Monolithic Power Systems, Inc. (MPWR) Stock Analysis — Fair Value, Risk & Moat Rating
NMS · Technology · Semiconductors
Is Monolithic Power Systems, Inc. a safe investment right now?
Trading at $1,527.95, Monolithic Power Systems, Inc. (MPWR) in the Technology sector carries a FairValueLabs fair value estimate of $653.60 — a margin of safety of -133.8%, placing it in the Overvalued. An Altman Z-Score of 70.58 confirms the company is in the safe zone — financial distress is unlikely near-term. Our moat rating stands at 3.1/5 stars (Narrow moat), indicating moderate competitive positioning. On the income side, MPWR currently pays a dividend with a safety grade of .
Could Monolithic Power Systems, Inc. go bankrupt? Altman Z-Score analysis
Z-Score of 70.58 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives MPWR's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | 0.4326 | 1.2 | 0.52 |
| B · Retained Earnings / Total Assets | RE / TA | 0.6222 | 1.4 | 0.87 |
| C · EBIT / Total Assets | EBIT / TA | 0.1737 | 3.3 | 0.57 |
| D · Market Cap / Total Liabilities | MCap / TL | 113.2483 | 0.6 | 67.95 |
| E · Revenue / Total Assets | Rev / TA | 0.6653 | 1.0 | 0.67 |
How has MPWR's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 118.25 | Safe |
| 2023 | 119.87 | Safe |
| 2024 | 82.22 | Safe |
| 2025 | 70.58 | Safe |
Source: Calculated from MPWR's latest 10-K filing on SEC EDGAR.
What is Monolithic Power Systems, Inc. actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $16.34 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $12.86 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $21.57 | 14 analysts consensus |
| Trailing P/E | 119.1x | Current market pricing |
| Fair P/E (β discount) | 40.0x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $1,389.00 (14 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Monolithic Power Systems, Inc. have a durable competitive advantage?
Moat rating: 3.1/5.
What makes up MPWR's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 2/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is MPWR's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 31.6% | — |
| 2023 | 23.5% | Declining |
| 2024 | 18.3% | Declining |
| 2025 | 20.6% | Rising |
Source: ROIC calculated from SEC EDGAR filings.
Is Monolithic Power Systems, Inc.'s dividend safe?
Can Monolithic Power Systems, Inc. afford its dividend?
Payout ratio is 48.5%. FCF covers the dividend 1.4x. 14 consecutive years of payments.
Monolithic Power Systems, Inc.'s key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $2.8B | $2.2B | $1.8B | Rising |
| Net Income | $0.6B | $1.6B | $0.4B | Rising |
| Free Cash Flow | $0.7B | $0.6B | $0.2B | Rising |
| Gross Margin | 55.2% | 55.3% | 58.4% | Declining |
Common questions about Monolithic Power Systems, Inc.
Is Monolithic Power Systems, Inc. at risk of going bankrupt?
Monolithic Power Systems, Inc.'s Altman Z-Score of 70.58 places it in the safe zone. This metric uses balance sheet ratios to predict bankruptcy probability within 2 years. A score below 1.8 signals distress, while above 3.0 indicates safety.
What is Monolithic Power Systems, Inc.'s estimated fair value?
Our valuation model estimates Monolithic Power Systems, Inc.'s fair value at $653.60 per share. The current margin of safety is -133.8%. This estimate uses a PE-based approach with analyst consensus earnings.
Does Monolithic Power Systems, Inc. have a competitive moat?
Monolithic Power Systems, Inc. receives a moat rating of 3.1 out of 5 stars, based on ROIC stability, gross margin trends, and estimated switching costs. A rating above 3.5 suggests a durable competitive advantage.
Is Monolithic Power Systems, Inc.'s dividend safe?
Our dividend safety analysis examines payout ratio, free cash flow coverage, and the company's streak of consecutive dividend payments to determine whether the current payout is sustainable.
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
MPWR analysis methodology: How we calculate fair value, Z-Scores, and moat ratings