Monolithic Power System Inc
Exchange: NASDAQSector: TechnologyIndustry: Semiconductors
Monolithic Power Systems, Inc. (“MPS”) is a fabless global company that provides high-performance, semiconductor-based power electronics solutions. MPS’s mission is to reduce energy and material consumption to improve all aspects of quality of life and create a sustainable future. Founded in 1997 by our CEO Michael Hsing, MPS has three core strengths: deep system-level knowledge, strong semiconductor design expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging. These combined advantages enable MPS to deliver reliable, compact, and monolithic solutions that are highly energy-efficient, cost-effective, and environmentally responsible while providing a consistent return on investment to our stockholders. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world. ### Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries.
Current Price
$1553.27
+5.80%GoodMoat Value
$547.20
64.8% overvaluedProfile
Valuation (TTM)
Market Cap$76.29B
P/E112.05
EV$50.31B
P/B21.60
Shares Out49.12M
P/Sales25.80
Revenue$2.96B
EV/EBITDA83.65
Monolithic Power System Inc (MPWR) Stock Analysis
GoodMoat Analysis
Monolithic Power Systems is a high-quality semiconductor company with a strong competitive position, but its stock price appears deeply overvalued relative to the GoodMoat framework's estimate of intrinsic value. The business demonstrates durable advantages and solid financials, yet the current valuation presents a significant barrier for a value investor.
Read full analysis
Monolithic Power Systems (MPWR) designs, develops, and markets high-performance power solutions for a range of industries, including computing, automotive, and industrial. Applying the GoodMoat framework, the company likely possesses a durable moat, scoring well on criteria such as technology leadership in power semiconductors, proprietary data from its design expertise, and a founder-led culture with a strong track record. Its financial quality is also high, evidenced by a robust 26.1% operating margin, a 17.6% ROE, and consistent double-digit revenue growth of 20.8% YoY. This profile suggests the business would likely pass the Moat & Quality Gate in the Decision Framework. However, the valuation is a major concern. The stock trades at a P/E of 86.2, far above typical value thresholds, and the GoodMoat Target price of $547.20 implies the current price of $1,118.66 is more than double its estimated intrinsic value. This represents a negative margin of safety, placing the stock in the 'Unfavourable' band of the Valuation & Risk Gate. While the underlying business is strong, the extreme valuation and low FCF yield of 1.2% make it an unattractive proposition for a value investor seeking a margin of safety. Further investigation would require a very high-conviction view on sustained hyper-growth to justify the premium. Analysis based on data as of 2024-05-15.
Market Cap$76.29B
Current Price$1553.27
P/E Ratio112.05
Forward P/E—
PEG Ratio2.82
EPS$12.86
Book Value$71.90
P/B Ratio21.60
MPWR Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 31.3% FCF growth (CAGR)
Cash vs Debt
Net Cash: 1.1B
Revenue
628M
FY19
844M
FY20
1.2B
FY21
1.8B
FY22
1.8B
FY23
2.2B
FY24
2.8B
FY25
Net Income
109M
FY19
164M
FY20
242M
FY21
438M
FY22
427M
FY23
1.6B
FY24
621M
FY25
MPWR 52-Week Range
$657.04
$1661.10
50-Day MA: $1354.79200-Day MA: $1068.16
Did you know?
Earnings per share grew at a 33.7% CAGR.
Monolithic Power System Inc (MPWR) Financial Summary
Monolithic Power System Inc (MPWR) is a Technology company in the Semiconductors industry, listed on NASDAQ. The stock currently trades at $1553.27 with a market capitalization of $76.29B.
Key valuation metrics include a P/E ratio of 112.05, price-to-book ratio of 21.60, and EPS of $12.86. The company reports a profit margin of 23.0% and return on equity of 19.3%.
MPWR Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $76.29B |
| P/E Ratio | 112.05 |
| EPS | $12.86 |
| P/B Ratio | 21.60 |
| P/S Ratio | 25.80 |
| EV/EBITDA | 83.65 |
| Dividend Yield | 0.37% |
| Profit Margin | 23.0% |
| Return on Equity | 19.3% |
MPWR Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $627.92M | $108.84M |
| FY20 | $844.45M | $164.38M |
| FY21 | $1.21B | $242.02M |
| FY22 | $1.79B | $437.67M |
| FY23 | $1.82B | $427.37M |
| FY24 | $2.21B | $1.59B |
| FY25 | $2.79B | $621.48M |
Monolithic Power System Inc (MPWR) Valuation
Based on GoodMoat's DCF model, Monolithic Power System Inc has a fair value estimate of $547.20. At the current price of $1553.27, the stock appears 183.9% overvalued relative to our intrinsic value estimate.
MPWR Quality Indicators
Monolithic Power System Inc maintains a profit margin of 23.0% and an operating margin of 26.1%. Return on equity stands at 19.3%. The current ratio is 5.91.
About Monolithic Power System Inc
Monolithic Power Systems, Inc. (“MPS”) is a fabless global company that provides high-performance, semiconductor-based power electronics solutions. MPS’s mission is to reduce energy and material consumption to improve all aspects of quality of life and create a sustainable future. Founded in 1997 by our CEO Michael Hsing, MPS has three core strengths: deep system-level knowledge, strong semiconductor design expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging. These combined advantages enable MPS to deliver reliable, compact, and monolithic solutions that are highly energy-efficient, cost-effective, and environmentally responsible while providing a consistent return on investment to our stockholders. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world. ### Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries.
MPWR Free Cash Flow
Monolithic Power System Inc generated $666.19M in trailing twelve-month free cash flow, representing an FCF yield of 0.87%. This low FCF yield may reflect heavy reinvestment or growth spending.
MPWR Shares Outstanding
Monolithic Power System Inc has 0.05 billion shares outstanding at a share price of $1553.27, giving it a market capitalization of $76.29B.
MPWR Recent Insider Trades
Recent insider transactions at Monolithic Power System Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Hsing Michael (CEO) | SELL | 3,424 | $5.01M |
| DEAN ROBERT W II (Interim CFO) | SELL | 4 | $6253.12 |
| Sciammas Maurice (EVP, WW Sales & Marketing) | SELL | 3,741 | $5.80M |