Data last refreshed 17 days ago — analysis may not reflect the latest market data

MPWRMPWR

US

NEUTRAL

$1382.36

P/E

98.79

PEG

FCF Yield

Rev Growth YoY

+23.9% YoY

Gross Margin

55.2%

Health Score

7/10

D/E Ratio

Confidence

MEDIUM


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Business Snapshot

Monolithic Power Systems (MPWR) designs, develops, and markets proprietary, fabless semiconductor power solutions. The company operates in the analog semiconductor industry, focusing on power management integrated circuits for computing, enterprise storage, automotive, and industrial markets. It is considered a niche leader in high-efficiency power conversion technology, competing with larger players like Texas Instruments and Infineon. A defining characteristic is its proprietary BCD process technology and power module manufacturing expertise, which creates a competitive moat in high-performance power management.

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Financial Health

Gross margin stands at 55.2%, which is healthy for a fabless semiconductor firm, though no prior-year comparison figure is available for context. Net margin (TTM) is 23.0%, indicating strong profitability from operations...

Risk Assessment

  • VALUATION — P/E of 98.79x is 4.5x the sector average of 22x, indicating extreme premium pricing that leaves little room for error.
  • EARNINGS QUALITY — Earnings growth declined by 62.9% YoY even as revenue grew sharply, raising concerns about cost structure and profitability sustainability.
  • TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
  • INSIDER — 0 buys vs 8 sells over the last 90 days signals strong insider caution at current price levels....

Gross margin stands at 55.2%, which is healthy for a fabless semiconductor firm, though no prior-year comparison figure is available for context. Net margin (TTM) is 23.0%, indicating strong profitability from operations. The balance sheet is exceptionally conservative with a debt/equity ratio of 0.0x and a current ratio of 5.91x, suggesting ample liquidity and no financial leverage. Return on equity stands at 19.2%, demonstrating efficient capital deployment. Overall financial health is robust, providing the company significant flexibility for reinvestment and R&D spending without reliance on debt markets.

- VALUATION — P/E of 98.79x is 4.5x the sector average of 22x, indicating extreme premium pricing that leaves little room for error. - EARNINGS QUALITY — Earnings growth declined by 62.9% YoY even as revenue grew sharply, raising concerns about cost structure and profitability sustainability. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - INSIDER — 0 buys vs 8 sells over the last 90 days signals strong insider caution at current price levels.

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Full 8-section analysis includes:

Financial Health
Growth Momentum
Valuation Snapshot
Risk Flags
Sentiment & News
Technical Snapshot
Full Verdict with Confidence Rating
Last updated 416 hours ago · Data sourced from FMP & Finnhub · Not financial advice