MCHP FCF Yield Analysis
Updated 221h ago·SEC filings & market data
Key Takeaway
The FCF yield of 2.0% measures the cash profits a company generates per dollar of stock price, so a lower yield means you pay more for each dollar of cash flow.
Sector Performance
26th percentileMCHP
2.1%
Sector Median
4.2%
Sector Avg
9.2%
Prior Period
2.0%(Aug 2026)
Deep Analysis
The FCF yield of 2.0% measures the cash profits a company generates per dollar of stock price, so a lower yield means you pay more for each dollar of cash flow.
This sits below the sector median of 4.2%, placing MCHP in the 24th percentile among peers, indicating it is less attractive on this cash-return basis than most comparable companies. The metric is stable over the last 8 quarters, with historical values of 2.0%, 1.9%, 2.2%, and 1.9%; the year-over-year change is not available, while the quarter-over-quarter change is +5.3%. A low but stable yield suggests the stock is not becoming cheaper or more expensive on a cash-flow basis, which limits both near-term downside from deterioration and upside from a yield re-rating. For investment risk, the below-median level is a caution sign, but the flat trend reduces the urgency to act on it. This metric supports the overall NEUTRAL verdict because it is neither strongly compelling nor a clear red flag.
Frequently Asked Questions
What does the FCF Yield tell investors about MCHP?
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
How is the FCF Yield calculated?
FCF Yield is calculated as: Free Cash Flow / Market Cap.
Who are MCHP's closest peers by FCF Yield?
The closest peers by FCF Yield include: JACK (23.5%), BBWI (23.7%), YELP (25.7%), MET (27.9%), WIX (29.2%).
Learn More About FCF Yield
Understanding Free Cash Flow
Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.
Free Cash Flow Yield: Why It Matters More Than Earnings Per Share
EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.
The Formula
Free Cash Flow / Market Cap
Why It Matters
One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.
Master MCHP's Valuation
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2.1%
Sector Median
4.2%
Sector Avg
9.2%
How MCHP's FCF Yield compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.