Monolithic Power (MPWR) AI Stock Analysis

• Market Cap: $22.85B
• Dividend Yield: 1.11%
• Average Volume (3M): 973.42K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 2.41
• Revenue Growth: 21.20%
• EPS Growth: 311.29%
• Country: US
• Employees: 4,017
• Sector: Technology
• Sector Strength: 40
• Industry: Semiconductors
• EPS (TTM): 36.77
• Shares Outstanding: 47,866,000
• 10 Day Avg. Volume: 1,028,382
• 30 Day Avg. Volume: 973,418
• PEG Ratio: 0.04
• Price to Book (P/B): N/A
• Price to Sales (P/S): 12.82
• Price to Cash Flow (P/CF): 42.20
• P/FCF Ratio: 42.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $821.09
• Price Target Upside: 80.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

Monolithic Power's overall stock score reflects its strong financial performance and favorable valuation amidst bearish technical indicators. The company's robust revenue growth, financial stability, and strategic innovation efforts boost its outlook. However, technical analysis suggests caution due to bearish trends, and challenges in the enterprise data segment could impact near-term performance. The positive sentiment from the earnings call, emphasizing shareholder returns and market expansion, enhances the stock's attractiveness.

Positive Factors

Product Diversification

The company is returning to its roots as a diversified analog supplier, driven by new products and further SAM expansion.

Share Repurchase

MPS announced a new $500M share repurchase authorization, indicating confidence in its financial position and commitment to returning value to shareholders.

Negative Factors

Conservative Revenue Outlook

The revenue growth target of 10%-15% is a reduction from the previously outlined 20%+ growth, suggesting a more conservative outlook.

Enterprise Data Growth Concerns

The lack of growth in the Enterprise Data business will pressure its valuation in the near-term.

Monolithic Power Business Overview & Revenue Model

Company Description

Monolithic 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 Money

Monolithic 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.

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.

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.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.21B	1.82B	1.79B	1.21B	844.45M
	Gross Profit
1.22B	1.02B	1.05B	685.46M	465.95M
	EBIT
539.36M	481.74M	526.78M	262.42M	158.88M
	EBITDA
575.79M	521.90M	563.90M	291.12M	185.87M
	Net Income Common Stockholders
1.79B	427.37M	437.67M	242.02M	164.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
862.95M	1.11B	737.87M	725.08M	595.11M
	Total Assets
3.62B	2.43B	2.06B	1.59B	1.21B
	Total Debt
0.00	5.57M	3.80M	5.81M	3.10M
	Net Debt
-691.82M	-522.28M	-284.81M	-183.46M	-331.85M
	Total Liabilities
471.33M	384.41M	390.28M	341.84M	241.90M
	Stockholders Equity
3.15B	2.05B	1.67B	1.24B	966.59M
Cash Flow		Free Cash Flow
642.29M	580.63M	187.83M	224.77M	212.16M
	Operating Cash Flow
788.41M	638.21M	246.67M	320.01M	267.80M
	Investing Cash Flow
223.05M	-178.73M	-12.51M	-378.89M	-39.18M
	Financing Cash Flow
-872.23M	-183.72M	-128.78M	-90.21M	-71.56M

Monolithic Power Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 455.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 455.19 is below the 20-day moving average (MA) of 577.32, below the 50-day MA of 616.75, and below the 200-day MA of 733.52, indicating a bearish trend. The MACD of -10.43 indicates Positive momentum. The RSI at 43.76 is Neutral, neither overbought nor oversold. The STOCH value of 20.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$22.85B	13.05	68.78%	1.11%	21.20%	311.29%
STM	71 Outperform	$16.73B	11.16	9.12%	1.65%	-23.24%	-62.93%
ASX	68 Neutral	$17.67B	16.21	10.32%	3.03%	-0.62%	-1.08%
MCHP	68 Neutral	$19.48B	63.87	4.71%	4.77%	-44.31%	-86.74%
ON	67 Neutral	$14.20B	9.66	18.97%	―	-14.19%	-27.42%
SWKS	63 Neutral	$8.11B	16.17	8.34%	5.21%	-12.91%	-42.12%
Sector *	57 Neutral	$18.45B	9.41	-13.97%	2.74%	5.04%	-23.56%

Monolithic Power Corporate Events

Monolithic Power Updates Financial Guidance at Analyst Day

On March 20, 2025, Monolithic Power Systems, Inc. hosted an Analyst Day where management discussed the company’s corporate strategy, business and product updates, and financial metrics. Additionally, the company issued a press release updating certain financial guidance for the quarter ending March 31, 2025, potentially impacting stakeholders’ expectations and the company’s market positioning.