Today Monolithic Power Systems (MPWR) Hits New Lifetime High
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Monolithic Power Systems as such a stock due to the following factors:
- MPWR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.7 million.
- MPWR has traded 2,330 shares today.
- MPWR is trading at a new lifetime high.
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More details on MPWR:
Monolithic Power Systems, Inc., a fabless semiconductor company, designs, develops, and markets analog and mixed-signal semiconductors for storage and computing, consumer electronics, communications, and industrial/automotive markets. The stock currently has a dividend yield of 1.1%. MPWR has a PE ratio of 59.1. Currently there are 5 analysts that rate Monolithic Power Systems a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Monolithic Power Systems has been 288,400 shares per day over the past 30 days. Monolithic Power Systems has a market cap of $2.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.09 and a short float of 2.6% with 2.68 days to cover. Shares are up 5.8% year-to-date as of the close of trading on Monday.
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Analysis:
rates Monolithic Power Systems as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Highlights from the ratings report include:
- MPWR's revenue growth has slightly outpaced the industry average of 10.6%. Since the same quarter one year prior, revenues rose by 19.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- MPWR has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 7.17, which clearly demonstrates the ability to cover short-term cash needs.
- MONOLITHIC POWER SYSTEMS INC has improved earnings per share by 15.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MONOLITHIC POWER SYSTEMS INC increased its bottom line by earning $0.89 versus $0.59 in the prior year. This year, the market expects an improvement in earnings ($1.84 versus $0.89).
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 43.32% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- The gross profit margin for MONOLITHIC POWER SYSTEMS INC is rather high; currently it is at 54.10%. Regardless of MPWR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MPWR's net profit margin of 11.70% is significantly lower than the industry average.
- You can view the full Monolithic Power Systems Ratings Report.
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