MONOLITHIC POWER SYSTEMS INC (MPWR) Stock Fundamental Analysis
NASDAQ:MPWR - Nasdaq - US6098391054 - Common Stock - Currency: USD
We assign a fundamental rating of 8 out of 10 to MPWR. MPWR was compared to 110 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. This makes MPWR very considerable 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.
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.
1.2 Ratios
MPWR has a better Return On Assets (48.03%) than 98.18% of its industry peers.
MPWR's Return On Equity of 55.95% is amongst the best of the industry. MPWR outperforms 96.36% of its industry peers.
With an excellent Return On Invested Capital value of 15.04%, MPWR belongs to the best of the industry, outperforming 89.09% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MPWR is significantly above the industry average of 10.65%.
The last Return On Invested Capital (15.04%) for MPWR is well below the 3 year average (19.13%), which needs to be investigated, but indicates that MPWR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 48.03% | ||
| ROE | 55.95% | ||
| ROIC | 15.04% |
ROA(3y)29.4%
ROA(5y)23.42%
ROE(3y)34.63%
ROE(5y)28.07%
ROIC(3y)19.13%
ROIC(5y)17.47%
1.3 Margins
With an excellent Profit Margin value of 76.59%, MPWR belongs to the best of the industry, outperforming 99.09% of the companies in the same industry.
In the last couple of years the Profit Margin of MPWR has grown nicely.
The Operating Margin of MPWR (25.67%) is better than 85.45% of its industry peers.
MPWR's Operating Margin has improved in the last couple of years.
MPWR has a better Gross Margin (55.37%) than 75.45% of its industry peers.
In the last couple of years the Gross Margin of MPWR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.67% | ||
| PM (TTM) | 76.59% | ||
| GM | 55.37% |
OM growth 3Y3.22%
OM growth 5Y7.88%
PM growth 3Y59.27%
PM growth 5Y36.11%
GM growth 3Y-0.85%
GM growth 5Y0.06%
2. Health
2.1 Basic Checks
MPWR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
MPWR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MPWR has been increased compared to 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
An Altman-Z score of 41.22 indicates that MPWR is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 41.22, MPWR belongs to the best of the industry, outperforming 94.55% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 41.22 |
ROIC/WACC1.29
WACC11.62%
2.3 Liquidity
MPWR has a Current Ratio of 4.92. This indicates that MPWR is financially healthy and has no problem in meeting its short term obligations.
MPWR's Current ratio of 4.92 is fine compared to the rest of the industry. MPWR outperforms 71.82% of its industry peers.
MPWR has a Quick Ratio of 3.67. This indicates that MPWR is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of MPWR (3.67) is better than 69.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.92 | ||
| Quick Ratio | 3.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.53% over the past year.
MPWR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.50% yearly.
Looking at the last year, MPWR shows a very strong growth in Revenue. The Revenue has grown by 30.57%.
Measured over the past years, MPWR shows a very strong growth in Revenue. The Revenue has been growing by 28.58% on average per year.
EPS 1Y (TTM)32.53%
EPS 3Y23.78%
EPS 5Y29.5%
EPS Q2Q%43.77%
Revenue 1Y (TTM)30.57%
Revenue growth 3Y22.26%
Revenue growth 5Y28.58%
Sales Q2Q%39.24%
3.2 Future
The Earnings Per Share is expected to grow by 18.74% on average over the next years. This is quite good.
MPWR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.77% yearly.
EPS Next Y22.48%
EPS Next 2Y20.37%
EPS Next 3Y18.78%
EPS Next 5Y18.74%
Revenue Next Year21.4%
Revenue Next 2Y18.36%
Revenue Next 3Y16.96%
Revenue Next 5Y16.77%
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
MPWR is valuated quite expensively with a Price/Earnings ratio of 47.22.
The rest of the industry has a similar Price/Earnings ratio as MPWR.
The average S&P500 Price/Earnings ratio is at 27.50. MPWR is valued rather expensively when compared to this.
MPWR is valuated quite expensively with a Price/Forward Earnings ratio of 35.42.
MPWR's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.44. MPWR is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.22 | ||
| Fwd PE | 35.42 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MPWR.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MPWR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.1 | ||
| EV/EBITDA | 51.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MPWR has an outstanding profitability rating, which may justify a higher PE ratio.
MPWR's earnings are expected to grow with 18.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.1
PEG (5Y)1.6
EPS Next 2Y20.37%
EPS Next 3Y18.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.87%, MPWR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.19, MPWR pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.87, MPWR pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
5.2 History
On average, the dividend of MPWR grows each year by 26.28%, 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 for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)26.28%
Div Incr Years7
Div Non Decr Years10
5.3 Sustainability
13.74% of the earnings are spent on dividend by MPWR. This is a low number and sustainable payout ratio.
MPWR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP13.74%
EPS Next 2Y20.37%
EPS Next 3Y18.78%
725.24
+11.67 (+1.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners100.76%
Inst Owner Change-1.56%
Ins Owners3.19%
Ins Owner Change-1.85%
Market Cap34.72B
Analysts80
Price Target807.94 (11.4%)
Short Float %4.98%
Short Ratio3.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend5.02
Dividend Growth(5Y)26.28%
DP13.74%
Div Incr Years7
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.25%
Min EPS beat(2)-1.34%
Max EPS beat(2)0.84%
EPS beat(4)3
Avg EPS beat(4)0.28%
Min EPS beat(4)-1.34%
Max EPS beat(4)1.33%
EPS beat(8)4
Avg EPS beat(8)0.11%
EPS beat(12)5
Avg EPS beat(12)0.52%
EPS beat(16)9
Avg EPS beat(16)1.86%
Revenue beat(2)1
Avg Revenue beat(2)-0.61%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)0.23%
Revenue beat(4)3
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)1.39%
Revenue beat(8)4
Avg Revenue beat(8)-0.39%
Revenue beat(12)5
Avg Revenue beat(12)-0.25%
Revenue beat(16)9
Avg Revenue beat(16)0.33%
PT rev (1m)5.1%
PT rev (3m)-3.57%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)1.92%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)2.43%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.22 | ||
| Fwd PE | 35.42 | ||
| P/S | 14.55 | ||
| P/FCF | 57.1 | ||
| P/OCF | 43.58 | ||
| P/B | 10.63 | ||
| P/tB | 10.75 | ||
| EV/EBITDA | 51.07 |
EPS(TTM)15.36
EY2.12%
EPS(NY)20.47
Fwd EY2.82%
FCF(TTM)12.7
FCFY1.75%
OCF(TTM)16.64
OCFY2.29%
SpS49.85
BVpS68.23
TBVpS67.49
PEG (NY)2.1
PEG (5Y)1.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 48.03% | ||
| ROE | 55.95% | ||
| ROCE | 17.8% | ||
| ROIC | 15.04% | ||
| ROICexc | 21.43% | ||
| ROICexgc | 21.75% | ||
| OM | 25.67% | ||
| PM (TTM) | 76.59% | ||
| GM | 55.37% | ||
| FCFM | 25.48% |
ROA(3y)29.4%
ROA(5y)23.42%
ROE(3y)34.63%
ROE(5y)28.07%
ROIC(3y)19.13%
ROIC(5y)17.47%
ROICexc(3y)29.57%
ROICexc(5y)30.94%
ROICexgc(3y)29.79%
ROICexgc(5y)31.24%
ROCE(3y)22.64%
ROCE(5y)20.68%
ROICexcg growth 3Y-19.58%
ROICexcg growth 5Y-3.44%
ROICexc growth 3Y-19.69%
ROICexc growth 5Y-3.4%
OM growth 3Y3.22%
OM growth 5Y7.88%
PM growth 3Y59.27%
PM growth 5Y36.11%
GM growth 3Y-0.85%
GM growth 5Y0.06%
F-Score5
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 476.04% | ||
| Cap/Sales | 7.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 122.15% | ||
| Profit Quality | 33.27% | ||
| Current Ratio | 4.92 | ||
| Quick Ratio | 3.67 | ||
| Altman-Z | 41.22 |
F-Score5
WACC11.62%
ROIC/WACC1.29
Cap/Depr(3y)281.39%
Cap/Depr(5y)293.09%
Cap/Sales(3y)5.13%
Cap/Sales(5y)5.97%
Profit Quality(3y)70.62%
Profit Quality(5y)86.77%
High Growth Momentum
Growth
EPS 1Y (TTM)32.53%
EPS 3Y23.78%
EPS 5Y29.5%
EPS Q2Q%43.77%
EPS Next Y22.48%
EPS Next 2Y20.37%
EPS Next 3Y18.78%
EPS Next 5Y18.74%
Revenue 1Y (TTM)30.57%
Revenue growth 3Y22.26%
Revenue growth 5Y28.58%
Sales Q2Q%39.24%
Revenue Next Year21.4%
Revenue Next 2Y18.36%
Revenue Next 3Y16.96%
Revenue Next 5Y16.77%
EBIT growth 1Y35.13%
EBIT growth 3Y26.19%
EBIT growth 5Y38.71%
EBIT Next Year31.49%
EBIT Next 3Y20.49%
EBIT Next 5Y21.84%
FCF growth 1Y91.65%
FCF growth 3Y38%
FCF growth 5Y37.66%
OCF growth 1Y122.49%
OCF growth 3Y35.06%
OCF growth 5Y29.52%