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Market Cap

US$14.0b

Last Updated

2021/05/12 22:39 UTC

Data Sources

Company Financials +

Executive Summary

Monolithic Power Systems, Inc. designs, develops, and markets integrated power semiconductor solutions and power delivery architectures for computing and storage, automotive, industrial, communications, and consumer applications markets. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Monolithic Power Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MPWR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: MPWR's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-9.4%

MPWR

-4.9%

US Semiconductor

-2.8%

US Market


1 Year Return

53.2%

MPWR

58.7%

US Semiconductor

49.4%

US Market

Return vs Industry: MPWR underperformed the US Semiconductor industry which returned 58.5% over the past year.

Return vs Market: MPWR exceeded the US Market which returned 48.6% over the past year.


Shareholder returns

MPWRIndustryMarket
7 Day-9.4%-4.9%-2.8%
30 Day-18.1%-11.6%-2.3%
90 Day-20.4%-10.0%-1.3%
1 Year54.3%53.2%61.1%58.7%51.8%49.4%
3 Year146.5%139.6%90.8%81.1%57.5%47.6%
5 Year409.1%385.8%304.9%266.5%121.7%97.1%

Long-Term Price Volatility Vs. Market

How volatile is Monolithic Power Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Monolithic Power Systems undervalued compared to its fair value and its price relative to the market?

79.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MPWR ($306.1) is trading above our estimate of fair value ($233.73)

Significantly Below Fair Value: MPWR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MPWR is poor value based on its PE Ratio (79.3x) compared to the US Semiconductor industry average (31.8x).

PE vs Market: MPWR is poor value based on its PE Ratio (79.3x) compared to the US market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: MPWR is poor value based on its PEG Ratio (4.1x)


Price to Book Ratio

PB vs Industry: MPWR is overvalued based on its PB Ratio (13.7x) compared to the US Semiconductor industry average (4.5x).


Future Growth

How is Monolithic Power Systems forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

19.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MPWR's forecast earnings growth (19.2% per year) is above the savings rate (2%).

Earnings vs Market: MPWR's earnings (19.2% per year) are forecast to grow faster than the US market (15.4% per year).

High Growth Earnings: MPWR's earnings are forecast to grow, but not significantly.

Revenue vs Market: MPWR's revenue (12.7% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: MPWR's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MPWR's Return on Equity is forecast to be high in 3 years time (25.5%)


Past Performance

How has Monolithic Power Systems performed over the past 5 years?

26.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MPWR has high quality earnings.

Growing Profit Margin: MPWR's current net profit margins (18.7%) are higher than last year (18.2%).


Past Earnings Growth Analysis

Earnings Trend: MPWR's earnings have grown significantly by 26.8% per year over the past 5 years.

Accelerating Growth: MPWR's earnings growth over the past year (47%) exceeds its 5-year average (26.8% per year).

Earnings vs Industry: MPWR earnings growth over the past year (47%) underperformed the Semiconductor industry 47%.


Return on Equity

High ROE: MPWR's Return on Equity (17%) is considered low.


Financial Health

How is Monolithic Power Systems's financial position?


Financial Position Analysis

Short Term Liabilities: MPWR's short term assets ($922.4M) exceed its short term liabilities ($187.9M).

Long Term Liabilities: MPWR's short term assets ($922.4M) exceed its long term liabilities ($98.7M).


Debt to Equity History and Analysis

Debt Level: MPWR is debt free.

Reducing Debt: MPWR has not had any debt for past 5 years.

Debt Coverage: MPWR has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MPWR has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Monolithic Power Systems's current dividend yield, its reliability and sustainability?

0.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MPWR's dividend (0.78%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.25%).

High Dividend: MPWR's dividend (0.78%) is low compared to the top 25% of dividend payers in the US market (3.43%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MPWR has been paying a dividend for less than 10 years.

Growing Dividend: MPWR's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.4%), MPWR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MPWR's dividends in 3 years are forecast to be well covered by earnings (34.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

13.8yrs

Average management tenure


CEO

Michael Hsing (60 yo)

23.75yrs

Tenure

US$14,670,153

Compensation

Mr. Michael R. Hsing serves as Director, President and Chief Executive Officer at Monolithic Power Systems (MPS) Inc since August 1997. He serves as Founder and Chairman of the Board at Monolithic Power Sy...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD14.67M) is above average for companies of similar size in the US market ($USD11.16M).

Compensation vs Earnings: Michael's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: MPWR's management team is seasoned and experienced (13.8 years average tenure).


Board Members

Experienced Board: MPWR's board of directors are seasoned and experienced ( 11.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MPWR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Top Shareholders

Company Information

Monolithic Power Systems, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Monolithic Power Systems, Inc.
  • Ticker: MPWR
  • Exchange: NasdaqGS
  • Founded: 1997
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$14.000b
  • Shares outstanding: 45.74m
  • Website: https://www.monolithicpower.com

Number of Employees


Location

  • Monolithic Power Systems, Inc.
  • 5808 Lake Washington Boulevard NE
  • Kirkland
  • Washington
  • 98033
  • United States

Listings


Biography

Monolithic Power Systems, Inc. designs, develops, and markets integrated power semiconductor solutions and power delivery architectures for computing and storage, automotive, industrial, communications, an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/12 22:39
End of Day Share Price2021/05/12 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.