10Y annualized return is
excellent
at 27.5% per year
MPWR has met or exceeded earnings expectations in
all
recent quarters (10/10)
Attractive PE Ratio
High Gross Profit Margin
Strong Net Profit Margin
High Return on Equity
No Debt
Strong Liquidity Ratios
📈 Consistent Growth
🔧 Diverse Product Portfolio
🏦 Shareholder Returns
🚀 Growth in Automotive and Communications
🔍 Focus on Innovation
High Price-to-Sales Ratio
High EV/EBITDA Ratio
High Price-to-Free Cash Flow Ratio
⚠️ Uncertainty in Enterprise Data
Monolithic Power Systems, Inc. demonstrates strong business quality through consistent growth, a diverse product portfolio, and shareholder returns. Future prospects remain positive, driven by growth in automotive and communications sectors, although there is some uncertainty in the enterprise data segment.
Analysis Date: February 6, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Monolithic Power Systems, Inc. (MPWR) is a company that makes tiny electronic parts called semiconductors. These parts help control and manage power in various devices, like computers, cars, and medical equipment. For example, they provide the technology that makes sure your laptop and phone get the right amount of power. The company sells its products to other businesses that create these devices, helping them work better and more efficiently.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
This portfolio focuses on generating a growing stream of dividend income by investing in companies that consistently increase dividends. I reinvest di...
Kirkland, Wash., April 16, 2025 (GLOBE NEWSWIRE) -- Monolithic Power Systems, Inc. (MPS) (Nasdaq: MPWR), a fabless global company that provides high-p...
The Zacks Earnings ESP is a great way to find potential earnings surprises. Why investors should take advantage now.
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$1418.13
Current Market Price: $471.09
IV/P Ratio: 3.01x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
67.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for MPWR
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (12.96)
P/B ratio ≤ 1.5 (7.36)
Current ratio ≥ 2.0 (5.31x)
Long-term debt < Net current assets (0.01x)
Margin of safety (67.0%)
MPWR does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
72.88%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
55.32%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
80.95%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
The net profit margin of 80.95% reflects exceptional profitability, indicating that the company retains a large portion of its revenue as profit.
A return on equity (ROE) of 72.88% signifies that the company is highly effective at generating profits from shareholders' equity.
The price-to-free cash flow (P/FCF) ratio of 53.77 suggests that investors are paying a premium for the company's cash flows, which may raise concerns about sustainability.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.00x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
5.31x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
The debt-to-equity ratio of 0.0 indicates that the company has no debt, reflecting a very strong balance sheet.
Current ratio of 5.31 and quick ratio of 3.89 demonstrate excellent liquidity, assuring that the company can meet its short-term obligations.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Monolithic Power Systems, Inc. has posted its thirteenth consecutive year of growth, with a full-year revenue of $2.2 billion, up 21% from 2023. This consistent performance reflects their sound business model and ability to capture market share.
The introduction of new products such as silicon carbide inverters, automotive audio solutions, and high-quality battery management systems highlights the company's focus on innovation and diversification.
The company has been proactive in returning capital to shareholders, recently increasing its quarterly dividend by 25% and authorizing a new $500 million share repurchase program.
The automotive sector is expected to continue its growth trajectory, particularly with the ramp-up of EV technologies. Similarly, the communications segment is also expected to show strength, especially in optical and data center applications.
Monolithic Power Systems is committed to maintaining its competitive edge through continuous innovation and addressing customer challenges, which is expected to drive future growth.
The enterprise data segment is projected to be flat or slightly down in the near term, indicating potential challenges in this market. The demand patterns are volatile and difficult to predict.