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 growth trajectory. With a current share price of $834.93, despite a daily loss of 3.26%, Monolithic Power Systems Inc has experienced a significant three-month gain of 29.03%. A detailed analysis, supported by the GF Score, positions Monolithic Power Systems Inc for substantial future growth.
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 components are weighted differently to calculate a comprehensive score, which ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Monolithic Power Systems Inc boasts a GF Score of 94, signaling strong future performance potential.
- Financial strength rank: 9/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 9/10
Understanding Monolithic Power Systems Inc Business
Monolithic Power Systems Inc, with a market cap of $40.64 billion and annual sales of $1.83 billion, operates as an innovative analog and mixed-signal chipmaker focused on power management solutions. The company's mission is to reduce total energy consumption across various end markets, including computing, automotive, industrial, communications, and consumer sectors. Utilizing a fabless manufacturing model, Monolithic Power Systems Inc partners with third-party chip foundries to leverage its proprietary BCD process technology.
Financial Strength Breakdown
Monolithic Power Systems Inc's financial resilience is evident through its robust balance sheet and strategic debt management. With an Altman Z-Score of 56.82, the company demonstrates a strong buffer against financial distress. Additionally, its Debt-to-Revenue ratio stands impressively at 0, underscoring a prudent approach to debt handling and financial health.
Profitability Rank Breakdown
Monolithic Power Systems Inc's profitability is top-tier, with an Operating Margin that has consistently improved over the past five years, reaching 26.45% in 2023. The company's Gross Margin also reflects a steady increase, indicative of its efficiency in converting revenue into profit. This trend is further supported by a strong Predictability Rank of 4.5 stars, enhancing investor confidence in its operational consistency.
Growth Rank Breakdown
Monolithic Power Systems Inc is recognized for its commitment to growth, as evidenced by a 3-Year Revenue Growth Rate of 27.6%, outperforming 84.34% of its peers in the Semiconductors industry. The company's EBITDA growth over the past three years further highlights its capacity for sustained expansion and profitability.
Conclusion
Considering Monolithic Power Systems Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score distinctly highlights the company's strong position for potential market outperformance. Investors seeking similar opportunities can explore more companies with high GF Scores through the GF Score Screen available to GuruFocus Premium members.
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.
