Monolithic Power Systems (MPWR) Reaches New Lifetime High Today

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 $15.2 million.
  • MPWR has traded 7,015 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 1.3%. MPWR has a PE ratio of 60.8. 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 297,500 shares per day over the past 30 days. Monolithic Power Systems has a market cap of $1.8 billion and is part of the technology sector and electronics industry. The stock has a beta of 1.48 and a short float of 6.7% with 6.58 days to cover. Shares are up 34.9% year-to-date as of the close of trading on Thursday.

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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, growth in earnings per share, good cash flow from operations and solid stock price performance. 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 10.4%. Since the same quarter one year prior, revenues rose by 18.6%. 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 6.25, which clearly demonstrates the ability to cover short-term cash needs.
  • MONOLITHIC POWER SYSTEMS INC has improved earnings per share by 14.3% 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 year. We feel that this trend should continue. During the past fiscal year, MONOLITHIC POWER SYSTEMS INC increased its bottom line by earning $0.59 versus $0.43 in the prior year. This year, the market expects an improvement in earnings ($1.64 versus $0.59).
  • Net operating cash flow has significantly increased by 65.04% to $25.60 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 6.92%.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Semiconductors & Semiconductor Equipment industry average. The net income increased by 16.5% when compared to the same quarter one year prior, going from $5.49 million to $6.40 million.

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