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1. Company Snapshot

1.a. Company Description

Monolithic Power Systems, Inc.engages in the design, development, marketing, and sale of semiconductor-based power electronics solutions for the computing and storage, automotive, industrial, communications, and consumer markets.The company provides direct current (DC) to DC integrated circuits (ICs) that are used to convert and control voltages of various electronic systems, such as portable electronic devices, wireless LAN access points, computers and notebooks, monitors, infotainment applications, and medical equipment.


It also offers lighting control ICs for backlighting that are used in systems, which provide the light source for LCD panels in notebook computers, monitors, car navigation systems, and televisions, as well as for general illumination products.The company sells its products through third-party distributors and value-added resellers, as well as directly to original equipment manufacturers, original design manufacturers, electronic manufacturing service providers, and other end customers in China, Taiwan, Europe, South Korea, Southeast Asia, Japan, the United States, and internationally.Monolithic Power Systems, Inc.


was incorporated in 1997 and is headquartered in Kirkland, Washington.

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1.b. Last Insights on MPWR

Monolithic Power Systems' recent performance was driven by strong Q3 earnings, with revenue increasing 18.9% year-over-year to $737.2 million and adjusted EPS of $4.73, beating estimates. The company's growth was fueled by strong demand in automotive, IoT, and AI, as well as diversified growth across key verticals. A Power Inflow alert, a bullish indicator, was also triggered, suggesting institutional and retail buying interest. Additionally, the company's dividend of $1.56 per share, announced in September, highlights its commitment to shareholder returns.

1.c. Company Highlights

2. MPS Delivers Record Quarterly Revenue with Strong Growth Across End Markets

MPS achieved a record quarterly revenue of $737.2 million in Q3 2025, representing a 10.9% increase from Q2 2025 and an 18.9% rise from Q3 2024. The company's diversified market strategy drove year-over-year revenue growth across all end markets. The actual EPS came in at $4.73, beating estimates of $4.64. Gross margins remained stable in the mid-55% range, and the company expects to maintain this level in the near term, with potential for improvement as it transitions to more solution-based offerings.

Publication Date: Nov -01

📋 Highlights

Segment Performance and Outlook

In the automotive sector, MPS secured another major Tier 1 supplier for its next-generation ADAS solution and achieved its first design win for a full BMS solution on a robotics platform. The company sees opportunities in 48-volt systems, power isolation, and 800-volt systems for EVs, with BMS revenues expected to grow. In the enterprise data segment, MPS is transitioning from chip-based sales to module subsystems and eventually systems, with a goal of achieving highly integrated modules. The company expects growth in the range of 30% to 40% in 2026, driven by module business and vertical power delivery.

Valuation and Growth Expectations

With a P/E Ratio of 25.39 and an expected revenue growth rate of 15.7% next year, the market has priced in significant growth expectations. The company's ROIC of 48.0% and ROE of 56.64% indicate strong profitability. The shift to modules in vertical power delivery is a tailwind for MPS, driven by benefits like higher power density and efficiency. As the company continues to execute on its strategy, it is well-positioned to capture future growth opportunities and maintain supply chain stability.

Key Drivers and Risks

Bookings continue to improve sequentially, but visibility is limited. The company doesn't have a strong view on Q1 yet, but expects normal drivers in enterprise data and automotive to support new revenue ramps. The HVDC market is emerging, with 800-volt technology for data centers expected to drive growth. However, the company is cautious about sizing the opportunity due to its long-term nature and uncertainty around market adoption.

3. NewsRoom

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Artisan Global Discovery Fund: Q3 Delivers Strong Results Amid Trimming And Exits

Nov -20

Source: seekingalpha.com

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Monolithic Power Surges in 2025—Time to Buy or Hold?

Nov -14

Source: marketbeat.com

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Top 15 High-Growth Dividend Stocks For November 2025

Nov -02

Source: seekingalpha.com

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Monolithic Power Systems Stock Closes 6% Higher After Key Trading Signal

Oct -31

Source: benzinga.com

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Why Monolithic Power Systems Stock Is Plummeting Today

Oct -31

Source: fool.com

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Monolithic Power Systems, Inc. (MPWR) Q3 2025 Earnings Call Transcript

Oct -31

Source: seekingalpha.com

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Monolithic Power Systems (MPWR) Dips 3% After Earnings After Massive Run

Oct -30

Source: 247wallst.com

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Monolithic (MPWR) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Oct -30

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.80%)

6. Segments

Semiconductors

Expected Growth: 12.8%

Monolithic Power Systems' high-performance semiconductor designs drive growth, fueled by increasing demand for energy-efficient solutions in cloud computing, 5G infrastructure, and IoT devices.

7. Detailed Products

DC-DC Converters

Monolithic Power Systems, Inc. offers a wide range of DC-DC converters, including buck converters, boost converters, and buck-boost converters, that provide high efficiency, high power density, and low noise for various applications.

Power Modules

The company's power modules integrate multiple power components into a single package, providing a compact and efficient solution for power management in various applications.

Voltage Regulators

Monolithic Power Systems, Inc. offers a range of voltage regulators, including linear regulators and switching regulators, that provide high accuracy, low noise, and high power density.

Battery Management ICs

The company's battery management ICs provide advanced features such as battery monitoring, charging, and protection for lithium-ion batteries and other battery chemistries.

LED Drivers

Monolithic Power Systems, Inc. offers a range of LED drivers that provide high efficiency, high accuracy, and low noise for various LED lighting applications.

Audio ICs

The company's audio ICs provide high-quality audio processing and amplification for various applications, including audio amplifiers, audio codecs, and audio interfaces.

8. Monolithic Power Systems, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Monolithic Power Systems, Inc. is low due to the company's focus on high-performance analog semiconductors, which are difficult to replace with substitutes.

Bargaining Power Of Customers

The bargaining power of customers for Monolithic Power Systems, Inc. is medium, as the company's customers are primarily large OEMs and ODMs that have some negotiating power, but the company's products are highly specialized and difficult to replace.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Monolithic Power Systems, Inc. is low, as the company has a diverse supplier base and is not heavily dependent on any single supplier.

Threat Of New Entrants

The threat of new entrants for Monolithic Power Systems, Inc. is high, as the company operates in a highly competitive industry with low barriers to entry, and new entrants could potentially disrupt the market.

Intensity Of Rivalry

The intensity of rivalry for Monolithic Power Systems, Inc. is high, as the company operates in a highly competitive industry with many established players, and the company must continually innovate and improve its products to remain competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.38%
Debt Cost 3.95%
Equity Weight 99.62%
Equity Cost 10.01%
WACC 9.99%
Leverage 0.38%

11. Quality Control: Monolithic Power Systems, Inc. passed 9 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Lam Research

A-Score: 5.5/10

Value: 0.8

Growth: 8.1

Quality: 8.3

Yield: 2.0

Momentum: 9.0

Volatility: 4.7

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A-Score: 5.4/10

Value: 0.8

Growth: 8.4

Quality: 7.9

Yield: 2.0

Momentum: 8.5

Volatility: 5.0

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Applied Materials

A-Score: 4.9/10

Value: 1.6

Growth: 8.1

Quality: 8.1

Yield: 2.0

Momentum: 5.0

Volatility: 4.7

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Texas Instruments

A-Score: 4.5/10

Value: 1.5

Growth: 3.6

Quality: 6.9

Yield: 6.0

Momentum: 3.0

Volatility: 6.0

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Monolithic Power Systems

A-Score: 4.4/10

Value: 0.6

Growth: 9.3

Quality: 8.0

Yield: 1.0

Momentum: 4.0

Volatility: 3.3

1-Year Total Return ->

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Microchip Technology

A-Score: 3.3/10

Value: 2.9

Growth: 1.9

Quality: 3.6

Yield: 5.0

Momentum: 2.5

Volatility: 4.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

952.74$

Current Price

952.74$

Potential

-0.00%

Expected Cash-Flows