1124.15 USD
-59 (-4.99%)
At close: Jan 30, 2026
1122 USD
-2.15 (-0.19%)
After Hours: 1/30/2026, 8:07:14 PM
Taking everything into account, MPWR scores 8 out of 10 in our fundamental rating. MPWR was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. MPWR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MPWR shows excellent growth, but is valued quite expensive already. This makes MPWR very considerable for growth and quality investing!
1. Profitability
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.
1.2 Ratios
- MPWR has a Return On Assets of 45.05%. This is amongst the best in the industry. MPWR outperforms 99.11% of its industry peers.
- The Return On Equity of MPWR (53.12%) is better than 95.58% of its industry peers.
- The Return On Invested Capital of MPWR (15.53%) is better than 90.27% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for MPWR is significantly above the industry average of 10.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 45.05% | ||
| ROE | 53.12% | ||
| ROIC | 15.53% |
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
- Looking at the Profit Margin, with a value of 71.22%, MPWR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- MPWR's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 26.01%, MPWR belongs to the best of the industry, outperforming 84.07% of the companies in the same industry.
- In the last couple of years the Operating Margin of MPWR has grown nicely.
- With a decent Gross Margin value of 55.24%, MPWR is doing good in the industry, outperforming 75.22% of the companies in the same industry.
- MPWR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.01% | ||
| PM (TTM) | 71.22% | ||
| GM | 55.24% |
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.
- The number of shares outstanding for MPWR has been reduced compared to 1 year ago.
- MPWR has more shares outstanding than it did 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
- MPWR has an Altman-Z score of 55.82. This indicates that MPWR is financially healthy and has little risk of bankruptcy at the moment.
- MPWR has a better Altman-Z score (55.82) than 95.58% of its industry peers.
- 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 | 55.82 |
ROIC/WACC1.42
WACC10.95%
2.3 Liquidity
- A Current Ratio of 4.77 indicates that MPWR has no problem at all paying its short term obligations.
- MPWR has a better Current ratio (4.77) than 70.80% of its industry peers.
- MPWR has a Quick Ratio of 3.63. This indicates that MPWR is financially healthy and has no problem in meeting its short term obligations.
- With a decent Quick ratio value of 3.63, MPWR is doing good in the industry, outperforming 69.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.77 | ||
| Quick Ratio | 3.63 |
3. Growth
3.1 Past
- MPWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.12%, which is quite impressive.
- The Earnings Per Share has been growing by 29.50% on average over the past years. This is a very strong growth
- MPWR shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.48%.
- The Revenue has been growing by 28.58% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)32.12%
EPS 3Y23.78%
EPS 5Y29.5%
EPS Q2Q%16.5%
Revenue 1Y (TTM)30.48%
Revenue growth 3Y22.26%
Revenue growth 5Y28.58%
Sales Q2Q%18.88%
3.2 Future
- The Earnings Per Share is expected to grow by 20.01% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 18.53% on average over the next years. This is quite good.
EPS Next Y27.65%
EPS Next 2Y22.41%
EPS Next 3Y21.13%
EPS Next 5Y20.01%
Revenue Next Year26.63%
Revenue Next 2Y21.71%
Revenue Next 3Y19.86%
Revenue Next 5Y18.53%
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
- A Price/Earnings ratio of 65.86 indicates a quite expensive valuation of MPWR.
- Compared to the rest of the industry, the Price/Earnings ratio of MPWR is on the same level as its industry peers.
- MPWR is valuated expensively when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 53.09, the valuation of MPWR can be described as expensive.
- MPWR's Price/Forward Earnings is on the same level as the industry average.
- MPWR is valuated expensively when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.86 | ||
| Fwd PE | 53.09 |
4.2 Price Multiples
- MPWR's Enterprise Value to EBITDA ratio is in line with the industry average.
- 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 | 76.65 | ||
| EV/EBITDA | 74.6 |
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.
- MPWR's earnings are expected to grow with 21.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.38
PEG (5Y)2.23
EPS Next 2Y22.41%
EPS Next 3Y21.13%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.53%, MPWR is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.50, MPWR pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, MPWR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
5.2 History
- The dividend of MPWR is nicely growing with an annual growth rate of 26.28%!
- MPWR has paid a dividend for at least 10 years, which is a reliable track record.
- MPWR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)26.28%
Div Incr Years7
Div Non Decr Years10
5.3 Sustainability
- MPWR pays out 14.34% of its income as dividend. This is a sustainable payout ratio.
- MPWR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP14.34%
EPS Next 2Y22.41%
EPS Next 3Y21.13%
MONOLITHIC POWER SYSTEMS INC / MPWR FAQ
Can you provide the ChartMill fundamental rating for MONOLITHIC POWER SYSTEMS INC?
ChartMill assigns a fundamental rating of 8 / 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 9 / 10.
What is the financial health of MONOLITHIC POWER SYSTEMS INC (MPWR) stock?
The financial health rating of MONOLITHIC POWER SYSTEMS INC (MPWR) is 9 / 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 14.34%.