MONOLITHIC POWER SYSTEMS INC (MPWR) Stock Fundamental Analysis
USA - NASDAQ:MPWR - US6098391054 - Common Stock
834.14 USD
-6.24 (-0.74%)
834.14 USD
0 (0%)
MPWR gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. MPWR gets an excellent profitability rating and is at the same time showing great financial health properties. MPWR is valued quite expensive, but it does show an excellent growth. These ratings could make MPWR a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
MPWR had positive earnings in the past year.
In the past year MPWR had a positive cash flow from operations.
In the past 5 years MPWR has always been profitable.
In the past 5 years MPWR always reported a positive cash flow from operatings.
1.2 Ratios
MPWR has a Return On Assets of 46.86%. This is amongst the best in the industry. MPWR outperforms 98.21% of its industry peers.
MPWR has a better Return On Equity (54.71%) than 96.43% of its industry peers.
The Return On Invested Capital of MPWR (15.56%) is better than 90.18% of its industry peers.
MPWR had an Average Return On Invested Capital over the past 3 years of 19.13%. This is significantly above the industry average of 10.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 46.86% | ||
| ROE | 54.71% | ||
| ROIC | 15.56% |
ROA(3y)29.4%
ROA(5y)23.42%
ROE(3y)34.63%
ROE(5y)28.07%
ROIC(3y)19.13%
ROIC(5y)17.47%
1.3 Margins
The Profit Margin of MPWR (73.17%) is better than 99.11% of its industry peers.
In the last couple of years the Profit Margin of MPWR has grown nicely.
Looking at the Operating Margin, with a value of 25.98%, MPWR belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Operating Margin of MPWR has grown nicely.
MPWR has a better Gross Margin (55.31%) than 76.79% of its industry peers.
MPWR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.98% | ||
| PM (TTM) | 73.17% | ||
| GM | 55.31% |
OM growth 3Y3.22%
OM growth 5Y7.88%
PM growth 3Y59.27%
PM growth 5Y36.11%
GM growth 3Y-0.85%
GM growth 5Y0.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MPWR is creating some value.
Compared to 1 year ago, MPWR has less shares outstanding
MPWR has more shares outstanding than it did 5 years ago.
MPWR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
MPWR has an Altman-Z score of 44.92. This indicates that MPWR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 44.92, MPWR belongs to the top of the industry, outperforming 95.54% of the companies in the same industry.
MPWR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 44.92 |
ROIC/WACC1.37
WACC11.35%
2.3 Liquidity
MPWR has a Current Ratio of 5.00. This indicates that MPWR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 5.00, MPWR is in the better half of the industry, outperforming 73.21% of the companies in the same industry.
A Quick Ratio of 3.72 indicates that MPWR has no problem at all paying its short term obligations.
MPWR's Quick ratio of 3.72 is fine compared to the rest of the industry. MPWR outperforms 69.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5 | ||
| Quick Ratio | 3.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.35% over the past year.
Measured over the past years, MPWR shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.50% on average per year.
Looking at the last year, MPWR shows a very strong growth in Revenue. The Revenue has grown by 34.30%.
MPWR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.58% yearly.
EPS 1Y (TTM)37.35%
EPS 3Y23.78%
EPS 5Y29.5%
EPS Q2Q%32.81%
Revenue 1Y (TTM)34.3%
Revenue growth 3Y22.26%
Revenue growth 5Y28.58%
Sales Q2Q%30.97%
3.2 Future
Based on estimates for the next years, MPWR will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.20% on average per year.
Based on estimates for the next years, MPWR will show a quite strong growth in Revenue. The Revenue will grow by 16.02% on average per year.
EPS Next Y26.32%
EPS Next 2Y21.2%
EPS Next 3Y20.57%
EPS Next 5Y12.2%
Revenue Next Year25.29%
Revenue Next 2Y20.25%
Revenue Next 3Y18.51%
Revenue Next 5Y16.02%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
MPWR is valuated quite expensively with a Price/Earnings ratio of 50.86.
The rest of the industry has a similar Price/Earnings ratio as MPWR.
Compared to an average S&P500 Price/Earnings ratio of 27.30, MPWR is valued quite expensively.
The Price/Forward Earnings ratio is 40.19, which means the current valuation is very expensive for MPWR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MPWR is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.73. MPWR is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.86 | ||
| Fwd PE | 40.19 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MPWR.
Based on the Price/Free Cash Flow ratio, MPWR is valued a bit cheaper than the industry average as 63.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.72 | ||
| EV/EBITDA | 54.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MPWR does not grow enough to justify the current Price/Earnings ratio.
MPWR has an outstanding profitability rating, which may justify a higher PE ratio.
MPWR's earnings are expected to grow with 20.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.93
PEG (5Y)1.72
EPS Next 2Y21.2%
EPS Next 3Y20.57%
5. Dividend
5.1 Amount
With a yearly dividend of 0.74%, MPWR is not a good candidate for dividend investing.
MPWR's Dividend Yield is a higher than the industry average which is at 2.35.
Compared to an average S&P500 Dividend Yield of 2.45, MPWR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
The dividend of MPWR is nicely growing with an annual growth rate of 26.28%!
MPWR has been paying a dividend for at least 10 years, so it has a reliable track record.
MPWR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)26.28%
Div Incr Years7
Div Non Decr Years10
5.3 Sustainability
13.87% of the earnings are spent on dividend by MPWR. This is a low number and sustainable payout ratio.
MPWR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP13.87%
EPS Next 2Y21.2%
EPS Next 3Y20.57%
834.14
-6.24 (-0.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.21%
Inst Owner Change-5.53%
Ins Owners3.18%
Ins Owner Change-5.01%
Market Cap39.95B
Analysts80.8
Price Target855.34 (2.54%)
Short Float %5.01%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend5.02
Dividend Growth(5Y)26.28%
DP13.87%
Div Incr Years7
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.51%
Min EPS beat(2)-1.34%
Max EPS beat(2)0.31%
EPS beat(4)3
Avg EPS beat(4)0.02%
Min EPS beat(4)-1.34%
Max EPS beat(4)0.84%
EPS beat(8)5
Avg EPS beat(8)0.31%
EPS beat(12)5
Avg EPS beat(12)-0.14%
EPS beat(16)9
Avg EPS beat(16)1.55%
Revenue beat(2)1
Avg Revenue beat(2)-0.67%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)0.12%
Revenue beat(4)3
Avg Revenue beat(4)0.03%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)1.22%
Revenue beat(8)5
Avg Revenue beat(8)-0.16%
Revenue beat(12)5
Avg Revenue beat(12)-0.65%
Revenue beat(16)9
Avg Revenue beat(16)0.18%
PT rev (1m)0%
PT rev (3m)11.3%
EPS NQ rev (1m)0.79%
EPS NQ rev (3m)5.36%
EPS NY rev (1m)3.14%
EPS NY rev (3m)3.24%
Revenue NQ rev (1m)1.05%
Revenue NQ rev (3m)6.7%
Revenue NY rev (1m)3.32%
Revenue NY rev (3m)3.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.86 | ||
| Fwd PE | 40.19 | ||
| P/S | 15.7 | ||
| P/FCF | 56.72 | ||
| P/OCF | 44.71 | ||
| P/B | 11.74 | ||
| P/tB | 11.87 | ||
| EV/EBITDA | 54.96 |
EPS(TTM)16.4
EY1.97%
EPS(NY)20.76
Fwd EY2.49%
FCF(TTM)14.71
FCFY1.76%
OCF(TTM)18.66
OCFY2.24%
SpS53.12
BVpS71.04
TBVpS70.3
PEG (NY)1.93
PEG (5Y)1.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 46.86% | ||
| ROE | 54.71% | ||
| ROCE | 18.41% | ||
| ROIC | 15.56% | ||
| ROICexc | 22.86% | ||
| ROICexgc | 23.19% | ||
| OM | 25.98% | ||
| PM (TTM) | 73.17% | ||
| GM | 55.31% | ||
| FCFM | 27.69% |
ROA(3y)29.4%
ROA(5y)23.42%
ROE(3y)34.63%
ROE(5y)28.07%
ROIC(3y)19.13%
ROIC(5y)17.47%
ROICexc(3y)29.57%
ROICexc(5y)30.94%
ROICexgc(3y)29.79%
ROICexgc(5y)31.24%
ROCE(3y)22.64%
ROCE(5y)20.68%
ROICexcg growth 3Y-19.58%
ROICexcg growth 5Y-3.44%
ROICexc growth 3Y-19.69%
ROICexc growth 5Y-3.4%
OM growth 3Y3.22%
OM growth 5Y7.88%
PM growth 3Y59.27%
PM growth 5Y36.11%
GM growth 3Y-0.85%
GM growth 5Y0.06%
F-Score6
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 429.23% | ||
| Cap/Sales | 7.43% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 126.74% | ||
| Profit Quality | 37.84% | ||
| Current Ratio | 5 | ||
| Quick Ratio | 3.72 | ||
| Altman-Z | 44.92 |
F-Score6
WACC11.35%
ROIC/WACC1.37
Cap/Depr(3y)281.39%
Cap/Depr(5y)293.09%
Cap/Sales(3y)5.13%
Cap/Sales(5y)5.97%
Profit Quality(3y)70.62%
Profit Quality(5y)86.77%
High Growth Momentum
Growth
EPS 1Y (TTM)37.35%
EPS 3Y23.78%
EPS 5Y29.5%
EPS Q2Q%32.81%
EPS Next Y26.32%
EPS Next 2Y21.2%
EPS Next 3Y20.57%
EPS Next 5Y12.2%
Revenue 1Y (TTM)34.3%
Revenue growth 3Y22.26%
Revenue growth 5Y28.58%
Sales Q2Q%30.97%
Revenue Next Year25.29%
Revenue Next 2Y20.25%
Revenue Next 3Y18.51%
Revenue Next 5Y16.02%
EBIT growth 1Y44.42%
EBIT growth 3Y26.19%
EBIT growth 5Y38.71%
EBIT Next Year34.71%
EBIT Next 3Y22.1%
EBIT Next 5Y23.33%
FCF growth 1Y130.01%
FCF growth 3Y38%
FCF growth 5Y37.66%
OCF growth 1Y160.47%
OCF growth 3Y35.06%
OCF growth 5Y29.52%