Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Monolithic Power Systems, Inc.

MPWR · Nasdaq · Technology

Fundamental quality

EXCELLENT

93

out of 100

Monolithic Power Systems, Inc. fits the profile of a quality compounder: it pairs high return on capital (ROE 18.5%) with wide margins (net margin 23%) and a business that keeps growing (27% a year). On fundamental quality it scores 93 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Monolithic Power Systems designs power-management chips: the circuits that precisely feed everything from an AI server to a car or an appliance. It is one of the best-executing semiconductor companies of the past decade — and the market knows it.

What will shape its future

  • AI servers, which need enormous amounts of power delivered to the chip.
  • Its fabless, profitable-niche model, yielding enviable margins.
  • A chronically demanding valuation: excellence tends to be already paid for.

Breakdown by area

I.Growth
93

EPS growth: 30.2% · Revenue growth: 27%

II.Profitability
86

Net margin: 23% · ROE: 18.5% · ROIC: 24.8%

III.Financial health
95

Net debt/EBITDA: -1.24x · FCF: 21.3%

Source: SEC EDGAR · TTM through 31/03/2026

The score includes +2 for dividend strength: 8 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 69%
ROEbeats 54%
Growthbeats 77%
Cash generationbeats 45%
Less debtbeats 93%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Monolithic Power Systems, Inc. strengths

  • Revenue growing strongly (27% annualized).
  • Excellent free-cash-flow generation (FCF margin of 21.3%): profit turns into real cash.
  • Growing earnings per share (30.2% annualized).
  • High gross margin (55.2%), pointing to pricing power.

Monolithic Power Systems, Inc. risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

Monolithic Power Systems, Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
2020844164212-335
20211,208242226-189
20221,794438188-289
20231,821427581-528
20242,2071,592642-692
20252,790621666-1,099

Between 2020 and 2025, revenue went from $844M to $2,790M (+230%) and net income went from $164M to $621M (+278%). Meanwhile, its margins have widened (from 19% to 22%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended March 31, 2026, versus the quarter ended March 31, 2025 (SEC filings):

  • Revenue+26.1%
  • Net income+43.1%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$6.24

per share, yearly

45.8% of earnings

Payout

8 straight years raising it

Growth

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Monolithic Power Systems, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Monolithic Power Systems, Inc. a good company to invest in?

In terms of business quality, Monolithic Power Systems, Inc. scores 93 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Monolithic Power Systems, Inc. a profitable company?

Very. Monolithic Power Systems, Inc. shows a net margin of 23% and an ROE of 18.5%, typical of a highly profitable business.

Does Monolithic Power Systems, Inc. have a lot of debt?

No. Monolithic Power Systems, Inc. has a net cash position: more cash than debt.

Is Monolithic Power Systems, Inc. growing?

Its revenue has grown 27% annualized in recent years and its earnings per share 30.2%, and without interruption since 2020.

Does Monolithic Power Systems, Inc. generate cash?

Yes. It converts about 21.3% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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