MONOLITHIC POWER SYSTEMS INC (MPWR) Stock Fundamental Analysis
NASDAQ:MPWR - US6098391054 - Common Stock
835.76 USD
-22.7 (-2.64%)
835.4 USD
-0.36 (-0.04%)
Overall MPWR gets a fundamental rating of 8 out of 10. We evaluated MPWR against 112 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. 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!.
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.
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's Return On Assets of 46.86% is amongst the best of the industry. MPWR outperforms 98.21% of its industry peers.
MPWR has a better Return On Equity (54.71%) than 96.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.56%, MPWR belongs to the top of the industry, outperforming 90.18% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MPWR is significantly above the industry average of 10.74%.
| 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
MPWR has a Profit Margin of 73.17%. This is amongst the best in the industry. MPWR outperforms 99.11% of its industry peers.
In the last couple of years the Profit Margin of MPWR has grown nicely.
The Operating Margin of MPWR (25.98%) is better than 85.71% of its industry peers.
In the last couple of years the Operating Margin of MPWR has grown nicely.
MPWR's Gross Margin of 55.31% is fine compared to the rest of the industry. MPWR outperforms 76.79% of its industry peers.
MPWR's Gross Margin has been stable in the last couple of years.
| 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.
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 44.69. This indicates that MPWR is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MPWR (44.69) is better than 95.54% 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 | 44.69 |
ROIC/WACC1.37
WACC11.38%
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.
With a decent Current ratio value of 5.00, MPWR is doing good in the industry, outperforming 73.21% of the companies in the same industry.
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 has a Quick ratio of 3.72. This is in the better half of the industry: MPWR outperforms 69.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5 | ||
| Quick Ratio | 3.72 |
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.
The Revenue has grown by 34.30% in the past year. This is a very strong growth!
Measured over the past years, MPWR shows a very strong growth in Revenue. The Revenue has been growing by 28.58% on average per year.
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.
The Revenue is expected to grow by 16.02% on average over the next years. This is quite good.
EPS Next Y26.32%
EPS Next 2Y21.2%
EPS Next 3Y20.57%
EPS Next 5Y12.2%
Revenue Next Year25.29%
Revenue Next 2Y20.25%
Revenue Next 3Y18.51%
Revenue Next 5Y16.02%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 50.96, MPWR can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as MPWR.
The average S&P500 Price/Earnings ratio is at 27.13. MPWR is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 40.26 indicates a quite expensive valuation of MPWR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MPWR is on the same level as its industry peers.
MPWR is valuated expensively when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.96 | ||
| Fwd PE | 40.26 |
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 63.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.83 | ||
| EV/EBITDA | 54.65 |
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.
A more expensive valuation may be justified as MPWR's earnings are expected to grow with 20.57% in the coming years.
PEG (NY)1.94
PEG (5Y)1.73
EPS Next 2Y21.2%
EPS Next 3Y20.57%
5. Dividend
5.1 Amount
With a yearly dividend of 0.73%, MPWR is not a good candidate for dividend investing.
MPWR's Dividend Yield is a higher than the industry average which is at 2.35.
With a Dividend Yield of 0.73, MPWR pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
5.2 History
The dividend of MPWR is nicely growing with an annual growth rate of 26.28%!
MPWR has been paying a dividend for at least 10 years, so it has 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.
MPWR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP13.87%
EPS Next 2Y21.2%
EPS Next 3Y20.57%
835.76
-22.7 (-2.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.21%
Inst Owner Change-5.53%
Ins Owners3.18%
Ins Owner Change-4.54%
Market Cap40.02B
Analysts80
Price Target855.34 (2.34%)
Short Float %5.19%
Short Ratio4.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
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)5.87%
PT rev (3m)11.3%
EPS NQ rev (1m)6.16%
EPS NQ rev (3m)5.36%
EPS NY rev (1m)3.14%
EPS NY rev (3m)3.24%
Revenue NQ rev (1m)6.27%
Revenue NQ rev (3m)6.7%
Revenue NY rev (1m)3.32%
Revenue NY rev (3m)3.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.96 | ||
| Fwd PE | 40.26 | ||
| P/S | 15.73 | ||
| P/FCF | 56.83 | ||
| P/OCF | 44.8 | ||
| P/B | 11.76 | ||
| P/tB | 11.89 | ||
| EV/EBITDA | 54.65 |
EPS(TTM)16.4
EY1.96%
EPS(NY)20.76
Fwd EY2.48%
FCF(TTM)14.71
FCFY1.76%
OCF(TTM)18.66
OCFY2.23%
SpS53.12
BVpS71.04
TBVpS70.3
PEG (NY)1.94
PEG (5Y)1.73
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%
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 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 | 44.69 |
F-Score6
WACC11.38%
ROIC/WACC1.37
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 2Y20.25%
Revenue Next 3Y18.51%
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%