Monolithic Power Systems, Inc. (MPWR) stock analysis

P/E above its 5-year median

Monolithic Power Systems's P/E of 90.3 is above its own 5-year median of 67.2.

P/E above the industry

Monolithic Power Systems's P/E of 90.3 is above the Electronic Components and Accessories median of 34.6.

EV/EBITDA above its 5-year median

Monolithic Power Systems's EV/EBITDA of 71.2 is above its 5-year median of 57.6.

P/B above the industry

Monolithic Power Systems's price-to-book of 18.65 is above the Electronic Components and Accessories median of 3.49.

Trading above fair value

The share price of $1478.69 is above our fair value estimate of $694.41.

Margin of safety under 20%

The price is 113% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 15.9% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 12.4% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -52.0% over the last twelve months, against a 5-year average of 30.5% a year.

Growing faster than the industry

Revenue grew 28.7% over the last twelve months; the Electronic Components and Accessories median is 17.3%.

Guidance lowered

Monolithic Power Systems lowered its fourth quarter of 2026 Interest and other income outlook on Oct 29, 2026.

Gross margin slipping

Gross margin was 55.2% over the last twelve months, against 55.3% a year earlier.

Return on equity over 15%

Return on equity was 22.6% over the last twelve months and averaged 31.6% over five years.

Return on capital over 10%

Return on invested capital was 33.7%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Monolithic Power Systems's return on equity of 22.6% is above the Electronic Components and Accessories median of 4.8%.

Earnings grew over 5 years

Net income grew 30.5% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 24.5% over the last twelve months, against a 5-year average of 32.5%.

Net margin above the industry

Monolithic Power Systems's net margin of 24.5% is above the Electronic Components and Accessories median of 3.0%.

No debt

Monolithic Power Systems has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 4.98 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 57.86; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Monolithic Power Systems paid dividends worth 0.5% of the share price over the last twelve months.

Yield below Treasuries

The 0.5% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Monolithic Power Systems yields 0.5%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 41.1% of net income.

Covered by free cash flow

Dividends take 56.2% of free cash flow.