# Monolithic Power Systems Inc. (MPWR) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Semiconductors & Semiconductor Equipment. Price $1223.86, market value $60.1 billion.

## Valuation
- **P/E (trailing): 74.6×** (5-yr avg 58.3×, 3-yr avg 52.9×). Monolithic Power Systems Inc. trades at 74.6× trailing earnings, well above its own five-year average of 58.3×: investors are paying up relative to the company's past. The Technology median in the September 2026 study was 32.1×. Forward P/E is 35.1×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 18.4×**. Each dollar of revenue is priced at 18.4×, a level that requires very high margins or very fast growth to justify.
- **Price / book: 15.4×**. The shares trade at 15.4× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **Free-cash-flow yield: 1.0%** (5-yr avg 1.6%). Free cash flow equals 1.0% of the market value, below its five-year average of 1.6%, so the shares are pricier on cash than usual.
- **Earnings yield: 1.3%**. The inverse of the P/E: 1.3% of the price is earned each year.

## Profitability
- **Gross margin: 55.2%**. Monolithic Power Systems Inc. keeps 55.2% of revenue after the direct cost of what it sells.
- **Operating margin: 28.7%**. 28.7% of revenue is left after running the business, an exceptional level.
- **Net margin: 22.3%**. 22.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 17.6%**. 17.6% on shareholders' equity is solid.
- **Return on assets: 19.2%**. Each dollar of assets produces 19.2% of profit.

## Growth
- **Revenue growth (1 yr): 26.4%** (3-yr 15.9%/yr, 5-yr 27.0%/yr). Revenue grew 26.4% over the last year, against 27.0% a year compounded over five years.
- **EPS growth (1 yr): -60.6%** (3-yr 12.4%/yr, 5-yr 29.7%/yr). Earnings per share fell 60.6%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 52.5%/yr**. Free cash flow has compounded at 52.5% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Current ratio: 5.91** (quick 5.91). Current assets cover the next year's liabilities 5.91 times.
- **Altman Z-score: 57.39**. A Z-score of 57.39 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.65%** ($7.12 per share, trailing). Monolithic Power Systems Inc. yields 0.65%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 46%** (56% of free cash flow). 46% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 12**. 12 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 25.6%/yr** (1-yr 24.8%). The dividend has compounded at 25.6% a year over five years, doubling roughly every 3 years at that pace.

## Analyst view
- **Analyst consensus: strong_buy** (15 analysts). 15 analysts cover Monolithic Power Systems Inc.; the consensus is strong_buy, with an average price target of $1839.80 (+50% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 45.3%** (YTD 35.5%, 3-mo -17.2%). The shares are up 45.3% over twelve months including dividends.
- **From 52-week high: -28.6%** (47.5% above the low). Trading 29% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 38**. An RSI of 38 is neutral.
- **Beta (1 yr): 2.49** (volatility 53%). Beta of 2.49 against the S&P 500: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=MPWR · Page: https://foliofundamentals.com/stocks/mpwr

Not investment advice.