Monolithic Power Systems Inc (MPWR, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $677.9, Monolithic Power Systems Inc has witnessed a daily gain of 2.66%, marked against a three-month change of 12.75%. A thorough analysis, underlined by the GF Score, suggests that Monolithic Power Systems Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 9/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 9/10
Monolithic Power Systems Inc has been assigned a GF Score of 97 out of 100, signaling its high potential for outperformance. This score reflects the company's strong financial strength, exceptional profitability, and impressive growth, although its GF Value rank indicates a moderate valuation relative to intrinsic value.
Understanding Monolithic Power Systems Inc's Business
Monolithic Power Systems Inc, with a market cap of $32.99 billion and sales of $1.82 billion, is an analog and mixed-signal chipmaker, specializing in power management solutions. The company's mission is to reduce total energy consumption in end systems, serving the computing, automotive, industrial, communications, and consumer end markets. Monolithic Power Systems Inc operates on a fabless manufacturing model, partnering with third-party chip foundries to host its proprietary BCD process technology. With an operating margin of 26.45%, the company's financial metrics reflect a strong competitive edge and operational efficiency.
Financial Strength Breakdown
Monolithic Power Systems Inc's Financial Strength rating is a testament to its resilient balance sheet and prudent capital management. With an Altman Z-Score of 52.91, the company is well-protected against financial distress, showcasing its robust financial stability. Additionally, its Debt-to-Revenue ratio of 0 indicates a strategic approach to debt management, further solidifying its financial health.
Profitability Rank Breakdown
The Profitability Rank of Monolithic Power Systems Inc is indicative of its superior ability to generate profits compared to its peers. The company's Operating Margin has seen a significant increase over the past five years, demonstrating its growing efficiency in converting revenue into profit. Furthermore, Monolithic Power Systems Inc's Gross Margin has also consistently risen, underscoring its operational prowess. The company's Predictability Rank of 4.5 stars out of five provides investors with confidence in its consistent performance.
Growth Rank Breakdown
Monolithic Power Systems Inc's high Growth Rank reflects its commitment to business expansion. The company's 3-Year Revenue Growth Rate of 27.6% outperforms 84.12% of companies in the Semiconductors industry. Its EBITDA growth rates over the past three and five years highlight Monolithic Power Systems Inc's capability to sustain growth and profitability.
Conclusion: Monolithic Power Systems Inc's Position for Outperformance
Considering Monolithic Power Systems Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking companies with similar prospects can explore more options using the GF Score Screen. Monolithic Power Systems Inc's strategic market position, coupled with its financial and operational excellence, makes it a compelling choice for value investors looking to capitalize on market opportunities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
