Monolithic Power (MPWR)
NASDAQ:MPWR
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Monolithic Power
(NASDAQ:MPWR)
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Rating:76Outperform
Price Target:
$1,133.00
▲(1.30% Upside)
Action:ReiteratedDate:02/28/26
The score is driven primarily by strong financial quality (high margins, consistent cash generation, and a net-cash balance sheet) and a constructive earnings outlook with improving demand visibility and backlog. These positives are tempered by expensive valuation (high P/E, low yield) and only moderate/neutral near-term technical momentum.
Positive Factors
Fortress balance sheet
The company’s essentially debt-free balance sheet materially reduces financial risk and preserves strategic optionality. With a strengthened equity base and no leverage, management can fund capacity, R&D, dividends and buybacks without relying on external debt, supporting durable execution through cycles.
Negative Factors
Recent revenue growth deceleration
After several years of strong scaling, growth slowed materially in the latest fiscal year, compressing near-term top-line momentum. This deceleration raises the bar for sustained multi-year expansion and suggests sensitivity to end-market cycles and timing of new-technology ramps.
Read all positive and negative factors
Positive Factors
Negative Factors
Fortress balance sheet
The company’s essentially debt-free balance sheet materially reduces financial risk and preserves strategic optionality. With a strengthened equity base and no leverage, management can fund capacity, R&D, dividends and buybacks without relying on external debt, supporting durable execution through cycles.
Read all positive factors
Monolithic Power (MPWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$54.94B
Dividend Yield0.62%
Average Volume (3M)552.61K
Price to Earnings (P/E)70.7
Beta (1Y)2.04
Revenue Growth30.48%
EPS Growth339.29%
CountryUS
Employees4,017
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)4.79
Shares Outstanding49,118,000
10 Day Avg. Volume574,913
30 Day Avg. Volume552,608
Financial Highlights & Ratios
PEG Ratio-1.09
Price to Book (P/B)12.33
Price to Sales (P/S)15.60
P/FCF Ratio65.35
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue20.39
Enterprise Value/Gross Profit36.94
Enterprise Value/Ebitda71.03
Forecast
1Y Price Target
$1,312.00Price Target Upside17.30% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)21.5
Revenue Forecast (FY)$3.38B
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 prov...
How the Company Makes Money
MPWR makes money by selling its semiconductor products—primarily power management integrated circuits and power modules—into original equipment manufacturers (OEMs) and electronics manufacturers whose end products require efficient power conversio...
Monolithic Power Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Monolithic Power is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Monolithic Power is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyMonolithic Power Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial picture: strong full-year and Q4 revenue growth, robust gains in non-enterprise data and automotive, record module and optical momentum, improved enterprise data ordering and an expanding, geographically balanced capacity base. Management also increased shareholder returns and reiterated long-term gross margin targets. Key risks and lowlights include gross margins sitting near the low end of the target band, macro and memory/PC uncertainties, the potential for backlog volatility driven by customer capacity behavior (double ordering), and that some new-technology revenues may be pushed to later periods. On balance, the weight of record results, diversified growth drivers and improved visibility outweigh the highlighted risks.Positive Updates
Record Annual and Quarterly Revenue
Full-year 2025 revenue of $2.8 billion, up 26.4% year-over-year; Q4 2025 record quarterly revenue of $751.2 million, +20.8% year-over-year and +1.9% sequentially.
Negative Updates
Enterprise Data Prior-Year Weakness and Uncertainty
While management is more confident heading into 2026, enterprise data had been down earlier (management noted enterprise data was historically the largest end market and had declined ~2% in 2025) and visibility can still be volatile depending on customer ordering and capacity dynamics.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual and Quarterly Revenue
Full-year 2025 revenue of $2.8 billion, up 26.4% year-over-year; Q4 2025 record quarterly revenue of $751.2 million, +20.8% year-over-year and +1.9% sequentially.
Read all positive updates
Company Guidance
The company raised its confidence in 2026 demand—driven largely by enterprise data—saying Q4 2025 produced a record $751.2M (up 1.9% sequentially, +20.8% YoY) and FY2025 revenue hit $2.8B (+26.4% YoY), with non-enterprise data up >40% and automotive +43% in 2025; order trends showed book-to-bill well above 1, backlog extending into Q2 2026, and channel inventory at the low end of the range. Management said it can at minimum raise its prior enterprise-data outlook into a floor of ~50% growth (vs. a prior 30–40% range), highlighted secured geographically balanced capacity in excess of $4B, ongoing module sampling (including 800V solutions) and packaging/current-density milestones, and reiterated a corporate gross-margin target of 55–60% (recently ~55.5–55.8% with expected incremental 10–20 bps q/q improvement). They also announced a 28% increase to a $2.00 quarterly dividend, noted >72% of free cash flow returned to shareholders over the past three years, and cautioned that macro and supply variables (tariffs, subsidies, memory market) mean they remain conservative on full-year pacing.Monolithic Power Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
94
Very Positive
Cash Flow
82
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.79B | 2.21B | 1.82B | 1.79B | 1.21B |
| Gross Profit | 1.54B | 1.22B | 1.02B | 1.05B | 685.46M |
| EBITDA | 817.24M | 575.79M | 521.90M | 563.90M | 291.12M |
| Net Income | 615.93M | 1.79B | 427.37M | 437.67M | 242.02M |
Balance Sheet | |||||
| Total Assets | 4.19B | 3.62B | 2.43B | 2.06B | 1.59B |
| Cash, Cash Equivalents and Short-Term Investments | 1.26B | 862.95M | 1.11B | 737.87M | 725.08M |
| Total Debt | 24.10M | 15.79M | 5.57M | 1.66M | 0.00 |
| Total Liabilities | 662.70M | 471.33M | 384.41M | 390.28M | 341.84M |
| Stockholders Equity | 3.53B | 3.15B | 2.05B | 1.67B | 1.24B |
Cash Flow | |||||
| Free Cash Flow | 666.19M | 642.29M | 580.63M | 187.83M | 224.77M |
| Operating Cash Flow | 838.20M | 788.41M | 638.21M | 246.67M | 320.01M |
| Investing Cash Flow | -157.27M | 223.05M | -178.73M | -12.51M | -378.89M |
| Financing Cash Flow | -285.86M | -872.23M | -183.72M | -128.78M | -90.21M |
Monolithic Power Technical Analysis
Positive
1118.49
Price Trends
1118.32
Positive
1031.76
Positive
940.43
Positive
Market Momentum
-4.30
Negative
54.15
Neutral
82.21
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 1118.49 is above the 20-day moving average (MA) of 1069.25, above the 50-day MA of 1118.32, and above the 200-day MA of 940.43, indicating a bullish trend. The MACD of -4.30 indicates Negative momentum. The RSI at 54.15 is Neutral, neither overbought nor oversold. The STOCH value of 82.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MPWR.
Monolithic Power Risk Analysis
Monolithic Power disclosed 36 risk factors in its most recent earnings report. Monolithic Power reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Monolithic Power Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $54.94B | 70.69 | 17.89% | 0.62% | 30.48% | 339.29% | |
75 Outperform | $93.65B | 25.45 | 19.38% | 0.28% | 44.95% | ― | |
64 Neutral | $24.50B | 183.93 | 1.53% | ― | -16.13% | -81.06% | |
63 Neutral | $49.16B | 27.14 | 20.73% | 1.79% | -6.81% | -23.16% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $35.50B | 246.12 | -1.42% | 2.79% | -23.36% | -131.15% | |
56 Neutral | $29.87B | -216.33 | 0.97% | 1.28% | -17.33% | -76.71% |
* Technology Sector Average
MPWR
Monolithic Power
1,118.49
633.56
130.65%
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ON
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STM
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34.32
15.63
83.63%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.