MONOLITHIC POWER SYSTEMS INC (MPWR)

US6098391054 - Common Stock

673.14  +6.65 (+1%)

After market: 673.14 0 (0%)

Fundamental Rating

7

Taking everything into account, MPWR scores 7 out of 10 in our fundamental rating. MPWR was compared to 106 industry peers in the Semiconductors & Semiconductor Equipment industry. MPWR gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, MPWR is valued expensive at the moment. With these ratings, MPWR could be worth investigating further for quality investing!.



8

1. Profitability

1.1 Basic Checks

In the past year MPWR was profitable.
MPWR had a positive operating cash flow in the past year.
Each year in the past 5 years MPWR has 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 17.56%. This is amongst the best in the industry. MPWR outperforms 86.79% of its industry peers.
The Return On Equity of MPWR (20.85%) is better than 81.13% of its industry peers.
With an excellent Return On Invested Capital value of 18.38%, MPWR belongs to the best of the industry, outperforming 88.68% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MPWR is significantly above the industry average of 11.68%.
Industry RankSector Rank
ROA 17.56%
ROE 20.85%
ROIC 18.38%
ROA(3y)18.03%
ROA(5y)15.81%
ROE(3y)22.18%
ROE(5y)19.52%
ROIC(3y)19.99%
ROIC(5y)16.69%

1.3 Margins

MPWR has a Profit Margin of 23.47%. This is in the better half of the industry: MPWR outperforms 79.25% of its industry peers.
In the last couple of years the Profit Margin of MPWR has grown nicely.
MPWR has a better Operating Margin (26.45%) than 82.08% of its industry peers.
MPWR's Operating Margin has improved in the last couple of years.
MPWR's Gross Margin of 56.07% is fine compared to the rest of the industry. MPWR outperforms 73.58% 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 26.45%
PM (TTM) 23.47%
GM 56.07%
OM growth 3Y10.25%
OM growth 5Y5.95%
PM growth 3Y6.43%
PM growth 5Y5.35%
GM growth 3Y0.54%
GM growth 5Y0.24%

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.
The number of shares outstanding for MPWR has been increased 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

An Altman-Z score of 53.85 indicates that MPWR is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 53.85, MPWR belongs to the top of the industry, outperforming 97.17% 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 53.85
ROIC/WACC1.63
WACC11.3%

2.3 Liquidity

A Current Ratio of 7.74 indicates that MPWR has no problem at all paying its short term obligations.
MPWR has a Current ratio of 7.74. This is amongst the best in the industry. MPWR outperforms 91.51% of its industry peers.
A Quick Ratio of 6.11 indicates that MPWR has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 6.11, MPWR belongs to the best of the industry, outperforming 90.57% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 7.74
Quick Ratio 6.11

6

3. Growth

3.1 Past

MPWR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.00%.
The Earnings Per Share has been growing by 25.79% on average over the past years. This is a very strong growth
Looking at the last year, MPWR shows a small growth in Revenue. The Revenue has grown by 1.51% in the last year.
MPWR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 25.61% yearly.
EPS 1Y (TTM)-5%
EPS 3Y32.8%
EPS 5Y25.79%
EPS growth Q2Q-9.15%
Revenue 1Y (TTM)1.51%
Revenue growth 3Y29.19%
Revenue growth 5Y25.61%
Revenue growth Q2Q-1.3%

3.2 Future

The Earnings Per Share is expected to grow by 15.55% on average over the next years. This is quite good.
Based on estimates for the next years, MPWR will show a quite strong growth in Revenue. The Revenue will grow by 14.60% on average per year.
EPS Next Y10.85%
EPS Next 2Y18.22%
EPS Next 3Y17.3%
EPS Next 5Y15.55%
Revenue Next Year11.96%
Revenue Next 2Y16.01%
Revenue Next 3Y15.61%
Revenue Next 5Y14.6%

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.

3

4. Valuation

4.1 Price/Earnings Ratio

MPWR is valuated quite expensively with a Price/Earnings ratio of 57.14.
Compared to the rest of the industry, the Price/Earnings ratio of MPWR is on the same level as its industry peers.
When comparing the Price/Earnings ratio of MPWR to the average of the S&P500 Index (26.42), we can say MPWR is valued expensively.
With a Price/Forward Earnings ratio of 51.55, MPWR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MPWR is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.74, MPWR is valued quite expensively.
Industry RankSector Rank
PE 57.14
Fwd PE 51.55

4.2 Price Multiples

MPWR's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, MPWR is valued a bit cheaper than the industry average as 64.15% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 56.41
EV/EBITDA 60.27

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.
MPWR has an outstanding profitability rating, which may justify a higher PE ratio.
MPWR's earnings are expected to grow with 17.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.27
PEG (5Y)2.22
EPS Next 2Y18.22%
EPS Next 3Y17.3%

5

5. Dividend

5.1 Amount

With a yearly dividend of 0.74%, MPWR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.02, MPWR pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.74, MPWR pays less dividend than the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 0.74%

5.2 History

The dividend of MPWR is nicely growing with an annual growth rate of 28.17%!
MPWR has been paying a dividend for at least 10 years, so it has a reliable track record.
MPWR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)28.17%
Div Incr Years6
Div Non Decr Years9

5.3 Sustainability

43.48% of the earnings are spent on dividend by MPWR. This is a bit on the high side, but may be sustainable.
The dividend of MPWR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.48%
EPS Next 2Y18.22%
EPS Next 3Y17.3%

MONOLITHIC POWER SYSTEMS INC

NASDAQ:MPWR (3/27/2024, 8:00:01 PM)

After market: 673.14 0 (0%)

673.14

+6.65 (+1%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap32.75B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.74%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 57.14
Fwd PE 51.55
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.27
PEG (5Y)2.22
Profitability
Industry RankSector Rank
ROA 17.56%
ROE 20.85%
ROCE
ROIC
ROICexc
ROICexgc
OM 26.45%
PM (TTM) 23.47%
GM 56.07%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.75
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 7.74
Quick Ratio 6.11
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-5%
EPS 3Y32.8%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.51%
Revenue growth 3Y29.19%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y