Microchip Technology vs Monolithic Power Systems
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KIRA’s take AI analyst
I put Microchip Technology and Monolithic Power Systems side by side, using each one’s latest annual report. Here is what stands out:
- Microchip Technology is the larger business, with $4.7B of revenue in fiscal 2026 against $2.8B for Monolithic Power Systems, about 1.7 times as much.
- Monolithic Power Systems grew revenue faster (26.4%, against 7.1%).
- Monolithic Power Systems kept more of each dollar of sales as operating profit (26.1% operating margin, against 10.4%).
- Monolithic Power Systems turned more of its sales into free cash flow (23.9% FCF margin, against 18.5%).
- Monolithic Power Systems earned a higher return on the capital invested in it (27.1%, against 3.5%).
- Investors pay more for each dollar of Microchip Technology’s earnings: a P/E of 111.6x against 71.3x for Monolithic Power Systems.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Microchip Technology
MCHP
2/11
Gross marginPiotroski F-score
Monolithic Power Systems
MPWR
9/11
Revenue growth5-year growthOperating marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDAShare count change
Side by side
Best in the row
| Latest fiscal year | MCHP FY26 | MPWR FY25 |
|---|---|---|
| Size | ||
| Market cap | $41.8B | $57.5B |
| Revenue | $4.7B | $2.8B |
| Free cash flow | $871M | $666M |
| Net income | $230M | $622M |
| Growth | ||
| Revenue growth | 7.1% | 26.4% |
| 5-year growth | −2.8% | 27.0% |
| Share count change | 1.5% | −1.1% |
| Profitability | ||
| Gross margin | 57.7% | 55.2% |
| Operating margin | 10.4% | 26.1% |
| Net margin | 4.9% | 22.3% |
| FCF margin | 18.5% | 23.9% |
| Return on capital | 3.5% | 27.1% |
| Return on equity | 3.4% | 19.2% |
| Balance sheet | ||
| Net debt | $5.3B | −$1.3B |
| Net debt / EBITDA | 4.5x | −1.6x |
| Dividends and buybacks | $984M | $291M |
| Valuation & quality | ||
| P/E | 111.6x | 71.3x |
| Piotroski F-score | 6 | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.