MONOLITHIC POWER SYSTEMS INC (MPWR) Stock Fundamental Analysis
NASDAQ:MPWR - Nasdaq - US6098391054 - Common Stock - Currency: USD
We assign a fundamental rating of 8 out of 10 to MPWR. MPWR was compared to 110 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. With these ratings, MPWR could be worth investigating further 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.
Each year in the past 5 years MPWR has been profitable.
Each year in the past 5 years MPWR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MPWR (48.03%) is better than 98.18% of its industry peers.
The Return On Equity of MPWR (55.95%) is better than 96.36% of its industry peers.
MPWR has a better Return On Invested Capital (15.04%) than 89.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MPWR is significantly above the industry average of 10.58%.
The last Return On Invested Capital (15.04%) for MPWR is well below the 3 year average (19.13%), which needs to be investigated, but indicates that MPWR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 48.03% | ||
| ROE | 55.95% | ||
| ROIC | 15.04% |
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
MPWR has a better Profit Margin (76.59%) than 99.09% 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 25.67%, MPWR belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.
In the last couple of years the Operating Margin of MPWR has grown nicely.
MPWR has a Gross Margin of 55.37%. This is in the better half of the industry: MPWR outperforms 75.45% of its industry peers.
MPWR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.67% | ||
| PM (TTM) | 76.59% | ||
| GM | 55.37% |
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) well above the Cost of Capital (WACC), MPWR is creating value.
MPWR has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 41.54 indicates that MPWR is not in any danger for bankruptcy at the moment.
MPWR has a better Altman-Z score (41.54) than 95.45% of its industry peers.
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 | 41.54 |
ROIC/WACC1.49
WACC10.09%
2.3 Liquidity
A Current Ratio of 4.92 indicates that MPWR has no problem at all paying its short term obligations.
The Current ratio of MPWR (4.92) is better than 71.82% of its industry peers.
A Quick Ratio of 3.67 indicates that MPWR has no problem at all paying its short term obligations.
MPWR has a better Quick ratio (3.67) than 69.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.92 | ||
| Quick Ratio | 3.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.53% over the past year.
MPWR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.50% yearly.
The Revenue has grown by 30.57% in the past year. This is a very strong growth!
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)32.53%
EPS 3Y23.78%
EPS 5Y29.5%
EPS Q2Q%43.77%
Revenue 1Y (TTM)30.57%
Revenue growth 3Y22.26%
Revenue growth 5Y28.58%
Sales Q2Q%39.24%
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 18.74% 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 16.77% on average per year.
EPS Next Y22.45%
EPS Next 2Y20.34%
EPS Next 3Y18.78%
EPS Next 5Y18.74%
Revenue Next Year21.27%
Revenue Next 2Y18.26%
Revenue Next 3Y16.96%
Revenue Next 5Y16.77%
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
The Price/Earnings ratio is 48.63, which means the current valuation is very expensive for MPWR.
Compared to the rest of the industry, the Price/Earnings ratio of MPWR is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.21, MPWR is valued quite expensively.
With a Price/Forward Earnings ratio of 36.50, MPWR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MPWR is on the same level as its industry peers.
MPWR is valuated expensively when we compare the Price/Forward Earnings ratio to 21.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.63 | ||
| Fwd PE | 36.5 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MPWR.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MPWR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.81 | ||
| EV/EBITDA | 51.52 |
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 18.78% in the coming years.
PEG (NY)2.17
PEG (5Y)1.65
EPS Next 2Y20.34%
EPS Next 3Y18.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.85%, MPWR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.28, MPWR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, MPWR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
On average, the dividend of MPWR grows each year by 26.28%, which is quite nice.
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
13.74% 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.
DP13.74%
EPS Next 2Y20.34%
EPS Next 3Y18.78%
746.97
+15.59 (+2.13%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners100.76%
Inst Owner Change2.69%
Ins Owners3.19%
Ins Owner Change-1.47%
Market Cap35.76B
Analysts80
Price Target777.74 (4.12%)
Short Float %4.1%
Short Ratio2.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
Yearly Dividend5.02
Dividend Growth(5Y)26.28%
DP13.74%
Div Incr Years7
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.25%
Min EPS beat(2)-1.34%
Max EPS beat(2)0.84%
EPS beat(4)3
Avg EPS beat(4)0.28%
Min EPS beat(4)-1.34%
Max EPS beat(4)1.33%
EPS beat(8)4
Avg EPS beat(8)0.11%
EPS beat(12)5
Avg EPS beat(12)0.52%
EPS beat(16)9
Avg EPS beat(16)1.86%
Revenue beat(2)1
Avg Revenue beat(2)-0.61%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)0.23%
Revenue beat(4)3
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)1.39%
Revenue beat(8)4
Avg Revenue beat(8)-0.39%
Revenue beat(12)5
Avg Revenue beat(12)-0.25%
Revenue beat(16)9
Avg Revenue beat(16)0.33%
PT rev (1m)1.2%
PT rev (3m)-9.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.11%
EPS NY rev (1m)0.08%
EPS NY rev (3m)1.09%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)3.5%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.63 | ||
| Fwd PE | 36.5 | ||
| P/S | 14.98 | ||
| P/FCF | 58.81 | ||
| P/OCF | 44.89 | ||
| P/B | 10.95 | ||
| P/tB | 11.07 | ||
| EV/EBITDA | 51.52 |
EPS(TTM)15.36
EY2.06%
EPS(NY)20.46
Fwd EY2.74%
FCF(TTM)12.7
FCFY1.7%
OCF(TTM)16.64
OCFY2.23%
SpS49.85
BVpS68.23
TBVpS67.49
PEG (NY)2.17
PEG (5Y)1.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 48.03% | ||
| ROE | 55.95% | ||
| ROCE | 17.8% | ||
| ROIC | 15.04% | ||
| ROICexc | 21.43% | ||
| ROICexgc | 21.75% | ||
| OM | 25.67% | ||
| PM (TTM) | 76.59% | ||
| GM | 55.37% | ||
| FCFM | 25.48% |
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-Score5
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 476.04% | ||
| Cap/Sales | 7.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 122.15% | ||
| Profit Quality | 33.27% | ||
| Current Ratio | 4.92 | ||
| Quick Ratio | 3.67 | ||
| Altman-Z | 41.54 |
F-Score5
WACC10.09%
ROIC/WACC1.49
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)32.53%
EPS 3Y23.78%
EPS 5Y29.5%
EPS Q2Q%43.77%
EPS Next Y22.45%
EPS Next 2Y20.34%
EPS Next 3Y18.78%
EPS Next 5Y18.74%
Revenue 1Y (TTM)30.57%
Revenue growth 3Y22.26%
Revenue growth 5Y28.58%
Sales Q2Q%39.24%
Revenue Next Year21.27%
Revenue Next 2Y18.26%
Revenue Next 3Y16.96%
Revenue Next 5Y16.77%
EBIT growth 1Y35.13%
EBIT growth 3Y26.19%
EBIT growth 5Y38.71%
EBIT Next Year31.49%
EBIT Next 3Y20.49%
EBIT Next 5Y21.84%
FCF growth 1Y91.65%
FCF growth 3Y38%
FCF growth 5Y37.66%
OCF growth 1Y122.49%
OCF growth 3Y35.06%
OCF growth 5Y29.52%