Monolithic Power (MPWR) AI Stock Analysis

• Market Cap: $44.89B
• Dividend Yield: 0.62%
• Average Volume (3M): 772.01K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 2.13
• Revenue Growth: 30.48%
• EPS Growth: 339.29%
• Country: US
• Employees: 4,017
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 4.73
• Shares Outstanding: 47,907,000
• 10 Day Avg. Volume: 1,113,707
• 30 Day Avg. Volume: 772,014
• 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: 0.96
• Enterprise Value/Revenue: 16.17
• Enterprise Value/Gross Profit: 29.26
• Enterprise Value/Ebitda: 57.30
• 1Y Price Target: $1,145.41
• Price Target Upside: 22.23% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 17.7
• Revenue Forecast (FY): $2.78B

• Rating: 75 Outperform
• Price Target: $1,054.00 ▲(12.47% Upside)

Monolithic Power's overall stock score reflects its strong financial performance and strategic market positioning, particularly in automotive and enterprise data. While technical indicators and valuation suggest moderate growth potential, the company's robust earnings and dividend policy support a positive outlook.

Positive Factors

Revenue Growth

Record revenue growth indicates strong demand and effective market strategies, supporting long-term financial stability and expansion.

Market Diversification

Diversification across markets like automotive and industrial reduces dependency on single sectors, enhancing resilience against market fluctuations.

Balance Sheet Strength

A strong balance sheet with minimal debt enhances financial flexibility and reduces risk, supporting sustainable growth and investment capacity.

Negative Factors

Gross Margin Stability Concerns

Declining gross margins may indicate rising costs or pricing pressures, potentially impacting profitability and competitive positioning.

AI Market Challenges

Challenges in AI market engagement could limit growth opportunities in a key emerging sector, affecting future revenue streams.

Uncertainty in Market Visibility

Uncertainty in market visibility can hinder strategic planning and resource allocation, impacting long-term growth and margin expansion.

Monolithic Power Business Overview & Revenue Model

Company Description

Monolithic Power Systems, Inc. (MPWR) is a leading provider of high-performance power solutions, specializing in the design and manufacturing of power management products for various sectors, including automotive, industrial, telecommunications, and consumer electronics. The company offers a wide range of products such as DC-DC converters, LED drivers, and power management ICs, aimed at enhancing energy efficiency and performance in electronic systems.

How the Company Makes Money

Monolithic Power generates revenue primarily through the sale of its semiconductor products, which are used in various applications across multiple industries. The company operates on a direct sales model and also collaborates with distributors to reach a broader market. Key revenue streams include the sale of integrated circuits and power modules, with significant contributions from sectors like automotive and industrial automation. Additionally, MPWR benefits from partnerships with major electronics manufacturers, which helps increase its product adoption and market presence. The company's focus on innovation and development of advanced power solutions contributes to its competitive advantage and financial performance.

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 a strong net profit margin and impressive return on equity, indicating effective management and profitability.

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	2.66B	2.21B	1.82B	1.79B	1.21B	844.45M
Gross Profit	1.47B	1.22B	1.02B	1.05B	685.46M	465.95M
EBITDA	750.71M	575.79M	521.90M	563.90M	291.12M	185.87M
Net Income	1.90B	1.79B	427.37M	437.67M	242.02M	164.38M
Balance Sheet
Total Assets	4.21B	3.62B	2.43B	2.06B	1.59B	1.21B
Cash, Cash Equivalents and Short-Term Investments	1.27B	862.95M	1.11B	737.87M	725.08M	595.11M
Total Debt	15.08M	15.79M	5.57M	1.66M	0.00	3.10M
Total Liabilities	638.45M	471.33M	384.41M	390.28M	341.84M	241.90M
Stockholders Equity	3.57B	3.15B	2.05B	1.67B	1.24B	966.59M
Cash Flow
Free Cash Flow	705.17M	642.29M	580.63M	187.83M	224.77M	212.16M
Operating Cash Flow	900.97M	788.41M	638.21M	246.67M	320.01M	267.80M
Investing Cash Flow	373.46M	223.05M	-178.73M	-12.51M	-378.89M	-39.18M
Financing Cash Flow	-893.94M	-872.23M	-183.72M	-128.78M	-90.21M	-71.56M

Monolithic Power Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 937.11
• 50DMA: Negative
• 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 937.11 is below the 20-day moving average (MA) of 940.74, below the 50-day MA of 968.04, and above the 200-day MA of 781.76, indicating a neutral trend. The MACD of -2.27 indicates Positive momentum. The RSI at 48.03 is Neutral, neither overbought nor oversold. The STOCH value of 20.14 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
MRVL	76 Outperform	$71.32B	29.44	18.04%	0.28%	44.95%	―
MPWR	75 Outperform	$44.89B	23.93	64.03%	0.62%	30.48%	339.29%
ON	73 Outperform	$22.22B	72.05	3.87%	―	-16.13%	-81.06%
NXPI	70 Neutral	$56.95B	27.79	21.19%	1.79%	-6.81%	-23.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	57 Neutral	$23.17B	45.39	3.00%	1.29%	-17.33%	-76.71%
MCHP	54 Neutral	$35.08B	-143.73	-2.85%	2.80%	-23.36%	-131.15%

Monolithic Power Corporate Events

Monolithic Power Announces Q4 Dividend for Shareholders

On December 12, 2025, Monolithic Power Systems announced a fourth-quarter cash dividend of $1.56 per share, payable to stockholders of record as of December 31, 2025, with payment scheduled for January 15, 2026. This announcement reflects the company’s ongoing commitment to providing consistent returns to its shareholders, reinforcing its position in the semiconductor power electronics industry.

Monolithic Power Lowers Threshold for Special Meetings

On November 19, 2025, Monolithic Power Systems, Inc. announced the adoption of its Amended and Restated Bylaws, which lower the ownership threshold for stockholders to call a special meeting from 30% to 25%. This decision follows the 2025 annual meeting where a non-binding proposal for a 10% threshold was approved, and feedback from major stockholders supported a higher threshold than 10%. The board’s decision reflects the company’s response to stockholder input and peer company practices.