Monolithic Power Systems Inc (MPWR, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising market position. With a current share price of $720.55 and a daily gain of 1.88%, coupled with a three-month change of 14.07%, the company's financial health is robust. A detailed analysis, supported by the GF Score, indicates that Monolithic Power Systems Inc is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects have been backtested from 2006 to 2021, showing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield higher returns. Monolithic Power Systems Inc boasts a GF Score of 94 out of 100, indicating a high potential for market outperformance.
- Financial strength rank: 9/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 10/10
Understanding Monolithic Power Systems Inc Business
Monolithic Power Systems Inc, with a market cap of $35.07 billion and annual sales of $1.83 billion, is a leading analog and mixed-signal chipmaker. The company specializes in power management solutions aimed at reducing total energy consumption across various end markets including computing, automotive, industrial, communications, and consumer sectors. Operating with a fabless manufacturing model, Monolithic Power Systems Inc leverages third-party chip foundries for its proprietary BCD process technology.
Financial Strength Breakdown
Monolithic Power Systems Inc's financial resilience is reflected in its impressive Financial Strength rating. The company's Altman Z-Score of 56.48 signals a strong buffer against financial distress, supported by a strategic handling of debt with a Debt-to-Revenue ratio of 0.
Profitability Rank Breakdown
The Profitability Rank of Monolithic Power Systems Inc is exemplary. The company's Operating Margin has seen a significant increase over the past five years, demonstrating a growing efficiency in revenue conversion into profit. This trend is further supported by a consistent rise in Gross Margin over the same period.
Growth Rank Breakdown
Monolithic Power Systems Inc is also recognized for its strong growth metrics. The company's 3-Year Revenue Growth Rate of 27.6% is notably higher than 85.28% of its peers in the Semiconductors industry. This is complemented by a robust increase in EBITDA over the past few years, highlighting its capacity for sustained growth.
Conclusion
Considering Monolithic Power Systems Inc's strong financial strength, profitability, and growth metrics, the GF Score underscores the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
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.
