.21. Microchip Technology's overall GF Score™ is 48/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Microchip Technology (XSWX:MCHP), the current 5-Year ROIIC % is 21.89 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 (XSWX:MCHP) Overvalued in 2026?
Based on GuruFocus' analysis, Microchip Technology stock appears to be overvalued.
The current stock price of CHF72.24 is trading 50.3% above its estimated GF Value™ of CHF48.07.
GuruFocus considers Microchip Technology to be Significantly Overvalued.
Key valuation signals for XSWX:MCHP:
5-Year ROIIC %: 21.89
GF Value™: CHF48.07 vs. price of CHF72.24 (50.3% above fair value)
Industry Position: 890.5% above the Semiconductors median (#201 of 918)
No single metric tells the full story. See the XSWX: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.
48GF Score
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