Monolithic Power Systems, Inc. (MPWR) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Monolithic Power Systems, Inc.

Updated on October 30, 2026 · accounts published on October 29, 2026

Reading of October 29, 2026: A highly profitable semiconductor business with widening margins and a cash-rich balance sheet

Monolithic Power Systems trades at a P/E of 73.5, 129 % above its sector median of 32.0, though 9 % below its own ten-year median of 80.5.

• Is Monolithic Power Systems expensive or cheap? At a P/E of 73.5, Monolithic Power Systems trades 129 % above its sector median, yet 9 % below its own ten-year median of 80.5.
• How is the business doing? Operating margin reached 30 % over the last 12 months, against a 20 % average across fiscal 2014-2025, with revenue up 26 %.
• How strong is the balance sheet? Net cash of $25.66 per share at fiscal 2025 and 11 consecutive years of dividend increases, with a 0.6 % yield.
• What to expect from the next earnings? 22 of 25 analysts rate it a buy ahead of the February 4, 2027 report, where they expect EPS of $8.22.
• Is it growing with real cash or by diluting shareholders? Free cash flow was 24 % of revenue in fiscal 2025, while stock-based pay took 8 %, under the 10 % healthy ceiling for tech.

Is Monolithic Power Systems expensive or cheap?

Over the last 12 months the stock trades at a P/E of 73.5, against a median of 32.0 for its 314 sector peers. Against its own history the reading softens: the ten-year median is 80.5, within a range of 42.6× to 157.4×, and the P/E has been lower than today only 32 % of the time over the last decade. EV/EBITDA of 49.3× sits close to its five-year average of 51.1×. A free cash flow yield of 1.2 % shows how much future growth the market already pays for, even with the share price 29 % below its 52-week high.

How is the business doing?

Revenue grew 26 % year on year over the last 12 months, and the operating margin of 30 % stands above both the 20 % average of fiscal 2014-2025 and the 26 % of fiscal 2025, so profitability keeps widening. ROIC of 21 % is 13 points above the sector median of 8 % across 460 companies, and it has stayed above 10 % in each of the last ten fiscal years. The weak spot is EPS, down 65 % year on year over the last 12 months, a figure that sits awkwardly next to a 24 % net margin and deserves a look at the income statement.

How strong is the balance sheet?

Fiscal 2025 closed with $26.16 of cash per share against $0.50 of debt, leaving net debt at −1.3× EBITDA, far from the 2.0× that semiconductor companies can tolerate. A current ratio of 3.70 and an Altman Z of 42.0 over the last 12 months place the company deep in the safe zone; a Piotroski score of 6 out of 9 is solid without being perfect. Net cash equals only 2.1 % of the share price, so it protects the business more than it supports the valuation. The dividend has risen for 11 straight fiscal years and took 46 % of fiscal 2025 earnings.

What to expect from the next earnings?

The latest results, published October 29, 2026, showed EPS of $8.19 against $7.79 expected, a 5 % beat, and Monolithic Power Systems has topped EPS estimates in each of the last eight quarters. For the next quarter analysts expect $8.22, barely above the figure just reported. Over the last 30 days the 2026 EPS consensus rose 0.8 %, from $27.42 to $27.64 across 10 analysts, and the revenue consensus rose 0.6 %. Of the 25 analysts covering the company, 22 recommend buying, 3 holding and none selling.

Is it growing with real cash or by diluting shareholders?

In technology, generic ratios fall short: growth, pricing power and dilution through stock-based pay say more about the quality of a business. Monolithic Power Systems passes most of these tests. Its fiscal 2025 gross margin of 55 % clears the 45 % healthy line for semiconductors, and free cash flow of 24 % of revenue beats the 20 % threshold. Stock-based compensation at 8 % of revenue stays below the 10 % healthy level and far from the 20 % toxic one. The borderline item is revenue per share, growing 14.8 % a year over fiscal 2022-2025, just short of the 15 % healthy pace.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.