Trade-Ideas LLC identified

Monolithic Power Systems

(

MPWR

) 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 $14.7 million.
  • MPWR has traded 5,735 shares today.
  • MPWR is trading at a new lifetime high.

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More details on MPWR:

Monolithic Power Systems, Inc. designs, develops, and markets integrated power semiconductor solutions and power delivery architectures for communications, storage and computing, consumer electronics, and industrial/automotive markets. The stock currently has a dividend yield of 1.2%. MPWR has a PE ratio of 81. Currently there are 7 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 297,900 shares per day over the past 30 days. Monolithic Power Systems has a market cap of $2.7 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.30 and a short float of 4.1% with 6.57 days to cover. Shares are up 36.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Monolithic Power Systems as a

buy

. 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, good cash flow from operations, solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 11.0%. Since the same quarter one year prior, revenues rose by 16.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant 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 5.35, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has increased to $22.05 million or 37.73% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -6.86%.
  • MONOLITHIC POWER SYSTEMS INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. 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 ($1.87 versus $0.89).
  • Compared to its closing price of one year ago, MPWR's share price has jumped by 44.06%, exceeding the performance of the broader market during that same time frame. 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.

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