NASDAQ:MPWR qualifies as a high growth stock and is consolidating.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether MONOLITHIC POWER SYSTEMS INC (NASDAQ:MPWR) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but MONOLITHIC POWER SYSTEMS INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

What does the Growth looks like for NASDAQ:MPWR

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:MPWR scores a 8 out of 10:

• Measured over the past years, MPWR shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.79% on average per year.
• The Revenue has grown by 11.62% in the past year. This is quite good.
• Measured over the past years, MPWR shows a very strong growth in Revenue. The Revenue has been growing by 25.61% on average per year.
• The Earnings Per Share is expected to grow by 20.29% on average over the next years. This is a very strong growth
• Based on estimates for the next years, MPWR will show a quite strong growth in Revenue. The Revenue will grow by 17.89% on average per year.

A Closer Look at Health for NASDAQ:MPWR

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:MPWR scores a 9 out of 10:

• An Altman-Z score of 37.15 indicates that MPWR is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 37.15, MPWR belongs to the best of the industry, outperforming 93.46% of the companies in the same industry.
• There is no outstanding debt for MPWR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• A Current Ratio of 6.42 indicates that MPWR has no problem at all paying its short term obligations.
• The Current ratio of MPWR (6.42) is better than 88.78% of its industry peers.
• A Quick Ratio of 5.16 indicates that MPWR has no problem at all paying its short term obligations.
• With an excellent Quick ratio value of 5.16, MPWR belongs to the best of the industry, outperforming 87.85% of the companies in the same industry.

A Closer Look at Profitability for NASDAQ:MPWR

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:MPWR, the assigned 9 is a significant indicator of profitability:

• MPWR has a Return On Assets of 15.21%. This is amongst the best in the industry. MPWR outperforms 86.92% of its industry peers.
• MPWR has a better Return On Equity (18.47%) than 81.31% of its industry peers.
• MPWR's Return On Invested Capital of 16.20% is amongst the best of the industry. MPWR outperforms 90.65% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for MPWR is significantly above the industry average of 11.13%.
• With an excellent Profit Margin value of 21.29%, MPWR belongs to the best of the industry, outperforming 81.31% of the companies in the same industry.
• In the last couple of years the Profit Margin of MPWR has grown nicely.
• The Operating Margin of MPWR (23.83%) is better than 83.18% of its industry peers.
• In the last couple of years the Operating Margin of MPWR has grown nicely.
• With a decent Gross Margin value of 55.29%, MPWR is doing good in the industry, outperforming 76.64% of the companies in the same industry.

How do we evaluate the setup for NASDAQ:MPWR?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:MPWR this score is currently 8:

MPWR has a bad technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 588.49, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of MPWR

Our latest full technical report of MPWR contains the most current technical analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.