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MONOLITHIC POWER SYSTEMS INC (MPWR) Stock Fundamental Analysis

USA - NASDAQ:MPWR - US6098391054 - Common Stock

1007.93 USD
+39.68 (+4.1%)
Last: 10/15/2025, 8:00:01 PM
1008 USD
+0.07 (+0.01%)
After Hours: 10/15/2025, 8:00:01 PM
Fundamental Rating

8

We assign a fundamental rating of 8 out of 10 to MPWR. MPWR was compared to 112 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 is valued quite expensively, but it does show have an excellent growth rating. This makes MPWR very considerable for growth and quality investing!


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

In the past year MPWR was profitable.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

1.2 Ratios

MPWR's Return On Assets of 46.86% is amongst the best of the industry. MPWR outperforms 98.21% of its industry peers.
MPWR has a better Return On Equity (54.71%) than 96.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.56%, MPWR belongs to the top of the industry, outperforming 90.18% of the companies in the same industry.
MPWR had an Average Return On Invested Capital over the past 3 years of 19.13%. This is significantly above the industry average of 10.94%.
Industry RankSector Rank
ROA 46.86%
ROE 54.71%
ROIC 15.56%
ROA(3y)29.4%
ROA(5y)23.42%
ROE(3y)34.63%
ROE(5y)28.07%
ROIC(3y)19.13%
ROIC(5y)17.47%
MPWR Yearly ROA, ROE, ROICMPWR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

1.3 Margins

MPWR's Profit Margin of 73.17% is amongst the best of the industry. MPWR outperforms 99.11% of its industry peers.
In the last couple of years the Profit Margin of MPWR has grown nicely.
Looking at the Operating Margin, with a value of 25.98%, MPWR belongs to the top of the industry, outperforming 84.82% of the companies in the same industry.
In the last couple of years the Operating Margin of MPWR has grown nicely.
MPWR has a better Gross Margin (55.31%) than 76.79% 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 RankSector Rank
OM 25.98%
PM (TTM) 73.17%
GM 55.31%
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%
MPWR Yearly Profit, Operating, Gross MarginsMPWR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

9

2. Health

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.
Compared to 1 year ago, MPWR has less shares outstanding
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.
MPWR Yearly Shares OutstandingMPWR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
MPWR Yearly Total Debt VS Total AssetsMPWR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

An Altman-Z score of 53.37 indicates that MPWR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 53.37, MPWR belongs to the top of the industry, outperforming 95.54% 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 53.37
ROIC/WACC1.35
WACC11.55%
MPWR Yearly LT Debt VS Equity VS FCFMPWR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.3 Liquidity

A Current Ratio of 5.00 indicates that MPWR has no problem at all paying its short term obligations.
With a decent Current ratio value of 5.00, MPWR is doing good in the industry, outperforming 71.43% of the companies in the same industry.
MPWR has a Quick Ratio of 3.72. This indicates that MPWR is financially healthy and has no problem in meeting its short term obligations.
MPWR has a better Quick ratio (3.72) than 70.54% of its industry peers.
Industry RankSector Rank
Current Ratio 5
Quick Ratio 3.72
MPWR Yearly Current Assets VS Current LiabilitesMPWR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

8

3. Growth

3.1 Past

MPWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.35%, 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
The Revenue has grown by 34.30% in the past year. This is a very strong growth!
MPWR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.58% yearly.
EPS 1Y (TTM)37.35%
EPS 3Y23.78%
EPS 5Y29.5%
EPS Q2Q%32.81%
Revenue 1Y (TTM)34.3%
Revenue growth 3Y22.26%
Revenue growth 5Y28.58%
Sales Q2Q%30.97%

3.2 Future

The Earnings Per Share is expected to grow by 16.17% on average over the next years. This is quite good.
The Revenue is expected to grow by 16.79% on average over the next years. This is quite good.
EPS Next Y26.08%
EPS Next 2Y21.07%
EPS Next 3Y20.57%
EPS Next 5Y16.17%
Revenue Next Year25.34%
Revenue Next 2Y20.25%
Revenue Next 3Y18.52%
Revenue Next 5Y16.79%

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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
MPWR Yearly Revenue VS EstimatesMPWR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1B 2B 3B 4B 5B
MPWR Yearly EPS VS EstimatesMPWR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10 20 30 40

3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 61.46 indicates a quite expensive valuation of MPWR.
MPWR's Price/Earnings is on the same level as the industry average.
MPWR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.53.
MPWR is valuated quite expensively with a Price/Forward Earnings ratio of 48.67.
The rest of the industry has a similar Price/Forward Earnings ratio as MPWR.
The average S&P500 Price/Forward Earnings ratio is at 23.04. MPWR is valued rather expensively when compared to this.
Industry RankSector Rank
PE 61.46
Fwd PE 48.67
MPWR Price Earnings VS Forward Price EarningsMPWR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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.
The rest of the industry has a similar Price/Free Cash Flow ratio as MPWR.
Industry RankSector Rank
P/FCF 68.54
EV/EBITDA 66.34
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 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 20.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.36
PEG (5Y)2.08
EPS Next 2Y21.07%
EPS Next 3Y20.57%

5

5. Dividend

5.1 Amount

With a yearly dividend of 0.64%, MPWR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.15, MPWR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, MPWR's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.64%

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
MPWR Yearly Dividends per shareMPWR Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4

5.3 Sustainability

13.87% of the earnings are spent on dividend by MPWR. This is a low number and sustainable payout ratio.
The dividend of MPWR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP13.87%
EPS Next 2Y21.07%
EPS Next 3Y20.57%
MPWR Yearly Income VS Free CF VS DividendMPWR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
MPWR Dividend Payout.MPWR Dividend Payout, showing the Payout Ratio.MPWR Dividend Payout.PayoutRetained Earnings

MONOLITHIC POWER SYSTEMS INC

NASDAQ:MPWR (10/15/2025, 8:00:01 PM)

After market: 1008 +0.07 (+0.01%)

1007.93

+39.68 (+4.1%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)07-31 2025-07-31/amc
Earnings (Next)10-29 2025-10-29/amc
Inst Owners101.47%
Inst Owner Change0.3%
Ins Owners3.03%
Ins Owner Change-6.3%
Market Cap48.27B
Analysts80.8
Price Target861.05 (-14.57%)
Short Float %3.5%
Short Ratio2.9
Dividend
Industry RankSector Rank
Dividend Yield 0.64%
Yearly Dividend5.02
Dividend Growth(5Y)26.28%
DP13.87%
Div Incr Years7
Div Non Decr Years10
Ex-Date09-30 2025-09-30 (1.56)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.51%
Min EPS beat(2)-1.34%
Max EPS beat(2)0.31%
EPS beat(4)3
Avg EPS beat(4)0.02%
Min EPS beat(4)-1.34%
Max EPS beat(4)0.84%
EPS beat(8)5
Avg EPS beat(8)0.31%
EPS beat(12)5
Avg EPS beat(12)-0.14%
EPS beat(16)9
Avg EPS beat(16)1.55%
Revenue beat(2)1
Avg Revenue beat(2)-0.67%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)0.12%
Revenue beat(4)3
Avg Revenue beat(4)0.03%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)1.22%
Revenue beat(8)5
Avg Revenue beat(8)-0.16%
Revenue beat(12)5
Avg Revenue beat(12)-0.65%
Revenue beat(16)9
Avg Revenue beat(16)0.18%
PT rev (1m)0.67%
PT rev (3m)10.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.51%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)2.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.04%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)3.35%
Valuation
Industry RankSector Rank
PE 61.46
Fwd PE 48.67
P/S 18.97
P/FCF 68.54
P/OCF 54.03
P/B 14.19
P/tB 14.34
EV/EBITDA 66.34
EPS(TTM)16.4
EY1.63%
EPS(NY)20.71
Fwd EY2.05%
FCF(TTM)14.71
FCFY1.46%
OCF(TTM)18.66
OCFY1.85%
SpS53.12
BVpS71.04
TBVpS70.3
PEG (NY)2.36
PEG (5Y)2.08
Profitability
Industry RankSector Rank
ROA 46.86%
ROE 54.71%
ROCE 18.41%
ROIC 15.56%
ROICexc 22.86%
ROICexgc 23.19%
OM 25.98%
PM (TTM) 73.17%
GM 55.31%
FCFM 27.69%
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-Score6
Asset Turnover0.64
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 429.23%
Cap/Sales 7.43%
Interest Coverage 250
Cash Conversion 126.74%
Profit Quality 37.84%
Current Ratio 5
Quick Ratio 3.72
Altman-Z 53.37
F-Score6
WACC11.55%
ROIC/WACC1.35
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)37.35%
EPS 3Y23.78%
EPS 5Y29.5%
EPS Q2Q%32.81%
EPS Next Y26.08%
EPS Next 2Y21.07%
EPS Next 3Y20.57%
EPS Next 5Y16.17%
Revenue 1Y (TTM)34.3%
Revenue growth 3Y22.26%
Revenue growth 5Y28.58%
Sales Q2Q%30.97%
Revenue Next Year25.34%
Revenue Next 2Y20.25%
Revenue Next 3Y18.52%
Revenue Next 5Y16.79%
EBIT growth 1Y44.42%
EBIT growth 3Y26.19%
EBIT growth 5Y38.71%
EBIT Next Year36.95%
EBIT Next 3Y21.36%
EBIT Next 5Y22.97%
FCF growth 1Y130.01%
FCF growth 3Y38%
FCF growth 5Y37.66%
OCF growth 1Y160.47%
OCF growth 3Y35.06%
OCF growth 5Y29.52%