MPWRNEUTRAL

MPWR Gross Margin Analysis

55.2%

Updated 5h ago·SEC filings & market data

Key Takeaway

The current Gross Margin of 55.2% means the company keeps 55.2 cents of every dollar of revenue after paying direct production costs.

Sector Performance

63th percentile

MPWR

55.2%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

55.3%(Aug 2026)

→ Stable

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Deep Analysis

The current Gross Margin of 55.2% means the company keeps 55.2 cents of every dollar of revenue after paying direct production costs.

That margin is above the sector median of 46.4%, placing MPWR in the 64th percentile among sector peers. The metric's trend is N/A: the year-over-year change is not available, and the quarter-over-quarter change is -0.2%, with the margin slipping from 55.3% to 55.2%. The combination of a high margin relative to peers and a very small sequential decline suggests the company holds a cost advantage, but any direction beyond one quarter is unknown. This implies limited downside risk from margin erosion, yet no clear upside catalyst from margin expansion. The margin supports the overall NEUTRAL verdict because it is a positive characteristic that does not, by itself, justify a more bullish or bearish stance.

Frequently Asked Questions

What does the Gross Margin tell investors about MPWR?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are MPWR's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), WEC (43.1%), ORLY (51.4%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.