MONOLITHIC POWER SYSTEMS INC (MPWR)
US6098391054 - Common Stock
MPWR gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 108 industry peers in the Semiconductors & Semiconductor Equipment industry. MPWR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
MPWR had positive earnings in each of the past 5 years.
MPWR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.21%, MPWR belongs to the top of the industry, outperforming 87.04% of the companies in the same industry.
MPWR has a Return On Equity of 18.47%. This is amongst the best in the industry. MPWR outperforms 81.48% of its industry peers.
MPWR has a Return On Invested Capital of 16.20%. This is amongst the best in the industry. MPWR outperforms 90.74% 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 11.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.21% | ||
| ROE | 18.47% | ||
| ROIC | 16.2% |
ROA(3y)18.03%
ROA(5y)15.81%
ROE(3y)22.18%
ROE(5y)19.52%
ROIC(3y)19.99%
ROIC(5y)16.69%
1.3 Margins
Looking at the Profit Margin, with a value of 21.29%, MPWR belongs to the top of the industry, outperforming 81.48% 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 83.33% of its industry peers.
MPWR's Operating Margin has improved in the last couple of years.
MPWR has a better Gross Margin (55.29%) than 76.85% 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 3Y10.25%
OM growth 5Y5.95%
PM growth 3Y6.43%
PM growth 5Y5.35%
GM growth 3Y0.54%
GM growth 5Y0.24%
2. Health
2.1 Basic Checks
MPWR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
MPWR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MPWR has more shares outstanding
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 37.10. 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 37.10, MPWR belongs to the top of the industry, outperforming 94.44% 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 | 37.1 |
ROIC/WACC1.04
WACC15.53%
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's Current ratio of 6.42 is amongst the best of 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 has a better Quick ratio (5.16) than 87.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.42 | ||
| Quick Ratio | 5.16 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.04% over the past year.
The Earnings Per Share has been growing by 25.79% on average over the past years. This is a very strong growth
Looking at the last year, MPWR shows a quite strong growth in Revenue. The Revenue has grown by 11.62% in the last year.
MPWR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.61% yearly.
EPS 1Y (TTM)7.04%
EPS 3Y32.8%
EPS 5Y25.79%
EPS Q2Q%31.82%
Revenue 1Y (TTM)11.62%
Revenue growth 3Y29.19%
Revenue growth 5Y25.61%
Sales Q2Q%30.59%
3.2 Future
MPWR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.29% yearly.
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.
EPS Next Y21.77%
EPS Next 2Y19.46%
EPS Next 3Y21.65%
EPS Next 5Y20.29%
Revenue Next Year20.53%
Revenue Next 2Y18.63%
Revenue Next 3Y18.7%
Revenue Next 5Y17.89%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 45.91, which means the current valuation is very expensive for MPWR.
MPWR's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.73. MPWR is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 35.29, the valuation of MPWR can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MPWR is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of MPWR to the average of the S&P500 Index (22.83), we can say MPWR is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.91 | ||
| Fwd PE | 35.29 |
4.2 Price Multiples
MPWR's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, MPWR is valued a bit cheaper than the industry average as 69.44% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.12 | ||
| EV/EBITDA | 51.11 |
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.
A more expensive valuation may be justified as MPWR's earnings are expected to grow with 21.65% in the coming years.
PEG (NY)2.11
PEG (5Y)1.78
EPS Next 2Y19.46%
EPS Next 3Y21.65%
5. Dividend
5.1 Amount
With a yearly dividend of 0.85%, MPWR is not a good candidate for dividend investing.
The stock price of MPWR dropped by -33.44% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
MPWR's Dividend Yield is a higher than the industry average which is at 2.31.
Compared to an average S&P500 Dividend Yield of 2.34, MPWR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
The dividend of MPWR is nicely growing with an annual growth rate of 28.17%!
MPWR has paid a dividend for at least 10 years, which is a reliable track record.
MPWR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 2Y19.46%
EPS Next 3Y21.65%
MONOLITHIC POWER SYSTEMS INC
NASDAQ:MPWR (12/20/2024, 8:25:27 PM)
After market: 593.22 0 (0%)593.22
+4.07 (+0.69%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.89%
Inst Owner Change0.34%
Ins Owners3.2%
Ins Owner Change-9.46%
Market Cap28.94B
Analysts78.18
Price Target884.95 (49.18%)
Short Float %4.45%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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)-11.55%
PT rev (3m)-9.93%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)1.94%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)4.21%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.91 | ||
| Fwd PE | 35.29 | ||
| P/S | 14.19 | ||
| P/FCF | 46.12 | ||
| P/OCF | 37.38 | ||
| P/B | 12.3 | ||
| P/tB | 12.5 | ||
| EV/EBITDA | 51.11 |
EPS(TTM)12.92
EY2.18%
EPS(NY)16.81
Fwd EY2.83%
FCF(TTM)12.86
FCFY2.17%
OCF(TTM)15.87
OCFY2.67%
SpS41.81
BVpS48.21
TBVpS47.47
PEG (NY)2.11
PEG (5Y)1.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.21% | ||
| ROE | 18.47% | ||
| ROCE | 19.3% | ||
| ROIC | 16.2% | ||
| ROICexc | 38.63% | ||
| ROICexgc | 40.01% | ||
| OM | 23.83% | ||
| PM (TTM) | 21.29% | ||
| GM | 55.29% | ||
| FCFM | 30.77% |
ROA(3y)18.03%
ROA(5y)15.81%
ROE(3y)22.18%
ROE(5y)19.52%
ROIC(3y)19.99%
ROIC(5y)16.69%
ROICexc(3y)35.09%
ROICexc(5y)31.43%
ROICexgc(3y)35.34%
ROICexgc(5y)31.74%
ROCE(3y)23.82%
ROCE(5y)19.88%
ROICexcg growth 3Y-3.46%
ROICexcg growth 5Y-1.44%
ROICexc growth 3Y-3.14%
ROICexc growth 5Y-1.13%
OM growth 3Y10.25%
OM growth 5Y5.95%
PM growth 3Y6.43%
PM growth 5Y5.35%
GM growth 3Y0.54%
GM growth 5Y0.24%
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 | 37.1 |
F-Score5
WACC15.53%
ROIC/WACC1.04
Cap/Depr(3y)211.18%
Cap/Depr(5y)314.56%
Cap/Sales(3y)4.77%
Cap/Sales(5y)7.26%
Profit Quality(3y)90.56%
Profit Quality(5y)102.12%
High Growth Momentum
Growth
EPS 1Y (TTM)7.04%
EPS 3Y32.8%
EPS 5Y25.79%
EPS Q2Q%31.82%
EPS Next Y21.77%
EPS Next 2Y19.46%
EPS Next 3Y21.65%
EPS Next 5Y20.29%
Revenue 1Y (TTM)11.62%
Revenue growth 3Y29.19%
Revenue growth 5Y25.61%
Sales Q2Q%30.59%
Revenue Next Year20.53%
Revenue Next 2Y18.63%
Revenue Next 3Y18.7%
Revenue Next 5Y17.89%
EBIT growth 1Y-5.13%
EBIT growth 3Y42.44%
EBIT growth 5Y33.08%
EBIT Next Year30.36%
EBIT Next 3Y26.03%
EBIT Next 5Y23.8%
FCF growth 1Y294.4%
FCF growth 3Y39.87%
FCF growth 5Y37.3%
OCF growth 1Y247.57%
OCF growth 3Y33.57%
OCF growth 5Y35.16%