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MONOLITHIC POWER SYSTEMS INC (MPWR) Stock Fundamental Analysis

NASDAQ:MPWR - Nasdaq - US6098391054 - Common Stock - Currency: USD

662.18  -10.02 (-1.49%)

After market: 662.18 0 (0%)

Fundamental Rating

8

Taking everything into account, MPWR scores 8 out of 10 in our fundamental rating. MPWR was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. MPWR scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MPWR is valued quite expensive, but it does show an excellent growth. With these ratings, MPWR could be worth investigating further for growth and quality investing!.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

MPWR had positive earnings in the past year.
In the past year MPWR had a positive cash flow from operations.
MPWR had positive earnings in each of the past 5 years.
In the past 5 years MPWR always reported a positive cash flow from operatings.
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 49.40% is amongst the best of the industry. MPWR outperforms 97.27% of its industry peers.
MPWR has a better Return On Equity (56.80%) than 96.36% of its industry peers.
With an excellent Return On Invested Capital value of 13.73%, MPWR belongs to the best of the industry, outperforming 85.45% 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 11.17%.
The 3 year average ROIC (19.13%) for MPWR is well above the current ROIC(13.73%). The reason for the recent decline needs to be investigated.
Industry RankSector 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%
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

The Profit Margin of MPWR (80.95%) is better than 99.09% of its industry peers.
MPWR's Profit Margin has improved in the last couple of years.
MPWR's Operating Margin of 24.46% is amongst the best of the industry. MPWR outperforms 85.45% of its industry peers.
In the last couple of years the Operating Margin of MPWR has grown nicely.
Looking at the Gross Margin, with a value of 55.32%, MPWR is in the better half of the industry, outperforming 75.45% 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 RankSector 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%
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.
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.
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 43.45 indicates that MPWR is not in any danger for bankruptcy at the moment.
MPWR has a Altman-Z score of 43.45. This is amongst the best in the industry. MPWR outperforms 96.36% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 43.45
ROIC/WACC1.19
WACC11.49%
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 5.31 indicates that MPWR has no problem at all paying its short term obligations.
With an excellent Current ratio value of 5.31, MPWR belongs to the best of the industry, outperforming 80.91% of the companies in the same industry.
A Quick Ratio of 3.89 indicates that MPWR has no problem at all paying its short term obligations.
MPWR's Quick ratio of 3.89 is fine compared to the rest of the industry. MPWR outperforms 71.82% of its industry peers.
Industry RankSector Rank
Current Ratio 5.31
Quick Ratio 3.89
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

The Earnings Per Share has grown by an impressive 32.53% over the past year.
The Earnings Per Share has been growing by 29.50% on average over the past years. This is a very strong growth
MPWR shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.57%.
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)30.57%
Revenue growth 3Y22.26%
Revenue growth 5Y28.58%
Sales Q2Q%39.24%

3.2 Future

Based on estimates for the next years, MPWR will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.18% on average per year.
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 Y22.36%
EPS Next 2Y20.17%
EPS Next 3Y18.45%
EPS Next 5Y19.18%
Revenue Next Year21.18%
Revenue Next 2Y18.05%
Revenue Next 3Y16.57%
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.
MPWR Yearly Revenue VS EstimatesMPWR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2B 4B 6B
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

2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 43.11 indicates a quite expensive valuation of MPWR.
Compared to the rest of the industry, the Price/Earnings ratio of MPWR is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 25.91, MPWR is valued quite expensively.
The Price/Forward Earnings ratio is 32.45, 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 21.85. MPWR is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 43.11
Fwd PE 32.45
MPWR Price Earnings VS Forward Price EarningsMPWR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

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.
MPWR's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 53.65
EV/EBITDA 54.05
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 MPWR does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of MPWR may justify a higher PE ratio.
MPWR's earnings are expected to grow with 18.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.93
PEG (5Y)1.46
EPS Next 2Y20.17%
EPS Next 3Y18.45%

5

5. Dividend

5.1 Amount

MPWR has a yearly dividend return of 0.88%, which is pretty low.
Compared to an average industry Dividend Yield of 2.41, MPWR pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.88, MPWR pays less dividend than the S&P500 average, which is at 2.36.
Industry RankSector Rank
Dividend Yield 0.88%

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.
MPWR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)26.28%
Div Incr Years6
Div Non Decr Years9
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

13.47% of the earnings are spent on dividend by MPWR. This is a low number and sustainable payout ratio.
MPWR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP13.47%
EPS Next 2Y20.17%
EPS Next 3Y18.45%
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 (5/23/2025, 4:30:01 PM)

After market: 662.18 0 (0%)

662.18

-10.02 (-1.49%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)05-01 2025-05-01/amc
Earnings (Next)07-30 2025-07-30/amc
Inst Owners100.2%
Inst Owner Change2.63%
Ins Owners3.1%
Ins Owner Change-1.63%
Market Cap31.70B
Analysts80
Price Target768.48 (16.05%)
Short Float %4.38%
Short Ratio1.96
Dividend
Industry RankSector Rank
Dividend Yield 0.88%
Yearly Dividend5.02
Dividend Growth(5Y)26.28%
DP13.47%
Div Incr Years6
Div Non Decr Years9
Ex-Date03-31 2025-03-31 (1.56)
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)-8.28%
PT rev (3m)-8.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.11%
EPS NY rev (1m)1%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.43%
Revenue NY rev (1m)1.04%
Revenue NY rev (3m)3.75%
Valuation
Industry RankSector Rank
PE 43.11
Fwd PE 32.45
P/S 14.36
P/FCF 53.65
P/OCF 40.21
P/B 10.08
P/tB 10.19
EV/EBITDA 54.05
EPS(TTM)15.36
EY2.32%
EPS(NY)20.41
Fwd EY3.08%
FCF(TTM)12.34
FCFY1.86%
OCF(TTM)16.47
OCFY2.49%
SpS46.11
BVpS65.71
TBVpS64.97
PEG (NY)1.93
PEG (5Y)1.46
Profitability
Industry RankSector 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 RankSector 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 43.45
F-Score5
WACC11.49%
ROIC/WACC1.19
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 Y22.36%
EPS Next 2Y20.17%
EPS Next 3Y18.45%
EPS Next 5Y19.18%
Revenue 1Y (TTM)30.57%
Revenue growth 3Y22.26%
Revenue growth 5Y28.58%
Sales Q2Q%39.24%
Revenue Next Year21.18%
Revenue Next 2Y18.05%
Revenue Next 3Y16.57%
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%