Monolithic Power Systems (MPWR)
Information Technology · $64.7B market cap · SEC CIK 0001280452
fundamentals score out of 100
Next reports on Oct 28, 2026, after the close, with analysts expecting $7.85 in earnings per share.
The case for MPWR
- Revenue up 28.7% on the year.
- Generated $666M of free cash flow in FY2025, 24% of revenue.
- 25% of revenue drops through to net profit.
- Has compounded revenue at 27.0% a year over five years.
- Return on equity of 22%.
- Carries essentially no debt.
The case against
- Very expensive at 80.5× earnings. Years of growth are already in the price.
- Earnings per share down 57.2%.
- Priced at 19.8× sales, which leaves no room for a stumble.
- Swings harder than the market (beta 1.73).
- Free cash flow is only 1.0% of its market value, a thin cash return for the price.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 16 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 55 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 70 |
| Momentumhow the price has behaved lately | 55 |
| Stabilityhow violently it moves, what it owes and what it pays you | 50 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 80.5× |
|---|---|
| Price / book | 17.43× |
| Price / sales | 19.8× |
| Revenue growth (YoY) | +28.7% |
| EPS growth (YoY) | -57.2% |
| Gross margin | 55% |
| Operating margin | 29% |
| Net margin | 25% |
| Return on equity | 22% |
| Debt / equity | 0.00× |
| Current ratio | 4.98 |
| Dividend yield | 0.73% |
| Beta | 1.73 |
| 52-week range | $833.18 – $1,714 |
| Position in that range | 62% of the way up |
| 3-month return | -18.3% |
| 1-year return | +39.4% |
Five years of financials, as filed
Pulled from Monolithic Power Systems's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $2.8B | $2.2B | $1.8B | $1.8B | $1.2B |
| Gross profit | $1.5B | $1.2B | $1.0B | $1.0B | $685M |
| Operating income | $729M | $539M | $482M | $527M | $262M |
| Net income | $621M | $1.6B | $427M | $438M | $242M |
| Operating cash flow | $838M | $788M | $638M | $247M | $320M |
| Capital expenditure | $172M | $146M | $57.6M | $58.8M | $94.4M |
| Total assets | $4.2B | $3.5B | $2.4B | $2.1B | $1.6B |
| Total liabilities | $663M | $565M | $384M | $390M | $342M |
| Shareholder equity | $3.5B | $3.0B | $2.0B | $1.7B | $1.2B |
| Cash | $1.1B | $692M | $528M | $289M | $189M |
| Free cash flow | $666M | $642M | $581M | $188M | $226M |
| Gross margin | 55.2% | 55.3% | 56.1% | 58.4% | 56.8% |
| Operating margin | 26.1% | 24.4% | 26.5% | 29.4% | 21.7% |
| Net margin | 22.3% | 72.1% | 23.5% | 24.4% | 20.0% |
| Diluted shares | 48.3M | 48.8M | 48.8M | 48.4M | 47.9M |
Share count is essentially flat over 4 years.
What Monolithic Power Systems says it does
Monolithic Power Systems, Inc. is a fabless global company that provides high-performance, semiconductor-based power electronics solutions. Incorporated in 1997, our three core strengths include deep system-level knowledge, strong semiconductor design expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging. These combined advantages enable us to deliver reliable, compact, and monolithic solutions found in storage and computing, enterprise data, automotive, industrial, communications and consumer applications. Our mission is to reduce energy and material consumption to improve all aspects of quality of life and create a sustainable future. We believe that we differentiate ourselves by offering solutions that are more highly integrated, smaller in size, more energy-efficient, more accurate and more reliable with respect to performance specifications and, consequently,…
Risk factors MPWR lists in its 10-K
- Macroeconomic Conditions and Regulations
- Selling, General and Administrative (
- Quantitative and Qualitative Disclosures about Market Risk
- Financial Statements and Supplementary Data
- Report of Independent Registered Public Accounting Firm
- Opinion on the Financial Statements
- As discussed in Note 2 to the consolidated financial statements, the 2024 consolidated financial statements have been restated to correct a misstatement. Basis for Opinion
- Income Taxes – Realizability of foreign tax incentive
- How We Addressed the Matter in Our Audit
- Opinion on Internal Control Over Financial Reporting
- Cash flows from operating activities
- Cash flows from investing activities
- Cash flows from financing activities
- Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets