MONOLITHIC POWER SYSTEMS INC (MPWR) Stock Fundamental Analysis
NASDAQ:MPWR - Nasdaq - US6098391054 - Common Stock - Currency: USD
Taking everything into account, MPWR scores 7 out of 10 in our fundamental rating. MPWR was compared to 108 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 expensively, but it does show have an excellent growth rating. These ratings could make MPWR a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year MPWR was profitable.
MPWR had a positive operating cash flow in the past year.
Each year in the past 5 years MPWR has been profitable.
Of the past 5 years MPWR 4 years had a positive operating cash flow.
1.2 Ratios
MPWR has a better Return On Assets (15.21%) than 87.04% of its industry peers.
MPWR has a Return On Equity of 18.47%. This is amongst the best in the industry. MPWR outperforms 82.41% of its industry peers.
MPWR has a better Return On Invested Capital (16.31%) than 90.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.21% | ||
| ROE | 18.47% | ||
| ROIC | 16.31% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MPWR's Profit Margin of 21.29% is amongst the best of the industry. MPWR outperforms 81.48% 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 23.83%, MPWR belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
MPWR's Operating Margin has improved in the last couple of years.
The Gross Margin of MPWR (55.29%) is better than 75.93% of its industry peers.
MPWR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.83% | ||
| PM (TTM) | 21.29% | ||
| GM | 55.29% |
OM growth 3Y3.19%
OM growth 5Y7.86%
PM growth 3Y59.27%
PM growth 5Y36.11%
GM growth 3Y-0.85%
GM growth 5Y0.06%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MPWR is still creating some value.
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
An Altman-Z score of 41.93 indicates that MPWR is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 41.93, MPWR belongs to the best of the industry, outperforming 93.52% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 41.93 |
ROIC/WACC1.37
WACC11.9%
2.3 Liquidity
MPWR has a Current Ratio of 6.42. This indicates that MPWR is financially healthy and has no problem in meeting its short term obligations.
MPWR has a Current ratio of 6.42. This is amongst the best in the industry. MPWR outperforms 88.89% of its industry peers.
A Quick Ratio of 5.16 indicates that MPWR has no problem at all paying its short term obligations.
MPWR's Quick ratio of 5.16 is amongst the best of the industry. MPWR outperforms 87.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.42 | ||
| Quick Ratio | 5.16 |
3. Growth
3.1 Past
MPWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.95%, which is quite good.
MPWR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.50% yearly.
MPWR shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.20%.
Measured over the past years, MPWR shows a very strong growth in Revenue. The Revenue has been growing by 28.58% on average per year.
EPS 1Y (TTM)19.95%
EPS 3Y23.78%
EPS 5Y29.5%
EPS Q2Q%42.01%
Revenue 1Y (TTM)21.2%
Revenue growth 3Y22.26%
Revenue growth 5Y28.58%
Sales Q2Q%36.93%
3.2 Future
The Earnings Per Share is expected to grow by 18.78% on average over the next years. This is quite good.
MPWR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.94% yearly.
EPS Next Y21.39%
EPS Next 2Y20.64%
EPS Next 3Y19.75%
EPS Next 5Y18.78%
Revenue Next Year16.8%
Revenue Next 2Y17.64%
Revenue Next 3Y17.41%
Revenue Next 5Y15.94%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 46.79, the valuation of MPWR can be described as expensive.
MPWR's Price/Earnings ratio is in line with the industry average.
MPWR is valuated expensively when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 38.54, the valuation of MPWR can be described as expensive.
MPWR's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of MPWR to the average of the S&P500 Index (22.68), we can say MPWR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.79 | ||
| Fwd PE | 38.54 |
4.2 Price Multiples
MPWR's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MPWR indicates a somewhat cheap valuation: MPWR is cheaper than 67.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.38 | ||
| EV/EBITDA | 58.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MPWR has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MPWR's earnings are expected to grow with 19.75% in the coming years.
PEG (NY)2.19
PEG (5Y)1.59
EPS Next 2Y20.64%
EPS Next 3Y19.75%
5. Dividend
5.1 Amount
With a yearly dividend of 0.89%, MPWR is not a good candidate for dividend investing.
MPWR's Dividend Yield is a higher than the industry average which is at 2.34.
Compared to an average S&P500 Dividend Yield of 2.29, MPWR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
On average, the dividend of MPWR grows each year by 28.17%, which is quite nice.
MPWR has paid a dividend for at least 10 years, which is a reliable track record.
As MPWR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)28.17%
Div Incr Years6
Div Non Decr Years9
5.3 Sustainability
MPWR pays out 52.81% of its income as dividend. This is a bit on the high side, but may be sustainable.
MPWR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP52.81%
EPS Next 2Y20.64%
EPS Next 3Y19.75%
NASDAQ:MPWR (2/21/2025, 8:00:01 PM)
After market: 650.147 -10.93 (-1.65%)661.08
-28.73 (-4.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.89%
Inst Owner Change0.22%
Ins Owners3.2%
Ins Owner Change-5.18%
Market Cap31.61B
Analysts79.13
Price Target841.99 (27.37%)
Short Float %5.95%
Short Ratio3.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend3.91
Dividend Growth(5Y)28.17%
DP52.81%
Div Incr Years6
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.8%
Min EPS beat(2)0.27%
Max EPS beat(2)1.33%
EPS beat(4)3
Avg EPS beat(4)1.09%
Min EPS beat(4)-0.81%
Max EPS beat(4)3.56%
EPS beat(8)3
Avg EPS beat(8)-0.05%
EPS beat(12)6
Avg EPS beat(12)1.99%
EPS beat(16)10
Avg EPS beat(16)2.53%
Revenue beat(2)2
Avg Revenue beat(2)1.31%
Min Revenue beat(2)1.22%
Max Revenue beat(2)1.39%
Revenue beat(4)3
Avg Revenue beat(4)0.41%
Min Revenue beat(4)-1.54%
Max Revenue beat(4)1.39%
Revenue beat(8)3
Avg Revenue beat(8)-0.7%
Revenue beat(12)6
Avg Revenue beat(12)0.3%
Revenue beat(16)10
Avg Revenue beat(16)0.65%
PT rev (1m)-3.7%
PT rev (3m)-15.84%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-0.92%
EPS NY rev (1m)2.04%
EPS NY rev (3m)-2.1%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-3.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.79 | ||
| Fwd PE | 38.54 | ||
| P/S | 15.5 | ||
| P/FCF | 50.38 | ||
| P/OCF | 40.84 | ||
| P/B | 13.44 | ||
| P/tB | 13.65 | ||
| EV/EBITDA | 58.86 |
EPS(TTM)14.13
EY2.14%
EPS(NY)17.15
Fwd EY2.59%
FCF(TTM)13.12
FCFY1.98%
OCF(TTM)16.19
OCFY2.45%
SpS42.65
BVpS49.18
TBVpS48.42
PEG (NY)2.19
PEG (5Y)1.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.21% | ||
| ROE | 18.47% | ||
| ROCE | 19.3% | ||
| ROIC | 16.31% | ||
| ROICexc | 38.89% | ||
| ROICexgc | 40.28% | ||
| OM | 23.83% | ||
| PM (TTM) | 21.29% | ||
| GM | 55.29% | ||
| FCFM | 30.77% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y3.19%
OM growth 5Y7.86%
PM growth 3Y59.27%
PM growth 5Y36.11%
GM growth 3Y-0.85%
GM growth 5Y0.06%
F-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 399.81% | ||
| Cap/Sales | 7.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 148.09% | ||
| Profit Quality | 144.5% | ||
| Current Ratio | 6.42 | ||
| Quick Ratio | 5.16 | ||
| Altman-Z | 41.93 |
F-Score5
WACC11.9%
ROIC/WACC1.37
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.95%
EPS 3Y23.78%
EPS 5Y29.5%
EPS Q2Q%42.01%
EPS Next Y21.39%
EPS Next 2Y20.64%
EPS Next 3Y19.75%
EPS Next 5Y18.78%
Revenue 1Y (TTM)21.2%
Revenue growth 3Y22.26%
Revenue growth 5Y28.58%
Sales Q2Q%36.93%
Revenue Next Year16.8%
Revenue Next 2Y17.64%
Revenue Next 3Y17.41%
Revenue Next 5Y15.94%
EBIT growth 1Y-5.13%
EBIT growth 3Y26.16%
EBIT growth 5Y38.69%
EBIT Next Year25.38%
EBIT Next 3Y25.29%
EBIT Next 5Y22.17%
FCF growth 1Y30.59%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y44.12%
OCF growth 3YN/A
OCF growth 5YN/A