MONOLITHIC POWER SYSTEMS INC (MPWR) Stock Fundamental Analysis
NASDAQ:MPWR - Nasdaq - US6098391054 - Common Stock - Currency: USD
Overall MPWR gets a fundamental rating of 8 out of 10. We evaluated MPWR against 109 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 valued quite expensive, but it does show an excellent growth. 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.
In the past 5 years MPWR has always been profitable.
MPWR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MPWR has a better Return On Assets (49.40%) than 97.25% of its industry peers.
MPWR has a Return On Equity of 56.80%. This is amongst the best in the industry. MPWR outperforms 96.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.73%, MPWR belongs to the top of the industry, outperforming 86.24% 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 11.32%.
The last Return On Invested Capital (13.73%) 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 | 49.4% | ||
| ROE | 56.8% | ||
| ROIC | 13.73% |
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
MPWR has a better Profit Margin (80.95%) than 99.08% of its industry peers.
In the last couple of years the Profit Margin of MPWR has grown nicely.
The Operating Margin of MPWR (24.46%) is better than 84.40% of its industry peers.
MPWR's Operating Margin has improved in the last couple of years.
The Gross Margin of MPWR (55.32%) is better than 76.15% of its industry peers.
MPWR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.46% | ||
| PM (TTM) | 80.95% | ||
| GM | 55.32% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MPWR is creating 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.
MPWR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
MPWR has an Altman-Z score of 39.15. This indicates that MPWR is financially healthy and has little risk of bankruptcy at the moment.
MPWR has a Altman-Z score of 39.15. This is amongst the best in the industry. MPWR outperforms 96.33% 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 | 39.15 |
ROIC/WACC1.45
WACC9.46%
2.3 Liquidity
A Current Ratio of 5.31 indicates that MPWR has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 5.31, MPWR is in the better half of the industry, outperforming 77.06% of the companies in the same industry.
MPWR has a Quick Ratio of 3.89. This indicates that MPWR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.89, MPWR is in the better half of the industry, outperforming 70.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.31 | ||
| Quick Ratio | 3.89 |
3. Growth
3.1 Past
MPWR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.53%, 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 21.20% 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)32.53%
EPS 3Y23.78%
EPS 5Y29.5%
EPS Q2Q%43.77%
Revenue 1Y (TTM)21.2%
Revenue growth 3Y22.26%
Revenue growth 5Y28.58%
Sales Q2Q%39.24%
3.2 Future
The Earnings Per Share is expected to grow by 19.18% 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 16.81% yearly.
EPS Next Y21.15%
EPS Next 2Y19.74%
EPS Next 3Y19.34%
EPS Next 5Y19.18%
Revenue Next Year19.48%
Revenue Next 2Y17.54%
Revenue Next 3Y17.39%
Revenue Next 5Y16.81%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 41.46 indicates a quite expensive valuation of MPWR.
The rest of the industry has a similar Price/Earnings ratio as MPWR.
Compared to an average S&P500 Price/Earnings ratio of 28.22, MPWR is valued a bit more expensive.
The Price/Forward Earnings ratio is 31.44, which means the current valuation is very expensive for MPWR.
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 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.46 | ||
| Fwd PE | 31.44 |
4.2 Price Multiples
MPWR's Enterprise Value to EBITDA is on the same level as the industry average.
MPWR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.6 | ||
| EV/EBITDA | 48.19 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 19.34% in the coming years.
PEG (NY)1.96
PEG (5Y)1.41
EPS Next 2Y19.74%
EPS Next 3Y19.34%
5. Dividend
5.1 Amount
MPWR has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
MPWR's Dividend Yield is a higher than the industry average which is at 2.76.
With a Dividend Yield of 1.05, MPWR pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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.
As MPWR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)26.28%
Div Incr Years6
Div Non Decr Years9
5.3 Sustainability
MPWR pays out 13.47% of its income as dividend. This is a sustainable payout ratio.
The dividend of MPWR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP13.47%
EPS Next 2Y19.74%
EPS Next 3Y19.34%
636.89
+35.26 (+5.86%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners100.2%
Inst Owner Change1.55%
Ins Owners3.1%
Ins Owner Change-2.14%
Market Cap30.49B
Analysts80
Price Target782.52 (22.87%)
Short Float %5.69%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend5.02
Dividend Growth(5Y)26.28%
DP13.47%
Div Incr Years6
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.55%
Min EPS beat(2)0.27%
Max EPS beat(2)0.84%
EPS beat(4)4
Avg EPS beat(4)1.5%
Min EPS beat(4)0.27%
Max EPS beat(4)3.56%
EPS beat(8)4
Avg EPS beat(8)0.21%
EPS beat(12)6
Avg EPS beat(12)1.16%
EPS beat(16)10
Avg EPS beat(16)2.36%
Revenue beat(2)2
Avg Revenue beat(2)0.73%
Min Revenue beat(2)0.23%
Max Revenue beat(2)1.22%
Revenue beat(4)4
Avg Revenue beat(4)0.86%
Min Revenue beat(4)0.23%
Max Revenue beat(4)1.39%
Revenue beat(8)4
Avg Revenue beat(8)-0.41%
Revenue beat(12)6
Avg Revenue beat(12)0.1%
Revenue beat(16)10
Avg Revenue beat(16)0.59%
PT rev (1m)-8.76%
PT rev (3m)-10.5%
EPS NQ rev (1m)0.17%
EPS NQ rev (3m)10.84%
EPS NY rev (1m)-0.54%
EPS NY rev (3m)1.83%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)8.95%
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)2.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.46 | ||
| Fwd PE | 31.44 | ||
| P/S | 13.81 | ||
| P/FCF | 51.6 | ||
| P/OCF | 38.67 | ||
| P/B | 9.69 | ||
| P/tB | 9.8 | ||
| EV/EBITDA | 48.19 |
EPS(TTM)15.36
EY2.41%
EPS(NY)20.26
Fwd EY3.18%
FCF(TTM)12.34
FCFY1.94%
OCF(TTM)16.47
OCFY2.59%
SpS46.11
BVpS65.71
TBVpS64.97
PEG (NY)1.96
PEG (5Y)1.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 49.4% | ||
| ROE | 56.8% | ||
| ROCE | 16.25% | ||
| ROIC | 13.73% | ||
| ROICexc | 18.54% | ||
| ROICexgc | 18.82% | ||
| OM | 24.46% | ||
| PM (TTM) | 80.95% | ||
| GM | 55.32% | ||
| FCFM | 26.77% |
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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 542.34% | ||
| Cap/Sales | 8.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 136.83% | ||
| Profit Quality | 33.07% | ||
| Current Ratio | 5.31 | ||
| Quick Ratio | 3.89 | ||
| Altman-Z | 39.15 |
F-Score5
WACC9.46%
ROIC/WACC1.45
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 Y21.15%
EPS Next 2Y19.74%
EPS Next 3Y19.34%
EPS Next 5Y19.18%
Revenue 1Y (TTM)21.2%
Revenue growth 3Y22.26%
Revenue growth 5Y28.58%
Sales Q2Q%39.24%
Revenue Next Year19.48%
Revenue Next 2Y17.54%
Revenue Next 3Y17.39%
Revenue Next 5Y16.81%
EBIT growth 1Y12.04%
EBIT growth 3Y26.19%
EBIT growth 5Y38.71%
EBIT Next Year22.84%
EBIT Next 3Y19.97%
EBIT Next 5Y22.4%
FCF growth 1Y1.76%
FCF growth 3Y38%
FCF growth 5Y37.66%
OCF growth 1Y23.53%
OCF growth 3Y35.06%
OCF growth 5Y29.52%