MONOLITHIC POWER SYSTEMS INC (MPWR) Stock Fundamental Analysis
NASDAQ:MPWR - Nasdaq - US6098391054 - Common Stock - Currency: USD
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!.
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.
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 Rank | Sector 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%
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 43.45 |
ROIC/WACC1.19
WACC11.49%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.31 | ||
| Quick Ratio | 3.89 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.11 | ||
| Fwd PE | 32.45 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.65 | ||
| EV/EBITDA | 54.05 |
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. 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 Rank | Sector 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
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%
662.18
-10.02 (-1.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Yearly Dividend5.02
Dividend Growth(5Y)26.28%
DP13.47%
Div Incr Years6
Div Non Decr Years9
Ex-Date
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%