MONOLITHIC POWER SYSTEMS INC (MPWR) Fundamental Analysis & Valuation

NASDAQ:MPWR • US6098391054

Current stock price

1057.55 USD
-0.73 (-0.07%)
Last:

This MPWR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. MPWR Profitability Analysis

1.1 Basic Checks

  • MPWR had positive earnings in the past year.
  • MPWR had a positive operating cash flow in the past year.
  • MPWR had positive earnings in each of the past 5 years.
  • MPWR had a positive operating cash flow in each of the past 5 years.
MPWR Yearly Net Income VS EBIT VS OCF VS FCFMPWR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • With an excellent Return On Assets value of 14.82%, MPWR belongs to the best of the industry, outperforming 88.70% of the companies in the same industry.
  • MPWR has a Return On Equity of 17.60%. This is amongst the best in the industry. MPWR outperforms 83.48% of its industry peers.
  • MPWR's Return On Invested Capital of 15.46% is amongst the best of the industry. MPWR outperforms 88.70% of its industry peers.
  • MPWR had an Average Return On Invested Capital over the past 3 years of 15.47%. This is above the industry average of 10.70%.
Industry RankSector Rank
ROA 14.82%
ROE 17.6%
ROIC 15.46%
ROA(3y)25.46%
ROA(5y)22.58%
ROE(3y)29.69%
ROE(5y)26.95%
ROIC(3y)15.47%
ROIC(5y)17.32%
MPWR Yearly ROA, ROE, ROICMPWR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

1.3 Margins

  • Looking at the Profit Margin, with a value of 22.27%, MPWR belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
  • MPWR's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 26.13%, MPWR belongs to the top of the industry, outperforming 84.35% of the companies in the same industry.
  • In the last couple of years the Operating Margin of MPWR has grown nicely.
  • Looking at the Gross Margin, with a value of 55.18%, MPWR is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
  • MPWR's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 26.13%
PM (TTM) 22.27%
GM 55.18%
OM growth 3Y-4.3%
OM growth 5Y5.77%
PM growth 3Y-2.99%
PM growth 5Y2.73%
GM growth 3Y-1.9%
GM growth 5Y0%
MPWR Yearly Profit, Operating, Gross MarginsMPWR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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8

2. MPWR Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MPWR is still creating some value.
  • MPWR has more 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.
MPWR Yearly Shares OutstandingMPWR Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M
MPWR Yearly Total Debt VS Total AssetsMPWR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B

2.2 Solvency

  • MPWR has an Altman-Z score of 49.69. This indicates that MPWR is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 49.69, MPWR belongs to the best of the industry, outperforming 94.78% of the companies in the same industry.
  • 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.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 49.69
ROIC/WACC1.34
WACC11.56%
MPWR Yearly LT Debt VS Equity VS FCFMPWR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.3 Liquidity

  • MPWR has a Current Ratio of 5.91. This indicates that MPWR is financially healthy and has no problem in meeting its short term obligations.
  • With a decent Current ratio value of 5.91, MPWR is doing good in the industry, outperforming 78.26% of the companies in the same industry.
  • A Quick Ratio of 4.38 indicates that MPWR has no problem at all paying its short term obligations.
  • The Quick ratio of MPWR (4.38) is better than 74.78% of its industry peers.
Industry RankSector Rank
Current Ratio 5.91
Quick Ratio 4.38
MPWR Yearly Current Assets VS Current LiabilitesMPWR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

9

3. MPWR Growth Analysis

3.1 Past

  • MPWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.76%, which is quite impressive.
  • MPWR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 28.71% yearly.
  • MPWR shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.43%.
  • MPWR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.00% yearly.
EPS 1Y (TTM)25.76%
EPS 3Y12.74%
EPS 5Y28.71%
EPS Q2Q%17.11%
Revenue 1Y (TTM)26.43%
Revenue growth 3Y15.86%
Revenue growth 5Y27%
Sales Q2Q%20.83%

3.2 Future

  • Based on estimates for the next years, MPWR will show a very strong growth in Earnings Per Share. The EPS will grow by 21.55% 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 19.00% on average per year.
EPS Next Y23.44%
EPS Next 2Y21.8%
EPS Next 3Y21.74%
EPS Next 5Y21.55%
Revenue Next Year21.84%
Revenue Next 2Y19.68%
Revenue Next 3Y18.43%
Revenue Next 5Y19%

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.
MPWR Yearly Revenue VS EstimatesMPWR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B
MPWR Yearly EPS VS EstimatesMPWR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 20 40 60

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3

4. MPWR Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 59.51, MPWR can be considered very expensive at the moment.
  • MPWR's Price/Earnings ratio is in line with the industry average.
  • When comparing the Price/Earnings ratio of MPWR to the average of the S&P500 Index (25.23), we can say MPWR is valued expensively.
  • Based on the Price/Forward Earnings ratio of 48.21, the valuation of MPWR can be described as expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of MPWR is on the same level as its industry peers.
  • The average S&P500 Price/Forward Earnings ratio is at 22.51. MPWR is valued rather expensively when compared to this.
Industry RankSector Rank
PE 59.51
Fwd PE 48.21
MPWR Price Earnings VS Forward Price EarningsMPWR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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.
  • MPWR's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 78.32
EV/EBITDA 64.7
MPWR Per share dataMPWR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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.
  • 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 21.74% in the coming years.
PEG (NY)2.54
PEG (5Y)2.07
EPS Next 2Y21.8%
EPS Next 3Y21.74%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. MPWR Dividend Analysis

5.1 Amount

  • MPWR has a yearly dividend return of 0.73%, which is pretty low.
  • Compared to an average industry Dividend Yield of 0.50, MPWR pays a better dividend. On top of this MPWR pays more dividend than 82.61% of the companies listed in the same industry.
  • With a Dividend Yield of 0.73, MPWR pays less dividend than the S&P500 average, which is at 1.90.
Industry RankSector Rank
Dividend Yield 0.73%

5.2 History

  • On average, the dividend of MPWR grows each year by 24.18%, 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)24.18%
Div Incr Years7
Div Non Decr Years10
MPWR Yearly Dividends per shareMPWR Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5.3 Sustainability

  • 45.83% of the earnings are spent on dividend by MPWR. This is a bit on the high side, but may be sustainable.
  • The dividend of MPWR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP45.83%
EPS Next 2Y21.8%
EPS Next 3Y21.74%
MPWR Yearly Income VS Free CF VS DividendMPWR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
MPWR Dividend Payout.MPWR Dividend Payout, showing the Payout Ratio.MPWR Dividend Payout.PayoutRetained Earnings

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MPWR Fundamentals: All Metrics, Ratios and Statistics

MONOLITHIC POWER SYSTEMS INC

NASDAQ:MPWR (3/27/2026, 1:27:46 PM)

1057.55

-0.73 (-0.07%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)02-05
Earnings (Next)04-29
Inst Owners102.39%
Inst Owner Change3.54%
Ins Owners3.6%
Ins Owner Change18.97%
Market Cap51.95B
Revenue(TTM)2.79B
Net Income(TTM)621.48M
Analysts83.08
Price Target1339.62 (26.67%)
Short Float %4.38%
Short Ratio3.35
Dividend
Industry RankSector Rank
Dividend Yield 0.73%
Yearly Dividend5.9
Dividend Growth(5Y)24.18%
DP45.83%
Div Incr Years7
Div Non Decr Years10
Ex-Date03-31
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.3%
Min EPS beat(2)-0.6%
Max EPS beat(2)0%
EPS beat(4)1
Avg EPS beat(4)-0.41%
Min EPS beat(4)-1.34%
Max EPS beat(4)0.31%
EPS beat(8)5
Avg EPS beat(8)0.55%
EPS beat(12)5
Avg EPS beat(12)0.01%
EPS beat(16)7
Avg EPS beat(16)0.77%
Revenue beat(2)1
Avg Revenue beat(2)-0.2%
Min Revenue beat(2)-0.47%
Max Revenue beat(2)0.06%
Revenue beat(4)2
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)0.12%
Revenue beat(8)6
Avg Revenue beat(8)0.21%
Revenue beat(12)6
Avg Revenue beat(12)-0.41%
Revenue beat(16)8
Avg Revenue beat(16)-0.03%
PT rev (1m)9.19%
PT rev (3m)9.77%
EPS NQ rev (1m)1.36%
EPS NQ rev (3m)6.61%
EPS NY rev (1m)3.6%
EPS NY rev (3m)3.28%
Revenue NQ rev (1m)1.38%
Revenue NQ rev (3m)6.06%
Revenue NY rev (1m)4.16%
Revenue NY rev (3m)4.04%
Valuation
Industry RankSector Rank
PE 59.51
Fwd PE 48.21
P/S 18.62
P/FCF 78.32
P/OCF 61.97
P/B 14.71
P/tB 14.86
EV/EBITDA 64.7
EPS(TTM)17.77
EY1.68%
EPS(NY)21.94
Fwd EY2.07%
FCF(TTM)13.5
FCFY1.28%
OCF(TTM)17.06
OCFY1.61%
SpS56.81
BVpS71.9
TBVpS71.19
PEG (NY)2.54
PEG (5Y)2.07
Graham Number169.55
Profitability
Industry RankSector Rank
ROA 14.82%
ROE 17.6%
ROCE 19.06%
ROIC 15.46%
ROICexc 23.02%
ROICexgc 23.34%
OM 26.13%
PM (TTM) 22.27%
GM 55.18%
FCFM 23.77%
ROA(3y)25.46%
ROA(5y)22.58%
ROE(3y)29.69%
ROE(5y)26.95%
ROIC(3y)15.47%
ROIC(5y)17.32%
ROICexc(3y)22.39%
ROICexc(5y)28.51%
ROICexgc(3y)22.62%
ROICexgc(5y)28.77%
ROCE(3y)19.07%
ROCE(5y)21.35%
ROICexgc growth 3Y-17.31%
ROICexgc growth 5Y-4.52%
ROICexc growth 3Y-17.51%
ROICexc growth 5Y-4.5%
OM growth 3Y-4.3%
OM growth 5Y5.77%
PM growth 3Y-2.99%
PM growth 5Y2.73%
GM growth 3Y-1.9%
GM growth 5Y0%
F-Score6
Asset Turnover0.67
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 333.14%
Cap/Sales 6.27%
Interest Coverage 250
Cash Conversion 107.25%
Profit Quality 106.72%
Current Ratio 5.91
Quick Ratio 4.38
Altman-Z 49.69
F-Score6
WACC11.56%
ROIC/WACC1.34
Cap/Depr(3y)339.61%
Cap/Depr(5y)301.81%
Cap/Sales(3y)6.13%
Cap/Sales(5y)5.91%
Profit Quality(3y)93.23%
Profit Quality(5y)83.1%
High Growth Momentum
Growth
EPS 1Y (TTM)25.76%
EPS 3Y12.74%
EPS 5Y28.71%
EPS Q2Q%17.11%
EPS Next Y23.44%
EPS Next 2Y21.8%
EPS Next 3Y21.74%
EPS Next 5Y21.55%
Revenue 1Y (TTM)26.43%
Revenue growth 3Y15.86%
Revenue growth 5Y27%
Sales Q2Q%20.83%
Revenue Next Year21.84%
Revenue Next 2Y19.68%
Revenue Next 3Y18.43%
Revenue Next 5Y19%
EBIT growth 1Y35.07%
EBIT growth 3Y10.88%
EBIT growth 5Y34.33%
EBIT Next Year32.22%
EBIT Next 3Y23.17%
EBIT Next 5Y22.36%
FCF growth 1Y12.26%
FCF growth 3Y52.26%
FCF growth 5Y25.6%
OCF growth 1Y6.32%
OCF growth 3Y50.33%
OCF growth 5Y25.63%

MONOLITHIC POWER SYSTEMS INC / MPWR Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for MONOLITHIC POWER SYSTEMS INC?

ChartMill assigns a fundamental rating of 7 / 10 to MPWR.


What is the valuation status for MPWR stock?

ChartMill assigns a valuation rating of 3 / 10 to MONOLITHIC POWER SYSTEMS INC (MPWR). This can be considered as Overvalued.


What is the profitability of MPWR stock?

MONOLITHIC POWER SYSTEMS INC (MPWR) has a profitability rating of 8 / 10.


What is the financial health of MONOLITHIC POWER SYSTEMS INC (MPWR) stock?

The financial health rating of MONOLITHIC POWER SYSTEMS INC (MPWR) is 8 / 10.


Can you provide the dividend sustainability for MPWR stock?

The dividend rating of MONOLITHIC POWER SYSTEMS INC (MPWR) is 5 / 10 and the dividend payout ratio is 45.83%.