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MONOLITHIC POWER SYSTEMS INC (MPWR) Stock Fundamental Analysis

USA - NASDAQ:MPWR - US6098391054 - Common Stock

922.81 USD
+6.45 (+0.7%)
Last: 9/22/2025, 8:46:56 PM
922.5 USD
-0.31 (-0.03%)
After Hours: 9/22/2025, 8:46:56 PM
Fundamental Rating

8

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. MPWR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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

In the past year MPWR was profitable.
In the past year MPWR had a positive cash flow from operations.
In the past 5 years MPWR has always been profitable.
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

Looking at the Return On Assets, with a value of 46.86%, MPWR belongs to the top of the industry, outperforming 98.21% of the companies in the same industry.
With an excellent Return On Equity value of 54.71%, MPWR belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
MPWR has a better Return On Invested Capital (15.56%) than 90.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MPWR is significantly above the industry average of 10.87%.
Industry RankSector 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%
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

MPWR's Profit Margin of 73.17% is amongst the best of the industry. MPWR outperforms 99.11% of its industry peers.
MPWR's Profit Margin has improved in the last couple of years.
MPWR has a better Operating Margin (25.98%) than 85.71% of its industry peers.
In the last couple of years the Operating Margin of MPWR has grown nicely.
With a decent Gross Margin value of 55.31%, MPWR is doing good in 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 RankSector 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%
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

MPWR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for MPWR has been reduced compared to 1 year ago.
Compared to 5 years ago, MPWR has more shares outstanding
MPWR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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

MPWR has an Altman-Z score of 48.75. This indicates that MPWR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MPWR (48.75) is better than 94.64% 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 48.75
ROIC/WACC1.35
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

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.
The Current ratio of MPWR (5.00) is better than 73.21% 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.
With a decent Quick ratio value of 3.72, MPWR is doing good in the industry, outperforming 69.64% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 5
Quick Ratio 3.72
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

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.
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.
Looking at the last year, MPWR shows a very strong growth in Revenue. The Revenue has grown by 34.30%.
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 12.20% 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 16.02% on average per year.
EPS Next Y26.32%
EPS Next 2Y21.2%
EPS Next 3Y20.57%
EPS Next 5Y12.2%
Revenue Next Year25.29%
Revenue Next 2Y20.21%
Revenue Next 3Y18.52%
Revenue Next 5Y16.02%

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.
MPWR Yearly Revenue VS EstimatesMPWR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1B 2B 3B 4B 5B
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

3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 56.27, MPWR can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of MPWR is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.41. MPWR is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 44.46, 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 22.87. MPWR is valued rather expensively when compared to this.
Industry RankSector Rank
PE 56.27
Fwd PE 44.46
MPWR Price Earnings VS Forward Price EarningsMPWR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

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 61.61% of the companies in the same industry.
Industry RankSector Rank
P/FCF 62.75
EV/EBITDA 60.12
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 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 20.57% in the coming years.
PEG (NY)2.14
PEG (5Y)1.91
EPS Next 2Y21.2%
EPS Next 3Y20.57%

5

5. Dividend

5.1 Amount

MPWR has a yearly dividend return of 0.68%, which is pretty low.
Compared to an average industry Dividend Yield of 2.23, MPWR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, MPWR's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.68%

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
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

MPWR pays out 13.87% of its income as dividend. This is a 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 2Y21.2%
EPS Next 3Y20.57%
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 (9/22/2025, 8:46:56 PM)

After market: 922.5 -0.31 (-0.03%)

922.81

+6.45 (+0.7%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)07-31 2025-07-31/amc
Earnings (Next)10-28 2025-10-28/amc
Inst Owners101.21%
Inst Owner Change-5.53%
Ins Owners3.18%
Ins Owner Change-5.01%
Market Cap44.19B
Analysts80.8
Price Target861.05 (-6.69%)
Short Float %4.15%
Short Ratio3.44
Dividend
Industry RankSector Rank
Dividend Yield 0.68%
Yearly Dividend5.02
Dividend Growth(5Y)26.28%
DP13.87%
Div Incr Years7
Div Non Decr Years10
Ex-Date09-30 2025-09-30 (1.56)
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)12.01%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)5.51%
EPS NY rev (1m)0%
EPS NY rev (3m)3.24%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)6.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.39%
Valuation
Industry RankSector Rank
PE 56.27
Fwd PE 44.46
P/S 17.37
P/FCF 62.75
P/OCF 49.47
P/B 12.99
P/tB 13.13
EV/EBITDA 60.12
EPS(TTM)16.4
EY1.78%
EPS(NY)20.76
Fwd EY2.25%
FCF(TTM)14.71
FCFY1.59%
OCF(TTM)18.66
OCFY2.02%
SpS53.12
BVpS71.04
TBVpS70.3
PEG (NY)2.14
PEG (5Y)1.91
Profitability
Industry RankSector 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 RankSector 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 48.75
F-Score6
WACC11.49%
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 Y26.32%
EPS Next 2Y21.2%
EPS Next 3Y20.57%
EPS Next 5Y12.2%
Revenue 1Y (TTM)34.3%
Revenue growth 3Y22.26%
Revenue growth 5Y28.58%
Sales Q2Q%30.97%
Revenue Next Year25.29%
Revenue Next 2Y20.21%
Revenue Next 3Y18.52%
Revenue Next 5Y16.02%
EBIT growth 1Y44.42%
EBIT growth 3Y26.19%
EBIT growth 5Y38.71%
EBIT Next Year34.71%
EBIT Next 3Y22.1%
EBIT Next 5Y23.33%
FCF growth 1Y130.01%
FCF growth 3Y38%
FCF growth 5Y37.66%
OCF growth 1Y160.47%
OCF growth 3Y35.06%
OCF growth 5Y29.52%