MONOLITHIC POWER SYSTEMS INC (MPWR)
US6098391054 - Common Stock
Overall MPWR gets a fundamental rating of 7 out of 10. We evaluated MPWR against 108 industry peers in the Semiconductors & Semiconductor Equipment industry. MPWR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MPWR is valued quite expensively, but it does show have an excellent growth rating. This makes MPWR very considerable 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.
MPWR had positive earnings in each of the past 5 years.
Each year in the past 5 years MPWR had a positive operating cash flow.
1.2 Ratios
MPWR has a better Return On Assets (15.21%) than 86.11% of its industry peers.
MPWR's Return On Equity of 18.47% is amongst the best of the industry. MPWR outperforms 80.56% of its industry peers.
MPWR's Return On Invested Capital of 16.20% is amongst the best of the industry. MPWR outperforms 90.74% of its industry peers.
MPWR had an Average Return On Invested Capital over the past 3 years of 19.99%. This is significantly above the industry average of 11.05%.
| 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
MPWR's Profit Margin of 21.29% is fine compared to the rest of the industry. MPWR outperforms 79.63% of its industry peers.
In the last couple of years the Profit Margin of MPWR has grown nicely.
MPWR's Operating Margin of 23.83% is amongst the best of the industry. MPWR outperforms 84.26% of its industry peers.
MPWR's Operating Margin has improved in the last couple of years.
MPWR's Gross Margin of 55.29% is fine compared to the rest of the industry. MPWR outperforms 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 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
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 more shares outstanding
MPWR has more shares outstanding than it did 5 years ago.
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.
2.2 Solvency
MPWR has an Altman-Z score of 35.17. 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 35.17, MPWR belongs to the top of the industry, outperforming 93.52% 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 | 35.17 |
ROIC/WACC1.1
WACC14.69%
2.3 Liquidity
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 87.96% of its industry peers.
MPWR has a Quick Ratio of 5.16. This indicates that MPWR is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 5.16, MPWR belongs to the best of the industry, outperforming 87.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.42 | ||
| Quick Ratio | 5.16 |
3. Growth
3.1 Past
MPWR shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.04%.
MPWR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.79% yearly.
MPWR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.62%.
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.
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 20.46% yearly.
The Revenue is expected to grow by 17.46% on average over the next years. This is quite good.
EPS Next Y22.16%
EPS Next 2Y21.96%
EPS Next 3Y22.65%
EPS Next 5Y20.46%
Revenue Next Year20.69%
Revenue Next 2Y20.59%
Revenue Next 3Y19.46%
Revenue Next 5Y17.46%
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
With a Price/Earnings ratio of 44.25, MPWR can be considered very expensive at the moment.
MPWR's Price/Earnings ratio is in line with the industry average.
MPWR is valuated expensively when we compare the Price/Earnings ratio to 28.65, which is the current average of the S&P500 Index.
MPWR is valuated quite expensively with a Price/Forward Earnings ratio of 32.63.
The rest of the industry has a similar Price/Forward Earnings ratio as MPWR.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, MPWR is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.25 | ||
| Fwd PE | 32.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MPWR is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, MPWR is valued a bit cheaper than the industry average as 67.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.44 | ||
| EV/EBITDA | 48.01 |
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 22.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)2
PEG (5Y)1.72
EPS Next 2Y21.96%
EPS Next 3Y22.65%
5. Dividend
5.1 Amount
MPWR has a yearly dividend return of 0.87%, which is pretty low.
The stock price of MPWR dropped by -40.18% 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 2.37.
With a Dividend Yield of 0.87, MPWR pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
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.
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
52.81% of the earnings are spent on dividend by MPWR. 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 2Y21.96%
EPS Next 3Y22.65%
MONOLITHIC POWER SYSTEMS INC
NASDAQ:MPWR (11/21/2024, 3:58:05 PM)
571.725
+11.67 (+2.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap27.89B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.25 | ||
| Fwd PE | 32.63 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2
PEG (5Y)1.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.21% | ||
| ROE | 18.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.83% | ||
| PM (TTM) | 21.29% | ||
| GM | 55.29% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.42 | ||
| Quick Ratio | 5.16 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)7.04%
EPS 3Y32.8%
EPS 5Y
EPS Q2Q%
EPS Next Y22.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.62%
Revenue growth 3Y29.19%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y