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 110 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 shows excellent growth, but is valued quite expensive already. 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.
Each year in the past 5 years MPWR had a positive operating cash flow.
1.2 Ratios
MPWR has a Return On Assets of 48.03%. This is amongst the best in the industry. MPWR outperforms 98.18% of its industry peers.
Looking at the Return On Equity, with a value of 55.95%, MPWR belongs to the top of the industry, outperforming 96.36% of the companies in the same industry.
MPWR's Return On Invested Capital of 15.04% is amongst the best of the industry. MPWR outperforms 89.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MPWR is significantly above the industry average of 10.57%.
The last Return On Invested Capital (15.04%) 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 | 48.03% | ||
| ROE | 55.95% | ||
| ROIC | 15.04% |
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 Profit Margin of 76.59%. This is amongst the best in the industry. MPWR outperforms 99.09% of its industry peers.
MPWR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 25.67%, MPWR belongs to the top of the industry, outperforming 85.45% of the companies in the same industry.
In the last couple of years the Operating Margin of MPWR has grown nicely.
MPWR has a Gross Margin of 55.37%. This is in the better half of the industry: MPWR outperforms 75.45% of its industry peers.
MPWR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.67% | ||
| PM (TTM) | 76.59% | ||
| GM | 55.37% |
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
MPWR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, MPWR has less shares outstanding
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 38.43. This indicates that MPWR is financially healthy and has little risk of bankruptcy at the moment.
MPWR has a better Altman-Z score (38.43) than 95.45% 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 | 38.43 |
ROIC/WACC1.49
WACC10.08%
2.3 Liquidity
MPWR has a Current Ratio of 4.92. This indicates that MPWR is financially healthy and has no problem in meeting its short term obligations.
MPWR's Current ratio of 4.92 is fine compared to the rest of the industry. MPWR outperforms 71.82% of its industry peers.
MPWR has a Quick Ratio of 3.67. This indicates that MPWR is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 3.67, MPWR is doing good in the industry, outperforming 69.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.92 | ||
| Quick Ratio | 3.67 |
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.
MPWR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 29.50% yearly.
MPWR shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.57%.
The Revenue has been growing by 28.58% on average over the past years. This is a very strong growth!
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
MPWR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.74% yearly.
The Revenue is expected to grow by 16.77% on average over the next years. This is quite good.
EPS Next Y22.36%
EPS Next 2Y20.17%
EPS Next 3Y18.45%
EPS Next 5Y18.74%
Revenue Next Year21.18%
Revenue Next 2Y18.05%
Revenue Next 3Y16.6%
Revenue Next 5Y16.77%
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
Based on the Price/Earnings ratio of 43.82, the valuation of MPWR can be described as expensive.
MPWR's Price/Earnings ratio is in line with the industry average.
MPWR is valuated expensively when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 32.98, the valuation of MPWR can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as MPWR.
MPWR is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.82 | ||
| Fwd PE | 32.98 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MPWR.
MPWR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.99 | ||
| EV/EBITDA | 47.23 |
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.
MPWR's earnings are expected to grow with 18.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.96
PEG (5Y)1.49
EPS Next 2Y20.17%
EPS Next 3Y18.45%
5. Dividend
5.1 Amount
MPWR has a yearly dividend return of 0.87%, which is pretty low.
Compared to an average industry Dividend Yield of 2.50, 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 | 0.87% |
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 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
13.74% 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.
DP13.74%
EPS Next 2Y20.17%
EPS Next 3Y18.45%
673.01
-45.56 (-6.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners100.76%
Inst Owner Change2.69%
Ins Owners3.19%
Ins Owner Change-1.47%
Market Cap32.22B
Analysts80
Price Target768.71 (14.22%)
Short Float %5.29%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.87% |
Yearly Dividend5.02
Dividend Growth(5Y)26.28%
DP13.74%
Div Incr Years7
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.25%
Min EPS beat(2)-1.34%
Max EPS beat(2)0.84%
EPS beat(4)3
Avg EPS beat(4)0.28%
Min EPS beat(4)-1.34%
Max EPS beat(4)1.33%
EPS beat(8)4
Avg EPS beat(8)0.11%
EPS beat(12)5
Avg EPS beat(12)0.52%
EPS beat(16)9
Avg EPS beat(16)1.86%
Revenue beat(2)1
Avg Revenue beat(2)-0.61%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)0.23%
Revenue beat(4)3
Avg Revenue beat(4)0.35%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)1.39%
Revenue beat(8)4
Avg Revenue beat(8)-0.39%
Revenue beat(12)5
Avg Revenue beat(12)-0.25%
Revenue beat(16)9
Avg Revenue beat(16)0.33%
PT rev (1m)0.03%
PT rev (3m)-10.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.08%
EPS NY rev (1m)0%
EPS NY rev (3m)1.01%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)3.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.82 | ||
| Fwd PE | 32.98 | ||
| P/S | 13.5 | ||
| P/FCF | 52.99 | ||
| P/OCF | 40.44 | ||
| P/B | 9.86 | ||
| P/tB | 9.97 | ||
| EV/EBITDA | 47.23 |
EPS(TTM)15.36
EY2.28%
EPS(NY)20.41
Fwd EY3.03%
FCF(TTM)12.7
FCFY1.89%
OCF(TTM)16.64
OCFY2.47%
SpS49.85
BVpS68.23
TBVpS67.49
PEG (NY)1.96
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 48.03% | ||
| ROE | 55.95% | ||
| ROCE | 17.8% | ||
| ROIC | 15.04% | ||
| ROICexc | 21.43% | ||
| ROICexgc | 21.75% | ||
| OM | 25.67% | ||
| PM (TTM) | 76.59% | ||
| GM | 55.37% | ||
| FCFM | 25.48% |
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 Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 476.04% | ||
| Cap/Sales | 7.9% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 122.15% | ||
| Profit Quality | 33.27% | ||
| Current Ratio | 4.92 | ||
| Quick Ratio | 3.67 | ||
| Altman-Z | 38.43 |
F-Score5
WACC10.08%
ROIC/WACC1.49
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 5Y18.74%
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 3Y16.6%
Revenue Next 5Y16.77%
EBIT growth 1Y35.13%
EBIT growth 3Y26.19%
EBIT growth 5Y38.71%
EBIT Next Year31.49%
EBIT Next 3Y20.49%
EBIT Next 5Y21.84%
FCF growth 1Y91.65%
FCF growth 3Y38%
FCF growth 5Y37.66%
OCF growth 1Y122.49%
OCF growth 3Y35.06%
OCF growth 5Y29.52%