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NASDAQ: MPWR · Semiconductors

Monolithic Power Systems

Monolithic Power Systems is a fabless semiconductor company that designs high-performance power electronics — power management ICs, modules and related solutions — for storage and computing, enterprise data (including AI servers), automotive, communications, consumer and industrial markets. 2025 revenue rose 26% to $2,790 million, led by storage and computing ($733 million) and enterprise data ($702 million), and net income was $621 million; 2024 net income of $1,592 million included a deferred tax benefit of about $1.1 billion from a foreign tax incentive (restated down by $194.6 million in the 2025 10-K). Most revenue ships to Asia (China $1,544 million, Taiwan $550 million), largely through distributors, three of which accounted for 26%, 18% and 10% of 2025 revenue. MPS has no debt, pays a growing dividend ($2.00 quarterly from 2026) and employs 4,501 people.

Last updated

Analysis last edited: November 6, 2026 · Financial data fetched: October 30, 2026 12:50 (SEC EDGAR) · Source 10-K filed: February 27, 2026

Built on10-K FY2025 · filed 2026-02-2710-Q (quarter ended 2026-09-30) · filed 2026-11-03Proxy statement (2026)

Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

01

At a glanceFrom SEC data

Eight headline measures, each placed among the companies covered on this site.

Revenue growth
27.0%

Higher than 92% of 372 non-financial companies

Average yearly growth over the years shown

Operating margin
26.1%

Higher than 74% of 311 non-financial companies

Latest fiscal year (FY2025)

ROIC minus WACC
+3.3 pts

Higher than 51% of 311 non-financial companies

Return on capital above (or below) its estimated cost

Net debt ÷ EBITDA
-1.6x

Higher than 6% of 304 non-financial companies

Below 0 means more cash than debt

Cash conversion
1.35x

Higher than 38% of 349 non-financial companies

Operating cash flow ÷ net income

Dividend raises
5 of 5

Years the dividend per share rose, of the last 5

P/E today
71.1x

Latest close 2026-11-04; trailing 12 months to 2026-09-30

Beta
1.72

Above 1 = moves more than the market

Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.

02

Valuation todayFrom SEC data

Price-based measures at the latest close, next to the same measures at the last fiscal year-end.

Share price$1,304.16close on 2026-11-04

Market cap$63.52B

P/E today
71.1x

At FY2025 year-end: 70.5x

Earnings: trailing 12 months to 2026-09-30

P/B today
18.0x

At FY2025 year-end: 12.5x

Book value at FY2025 year-end

EV/EBITDA today
79.7x

At FY2025 year-end: 55.1x

EBITDA for FY2025

FCF yield today
1.0%

At FY2025 year-end: 1.5%

Free cash flow for FY2025

Dividend yield today
0.5%

Dividends per share for FY2025

“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.

03

What changed since last earningsFrom SEC data

The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.

Quarter ended Sep 30, 2026.

  • Revenue↑ +63.1%$737M → $1.2B (vs. a year earlier)
  • Operating margin↑ +3.3 pts26.5% → 29.7% (vs. a year earlier)
  • Net income↑ +50.8%$180M → $271M (vs. a year earlier)
  • Diluted EPS↑ +47.3%$3.74 → $5.51 (vs. a year earlier)
  • Cash↓ −44.3%$1.01B → $561M (vs. previous quarter-end)

Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.

From the earnings release of Oct 29, 2026.

Key changes

  • Record Q3 revenue $1,202M, up 22.6% from Q2. Source sentence
    We had record revenue of $1,202 million in the third quarter, 22.6% higher than the second quarter of 2026 and 63.1% higher than revenue in the third quarter of 2025.
  • Enterprise Data revenue $506.7M, up 33.2% from Q2. Source sentence
    Third quarter Enterprise Data revenue of $506.7 million increased 33.2% from the second quarter.

Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗

04

Company profileFrom SEC dataShow

Legal name
MONOLITHIC POWER SYSTEMS, INC.
Headquarters
WEST PALM BEACH, FL
Incorporated in
Delaware
Fiscal year end
12/31
Exchange & ticker
NASDAQ: MPWR
Industry
Semiconductors
CIK
1280452

Workforce (as of FY2025 year-end)

  • Employees

    4,501

Source: Form 10-K (FY2025) cover page and business description

05

Earnings calendarFrom SEC dataShow

When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.

Next report

Q4 FY2026

Quarter end: December 2026. In past years, Q4 results were released 36–38 days after quarter end (Feb 5, 2026; Feb 6, 2025; Feb 7, 2024). No date has been announced in the sources this site uses.

Reporting pattern

  • Fiscal year ends around December 31.
  • Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
  • Earnings releases came 29–38 days after quarter end over the last 12 quarters.
QuarterQuarter endedEarnings release (8-K)Report filed (10-Q / 10-K)
Q3 FY2026Sep 30, 2026Oct 29, 2026 (+29 days)Nov 3, 2026 10-Q (+34 days)
Q2 FY2026Jun 30, 2026Jul 30, 2026 (+30 days)Aug 5, 2026 10-Q (+36 days)
Q1 FY2026Mar 31, 2026Apr 30, 2026 (+30 days)May 4, 2026 10-Q (+34 days)
Q4 FY2025Dec 31, 2025Feb 5, 2026 (+36 days)Feb 27, 2026 10-K (+58 days)
Q3 FY2025Sep 30, 2025Oct 30, 2025 (+30 days)Nov 5, 2025 10-Q (+36 days)
Q2 FY2025Jun 30, 2025Jul 31, 2025 (+31 days)Aug 4, 2025 10-Q (+35 days)
Q1 FY2025Mar 31, 2025May 1, 2025 (+31 days)May 5, 2025 10-Q (+35 days)
Q4 FY2024Dec 31, 2024Feb 6, 2025 (+37 days)Mar 3, 2025 10-K (+62 days)
Q3 FY2024Sep 30, 2024Oct 30, 2024 (+30 days)Nov 6, 2024 10-Q (+37 days)
Q2 FY2024Jun 30, 2024Aug 1, 2024 (+32 days)Aug 2, 2024 10-Q (+33 days)
Q1 FY2024Mar 31, 2024May 1, 2024 (+31 days)May 3, 2024 10-Q (+33 days)
Q4 FY2023Dec 31, 2023Feb 7, 2024 (+38 days)Feb 29, 2024 10-K (+60 days)

Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.

06

Flagship products & servicesSite analysis

  • Power solutions

    DC-DC converters and power modules

    High-efficiency, highly integrated power ICs and modules for servers, AI systems, storage and computing.

  • Power solutions

    Automotive power

    Products for advanced driver assistance, infotainment and other automotive systems.

  • Power solutions

    Other power products

    Solutions for communications, consumer and industrial equipment.

From the Form 10-K, FY2025.

U.S. and worldwide share of flagship products/services

MPS does not state a market share in its 10-K.

Reviewed: Form 10-K (FY2025) · Form 10-Q (quarter ended 2026-06-30)

07

Recent strategic focusSite analysis

Recent developments.

  1. Dividend increase

    Quarterly dividend raised from $1.56 to $2.00 per share beginning April 2026.

    Source: Form 8-K (2026-02-05) — Item 8.01

  2. CFO change

    Bernie Blegen retired as CFO; Tony Balow was appointed CFO on October 27, 2026.

    Source: Form 8-K (2026-10-29) — Item 5.02

  3. Strong 2026

    First-half 2026 net income was $451M versus $270M a year earlier.

    Source: Form 10-Q (quarter ended 2026-06-30)

Capex ÷ D&A (FY2025)

3.28x

Well above depreciation — expansion-stage investment

formulacapital expenditures ÷ depreciation & amortization

e.g.$172M ÷ $53M = 3.28x

termsCapital expenditures (capex) · Depreciation & amortization (D&A)

R&D-to-revenue ratio (FY2025)

13.7%

formularesearch & development expense ÷ revenue × 100

e.g.$382M ÷ $2,790M × 100 = 13.7%

termsResearch & development (R&D) · Revenue (net sales)

M&A spend (6-year total)

$33M

Latest year: $0

Cash-flow-statement spending on acquisitions, net of cash acquired

Where the money goes, over time

Unit: $M. Capex went from $56M in FY2020 to $172M in FY2025

  • Capex
  • R&D
  • M&A spend

formulacapital expenditures ÷ depreciation & amortization

termsCapital expenditures (capex) · Depreciation & amortization (D&A)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-27

08

Key figures at a glanceFrom SEC data

FY2020–FY2025, 6 years.

Revenue (FY2025)

$2.79B

As reported in the 10-K

Revenue CAGR (5 years)

+27.0%▲favorable

formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1

e.g.($2,790M ÷ $844M) ^ (1÷5) − 1 = 27.0%

termsCAGR · ^ (exponent) · Revenue (net sales)

Operating margin (FY2025)

26.1%▲favorable

+7.3pt vs. 5 years ago

formulaoperating income ÷ revenue × 100

e.g.$729M ÷ $2,790M × 100 = 26.1%

termsOperating income · Revenue (net sales)

ROE (FY2025)

19.2%▲favorable

6-year average: 29.1%

As reported in the 10-K

P/B (FY2025 end)

12.50x

formulafiscal year-end closing price ÷ book value per share

e.g.$906.36 ÷ $72.50 = 12.50x

termsP/B · BVPS

Period-end (fiscal year-end) value, not today's P/B

EV/EBITDA (FY2025 end)

55.1x

formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)

e.g.($44,148M + $0M − $1,099M) ÷ ($729M + $53M) = 55.1x

termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)

Period-end (fiscal year-end) value, not today's multiple

  • ▲

    Revenue grew +27.0% a year over 5 years (strong growth)

    From $844M in FY2020 to $2.79B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.

  • ▲

    Operating margin improved: 18.8% → 26.1%

    How much operating profit is left per $100 of revenue. It moved +7.3 points over 5 years — pricing power, cost control, and product mix all show up here.

  • ▲

    Equity ratio is 84.2% (a high level of financial stability)

    The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).

  • ▲

    Free cash flow was positive in 6 of 6 years

    Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.

  • ▲

    ROE averaged 29.1% over 6 years (latest: 19.2%)

    How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.

09

Business modelSite analysis

Designs power ICs and modules using proprietary processes and packaging, outsources wafer fabrication to foundries, and sells mainly through distributors to electronics makers.

How money and goods flow at Monolithic Power Systems
  1. 01 what it draws on

    Inputs & resources

    • 4,501 employees in Asia, Europe and the U.S.
    • Proprietary analog power processes and packaging
    • Third-party foundries and assembly
  2. 02 what it does

    Activities

    • Design and development of power ICs and modules
    • Process and packaging technology
    • Sales through distributors and direct to OEMs
  3. 03 who it serves

    Customers

    • Distributors
    • Electronics OEMs and ODMs in computing, data center, automotive, communications, consumer and industrial
  4. 04 how money comes in

    How it earns

    • Storage & Computing $733M (2025)
    • Enterprise Data $702M
    • Automotive $593M
    • Communications $309M
    • Consumer $255M
    • Industrial $199M

How the business makes money

  • Three distributors accounted for 26%, 18% and 10% of 2025 revenue.
  • China was 55% of 2025 revenue by ship-to location.
  • 2024 financial statements restated for deferred taxes on a foreign tax incentive.

Government & regulation around the business

Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.

Government subsidies to rivals and climate-disclosure laws are MPS’s main non-market factors.

  • Government funding & tax credits

    Subsidies to competitors

    Governments may give subsidies or investments that advantage competing semiconductor companies.

    Constrains the businessTouches: Customers

    Source: Form 10-K (FY2025)

  • Environmental rules

    Climate disclosure laws

    California laws require disclosure of greenhouse gas emissions and climate-related financial risks.

    Constrains the businessTouches: Activities

    Source: Form 10-K (FY2025)

Revenue by segment (FY2025)

Unit: $M — bar length = revenue, (%) = share of total company revenue

  • Storage and Computing

    733 (26%)
  • Enterprise Data

    702 (25%)
  • Automotive

    593 (21%)
  • Communications

    309 (11%)
  • Consumer

    255 (9%)
  • Industrial

    199 (7%)

Source: Form 10-K (FY2025) Revenue by end market; single reportable segment; total $2,790M.

10

Where it earnsSite analysis

Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.

Largest market (FY2025)

China — 55% of revenue

Revenue by country / region (FY2025)

Unit: $M — bar length = revenue, (%) = share of total company revenue

  • China

    1,544 (55%)
  • Taiwan

    550 (20%)
  • South Korea

    253 (9%)
  • Southeast Asia

    148 (5%)
  • Europe

    114 (4%)
  • U.S.

    97 (3%)
  • Japan

    84 (3%)

Source: Form 10-K (FY2025) Revenue by customer ship-to location.

11

Contract structureSite analysisShow

Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.

12

Customers & suppliersSite analysis

Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.

Customers

Distributors and electronics manufacturers.

Named by the company

Three unnamed distributors accounted for 26%, 18% and 10% of 2025 revenue.

Suppliers

Third-party foundries and assembly and test subcontractors.

Named by the company

No supplier is named here.

13

Competitors & peersSite analysis

Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.

MPS names its primary competitors in the 10-K.

Competitors named in the 10-K

Power semiconductors

Source: Form 10-K (FY2025)

Peer group the company chose

Compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.

2025 peer group from the 2026 proxy statement.

Source: Proxy statement (2026)

Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.

14

Six years of financialsFrom SEC data

Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.

Revenue over time

Unit: $M

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-27

Profit over time (operating → net)

Unit: $M

  • Operating income
  • Pretax income
  • Net income

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-27

Margins over time

Unit: %

  • Operating margin
  • Net margin

formulaoperating income ÷ revenue × 100

termsOperating income · Revenue (net sales)

formulanet income attributable to the company ÷ revenue × 100

termsNet income (attributable to the company)

Cash flow over time

Unit: $M (below zero = cash went out)

  • Operating CF
  • Investing CF
  • Free CF

formulacash flow from operations − capital expenditures

termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-27

Financial stability & capital efficiency

Unit: %

  • Equity ratio
  • ROE

formulatotal equity ÷ total assets × 100 (as reported in the 10-K)

termsStockholders’ equity · Total assets

formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)

termsNet income (attributable to the company) · Stockholders’ equity

Earnings per share (EPS) and dividend per share

Unit: $

  • EPS
  • Dividend per share

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-27

Line itemFY202010-K on EDGAR ↗FY202110-K on EDGAR ↗FY202210-K on EDGAR ↗FY202310-K on EDGAR ↗FY202410-K on EDGAR ↗FY202510-K on EDGAR ↗
Income statement ($M)
Revenue8441,2081,7941,8212,2072,790
Operating income159262527482539729
Pretax income169272525506573766
Net income (attributable)1642424384271,592621
Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100—43.0%48.5%1.5%21.2%26.4%
Operating margincalcoperating income ÷ revenue × 10018.8%21.7%29.4%26.5%24.4%26.1%
Net margincalcnet income attributable to the company ÷ revenue × 10019.5%20.0%24.4%23.5%72.1%22.3%
Balance sheet ($M)
Total assets1,2081,5862,0592,4343,5164,194
Total equity9671,2441,6692,0502,9513,531
Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable000000
Equity ratio80.0%78.4%81.0%84.2%83.9%84.2%
ROE17.0%21.9%30.1%23.0%63.7%19.2%
Cash flow ($M)
Operating CF268320247638788838
Investing CF-39-379-13-179223-157
Financing CF-72-90-129-184-872-286
Free cash flowcalccash flow from operations − capital expenditures212226188581642666
Cash and equivalents3351892895286921,099
Per share & other
EPS ($)3.505.059.058.7632.6012.86
BVPS ($)21.3526.8935.4242.6861.7172.50
Dividend per share ($)2.002.403.004.005.006.24
Payout ratiocalcdividend per share ÷ diluted EPS × 10057.1%47.5%33.1%45.7%15.3%48.5%
P/E (x)104.697.739.172.018.270.5
EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)91.277.729.057.047.955.1
P/B (x)calcfiscal year-end closing price ÷ book value per share17.1518.349.9814.789.5912.50

P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.

Last 8 quarters

Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.

Quarter endedRevenueOperating incomeNet incomeDiluted EPS
2026-09-30$1.2B+63.1%$358M+83.3%$271M+50.8%$5.51
2026-06-30$981M+47.6%$304M+84.4%$257M+90.6%$5.22
2026-03-31$804M+26.1%$241M+42.9%$193M+43.1%$3.92
2025-12-31 †$751M+20.8%$200M+22.4%$172M-86.3%—
2025-09-30$737M$195M$180M$3.74
2025-06-30$665M$165M$135M$2.81
2025-03-31$638M$169M$135M$2.81
2024-12-31 †$622M$163M$1.25B—

† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.

15

Is ROIC above WACC?From SEC data

ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.

ROIC (FY2025)

17.8%

formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)

e.g.$729M × (1 − 21%) ÷ $3,241M × 100 = 17.8%

termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity

WACC (this site’s estimate)

14.41%

formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight

e.g.Equity weight: $44.15B ÷ ($44.15B + $0) = 100.0%

e.g.Debt weight: $0 ÷ ($44.15B + $0) = 0.0%

e.g.WACC: 14.4% × 100.0% + 5.0% × (1 − 21%) × 0.0% = 14.41%

termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization

ROIC − WACC

+3.3pt▲favorable

Earning more than the cost of capital (ROIC > WACC in 5 of 6 years)

formulaROIC − WACC (positive means the business earns more than its cost of capital)

termsROIC · WACC

How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 11.8%–17.4% and ROIC − WACC runs +0.3 to +6.0 points. The sign holds across this range. This describes the latest year and does not predict future value creation.

WACC 14.41% is this site’s estimate under the assumptions below (not a figure the company has published)

Risk-free rate
4.95% (10-year Treasury, 2026-11-03)
β
1.72 (price-derived adjusted beta)
Equity risk premium
5.5%
Cost of equity
14.41%
Cost of debt
4.95% (no debt on record, using the risk-free rate)
Tax rate
21% (U.S. federal statutory rate (not enough data for an effective rate))
Capital structure (equity : debt)
100% : 0%
→ Change assumptions and recalculate

ROIC over time, vs. WACC

Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red

  • ROIC (above WACC)
  • ROIC (below WACC)
  • WACC 14.41%

formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)

termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity

formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight

termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization

Try different WACC assumptions

β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).

Initial β: 1.72 (price-derived adjusted beta. Raw β 2.08, R² 0.41, 130 weeks)

formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)

e.g.0.67 × 2.075 + 0.33 = 1.720

termsβ (beta)

Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.

Cost of equity14.41%

formularisk-free rate + β × equity risk premium

e.g.5.0% + 1.72 × 5.5% = 14.4%

termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)

Market value of equity$44.15B

formulafiscal year-end closing price × shares outstanding (= market cap)

termsMarket capitalization · Market value of equity

Interest-bearing debt$0
Cost of debt *no debt on record, using the risk-free rate instead4.95%

formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)

termsInterest-bearing debt · Risk-free rate

Capital structure (equity weight : debt weight)100% : 0%

16

What the price implies (DCF)From SEC data

A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.

Growth the price implies (price on 2026-11-04)

13.3%

Perpetual FCF growth: g = r − FCF ÷ EV = 14.4% − 1.1%

Past FCF growth (FY2020–FY2025)

+25.7%

Compound annual rate, 5 years

Past revenue growth (FY2020–FY2025)

+27.0%

Compound annual rate, 5 years

Inputs (FY2025): free cash flow $666M (operating CF − capex); enterprise value $62.27B = market cap $63.52B (latest close, 2026-11-04) + debt $0 − cash and short-term investments $1.26B; r = WACC of 14.4% using this page’s default assumptions (β 1.72, risk-free 5.0%, market premium 5.5%).

Three WACC scenarios

The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.

Try your own assumptions

V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.

Theoretical enterprise value

$27.76B

FCF $666M ÷ (14.4% − 12.0%)

Theoretical ÷ actual enterprise value

0.45x

Below 1x: these assumptions value the business below the market did

How sensitive the answer is

Theoretical ÷ actual enterprise value for each combination of r and g.

g \ r12.4%13.4%14.4%15.4%16.4%
0%0.09x0.08x0.07x0.07x0.07x
2%0.10x0.09x0.09x0.08x0.07x
4%0.13x0.11x0.10x0.09x0.09x
6%0.17x0.14x0.13x0.11x0.10x
8%0.24x0.20x0.17x0.14x0.13x

A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.

17

Earnings qualityFrom SEC dataShow

The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.

  • ✓

    Operating CF ÷ net income: averages 1.14x

    Profit is backed by cash coming in.

  • ✓

    Accrual ratio (latest): -5.6%

    A small share of profit rests on accounting estimates.

  • ✓

    Core-earnings share (operating income ÷ pretax income): 95%

    Most profit comes from core operations.

  • ✓

    Days sales outstanding: 29 → 28 days

    No major slowdown in collecting on sales.

Operating CF vs. net income

Unit: $M — operating CF above net income means profit is backed by cash

  • Operating CF
  • Net income

formulacash flow from operations ÷ net income attributable to the company

termsCash flow from operations (operating CF) · Net income (attributable to the company)

formula(net income − operating CF) ÷ average total assets × 100

termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-27

Profit bridge (FY2025)

Unit: $M — what moved profit from operating income to net income

  • Profit (each stage)
  • Pushed profit up
  • Pushed profit down

formulaoperating income ÷ income before income taxes × 100

termsOperating income · Income before income taxes (pretax income)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-27

Receivables & inventory days

Unit: days — days grow when receivables or inventory build up faster than sales

  • Days sales outstanding
  • Days inventory outstanding

formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365

termsAccounts receivable · Revenue (net sales)

formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365

termsInventory · Cost of revenue (COGS)

Worked examples (latest period)

formulacash flow from operations ÷ net income attributable to the company

e.g.$838M ÷ $621M = 1.35x

termsCash flow from operations (operating CF) · Net income (attributable to the company)

formulaoperating income ÷ income before income taxes × 100

e.g.$729M ÷ $766M × 100 = 95%

termsOperating income · Income before income taxes (pretax income)

formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365

e.g.($173M + $256M) ÷ 2 ÷ $2,790M × 365 = 28 days

termsAccounts receivable · Revenue (net sales)

formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365

e.g.($420M + $565M) ÷ 2 ÷ $1,251M × 365 = 144 days

termsInventory · Cost of revenue (COGS)

18

Who holds the sharesFrom SEC dataShow

How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.

Institutions, insiders and everyone else, 13F holdings as of 2026-06-30

“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.

Held by 13F filers
96.9%
Directors & officers (shares)
3.6%
Everyone else (est.)
0.0%

individuals and other non-13F holders

Directors & officers (voting power)
3.6%

no separate voting figure; shown as shares

Institutional-ownership rank
96 of 416

1 = most institutional; 23% of covered companies have more

Beta (adjusted)
1.72

above 1 = swings more than the market

  • 47.6M shares reported by 1,243 13F filers ÷ 49.1M shares outstanding on 2026-07-29. Option positions are excluded.
  • Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
  • A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.

Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-04-30 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-07-29)

19

Strengths & weaknessesSite analysis

Strengths

  1. 1. Fast growth

    Revenue more than tripled from $844M (2020) to $2,790M (2025).

    Evidence: Form 10-K (FY2025)

  2. 2. Integrated designs

    MPS says its ICs are typically smaller, highly integrated, lower in energy consumption and higher in performance than most competitors’.

    Evidence: Form 10-K (FY2025)

  3. 3. Debt-free

    No debt and $1,099M of cash at end-2025.

    Evidence: Form 10-K (FY2025)

Weaknesses

  1. 1. Distributor concentration

    Three distributors made up 54% of 2025 revenue.

    Evidence: Form 10-K (FY2025)

  2. 2. China exposure

    China accounted for $1,544M of 2025 revenue.

    Evidence: Form 10-K (FY2025)

  3. 3. Enterprise data volatility

    Enterprise Data share fell from 32.5% (2024) to 25.2% (2025) of revenue.

    Evidence: Form 10-K (FY2025)

20

What draws investors to itSite analysis

Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.

P/E (FY2025)

70.5x

Price at fiscal year-end ÷ diluted EPS

Dividend yield (FY2025)

0.69%

Dividends per share ÷ fiscal year-end price

Payout ratio (FY2025)

49%

Dividends per share ÷ diluted EPS

FCF yield (FY2025)

1.5%

(Operating CF − capex) ÷ market cap

  1. 1. Power for AI and computing

    Storage, computing and enterprise data made up over half of 2025 revenue.

    What has to hold
    Data center build-out continues.
    The other side
    Lumpy demand.

    Evidence: Form 10-K (FY2025)

  2. 2. Shareholder returns

    Rising dividends and a $500M buyback authorization.

    What has to hold
    Growth persists.
    The other side
    High valuation.

    Evidence: Form 10-K (FY2025)

2024 net income includes a one-time deferred tax benefit from a foreign tax incentive.

21

ResilienceSite analysisShow

How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.

1. Financial buffer (FY2025)

Cash & short-term investments ÷ debt due within a year

—

$1.26B vs. —

Interest coverage (operating income ÷ interest expense)

Not disclosed

Interest expense isn’t reported as a separate line.

Free cash flow ÷ dividends paid

2.3x

$666M vs. $285M (FCF = operating CF − capex)

2. Worst year in the record, and the recovery

FigureWorst year-over-year changeBack to the prior level?
RevenueNo decline in the record—
Operating income-8.6% in FY2023 ($527M → $482M)Yes, by FY2024

Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.

3. Business resilience (from the 10-K)

  • Profitable growth

    Operating income grew from $159M (2020) to $729M (2025) with only one down year (2023).

    Source: Form 10-K (FY2025)

23

Risks (including geopolitical)Site analysis

Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.

Risk map

Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).

Impact
High
1
Med
34
2
Low
5
LowMedHigh

Likelihood →

"Company disclosure" vs. "this site’s assessment"

The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.

Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.

  1. 1Geopolitics & supply chain

    U.S.–China trade

    Company disclosure (summarized from the 10-K)
    Most revenue ships to China and Asia; export controls and tariffs affect sales.
    Company’s stated mitigation
    In addition, diversifying our manufacturing footprint across multiple countries helps mitigate operational risks and enhances our ability to adapt and maintain continuity.
    This site’s assessment
    Impact High / Likelihood High
  2. 2Competition & technology shift

    Larger competitors

    Company disclosure (summarized from the 10-K)
    Competes with Analog Devices, Infineon, TI and others with greater resources.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood High
  3. 3Customer/supplier concentration

    Foundry and distributor dependence

    Company disclosure (summarized from the 10-K)
    Relies on third-party foundries and a few distributors.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood Med
  4. 4Law & regulation

    Tax incentive

    Company disclosure (summarized from the 10-K)
    OECD guidance could change the foreign tax incentive underlying the 2024 deferred tax benefit.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Med / Likelihood Med
  5. 5Governance & quality

    Restatement and securities suit

    Company disclosure (summarized from the 10-K)
    Restated 2024 tax accounting; a securities class action was filed in February 2025.
    Company’s stated mitigation
    Not stated in the filings.
    This site’s assessment
    Impact Low / Likelihood Med

24

What changed in the risk factorsFrom SEC data

Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.

New or substantially reworded (7)

  • changes in U.S. laws, or the interpretation and enforcement of these laws, regarding investment in China or other countries;

  • A significant portion of our manufacturing, testing, assembly and packaging capacity comes from key suppliers located in China. Read more

    As a result, we are subject to significant political, regulatory, tax, economic, foreign exchange, and operational risks due to this geographic concentration in our business. Although we have made significant progress in diversifying capacity outside of China, there is no guarantee that our progress is sufficient or will be sufficient to mitigate these risks. Furthermore, we cannot guarantee that our new manufacturing, testing, assembly and packaging partners will not be costlier than our legacy partners in China. In addition, as we pivot our manufacturing, testing, assembly and packaging capacity concentration from China to another region, we will be subject to the risks of doing business in that particular region. If we decide to further diversify our…

  • delays attributable to commercial adoption by our end customers upon the initial release of our products in order for our customers to evaluate product performance and consumer demand.

  • integrating the acquired company’s technology or products into our products or product offerings;

  • The restatement of our 2024 annual financial statements and our 2025 quarterly financial statements may affect investor confidence and raise reputational issues and may subject us to additional risks and uncertainties, including increased professional costs and the increased possibility of legal proceedings and regulatory inquiries.

  • As discussed in Notes 2 and 17 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K, we restated our audited consolidated financial statements for the fiscal year ended December 31, 2024 and our unaudited condensed consolidated financial statements for the quarterly periods ended March 31, 2025, June 30, 2025 and September 30, 2025 after we determined that we had not appropriately accounted for deferred income taxes associated with a one-time tax incentive granted by a certain foreign jurisdiction. As a result of this error and the resulting restatement of our audited consolidated financial statements and unaudited condensed consolidated financial statements for the impacted periods, we have incurred, and may continue to incur, unanticipated accounting and legal fees in connection with or related to the restatement, and are subject to a number…

  • As more fully disclosed in Item 9A. Controls and Procedures of this Annual Report, a material weakness was identified in internal control over financial reporting related to the accounting for deferred income taxes. Read more

    Due to this finding of a material weakness, we concluded that our internal control over financial reporting was not effective as of December 31, 2024 and December 31, 2025. Until this material weakness is remediated, there is a reasonable possibility that a material misstatement of our interim or annual financial statements will not be prevented or detected on a timely basis. In addition, we may experience delays in satisfying our reporting obligations to comply with SEC rules and regulations, which could result in investigations and sanctions by regulatory authorities. Furthermore, we may in the future identify additional material weaknesses in our internal control over…

No longer in the text (4)

  • the impact of various U.S. and international laws and regulations regarding data protection on our business operations;

  • the commercial adoption of our products by OEMs and ODMs is typically limited during the initial release of their product to evaluate product performance and consumer demand;

  • the development and commercial introduction of our customers’ products incorporating our products are frequently delayed.

  • We are subject to various U.S. and international laws, policies and other regulations regarding data protection.

5 more paragraphs differ; the filings below have the full text.

Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 27, 2026 ↗ with the 10-K filed Mar 3, 2025 ↗.

25

What to watch going forwardSite analysis

  • AI and data center power demand.
  • China sales amid trade restrictions.
  • Outcome of the Securities Action.

26

Source documentsShow

This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.

Last updated

Analysis last edited: November 6, 2026 · Financial data fetched: October 30, 2026 12:50 (SEC EDGAR) · Source 10-K filed: February 27, 2026

Built on10-K FY2025 · filed 2026-02-27Proxy statement (2026)

Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

This page is this site’s own analysis based on public information, and does not represent Monolithic Power Systems’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.