Monolithic Power (MPWR) AI Stock Analysis

• Market Cap: $48.13B
• Dividend Yield: 0.55%
• Average Volume (3M): 534.30K
• Price to Earnings (P/E): 26.2
• Beta (1Y): 2.26
• Revenue Growth: 34.30%
• EPS Growth: 352.35%
• Country: US
• Employees: 4,017
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 4.73
• Shares Outstanding: 47,892,000
• 10 Day Avg. Volume: 520,055
• 30 Day Avg. Volume: 534,302
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $1,085.23
• Price Target Upside: -0.21% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 76 Outperform
• Price Target: $1,136.00 ▲(4.45% Upside)

Monolithic Power's strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's robust revenue growth and efficient management are complemented by a solid market position. However, valuation concerns and uncertainties highlighted in the earnings call slightly temper the overall outlook.

Positive Factors

Revenue Growth

The consistent revenue growth reflects strong market demand and effective business strategies, indicating a robust future outlook for the company.

Market Diversification

Diversification across multiple sectors reduces dependency on any single market, enhancing resilience and long-term growth potential.

Strong Cash Flow

Efficient cash generation supports ongoing operations and investments, ensuring financial flexibility and sustainability.

Negative Factors

Gross Margin Stability Concerns

Declining gross margins could pressure profitability, affecting the company's ability to invest in growth and innovation.

AI Market Engagement Challenges

Challenges in AI market engagement may limit growth opportunities in a rapidly expanding sector, impacting future revenue streams.

Uncertainty in Market Visibility

Uncertainty in future demand can hinder strategic planning and resource allocation, potentially affecting growth and profitability.

Monolithic Power Business Overview & Revenue Model

Company Description

Monolithic Power Systems, Inc. (MPWR) is a leading provider of high-performance analog and mixed-signal semiconductor solutions. Founded in 1997 and headquartered in Kirkland, Washington, the company specializes in power management, motor drivers, and LED drivers for a diverse range of applications across various sectors, including consumer electronics, automotive, industrial, and telecommunications. MPWR's core products include power modules, voltage regulators, and various integrated circuits designed to enhance energy efficiency and performance in electronic devices.

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. The company shows impressive profitability metrics and efficient cash flow generation, supporting its 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	15.79M	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: Neutral
• Last Price: 1087.56
• 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 Neutral. The current price of 1087.56 is above the 20-day moving average (MA) of 1017.65, above the 50-day MA of 930.78, and above the 200-day MA of 732.04, indicating a neutral trend. The MACD of 42.36 indicates Positive momentum. The RSI at 50.79 is Neutral, neither overbought nor oversold. The STOCH value of 63.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MPWR.

Monolithic Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPWR	―	$48.13B	26.17	66.50%	0.55%	34.30%	352.35%
ON	―	$20.48B	46.73	5.72%	―	-17.93%	-75.83%
MRVL	―	$80.81B	-739.86	-0.75%	0.27%	37.05%	89.40%
NXPI	―	$52.63B	25.68	21.19%	1.97%	-6.81%	-23.16%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	―	$22.08B	43.02	3.00%	1.42%	-17.33%	-76.71%
MCHP	―	$33.69B	-187.73	-2.24%	2.93%	-35.70%	-113.08%

Monolithic Power Corporate Events

Monolithic Power Systems Reports Strong Q3 2025 Results

Monolithic Power Systems, Inc. (MPS) is a fabless global company specializing in high-performance, semiconductor-based power electronics solutions, aiming to enhance energy efficiency and reduce material consumption. In its latest earnings report for the third quarter of 2025, MPS announced a revenue of $737.2 million, marking a significant 18.9% increase compared to the same period last year. The company’s GAAP net income rose to $178.3 million, translating to $3.71 per diluted share, a notable improvement from $144.4 million and $2.95 per diluted share in the previous year.

Monolithic Power Declares Q3 Dividend of $1.56

On September 11, 2025, Monolithic Power Systems announced a third quarter dividend of $1.56 per share, payable to stockholders of record as of September 30, 2025, with distribution set for October 15, 2025. This announcement underscores MPS’s commitment to providing consistent returns to its shareholders, reflecting its robust financial health and strategic position in the semiconductor industry.

The most recent analyst rating on (MPWR) stock is a Buy with a $939.00 price target. To see the full list of analyst forecasts on Monolithic Power stock, see the MPWR Stock Forecast page.

Monolithic Power Systems Reports Record Revenue and Optimistic Growth Outlook

Monolithic Power Systems (MPS) recently held an earnings call that conveyed a generally positive sentiment, underscored by record revenue achievements and robust growth across various segments. The company celebrated significant advancements in enterprise data and automotive sectors, although it expressed some caution regarding storage and compute due to previous strong quarters and limited visibility into the final quarter of the year. Overall, the sentiment leaned towards optimism with a few areas of cautiousness.

Monolithic Power Systems Reports Strong Q2 Growth

Monolithic Power Systems, Inc. (MPS) is a fabless global company specializing in high-performance, semiconductor-based power electronics solutions, with a mission to reduce energy and material consumption to enhance quality of life. Founded in 1997, MPS leverages its deep system-level knowledge, semiconductor expertise, and innovative technologies to deliver energy-efficient and cost-effective solutions.