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Should Quality Investors Include NASDAQ:MPWR in Their Portfolio?

By Mill Chart

Last update: Feb 9, 2024

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if MONOLITHIC POWER SYSTEMS INC (NASDAQ:MPWR) is suited for quality investing. Investors should of course do their own research, but we spotted MONOLITHIC POWER SYSTEMS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Highlighting Notable Quality Metrics of NASDAQ:MPWR.

  • Over the past 5 years, MONOLITHIC POWER SYSTEMS INC has experienced impressive revenue growth, with 30.67% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • The ROIC excluding cash and goodwill of MONOLITHIC POWER SYSTEMS INC stands at 42.88%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • With a favorable Debt/Free Cash Flow Ratio of 0.0, MONOLITHIC POWER SYSTEMS INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • The Profit Quality (5-year) of MONOLITHIC POWER SYSTEMS INC stands at 97.55%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • MONOLITHIC POWER SYSTEMS INC has consistently achieved strong EBIT growth over the past 5 years, with a 46.74% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • MONOLITHIC POWER SYSTEMS INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

What else is there to say on the fundamentals of NASDAQ:MPWR?

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

MPWR gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 106 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the health and profitability get an excellent rating, making MPWR a very profitable company, without any liquidiy or solvency issues. MPWR shows excellent growth, but is valued quite expensive already. This makes MPWR very considerable for growth and quality investing!

Our latest full fundamental report of MPWR contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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MONOLITHIC POWER SYSTEMS INC

NASDAQ:MPWR (5/29/2024, 7:18:32 PM)

After market: 744.76 -1.64 (-0.22%)

746.4

-13.18 (-1.74%)

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