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Monolithic Power (MPWR)
NASDAQ:MPWR
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Monolithic Power
(NASDAQ:MPWR)76Outperform
Positive Factors
Revenue Growth
Revenue from indirect sales to a single customer for AI application systems increased to 17% in 2024, up from less than 10% in 2023.
Stock Buyback
The company repurchased approximately $636 million worth of shares in 2024, a significant increase compared to $4 million in 2023.
Negative Factors
Cash Flow
Fourth quarter free cash flow was $103 million, which is lower compared to $198 million in the previous quarter.
Monolithic Power (MPWR) vs. S&P 500 (SPY)
Market Cap
$29.30B
Dividend Yield0.82%
Average Volume (3M)955.64K
Price to Earnings (P/E)16.7
Beta (1Y)2.52
Revenue Growth21.20%
EPS Growth311.29%
CountryUS
Employees3,564
SectorTechnology
Sector Strength48
IndustrySemiconductors and Equipment
Share Statistics
EPS (TTM)36.77
Shares Outstanding47,866,000
10 Day Avg. Volume983,940
30 Day Avg. Volume955,638
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)N/A
Price to Sales (P/S)13.28
Price to Cash Flow (P/CF)43.70
P/FCF Ratio43.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$825.64Price Target Upside45.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
Monolithic Power Business Overview & Revenue Model
Company DescriptionMonolithic Power Systems, Inc. (MPWR) is a leading semiconductor company specializing in high-performance power solutions. It operates in sectors such as automotive, industrial, computing, telecommunications, and consumer electronics. The company's core products include integrated circuits (ICs) for power management applications that enable greater energy efficiency and performance in electronic devices.
How the Company Makes MoneyMonolithic Power Systems generates revenue primarily through the sale of its power management integrated circuits. These circuits are used across various industries, providing essential functionalities in electronic devices, such as voltage regulation, power conversion, and battery management. MPWR's revenue model is largely based on product sales, where they supply these ICs to original equipment manufacturers (OEMs) and distributors globally. The company benefits from strategic partnerships with leading technology firms and continuous investment in research and development to innovate and expand its product offerings. Key factors contributing to its earnings include a diversified customer base, the growing demand for energy-efficient solutions, and its ability to adapt to technological advancements in the power management sector.
Monolithic Power Financial Statement Overview
Summary
Monolithic Power exhibits robust financial health. The income statement shows strong revenue and profit growth, supported by effective cost management. The balance sheet is solid with no debt and high equity, indicating financial stability. Cash flow is strong, though there is some volatility in capital expenditures. Overall, the financial performance is highly favorable, albeit with concerns about the sustainability of the latest net income spike.Income Statement
The company exhibits strong profitability with a consistent increase in total revenue over the years. The most recent year saw a significant increase in net income due to improved operational efficiencies, reflected in a high net profit margin. Gross profit margin remains robust, indicating effective cost management. The EBIT and EBITDA margins also reveal a solid operational performance. Overall, the income statement reflects a positive growth trajectory, though the high net income in the latest year may not be sustainable long-term.92
Very Positive
Balance Sheet
Monolithic Power maintains a strong balance sheet with no total debt, leading to an excellent debt-to-equity ratio. The equity ratio is also strong, indicating financial stability. The company shows a healthy return on equity, reflecting effective use of its capital to generate profits. Overall, the balance sheet portrays financial strength and minimal risk, though the growing size of stockholders' equity suggests capital is being retained rather than distributed.89
Very Positive
Cash Flow
The cash flow statement shows a solid free cash flow growth rate, supported by consistent operating cash flow. The ratio of operating cash flow to net income is favorable, indicating efficient cash generation relative to reported profits. The free cash flow to net income ratio also suggests strong cash profitability. However, fluctuations in capital expenditures over the years highlight potential volatility in cash flow management.85
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.50B | 2.21B | 1.82B | 1.79B | 1.21B | 844.45M | Gross Profit |
| 870.02M | 1.22B | 1.02B | 1.05B | 685.46M | 465.95M | EBIT |
| 393.72M | 539.36M | 481.74M | 526.78M | 262.42M | 158.88M | EBITDA |
| 412.78M | 539.36M | 521.90M | 563.90M | 291.12M | 185.87M | Net Income Common Stockholders |
| 335.69M | 1.79B | 427.37M | 437.67M | 242.02M | 164.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 862.95M | 862.95M | 1.11B | 737.87M | 725.08M | 595.11M | Total Assets |
| 3.62B | 3.62B | 2.43B | 2.06B | 1.59B | 1.21B | Total Debt |
| 0.00 | 0.00 | 5.57M | 3.80M | 5.81M | 3.10M | Net Debt |
| -691.82M | -691.82M | -522.28M | -284.81M | -183.46M | -331.85M | Total Liabilities |
| 471.33M | 471.33M | 384.41M | 390.28M | 341.84M | 241.90M | Stockholders Equity |
| 3.15B | 3.15B | 2.05B | 1.67B | 1.24B | 966.59M |
| Cash Flow | Free Cash Flow | ||||
| 282.97M | 642.29M | 580.63M | 187.83M | 224.77M | 212.16M | Operating Cash Flow |
| 358.66M | 788.41M | 638.21M | 246.67M | 320.01M | 267.80M | Investing Cash Flow |
| -120.01M | 223.05M | -178.73M | -12.51M | -378.89M | -39.18M | Financing Cash Flow |
| -112.42M | -872.23M | -183.72M | -128.78M | -90.21M | -71.56M |
Monolithic Power Technical Analysis
Negative
565.70
Price Trends
636.70
Negative
673.90
Negative
757.04
Negative
Market Momentum
-16.52
Positive
35.36
Neutral
22.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MPWR, the sentiment is Negative. The current price of 565.7 is below the 20-day moving average (MA) of 657.25, below the 50-day MA of 636.70, and below the 200-day MA of 757.04, indicating a bearish trend. The MACD of -16.52 indicates Positive momentum. The RSI at 35.36 is Neutral, neither overbought nor oversold. The STOCH value of 22.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 “Production” 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
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $29.30B | 16.73 | 68.78% | 0.82% | 21.20% | 311.29% | |
74 Outperform | $113.81B | 73.18 | 4.43% | 1.60% | -19.28% | -44.00% | |
71 Outperform | $178.03B | 37.64 | 28.25% | 2.72% | -10.72% | -26.60% | |
69 Neutral | $54.98B | 22.04 | 28.16% | 1.87% | -4.99% | -9.18% | |
68 Neutral | $32.08B | 105.17 | 4.71% | 3.04% | -44.31% | -86.74% | |
67 Neutral | $19.59B | 12.08 | 18.97% | ― | -14.19% | -27.42% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% |
* Technology Sector Average
Performance Comparison
MPWR
Monolithic Power
565.70
-161.51
-22.21%
ADI
Analog Devices
222.77
30.03
15.58%
MCHP
Microchip
59.77
-26.92
-31.05%
NXPI
NXP Semiconductors
214.47
-33.35
-13.46%
ON
ON Semiconductor
43.88
-35.07
-44.42%
TXN
Texas Instruments
189.34
21.73
12.96%
Monolithic Power Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -14.40% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call highlights Monolithic Power Systems, Inc.'s strong revenue growth and product innovation, particularly in new market segments such as clean energy and automotive. However, challenges remain in the enterprise data segment with expectations of a flat growth year. Despite these challenges, the overall outlook is positive with strategic investments and a focus on diversification.Highlights
Record Revenue Growth
Monolithic Power Systems, Inc. reported its thirteenth consecutive year of growth with full-year revenue of $2.2 billion, a 21% increase from 2023. Q4 2024 revenue reached a record $621.7 million, which is 37% higher than Q4 2023.
Product Innovation and Market Expansion
Introduced a silicon carbide inverter for clean energy applications with revenue expected in late 2025. Developed automotive audio products using DSP technology and launched battery management solutions for enterprise notebooks.
Increased Shareholder Returns
Quarterly dividend increased by 25% to $1.56 per share. Completed share repurchases under a $640 million 2023 authorization and announced a new $500 million three-year share repurchase program.
Diversified Growth Strategy
Continued investment in new technology and expansion into new markets aims to maintain supply chain stability and capture future growth opportunities.
Lowlights
Enterprise Data Segment Challenges
The enterprise data segment is expected to have a flattish year with growth anticipated in the second half of 2025 due to new product launches by hyperscalers.
Volatility in AI and Enterprise Data Markets
Enterprise data, including AI-related products, is expected to remain volatile with unpredictable demand profiles.
Company Guidance
During the fourth quarter of fiscal year 2024, Monolithic Power Systems, Inc. delivered impressive results, recording a 21% increase in full-year revenue to $2.2 billion, with Q4 revenues reaching a record $621.7 million, up 37% year-over-year. The company announced a 25% increase in its quarterly dividend to $1.56 per share and completed share repurchases under a $640 million authorization, while also initiating a new $500 million three-year share repurchase program. The company highlighted its focus on innovation, including the launch of a silicon carbide inverter for clean energy applications and new automotive audio products, which are set to ramp up in 2025 and 2026. Additionally, Monolithic Power Systems emphasized its ongoing diversification strategy, aiming to expand into new markets and maintain supply chain stability. The enterprise data segment is expected to be flattish, with growth anticipated in the second half of 2025, driven by new product ramps with hyperscalers. Automotive and communications segments showed promising growth potential, while the company remains optimistic about the market opportunities across various sectors.Monolithic Power Corporate Events
Executive/Board Changes
Monolithic Power Announces Board of Directors Reshuffle
Neutral
Oct 22, 2024
Monolithic Power Systems, Inc. has announced a reshuffle in its Board of Directors, with James C. Moyer stepping down and Jeff Zhou being reappointed as a Class I director, maintaining stability within the company’s leadership. This move, aimed at balancing director classes, leaves the board with a new composition, poised to continue its strategic oversight without disruption to Zhou’s roles or compensation.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.