Monolithic Power (MPWR) AI Stock Analysis

• Market Cap: $34.72B
• Dividend Yield: 0.86%
• Average Volume (3M): 515.06K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 2.36
• Revenue Growth: 30.57%
• EPS Growth: 342.02%
• Country: US
• Employees: 4,017
• Sector: Technology
• Sector Strength: 94
• Industry: Semiconductors
• EPS (TTM): 4.04
• Shares Outstanding: 47,880,000
• 10 Day Avg. Volume: 466,853
• 30 Day Avg. Volume: 515,056
• PEG Ratio: 7.75
• Price to Book (P/B): 10.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 55.21
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 3.96
• Enterprise Value/Gross Profit: 25.53
• Enterprise Value/Ebitda: 15.11
• 1Y Price Target: $799.82
• Price Target Upside: 10.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 78 Outperform
• Price Target: $772.00 ▲(6.45%Upside)

Monolithic Power's strong financial performance and positive earnings call are the most significant factors driving the score. Technical indicators suggest positive momentum, though caution is advised due to potential overbought conditions. The company's valuation is reasonable, supporting a favorable long-term outlook.

Positive Factors

Enterprise Data Growth

Management expressed improved confidence in Enterprise Data growth supported by increased visibility, design wins, and customer qualifications.

Financial Performance

MPWR reported strong 1Q results, consistent with its positive pre and guided 2Q higher.

Product Innovation

The company is returning to its roots as a diversified analog supplier, driven by new products and further SAM expansion.

Negative Factors

Enterprise Data Skepticism

MPS's increased confidence in its expected sharp 2H ramp in the much-scrutinized Enterprise Data segment is likely met with skepticism given the still-fresh scars many investors carry from the recent inventory correction in that market.

Stock Volatility

Despite consistent top-line execution, stock volatility is expected to persist until sales from the Enterprise Data end market begin to ramp.

Valuation Pressure

The lack of growth in the Enterprise Data business will pressure its valuation in the near-term.

Monolithic Power Business Overview & Revenue Model

Company Description

Monolithic Power Systems, Inc. (MPWR) is a leading semiconductor company that specializes in the design, development, and marketing of high-performance analog and mixed-signal integrated circuits. The company's products are used in a wide range of sectors, including automotive, industrial, cloud computing, telecommunications, and consumer electronics. MPWR is renowned for its cutting-edge power solutions that improve energy efficiency and performance in electronic systems.

How the Company Makes Money

Monolithic Power Systems generates revenue primarily through the sale of its analog and mixed-signal semiconductor products. These products are sold directly to original equipment manufacturers (OEMs) and through a network of distributors worldwide. The company focuses on delivering high-performance power solutions that enable efficient energy usage in various electronic applications, which drives demand across its key markets. Additionally, MPWR invests in research and development to innovate and expand its product offerings, ensuring a competitive edge in the semiconductor industry. Partnerships with leading technology companies and continuous expansion into new market segments also contribute to its revenue growth.

Monolithic Power Financial Statement Overview

Summary

Monolithic Power exhibits strong financial performance with robust revenue growth and profitability. The company has a solid balance sheet with minimal debt and a high ROE. However, the exceptionally high net profit margin and moderate cash conversion ratios suggest areas for further analysis.

Income Statement

Monolithic Power demonstrates strong revenue growth with a TTM revenue of $2.39 billion, reflecting a solid growth trajectory from $2.21 billion in 2024 and $1.82 billion in 2023. The Gross Profit Margin stands at 55.39%, and the Net Profit Margin is an impressive 76.55%, driven by robust net income figures. The EBIT and EBITDA margins are also healthy, indicating efficient cost management. However, the exceptionally high net profit margin is unusual and warrants further investigation into one-time gains or accounting changes.

Balance Sheet

Monolithic Power's balance sheet is solid with a Debt-to-Equity ratio of 0.004, indicating minimal financial leverage. The Return on Equity (ROE) is notably high at 55.96%, suggesting effective use of equity capital. The Equity Ratio of 85.85% reinforces the company's strong equity base. The company maintains a healthy cash position, but the exceptionally low debt levels may indicate underutilization of potential growth leverage.

Cash Flow

The company showcases a stable cash flow with a Free Cash Flow of $626 million, demonstrating a consistent ability to generate cash. The Operating Cash Flow to Net Income ratio is 0.44, and the Free Cash Flow to Net Income ratio is 0.34, which are somewhat low, indicating that while net income is high, cash conversion is moderate. Positive Free Cash Flow growth and sound capital management are evident, but efficiency in translating income to cash can improve.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.21B	1.82B	1.79B	1.21B	844.45M
Gross Profit	1.22B	1.02B	1.05B	685.46M	465.95M
EBITDA	575.79M	521.90M	563.90M	291.12M	185.87M
Net Income	1.79B	427.37M	437.67M	242.02M	164.38M
Balance Sheet
Total Assets	3.62B	2.43B	2.06B	1.59B	1.21B
Cash, Cash Equivalents and Short-Term Investments	862.95M	1.11B	737.87M	725.08M	595.11M
Total Debt	12.97M	5.57M	3.80M	5.81M	3.10M
Total Liabilities	471.33M	384.41M	390.28M	341.84M	241.90M
Stockholders Equity	3.15B	2.05B	1.67B	1.24B	966.59M
Cash Flow
Free Cash Flow	642.29M	580.63M	187.83M	224.77M	212.16M
Operating Cash Flow	788.41M	638.21M	246.67M	320.01M	267.80M
Investing Cash Flow	223.05M	-178.73M	-12.51M	-378.89M	-39.18M
Financing Cash Flow	-872.23M	-183.72M	-128.78M	-90.21M	-71.56M

Monolithic Power Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 725.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 725.24 is below the 20-day moving average (MA) of 730.16, above the 50-day MA of 705.21, and above the 200-day MA of 667.93, indicating a neutral trend. The MACD of 7.33 indicates Positive momentum. The RSI at 52.21 is Neutral, neither overbought nor oversold. The STOCH value of 33.42 is Neutral, 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	78 Outperform	$34.72B	19.25	67.95%	0.86%	30.57%	342.02%
STM	76 Outperform	$29.16B	27.80	6.32%	0.94%	-25.47%	-70.07%
ASX	74 Outperform	$22.76B	21.48	11.47%	2.51%	1.32%	4.86%
ON	72 Outperform	$25.37B	42.12	7.85%	―	-18.28%	-70.98%
SWKS	70 Outperform	$10.92B	28.42	6.70%	3.85%	-12.90%	-51.90%
MCHP	64 Neutral	$40.36B	84.25	>-0.01%	2.43%	-42.35%	-100.12%
Sector *	63 Neutral	$34.60B	5.43	-11.64%	1.84%	5.30%	-18.55%

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.

The most recent analyst rating on (MPWR) stock is a Buy with a $900.00 price target. To see the full list of analyst forecasts on Monolithic Power stock, see the MPWR Stock Forecast page.