MPWRNEUTRAL

Gross Margin

55.3%

Updated 296h ago

Sector Performance

66th percentile

MPWR

55.3%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

MPWR’s gross margin of 55.3% means that for every dollar of revenue, the company keeps 55.3 cents after covering the direct costs of producing its goods — a measure of pricing power and cost efficiency.

That figure sits well above the sector median of 43.9%, placing MPWR in the 66th percentile among its peers, meaning it outperforms roughly two-thirds of them on this metric. However, the year-over-year change, quarter-over-quarter change, and eight-quarter trend are all listed as N/A, so there is no data to evaluate whether the margin is improving, declining, or stable. Because the level is strong but the trend is unknown, the combination offers limited insight into investment risk or opportunity — a high margin with no direction could be sustainable or deteriorating, but the data cannot tell. This single metric supports the overall NEUTRAL verdict, as the above-average gross margin is a positive point, but the absence of any trend information prevents it from shifting the rating toward bullish or bearish.

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: WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

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.