MONOLITHIC POWER SYSTEMS INC (MPWR) Stock Fundamental Analysis
NASDAQ:MPWR - Nasdaq - US6098391054 - Common Stock
Overall MPWR gets a fundamental rating of 8 out of 10. We evaluated MPWR against 109 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.
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
MPWR has a Return On Assets of 15.21%. This is amongst the best in the industry. MPWR outperforms 86.11% of its industry peers.
Looking at the Return On Equity, with a value of 18.47%, MPWR belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
The Return On Invested Capital of MPWR (16.20%) is better than 89.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MPWR is significantly above the industry average of 11.96%.
| 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 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.
MPWR has a Operating Margin of 23.83%. This is amongst the best in the industry. MPWR outperforms 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MPWR 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 38.99. This indicates that MPWR is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 38.99, MPWR belongs to the best 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 | 38.99 |
ROIC/WACC1.1
WACC14.74%
2.3 Liquidity
A Current Ratio of 6.42 indicates that MPWR has no problem at all paying its short term obligations.
MPWR has a better Current ratio (6.42) 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.
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
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.
Looking at the last year, MPWR shows a quite strong growth in Revenue. The Revenue has grown by 11.62% in the last year.
The Revenue has been growing by 25.61% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 20.29% on average over the next years. This is a very strong growth
MPWR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.89% yearly.
EPS Next Y21.77%
EPS Next 2Y19.46%
EPS Next 3Y21.65%
EPS Next 5Y20.29%
Revenue Next Year20.53%
Revenue Next 2Y18.81%
Revenue Next 3Y18.85%
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.
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 49.42, which means the current valuation is very expensive for MPWR.
MPWR's Price/Earnings ratio is in line with the industry average.
MPWR is valuated expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 37.98, MPWR can be considered very expensive at the moment.
MPWR's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.44. MPWR is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.42 | ||
| Fwd PE | 37.98 |
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 69.44% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.64 | ||
| EV/EBITDA | 54.15 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of MPWR 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)2.27
PEG (5Y)1.92
EPS Next 2Y19.46%
EPS Next 3Y21.65%
5. Dividend
5.1 Amount
With a yearly dividend of 0.84%, MPWR is not a good candidate for dividend investing.
The stock price of MPWR dropped by -29.16% 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.
Compared to an average industry Dividend Yield of 2.28, MPWR pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.84, MPWR pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
5.2 History
On average, the dividend of MPWR grows each year by 28.17%, which is quite nice.
MPWR has been paying a dividend for at least 10 years, so it has 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
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 2Y19.46%
EPS Next 3Y21.65%
MONOLITHIC POWER SYSTEMS INC
NASDAQ:MPWR (1/21/2025, 6:07:26 PM)
After market: 638.49 0 (0%)638.49
+12.67 (+2.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.89%
Inst Owner Change-0.29%
Ins Owners3.2%
Ins Owner Change-6.09%
Market Cap31.15B
Analysts78.18
Price Target874.33 (36.94%)
Short Float %6.06%
Short Ratio2.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Yearly Dividend3.91
Dividend Growth(5Y)28.17%
DP52.81%
Div Incr Years6
Div Non Decr Years9
Ex-DateN/A
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)-1.2%
PT rev (3m)-11.01%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.94%
EPS NY rev (1m)0%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.42 | ||
| Fwd PE | 37.98 | ||
| P/S | 15.27 | ||
| P/FCF | 49.64 | ||
| P/OCF | 40.24 | ||
| P/B | 13.24 | ||
| P/tB | 13.45 | ||
| EV/EBITDA | 54.15 |
EPS(TTM)12.92
EY2.02%
EPS(NY)16.81
Fwd EY2.63%
FCF(TTM)12.86
FCFY2.01%
OCF(TTM)15.87
OCFY2.49%
SpS41.81
BVpS48.21
TBVpS47.47
PEG (NY)2.27
PEG (5Y)1.92
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 | 38.99 |
F-Score5
WACC14.74%
ROIC/WACC1.1
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 2Y18.81%
Revenue Next 3Y18.85%
Revenue Next 5Y17.89%
EBIT growth 1Y-5.13%
EBIT growth 3Y42.44%
EBIT growth 5Y33.08%
EBIT Next Year30.11%
EBIT Next 3Y24.81%
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%