MONOLITHIC POWER SYSTEMS INC (MPWR) Stock Fundamental Analysis
USA - NASDAQ:MPWR - US6098391054 - Common Stock
958.26 USD
+0.19 (+0.02%)
958.28 USD
0.02 (0%)
Taking everything into account, MPWR scores 8 out of 10 in our fundamental rating. 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. These ratings could make MPWR a good candidate 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.
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 Return On Assets of 46.86%. This is amongst the best in the industry. MPWR outperforms 98.21% of its industry peers.
MPWR has a better Return On Equity (54.71%) than 95.54% of its industry peers.
With an excellent Return On Invested Capital value of 15.56%, MPWR belongs to the best of the industry, outperforming 89.29% 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 11.09%.
| 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
Looking at the Profit Margin, with a value of 73.17%, MPWR belongs to the top of the industry, outperforming 99.11% of the companies in the same industry.
In the last couple of years the Profit Margin of MPWR has grown nicely.
MPWR has a Operating Margin of 25.98%. This is amongst the best in the industry. MPWR outperforms 84.82% of its industry peers.
MPWR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 55.31%, MPWR is in the better half of the industry, outperforming 76.79% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MPWR 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 50.87 indicates that MPWR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 50.87, MPWR belongs to the top of the industry, outperforming 94.64% 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 | 50.87 |
ROIC/WACC1.32
WACC11.79%
2.3 Liquidity
MPWR has a Current Ratio of 5.00. This indicates that MPWR is financially healthy and has no problem in meeting its short term obligations.
MPWR has a better Current ratio (5.00) than 72.32% of its industry peers.
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's Quick ratio of 3.72 is fine compared to the rest of the industry. MPWR outperforms 72.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5 | ||
| Quick Ratio | 3.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.12% over the past year.
Measured over the past years, MPWR shows a very strong growth in Earnings Per Share. The EPS has been growing by 29.50% on average per year.
The Revenue has grown by 30.48% in the past year. This is a very strong growth!
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
Based on estimates for the next years, MPWR will show a very strong growth in Earnings Per Share. The EPS will grow by 20.01% on average per year.
Based on estimates for the next years, MPWR will show a quite strong growth in Revenue. The Revenue will grow by 18.53% on average per year.
EPS Next Y27.7%
EPS Next 2Y22.28%
EPS Next 3Y20.95%
EPS Next 5Y20.01%
Revenue Next Year26.54%
Revenue Next 2Y21.58%
Revenue Next 3Y19.5%
Revenue Next 5Y18.53%
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.
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
The Price/Earnings ratio is 56.14, which means the current valuation is very expensive for MPWR.
Compared to the rest of the industry, the Price/Earnings ratio of MPWR is on the same level as its industry peers.
MPWR's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.06.
The Price/Forward Earnings ratio is 45.36, which means the current valuation is very expensive for MPWR.
The rest of the industry has a similar Price/Forward Earnings ratio as MPWR.
The average S&P500 Price/Forward Earnings ratio is at 32.73. MPWR is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.14 | ||
| Fwd PE | 45.36 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MPWR.
Based on the Price/Free Cash Flow ratio, MPWR is valued a bit cheaper than the industry average as 60.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 65.16 | ||
| EV/EBITDA | 62.97 |
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.
A more expensive valuation may be justified as MPWR's earnings are expected to grow with 20.95% in the coming years.
PEG (NY)2.03
PEG (5Y)1.9
EPS Next 2Y22.28%
EPS Next 3Y20.95%
5. Dividend
5.1 Amount
With a yearly dividend of 0.65%, MPWR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.14, MPWR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, MPWR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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 2Y22.28%
EPS Next 3Y20.95%
958.26
+0.19 (+0.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.47%
Inst Owner Change0.15%
Ins Owners3.03%
Ins Owner Change17.4%
Market Cap45.89B
Revenue(TTM)2.66B
Net Income(TTM)1.86B
Analysts82.4
Price Target1042.16 (8.76%)
Short Float %4.06%
Short Ratio3.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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)21.03%
PT rev (3m)21.84%
EPS NQ rev (1m)0.67%
EPS NQ rev (3m)6.87%
EPS NY rev (1m)1.29%
EPS NY rev (3m)4.27%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)6.52%
Revenue NY rev (1m)0.96%
Revenue NY rev (3m)4.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.14 | ||
| Fwd PE | 45.36 | ||
| P/S | 18.04 | ||
| P/FCF | 65.16 | ||
| P/OCF | 51.37 | ||
| P/B | 13.49 | ||
| P/tB | 13.63 | ||
| EV/EBITDA | 62.97 |
EPS(TTM)17.07
EY1.78%
EPS(NY)21.13
Fwd EY2.2%
FCF(TTM)14.71
FCFY1.53%
OCF(TTM)18.66
OCFY1.95%
SpS53.12
BVpS71.04
TBVpS70.3
PEG (NY)2.03
PEG (5Y)1.9
Graham Number165.18
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%
ROICexgc growth 3Y-19.58%
ROICexgc 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 | 50.87 |
F-Score6
WACC11.79%
ROIC/WACC1.32
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)32.12%
EPS 3Y23.78%
EPS 5Y29.5%
EPS Q2Q%16.5%
EPS Next Y27.7%
EPS Next 2Y22.28%
EPS Next 3Y20.95%
EPS Next 5Y20.01%
Revenue 1Y (TTM)30.48%
Revenue growth 3Y22.26%
Revenue growth 5Y28.58%
Sales Q2Q%18.88%
Revenue Next Year26.54%
Revenue Next 2Y21.58%
Revenue Next 3Y19.5%
Revenue Next 5Y18.53%
EBIT growth 1Y44.42%
EBIT growth 3Y26.19%
EBIT growth 5Y38.71%
EBIT Next Year36.95%
EBIT Next 3Y21.36%
EBIT Next 5Y23.09%
FCF growth 1Y130.01%
FCF growth 3Y38%
FCF growth 5Y37.66%
OCF growth 1Y160.47%
OCF growth 3Y35.06%
OCF growth 5Y29.52%
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 of MONOLITHIC POWER SYSTEMS INC (MPWR) stock?
ChartMill assigns a valuation rating of 3 / 10 to MONOLITHIC POWER SYSTEMS INC (MPWR). This can be considered as Overvalued.
How profitable is MONOLITHIC POWER SYSTEMS INC (MPWR) stock?
MONOLITHIC POWER SYSTEMS INC (MPWR) has a profitability rating of 9 / 10.
What is the valuation of MONOLITHIC POWER SYSTEMS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MONOLITHIC POWER SYSTEMS INC (MPWR) is 56.14 and the Price/Book (PB) ratio is 13.49.
Is the dividend of MONOLITHIC POWER SYSTEMS INC sustainable?
The dividend rating of MONOLITHIC POWER SYSTEMS INC (MPWR) is 6 / 10 and the dividend payout ratio is 13.87%.