Monolithic Power Systems Inc (MPWR) stock analysis
Monolithic Power Systems Inc (MPWR) clears 2 of this site's 8 mechanical value filters, 5 of 8 Buffett-style checks and 1 of 5 Lynch-style checks. At $1167.93 it trades 499.0% above this site's neutral DCF value (a margin of safety of -499.0%). Its earnings quality rates Mixed and it returns +0.1% to shareholders net of dilution. Figures are as of October 23, 2026, from SEC filings and market data refreshed weekly; this is educational analysis, not investment advice.
Data as of October 23, 2026. Refreshed weekly from SEC filings and market data.
What does Monolithic Power Systems do?
Monolithic Power Systems designs power-management chips that deliver and convert electricity in data centers, cars, computers and industrial equipment. Manufacturing is outsourced.
What stands out about Monolithic Power Systems?
- The share price implies more than 40% yearly growth. At $1167.93, free cash flow per share would have to grow faster than 40% a year, fading to 2.5% by year 10, for this site's DCF to match the price. Change the assumptions.
- Misses 4 of the 8 value filters. It fails Trailing P/E < 25 (74.33), PEG Ratio < 1.5 (2.49) and Price/Book < 8 (15.35) and 1 more; the other 2 pass and 2 were not evaluated. See every filter.
- The margin of safety is rising. It went from -627% on Oct 7 to -499% on Oct 23 across 5 weekly readings. See the trend.
- Strongest against peers: debt / equity. At 0.00 (peer median 0.29) it ranks 1st of 20 among semiconductors stocks this site tracks. See the ranking.
- Weakest against peers: free-cash-flow yield. At 1.0% (peer median 2.5%) it ranks 19th of 20 among semiconductors stocks this site tracks. See the ranking.
How has Monolithic Power Systems' share price moved?
The interactive price chart needs JavaScript.
Is Monolithic Power Systems undervalued? The value diligence check
Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.
- Margin of safety (DCF) -499.0%
- P/E vs. its own history 74.3x · near the expensive end Real range: 18.1x–97.7x over 5 years (net income per diluted share from each fiscal year's 10-K, paired with the real closing price at that fiscal year-end).
- Wall St. analyst rating Buy · 4.13/5 23 analysts this month: 7 strong buy, 12 buy, 4 hold, 0 sell, 0 strong sell (Finnhub).
- Altman Z″-Score (bankruptcy risk) 11.63 · Safe zone
- Earnings quality (is the profit real?) Mixed · 2 watch Beneish M-score −2.41 · accruals −5.6% of assets · 86% of profit arrived as cash · stock comp 8.2% of revenue · share count −0.5% a year. From the latest 10-K (year to Dec 2025) - see the Earnings Quality Screener for how each check is scored.
- Shareholder yield (cash back to owners) +0.1% net Latest fiscal year (2025): dividends 0.5% + buybacks 0.0% − stock comp 0.4%, as a share of today's market cap. Over 14 years its split-adjusted share count rose 37%. See Shareholder Yield Leaders.
- Capital needed to grow (See's test) $1.56 per $1 of new profit · FlightSafety-like Operating profit $81M → $583M, capital needed $225M → $1.0B, 2016–2025 (3-year averages); return on capital now 58% before tax. Buffett's See's Candies needed $0.42 per $1 of new profit, FlightSafety $3.20, a typical grower about $5. Cyclical: the answer depends on where in its cycle the window starts and ends. See Capital-Light Compounders.
- PEG (growth at a reasonable price) 2.49 · Well above fair P/E 74.3× ÷ 29.9% a year of growth behind it. 282nd lowest of 447 stocks with a usable PEG. Lynch's fair value is a PEG of 1; a very high PEG usually means almost no growth, a very low one a profit spike. See PEG Ratio Ranking.
- Compounder lenses (4) 2 of 4 · misses cash back, price Capital-light growth: cleared; Profit is real: cleared; Cash to owners: not cleared (+0.4% a year net); Fair price (PEG): not cleared (PEG 2.49, over 1.5). See Compounders at a Fair Price, which also lets you move the PEG bar.
- Value trap check Clear
- Munger's Inversion Check 2 flags
- Standing vs. sector peers 2 of 7 measures above the median Compared with the 19 other semiconductors stocks this site tracks: 1 in the top third, 2 in the bottom third.
- Dividend payout sustainability 0/6 · clean
How does Monolithic Power Systems compare with its peers?
2 of 7 measures sit above the median of the 19 other semiconductors stocks tracked here, 1 in the top third and 2 in the bottom third.
- P/E ratiolower is cheaper · peer median 42.5× 74.3× ✕17th of 19
- Free-cash-flow yieldhigher is cheaper · peer median 2.5% 1.0% ✕19th of 20
- Return on equityhigher is better · peer median 25% 22% –11th of 20
- Net marginhigher is better · peer median 26.9% 24.6% –12th of 20
- Revenue growthhigher is better, year on year · peer median 23.8% 28.7% –8th of 19
- Debt / equitylower is safer · peer median 0.29 0.00 ✓1st of 20
- Dividend yieldamong dividend payers · peer median 0.66% 0.55% –10th of 16
Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.
What would Buffett & Lynch say?
Buffett's checklist is built around durable, profitable businesses bought at sensible prices, and MPWR doesn't clear enough of it yet. In its favor: MPWR is currently earning a strong return on shareholders' equity, and has kept that profitability up over five years, not just this year, carries a conservative amount of debt relative to equity, converts sales into profit at healthy margins, and has grown earnings per share at a solid clip over five years. Where it comes up short: MPWR doesn't cover its interest expense as comfortably as he'd want, is trading above what a conservative discounted-cash-flow estimate says it's worth right now, and trades rich relative to owner earnings, the real cash the business could pay out.
- ROE (TTM) > 11% ✓
- ROE (5yr avg) > 11% ✓
- Debt/Equity < 0.5 ✓
- Pretax margin > 15% ✓
- EPS growth (5yr) > 7% ✓
- Interest coverage > 5x ✕
- Trading below intrinsic value (DCF) ✕
- Price vs. owner earnings < 25x ✕
- Bonus: returning capital via buybacks FY2025
Lynch looked for growth stories that weren't overpriced for that growth, and MPWR falls short of his bar. In its favor: MPWR isn't over-leveraged for a company of its type. Where it comes up short: MPWR doesn't pay much of a dividend, which is the main reason to own a slow grower in the first place, isn't even growing at the modest pace he'd expect from a slow grower, is priced too rich for how little growth is actually left in the business, and trades expensive relative to the cash it actually generates.
- Dividend yield > 2.5% ✕
- EPS growth 0%-10% ✕
- Debt/Equity < 0.6 ✓
- P/E < 20 ✕
- Price/FCF < 25 ✕
Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.
Berkshire Hathaway's own filing
Which of the 8 value filters does Monolithic Power Systems pass?
- Market Cap > $25B $59.8B
- Trailing P/E < 25 74.33
- PEG Ratio < 1.5 2.49
- Price/Book < 8 15.35
- Price/Sales < 7 18.27
- EPS Growth YoY > -5% +87.6%
- vs 50-day MA (±12%) Not evaluated †
- vs 200-day MA (±12%) Not evaluated †
What is Monolithic Power Systems' margin of safety?
-627% on 2026-10-07 → -499% on 2026-10-23 (5 weekly readings).
Where is Monolithic Power Systems in its 52-week range?
What is the short interest in Monolithic Power Systems?
1,858,921 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily.
What could go wrong with Monolithic Power Systems? Munger's inversion check
"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.
- Margin of safety, even in the bull case -254%
- Short interest under 5% of float 3.9%
- Passes most of the 6 fundamental filters 2/6 passed
- Price run-up backed by value, not just momentum +36% off 52wk low
Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.
How much have Monolithic Power Systems shareholders gained per year?
Earnings growth per share plus dividend.
An earnings-based proxy, not a stock-price total return - it doesn't capture multiple expansion/contraction or reinvested dividends. EPS from MPWR's own 10-K filings; dividend yield is the current trailing yield on today's price, from the same weekly fetch as the rest of this site.
What do Monolithic Power Systems' 10-year financials show?
From MPWR's own 10-K filings (SEC EDGAR): up to the last 10 fiscal years. Press any year's bars for the exact figures.
Frequently asked questions about Monolithic Power Systems
What kind of company is Monolithic Power Systems?
Monolithic Power Systems designs power-management chips that deliver and convert electricity in data centers, cars, computers and industrial equipment. Manufacturing is outsourced. This site groups it with Semiconductors stocks.
Is Monolithic Power Systems trading above or below its DCF value?
At $1167.93, MPWR trades 499.0% above this site's neutral DCF value of $194.99 per share, a margin of safety of −499.0%. That DCF projects free cash flow for 10 years, with growth starting at 8% and fading to 2.5%, discounted at 10%; it is one set of assumptions, not a forecast. Test your own in the Intrinsic Value Calculator.
How many of this site's 8 value filters does Monolithic Power Systems pass?
MPWR passes 2 of 8. It passes Market Cap > $25B ($59.8B) and EPS Growth YoY > -5% (+87.6%). It misses Trailing P/E < 25 (74.33), PEG Ratio < 1.5 (2.49), Price/Book < 8 (15.35) and Price/Sales < 7 (18.27). vs 50-day MA (±12%) and vs 200-day MA (±12%) were not evaluated, because the moving-average checks only run on stocks that clear the fundamentals first. The 8-filter list shows every stock that passes all of them.
Are Monolithic Power Systems's reported earnings reliable?
This site's earnings-quality check rates MPWR Mixed · 2 watch. Beneish M-score −2.41 · accruals −5.6% of assets · 86% of profit arrived as cash · stock comp 8.2% of revenue · share count −0.5% a year. From the latest 10-K (year to Dec 2025). Concerns: cash conversion (on watch) and stock-based compensation (on watch). The five checks are the Beneish M-score (manipulation risk), accruals, cash conversion, stock-based compensation and share dilution; the Earnings Quality Screener shows how each is graded.
How fast has Monolithic Power Systems grown its revenue and profit?
From fiscal 2016 to fiscal 2025, MPWR's revenue grew from $389 million to $2.8 billion, 24.5% a year. Net income went from $53.0 million to $621 million, and its net profit margin from 13.6% to 22.3%. Earnings per share went from $1.26 to $12.87 on today's share count, 29.5% a year. In fiscal 2025 it produced $666 million of free cash flow (cash from operations minus capital spending), 23.9% of its revenue. All figures are from MPWR's own 10-K filings (SEC EDGAR) and are shown year by year in the 10-Year Financials section of the card above.
When does Monolithic Power Systems report earnings next?
Monolithic Power Systems's next earnings report is expected on October 29, 2026 after the market closes, with analysts expecting earnings of $7.91 per share. Dates come from the Finnhub earnings calendar and can move. In its last 4 quarters it beat the estimate 2 times, by an average of +2.5%.
Where do these numbers come from?
- Financial statements: Monolithic Power Systems's 10-K annual report for the year ended Dec 31, 2025, filed Feb 27, 2026 (filing index). Every earlier year in the 10-year financials comes from the company's older 10-K filings, all listed on SEC EDGAR.
- Prices and market data: quotes, P/E and analyst ratings from Finnhub; daily price history and the 52-week range from Twelve Data, both refreshed weekly. Short interest comes from FINRA, reported twice a month.
- How to check a figure: click any number in the card above to see its exact source, and read the Editorial Standards for every rule behind the checks.
About this Monolithic Power Systems Inc analysis
This page shows every value-investing check the site runs on Monolithic Power Systems Inc (MPWR) in one place: the 8 mechanical filters, the Buffett and Lynch checklists, a margin of safety from a disclosed DCF, earnings quality, shareholder yield and how it ranks against its sector peers. The numbers come from SEC filings and public market data, refreshed weekly, and the same rules apply to every stock on the stock list. See Editorial Standards for the sources and the rules, or run your own filters in the stock screener.