NasdaqGS:MPWR

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 28.62% per year

Earnings grew by 16% over the past year

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with high 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.5%

MPWR

3.3%

US Semiconductor

0.8%

US Market


1 Year Return

36.7%

MPWR

38.4%

US Semiconductor

17.8%

US Market

Return vs Industry: MPWR matched the US Semiconductor industry which returned 38.4% over the past year.

Return vs Market: MPWR exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

MPWRIndustryMarket
7 Day4.5%3.3%0.8%
30 Day3.1%1.1%1.8%
90 Day4.8%8.0%4.1%
1 Year38.3%36.7%41.2%38.4%20.4%17.8%
3 Year110.0%104.1%84.0%73.8%45.9%36.4%
5 Year274.0%253.9%136.0%112.9%68.1%49.6%

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?

69.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MPWR ($169.05) is trading above our estimate of fair value ($85.51)

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 (69.7x) compared to the Semiconductor industry average (31.3x).

PE vs Market: MPWR is poor value based on its PE Ratio (69.7x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: MPWR is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: MPWR is overvalued based on its PB Ratio (10x) compared to the US Semiconductor industry average (3x).


Next Steps

Future Growth

How is Monolithic Power Systems forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

28.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MPWR's forecast earnings growth (28.6% per year) is above the savings rate (1.7%).

Earnings vs Market: MPWR's earnings (28.6% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MPWR's revenue (15.1% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: MPWR's revenue (15.1% 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 (27%)


Next Steps

Past Performance

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

27.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MPWR has high quality earnings.

Growing Profit Margin: MPWR's current net profit margins (16.9%) are higher than last year (16.1%).


Past Earnings Growth Analysis

Earnings Trend: MPWR's earnings have grown significantly by 27.3% per year over the past 5 years.

Accelerating Growth: MPWR's earnings growth over the past year (16%) is below its 5-year average (27.3% per year).

Earnings vs Industry: MPWR earnings growth over the past year (16%) exceeded the Semiconductor industry -15.8%.


Return on Equity

High ROE: MPWR's Return on Equity (14.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Monolithic Power Systems's financial position?


Financial Position Analysis

Short Term Liabilities: MPWR's short term assets ($629.3M) exceed its short term liabilities ($105.0M).

Long Term Liabilities: MPWR's short term assets ($629.3M) exceed its long term liabilities ($76.7M).


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

Inventory Level: MPWR has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if MPWR's debt is covered by short term assets.


Next Steps

Dividend

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

0.95%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years1.1%

Current dividend yield vs market & industry

Notable Dividend: MPWR's dividend (0.95%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: MPWR's dividend (0.95%) is low compared to the top 25% of dividend payers in the US market (3.72%).


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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.9%), 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 (41.2% payout ratio).


Next Steps

Management

What is the CEO of Monolithic Power Systems's salary, the management and board of directors tenure and is there insider trading?

12.4yrs

Average management tenure


CEO

Michael Hsing (59yo)

22.3yrs

Tenure

US$11,715,714

Compensation

Mr. Michael R. Hsing founded Monolithic Power Systems (MPS) Inc. and has been its President and Chief Executive Officer since August 1997. Mr. Hsing held senior technical positions at companies such as Sup ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD11.72M) is above average for companies of similar size in the US market ($USD6.70M).

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


Management Age and Tenure

12.4yrs

Average Tenure

58.5yo

Average Age

Experienced Management: MPWR's management team is seasoned and experienced (12.4 years average tenure).


Board Age and Tenure

9.9yrs

Average Tenure

60.5yo

Average Age

Experienced Board: MPWR's board of directors are considered experienced (9.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$7,92519 Nov 19
Theodore Blegen
EntityIndividual
Shares49
Max PriceUS$161.74
SellUS$387,82012 Nov 19
Deming Xiao
EntityIndividual
Role
Senior Key Executive
President of Asia Operations
Shares2,374
Max PriceUS$163.36
SellUS$452,02212 Nov 19
Maurice Sciammas
EntityIndividual
Role
Head of Sales
Senior Vice President of Worldwide Sales & Marketing
Shares2,767
Max PriceUS$163.36
SellUS$267,09612 Nov 19
Theodore Blegen
EntityIndividual
Shares1,635
Max PriceUS$163.36
SellUS$1,327,15012 Nov 19
Michael Hsing
EntityIndividual
Role
Chief Executive Officer
Founder
Shares8,124
Max PriceUS$163.36
SellUS$387,82012 Nov 19
Saria Tseng
EntityIndividual
Role
Chief Legal Officer
VP of Strategic Corporate Development
Shares2,374
Max PriceUS$163.36
SellUS$1,549,39005 Nov 19
Michael Hsing
EntityIndividual
Role
Chief Executive Officer
Founder
Shares9,706
Max PriceUS$159.63
SellUS$559,51105 Nov 19
Maurice Sciammas
EntityIndividual
Role
Head of Sales
Senior Vice President of Worldwide Sales & Marketing
Shares3,505
Max PriceUS$159.63
SellUS$470,59605 Nov 19
Deming Xiao
EntityIndividual
Role
Senior Key Executive
President of Asia Operations
Shares2,948
Max PriceUS$159.63
SellUS$470,59605 Nov 19
Saria Tseng
EntityIndividual
Role
Chief Legal Officer
VP of Strategic Corporate Development
Shares2,948
Max PriceUS$159.63
SellUS$151,29321 Oct 19
Theodore Blegen
EntityIndividual
Shares1,056
Max PriceUS$143.27
SellUS$669,89602 Oct 19
Deming Xiao
EntityIndividual
Role
Senior Key Executive
President of Asia Operations
Shares4,305
Max PriceUS$155.61
SellUS$140,82602 Oct 19
Theodore Blegen
EntityIndividual
Shares905
Max PriceUS$155.61
SellUS$844,17802 Oct 19
Maurice Sciammas
EntityIndividual
Role
Head of Sales
Senior Vice President of Worldwide Sales & Marketing
Shares5,425
Max PriceUS$155.61
SellUS$1,705,47402 Oct 19
Michael Hsing
EntityIndividual
Role
Chief Executive Officer
Founder
Shares10,960
Max PriceUS$155.61
SellUS$669,89602 Oct 19
Saria Tseng
EntityIndividual
Role
Chief Legal Officer
VP of Strategic Corporate Development
Shares4,305
Max PriceUS$155.61
SellUS$78103 Sep 19
Deming Xiao
EntityIndividual
Role
Senior Key Executive
President of Asia Operations
Shares5
Max PriceUS$156.17
SellUS$7,70021 Aug 19
Theodore Blegen
EntityIndividual
Shares50
Max PriceUS$154.00
SellUS$1,315,36020 Aug 19
Deming Xiao
EntityIndividual
Role
Senior Key Executive
President of Asia Operations
Shares8,670
Max PriceUS$151.71
SellUS$1,455,20019 Aug 19
James Moyer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$145.52
SellUS$1,166,20909 Aug 19
Deming Xiao
EntityIndividual
Role
Senior Key Executive
President of Asia Operations
Shares7,752
Max PriceUS$151.52
SellUS$1,253,64009 Aug 19
Michael Hsing
EntityIndividual
Role
Chief Executive Officer
Founder
Shares8,334
Max PriceUS$150.42
SellUS$424,19809 Aug 19
Maurice Sciammas
EntityIndividual
Role
Head of Sales
Senior Vice President of Worldwide Sales & Marketing
Shares2,820
Max PriceUS$150.42
SellUS$250,45709 Aug 19
Theodore Blegen
EntityIndividual
Shares1,665
Max PriceUS$150.42
SellUS$366,58509 Aug 19
Saria Tseng
EntityIndividual
Role
Chief Legal Officer
VP of Strategic Corporate Development
Shares2,437
Max PriceUS$150.42
SellUS$431,08106 Aug 19
Deming Xiao
EntityIndividual
Role
Senior Key Executive
President of Asia Operations
Shares3,066
Max PriceUS$140.60
SellUS$510,95306 Aug 19
Maurice Sciammas
EntityIndividual
Role
Head of Sales
Senior Vice President of Worldwide Sales & Marketing
Shares3,634
Max PriceUS$140.60
SellUS$1,419,63506 Aug 19
Michael Hsing
EntityIndividual
Role
Chief Executive Officer
Founder
Shares10,097
Max PriceUS$140.60
SellUS$431,08106 Aug 19
Saria Tseng
EntityIndividual
Role
Chief Legal Officer
VP of Strategic Corporate Development
Shares3,066
Max PriceUS$140.60
SellUS$297,00024 Jul 19
Jeff Zhou
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$150.00
SellUS$152,21723 Jul 19
Theodore Blegen
EntityIndividual
Shares1,041
Max PriceUS$146.22
SellUS$757,09201 Jul 19
Maurice Sciammas
EntityIndividual
Role
Head of Sales
Senior Vice President of Worldwide Sales & Marketing
Shares5,425
Max PriceUS$139.56
SellUS$1,183,10003 Jun 19
James Moyer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$118.31
SellUS$6,21222 May 19
Theodore Blegen
EntityIndividual
Shares51
Max PriceUS$121.80
SellUS$2,425,31122 May 19
Maurice Sciammas
EntityIndividual
Role
Head of Sales
Senior Vice President of Worldwide Sales & Marketing
Shares19,883
Max PriceUS$122.87
SellUS$881,01420 May 19
Deming Xiao
EntityIndividual
Role
Senior Key Executive
President of Asia Operations
Shares6,838
Max PriceUS$129.50
SellUS$232,02110 May 19
Theodore Blegen
EntityIndividual
Shares1,681
Max PriceUS$138.03
SellUS$340,92310 May 19
Deming Xiao
EntityIndividual
Role
Senior Key Executive
President of Asia Operations
Shares2,470
Max PriceUS$138.03
SellUS$392,95910 May 19
Maurice Sciammas
EntityIndividual
Role
Head of Sales
Senior Vice President of Worldwide Sales & Marketing
Shares2,847
Max PriceUS$138.03
SellUS$1,165,90210 May 19
Michael Hsing
EntityIndividual
Role
Chief Executive Officer
Founder
Shares8,447
Max PriceUS$138.03
SellUS$340,92310 May 19
Saria Tseng
EntityIndividual
Role
Chief Legal Officer
VP of Strategic Corporate Development
Shares2,470
Max PriceUS$138.03
SellUS$454,28107 May 19
Deming Xiao
EntityIndividual
Role
Senior Key Executive
President of Asia Operations
Shares3,144
Max PriceUS$144.49
SellUS$540,25307 May 19
Maurice Sciammas
EntityIndividual
Role
Head of Sales
Senior Vice President of Worldwide Sales & Marketing
Shares3,739
Max PriceUS$144.49
SellUS$1,496,01207 May 19
Michael Hsing
EntityIndividual
Role
Chief Executive Officer
Founder
Shares10,354
Max PriceUS$144.49
SellUS$454,28007 May 19
Saria Tseng
EntityIndividual
Role
Chief Legal Officer
VP of Strategic Corporate Development
Shares3,144
Max PriceUS$144.49
SellUS$160,07523 Apr 19
Theodore Blegen
EntityIndividual
Shares1,047
Max PriceUS$152.89
SellUS$596,66402 Apr 19
Deming Xiao
EntityIndividual
Role
Senior Key Executive
President of Asia Operations
Shares4,305
Max PriceUS$138.60
SellUS$125,43102 Apr 19
Theodore Blegen
EntityIndividual
Shares905
Max PriceUS$138.60
SellUS$596,66402 Apr 19
Saria Tseng
EntityIndividual
Role
Chief Legal Officer
VP of Strategic Corporate Development
Shares4,305
Max PriceUS$138.60
SellUS$751,89401 Apr 19
Maurice Sciammas
EntityIndividual
Role
Head of Sales
Senior Vice President of Worldwide Sales & Marketing
Shares5,425
Max PriceUS$138.60
SellUS$1,519,03301 Apr 19
Michael Hsing
EntityIndividual
Role
Chief Executive Officer
Founder
Shares10,960
Max PriceUS$138.60
SellUS$10,252,00427 Feb 19
Michael Hsing
EntityIndividual
Role
Chief Executive Officer
Founder
Shares75,241
Max PriceUS$137.55
SellUS$1,939,47327 Feb 19
Deming Xiao
EntityIndividual
Role
Senior Key Executive
President of Asia Operations
Shares13,979
Max PriceUS$138.74
SellUS$24,83921 Feb 19
Theodore Blegen
EntityIndividual
Shares181
Max PriceUS$137.23
SellUS$1,346,64021 Feb 19
James Moyer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$134.66
SellUS$2,784,04113 Feb 19
Deming Xiao
EntityIndividual
Role
Senior Key Executive
President of Asia Operations
Shares21,308
Max PriceUS$130.66
SellUS$1,653,59613 Feb 19
Theodore Blegen
EntityIndividual
Shares12,656
Max PriceUS$130.66
SellUS$3,007,72613 Feb 19
Maurice Sciammas
EntityIndividual
Role
Head of Sales
Senior Vice President of Worldwide Sales & Marketing
Shares23,020
Max PriceUS$130.66
SellUS$9,518,50013 Feb 19
Michael Hsing
EntityIndividual
Role
Chief Executive Officer
Founder
Shares72,851
Max PriceUS$130.66
SellUS$2,834,47513 Feb 19
Saria Tseng
EntityIndividual
Role
Chief Legal Officer
VP of Strategic Corporate Development
Shares21,694
Max PriceUS$130.66
SellUS$469,50105 Feb 19
Deming Xiao
EntityIndividual
Role
Senior Key Executive
President of Asia Operations
Shares3,623
Max PriceUS$129.59
SellUS$598,05305 Feb 19
Maurice Sciammas
EntityIndividual
Role
Head of Sales
Senior Vice President of Worldwide Sales & Marketing
Shares4,615
Max PriceUS$129.59
SellUS$469,50105 Feb 19
Saria Tseng
EntityIndividual
Role
Chief Legal Officer
VP of Strategic Corporate Development
Shares3,623
Max PriceUS$129.59
SellUS$1,881,11205 Feb 19
Michael Hsing
EntityIndividual
Role
Chief Executive Officer
Founder
Shares14,516
Max PriceUS$129.59
SellUS$111,02623 Jan 19
Theodore Blegen
EntityIndividual
Shares899
Max PriceUS$123.50

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.


Management Team

  • Michael Hsing (59yo)

    Founder

    • Tenure: 22.3yrs
    • Compensation: US$11.72m
  • Saria Tseng (48yo)

    VP of Strategic Corporate Development

    • Tenure: 15.9yrs
    • Compensation: US$3.74m
  • Deming Xiao (56yo)

    President of Asia Operations

    • Tenure: 11.9yrs
    • Compensation: US$3.74m
  • Maurice Sciammas (59yo)

    Senior Vice President of Worldwide Sales & Marketing

    • Tenure: 12.9yrs
    • Compensation: US$3.74m
  • Meera Rao (58yo)

    • Tenure: 3.8yrs
    • Compensation: US$1.35m
  • Bernie Blegen (61yo)

    VP & CFO

    • Tenure: 3.4yrs
    • Compensation: US$2.77m

Board Members

  • Herbert Chang (57yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$267.50k
  • Victor Lee (62yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: US$250.00k
  • Michael Hsing (59yo)

    Founder

    • Tenure: 22.3yrs
    • Compensation: US$11.72m
  • Jim Moyer (76yo)

    Independent Director

    • Tenure: 21.2yrs
    • Compensation: US$225.00k
  • Jeff Zhou (64yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$253.50k
  • Eugen Elmiger (55yo)

    Independent Director

    • Tenure: 7.2yrs
    • Compensation: US$246.50k

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$7.173b
  • Shares outstanding: 43.44m
  • Website: https://www.monolithicpower.com

Number of Employees


Location

  • Monolithic Power Systems, Inc.
  • 4040 Lake Washington Boulevard NE
  • Suite 201
  • Kirkland
  • Washington
  • 98033
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MPWRNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2004
NQGDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2004
MPWR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 2004

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 23:50
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.