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Is NASDAQ:MPWR a Suitable Choice for Quality Investing?

By Mill Chart

Last update: Jul 11, 2024

In this article we will dive into MONOLITHIC POWER SYSTEMS INC (NASDAQ:MPWR) as a possible candidate for quality investing. Investors should always do their own research, but we noticed MONOLITHIC POWER SYSTEMS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

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Highlighting Notable Quality Metrics of NASDAQ:MPWR.

  • MONOLITHIC POWER SYSTEMS INC has demonstrated significant revenue growth over the past 5 years, with a 25.61% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • With a notable ROIC excluding cash and goodwill at 40.29%, MONOLITHIC POWER SYSTEMS INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • The Debt/Free Cash Flow Ratio of MONOLITHIC POWER SYSTEMS INC stands at 0.0, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • MONOLITHIC POWER SYSTEMS INC exhibits impressive Profit Quality (5-year) with a 102.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • MONOLITHIC POWER SYSTEMS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 33.08%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • MONOLITHIC POWER SYSTEMS INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

How does the complete fundamental picture look for NASDAQ:MPWR?

ChartMill assigns a Fundamental Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to MPWR. MPWR was compared to 107 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 valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, MPWR could be worth investigating further for quality investing!.

For an up to date full fundamental analysis you can check the fundamental report of MPWR

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

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.



NASDAQ:MPWR (7/10/2024, 7:16:01 PM)

After market: 860.81 0 (0%)


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