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 market position. With a current share price of $910.97 and a daily gain of 2.3%, coupled with a three-month increase of 9.89%, the company's financial health is evidently robust. A detailed analysis, supported by the GF Score, indicates that Monolithic Power Systems Inc is poised for significant growth in the foreseeable future.
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 ranging 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 $44.41 billion and annual sales of $1.89 billion, specializes in analog and mixed-signal chipmaking, focusing on power management solutions. The company serves diverse markets, including computing, automotive, industrial, communications, and consumer sectors. Monolithic Power Systems Inc operates on a fabless manufacturing model, leveraging third-party chip foundries for its proprietary BCD process technology.
Financial Strength Breakdown
Monolithic Power Systems Inc's financial resilience is reflected in its impressive Financial Strength rating. The company's Altman Z-Score of 60.22 indicates a strong buffer against financial distress, while its minimal Debt-to-Revenue ratio of 0.01 showcases effective debt management.
Profitability Rank Breakdown
The Profitability Rank of Monolithic Power Systems Inc is exemplary. The company's Operating Margin has shown significant improvement over the past five years, indicating increasing efficiency in revenue conversion into profit. This trend is further supported by the consistent rise in Gross Margin over the same period.
Growth Rank Breakdown
Monolithic Power Systems Inc's commitment to growth is evident from its high Growth rank. The company's 3-Year Revenue Growth Rate of 27.6% is notably higher than the industry average. Additionally, its EBITDA growth over the past three to five years underscores its capability to expand profitably.
Conclusion
Considering Monolithic Power Systems Inc's strong financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. For investors looking for similar opportunities, the GF Score Screen offers a valuable tool for discovering companies with strong future prospects.
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.
