MONOLITHIC POWER SYSTEMS INC (MPWR) Stock Fundamental Analysis
USA - NASDAQ:MPWR - US6098391054 - Common Stock
1007.93 USD
+39.68 (+4.1%)
1008 USD
+0.07 (+0.01%)
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!
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.
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 Rank | Sector 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%
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 53.37 |
ROIC/WACC1.35
WACC11.55%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5 | ||
| Quick Ratio | 3.72 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.46 | ||
| Fwd PE | 48.67 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.54 | ||
| EV/EBITDA | 66.34 |
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. 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 Rank | Sector 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
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%
1007.93
+39.68 (+4.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend5.02
Dividend Growth(5Y)26.28%
DP13.87%
Div Incr Years7
Div Non Decr Years10
Ex-Date
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%