Monolithic Power (MPWR) AI Stock Analysis

• Market Cap: $38.52B
• Dividend Yield: 0.7%
• Average Volume (3M): 585.03K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 2.27
• Revenue Growth: 34.30%
• EPS Growth: 352.35%
• Country: US
• Employees: 4,017
• Sector: Technology
• Sector Strength: 98
• Industry: Semiconductors
• EPS (TTM): 4.21
• Shares Outstanding: 47,892,000
• 10 Day Avg. Volume: 821,539
• 30 Day Avg. Volume: 585,031
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 14.24
• Enterprise Value/Gross Profit: 25.72
• Enterprise Value/Ebitda: 52.15
• 1Y Price Target: $846.55
• Price Target Upside: 5.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 76 Outperform
• Price Target: $888.00 ▲(10.41% Upside)

Monolithic Power's strong financial performance is the primary driver of its score, supported by positive technical indicators. The reasonable valuation and optimistic earnings call provide additional support, though caution in certain segments and moderate cash conversion rates introduce minor risks. Overall, the stock is well-positioned for growth, supported by strategic diversification and innovation in the semiconductor industry.

Positive Factors

Earnings

MPS reported a strong beat and raise highlighted by growth across every end market.

Enterprise Data Growth

Enterprise Data should grow strongly and reaccelerate, supported by share gains on GPU platforms and shipments for multiple next-gen ASIC-based AI platforms.

Negative Factors

Market Skepticism

The second half Enterprise Data ramp is likely met with continued skepticism across the investor base.

Tariff Concerns

Potential tariff impacts will remain an overhang for MPS and its peers.

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 health, evidenced by significant revenue growth, impressive profit margins, and minimal leverage. Despite an exceptionally high net profit margin that requires further scrutiny, the company demonstrates robust profitability and a solid balance sheet.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.39B	2.21B	1.82B	1.79B	1.21B	844.45M
Gross Profit	1.32B	1.22B	1.02B	1.05B	685.46M	465.95M
EBITDA	651.88M	575.79M	521.90M	563.90M	291.12M	185.87M
Net Income	1.83B	1.79B	427.37M	437.67M	242.02M	164.38M
Balance Sheet
Total Assets	3.81B	3.62B	2.43B	2.06B	1.59B	1.21B
Cash, Cash Equivalents and Short-Term Investments	1.03B	862.95M	1.11B	737.87M	725.08M	595.11M
Total Debt	14.47M	12.97M	5.57M	3.80M	5.81M	3.10M
Total Liabilities	538.75M	471.33M	384.41M	390.28M	341.84M	241.90M
Stockholders Equity	3.27B	3.15B	2.05B	1.67B	1.24B	966.59M
Cash Flow
Free Cash Flow	626.28M	642.29M	580.63M	187.83M	224.77M	212.16M
Operating Cash Flow	796.75M	788.41M	638.21M	246.67M	320.01M	267.80M
Investing Cash Flow	231.58M	223.05M	-178.73M	-12.51M	-378.89M	-39.18M
Financing Cash Flow	-878.14M	-872.23M	-183.72M	-128.78M	-90.21M	-71.56M

Monolithic Power Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 804.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 804.29 is above the 20-day moving average (MA) of 745.79, above the 50-day MA of 726.13, and above the 200-day MA of 655.88, indicating a bullish trend. The MACD of 22.71 indicates Negative momentum. The RSI at 63.43 is Neutral, neither overbought nor oversold. The STOCH value of 75.40 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	76 Outperform	$38.52B	20.94	66.50%	0.70%	34.30%	352.35%
ASX	65 Neutral	$21.67B	20.32	10.97%	2.62%	4.86%	6.44%
SWKS	63 Neutral	$10.55B	28.32	6.61%	3.94%	-8.24%	-48.31%
ON	60 Neutral	$19.49B	44.47	5.72%	―	-18.28%	-70.98%
STM	60 Neutral	$22.28B	36.17	3.72%	1.22%	-22.97%	-78.58%
MCHP	54 Neutral	$33.39B	84.25	-2.24%	2.94%	-42.35%	-100.12%
Sector *	50 Neutral	AU$1.62B	3.12	-31.35%	3.48%	16.12%	-6.73%

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.