Monolithic Power (MPWR) AI Stock Analysis

• Market Cap: $43.89B
• Dividend Yield: 0.61%
• Average Volume (3M): 507.59K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 2.24
• Revenue Growth: 34.30%
• EPS Growth: 352.35%
• Country: US
• Employees: 4,017
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 4.21
• Shares Outstanding: 47,892,000
• 10 Day Avg. Volume: 498,344
• 30 Day Avg. Volume: 507,594
• PEG Ratio: 0.05
• Price to Book (P/B): 9.14
• Price to Sales (P/S): 13.03
• P/FCF Ratio: 44.77
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 13.36
• Enterprise Value/Gross Profit: 24.16
• Enterprise Value/Ebitda: 48.22
• 1Y Price Target: $846.55
• Price Target Upside: -7.62% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 79 Outperform
• Price Target: $939.00 ▲(2.47% Upside)

Monolithic Power's strong financial performance and positive earnings call sentiment are the primary drivers of its high stock score. The company's robust growth in key segments and strategic focus on innovation support a promising outlook. Technical indicators suggest a stable upward trend, while valuation metrics indicate reasonable pricing. Short-term visibility concerns and caution in certain segments are minor risks.

Positive Factors

Revenue Growth

The significant revenue growth reflects strong market demand and effective product strategies, indicating a robust business model and market position.

Automotive Segment Expansion

Strong growth in the automotive segment highlights MPWR's ability to capitalize on industry trends and expand its footprint in a key growth market.

Cash Flow Generation

Efficient cash generation supports ongoing investment in innovation and expansion, ensuring sustainable growth and financial stability.

Negative Factors

CEO Stock Sale

Significant insider selling can signal potential concerns about future company performance, impacting investor confidence and perceived stability.

Visibility Challenges

Limited visibility in forecasting can hinder strategic planning and investor confidence, posing risks to sustained growth and stability.

Caution in Storage and Compute

Potential volatility in these segments could affect revenue stability, reflecting the cyclical nature of demand and market uncertainties.

Monolithic Power Business Overview & Revenue Model

Company Description

Monolithic Power Systems, Inc. engages in the design, development, marketing, and sale of semiconductor-based power electronics solutions for the computing and storage, automotive, industrial, communications, and consumer markets. The company provides direct current (DC) to DC integrated circuits (ICs) that are used to convert and control voltages of various electronic systems, such as portable electronic devices, wireless LAN access points, computers and notebooks, monitors, infotainment applications, and medical equipment. It also offers lighting control ICs for backlighting that are used in systems, which provide the light source for LCD panels in notebook computers, monitors, car navigation systems, and televisions, as well as for general illumination products. The company sells its products through third-party distributors and value-added resellers, as well as directly to original equipment manufacturers, original design manufacturers, electronic manufacturing service providers, and other end customers in China, Taiwan, Europe, South Korea, Southeast Asia, Japan, the United States, and internationally. Monolithic Power Systems, Inc. was incorporated in 1997 and is headquartered in Kirkland, Washington.

How the Company Makes Money

Monolithic Power generates revenue primarily through the sale of its semiconductor products, which are designed for high-performance power management and control applications. The company operates on a direct sales model, selling to original equipment manufacturers (OEMs) and distributors, which form a significant portion of its revenue streams. Key revenue sources include the sales of integrated circuits, power modules, and custom solutions tailored to specific client needs. Additionally, MPWR benefits from strategic partnerships and collaborations with various technology companies, enhancing its market reach and product offerings. The growing demand for energy-efficient solutions in sectors like automotive and industrial automation further contributes to MPWR's earnings potential.

Monolithic Power Financial Statement Overview

Summary

Monolithic Power demonstrates strong financial health with robust revenue and profit growth, efficient operational management, and a solid capital structure with minimal leverage. Cash flow generation is strong, supporting its profitability and growth trajectory.

Income Statement

Monolithic Power exhibits strong revenue growth with a 6.58% increase in TTM, supported by a solid gross profit margin of 55.31%. The net profit margin is exceptionally high at 73.17%, indicating strong profitability. EBIT and EBITDA margins are also healthy at 26.47% and 27.69% respectively, showcasing efficient operational management.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.0047, indicating minimal leverage and financial risk. Return on equity is impressive at 61.19%, reflecting strong profitability relative to shareholder equity. The equity ratio stands at 85.65%, highlighting a robust capital structure with significant equity financing.

Cash Flow

Operating cash flow to net income ratio is strong at 2.33, suggesting efficient cash generation from operations. Free cash flow growth is positive at 12.46%, and the free cash flow to net income ratio is healthy at 0.79, indicating good cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.54B	2.21B	1.82B	1.79B	1.21B	844.45M
Gross Profit	1.41B	1.22B	1.02B	1.05B	685.46M	465.95M
EBITDA	704.91M	575.79M	521.90M	563.90M	291.12M	185.87M
Net Income	1.86B	1.79B	427.37M	437.67M	242.02M	164.38M
Balance Sheet
Total Assets	3.97B	3.62B	2.43B	2.06B	1.59B	1.21B
Cash, Cash Equivalents and Short-Term Investments	1.15B	862.95M	1.11B	737.87M	725.08M	595.11M
Total Debt	15.94M	12.97M	5.57M	1.66M	0.00	3.10M
Total Liabilities	570.14M	471.33M	384.41M	390.28M	341.84M	241.90M
Stockholders Equity	3.40B	3.15B	2.05B	1.67B	1.24B	966.59M
Cash Flow
Free Cash Flow	704.30M	642.29M	580.63M	187.83M	224.77M	212.16M
Operating Cash Flow	893.41M	788.41M	638.21M	246.67M	320.01M	267.80M
Investing Cash Flow	219.13M	223.05M	-178.73M	-12.51M	-378.89M	-39.18M
Financing Cash Flow	-883.92M	-872.23M	-183.72M	-128.78M	-90.21M	-71.56M

Monolithic Power Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 916.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MPWR, the sentiment is Positive. The current price of 916.36 is above the 20-day moving average (MA) of 856.43, above the 50-day MA of 805.96, and above the 200-day MA of 675.87, indicating a bullish trend. The MACD of 22.18 indicates Negative momentum. The RSI at 69.17 is Neutral, neither overbought nor oversold. The STOCH value of 90.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MPWR.

Monolithic Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPWR	79 Outperform	$43.89B	23.90	66.50%	0.61%	34.30%	352.35%
NXPI	76 Outperform	56.49B	26.77	22.45%	1.81%	-7.53%	-21.88%
ON	68 Neutral	20.89B	47.65	5.87%	―	-17.93%	-75.83%
STM	67 Neutral	24.65B	41.39	3.66%	1.08%	-22.97%	-78.58%
MRVL	61 Neutral	64.02B	-586.11	-0.77%	0.32%	37.05%	89.40%
MCHP	53 Neutral	35.16B	-195.94	-2.16%	2.79%	-35.70%	-113.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Monolithic Power Corporate Events

Monolithic Power Announces Second Quarter Dividend

On June 12, 2025, Monolithic Power Systems held its annual stockholders meeting where several key decisions were made, including the election of three directors, the ratification of Ernst & Young LLP as the independent auditor, and the approval of executive compensation. Additionally, stockholders approved a proposal to amend the company’s Certificate of Incorporation to declassify the Board and granted shareholders the ability to call special meetings. On June 13, 2025, MPS announced a second quarter dividend of $1.56 per share, payable on July 15, 2025, to stockholders of record as of June 30, 2025.