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 or Stephanie Link.

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 $14.1 million.
  • MPWR has traded 251,860 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 the communications, computing, consumer, and industrial markets. MPWR has a PE ratio of 82.4. Currently there are 8 analysts that rate Monolithic Power Systems a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Monolithic Power Systems has been 296,600 shares per day over the past 30 days. Monolithic Power Systems has a market cap of $1.1 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.47 and a short float of 10.6% with 6.38 days to cover. Shares are up 36.8% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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 largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • 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 6.44, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 155.44% to $15.51 million when compared to the same quarter last year. In addition, MONOLITHIC POWER SYSTEMS INC has also vastly surpassed the industry average cash flow growth rate of -88.58%.
  • The gross profit margin for MONOLITHIC POWER SYSTEMS INC is rather high; currently it is at 58.79%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, MPWR's net profit margin of 9.51% significantly trails the industry average.
  • Compared to its closing price of one year ago, MPWR's share price has jumped by 63.60%, 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.
  • MONOLITHIC POWER SYSTEMS INC's earnings per share declined by 22.2% in the most recent quarter compared to the same quarter a year ago. 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 $0.43 versus $0.38 in the prior year. This year, the market expects an improvement in earnings ($1.05 versus $0.43).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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