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Monolithic Power Systems Inc. (NASDAQ:MPWR)

This company has been moved to the archive! The financial data has not been updated since May 5, 2025.

Price to Operating Profit (P/OP)
since 2005

Microsoft Excel

Calculation

Monolithic Power Systems Inc., P/OP, long-term trends, calculation

Microsoft Excel
P/OP = Share price1, 2, 3 ÷ Operating profit per share1 Operating profit per share1 = Operating income1
(in thousands)		 ÷ No. shares of common stock outstanding2
Mar 3, 2025 51.38 = 578.92 ÷ 11.27 11.27 = 539,358 ÷ 47,866,000
Nov 6, 2024 79.32 = 785.29 ÷ 9.90 9.90 = 481,736 ÷ 48,661,000
Feb 24, 2023 43.38 = 483.06 ÷ 11.14 11.14 = 526,785 ÷ 47,305,000
Feb 25, 2022 81.78 = 461.44 ÷ 5.64 5.64 = 262,417 ÷ 46,509,000
Mar 1, 2021 111.71 = 389.05 ÷ 3.48 3.48 = 158,882 ÷ 45,621,000
Feb 28, 2020 68.99 = 158.64 ÷ 2.30 2.30 = 102,562 ÷ 44,602,000
Mar 1, 2019 51.50 = 136.18 ÷ 2.64 2.64 = 113,488 ÷ 42,916,000
Mar 1, 2018 63.00 = 115.77 ÷ 1.84 1.84 = 77,424 ÷ 42,132,242
Mar 1, 2017 67.63 = 89.44 ÷ 1.32 1.32 = 54,447 ÷ 41,171,970
Feb 29, 2016 57.81 = 59.06 ÷ 1.02 1.02 = 41,070 ÷ 40,199,618
Mar 2, 2015 60.28 = 54.16 ÷ 0.90 0.90 = 35,300 ÷ 39,290,882
Mar 10, 2014 59.53 = 36.80 ÷ 0.62 0.62 = 23,915 ÷ 38,686,172
Mar 5, 2013 51.86 = 24.55 ÷ 0.47 0.47 = 17,279 ÷ 36,501,530
Mar 12, 2012 46.37 = 18.20 ÷ 0.39 0.39 = 13,417 ÷ 34,185,705
Mar 4, 2011 17.49 = 15.10 ÷ 0.86 0.86 = 30,498 ÷ 35,315,748
Feb 16, 2010 39.08 = 21.66 ÷ 0.55 0.55 = 19,530 ÷ 35,235,634
Feb 27, 2009 19.47 = 12.95 ÷ 0.67 0.67 = 22,507 ÷ 33,836,887
Mar 11, 2008 58.24 = 16.70 ÷ 0.29 0.29 = 9,670 ÷ 33,722,501
Mar 16, 2007 336.88 = 13.33 ÷ 0.04 0.04 = 1,235 ÷ 31,210,854
Mar 28, 2006 71.39 = 15.75 ÷ 0.22 0.22 = 6,464 ÷ 29,297,785

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Monolithic Power Systems Inc. Annual Report.

An analysis of the financial data reveals a long-term upward trajectory in both share price and operating profit per share, though the relationship between the two has exhibited significant periods of volatility and subsequent stabilization.

Share Price and Operating Profit Growth
The share price experienced substantial growth over the period, rising from 15.75 US$ in 2006 to a peak of 785.29 US$ in November 2024, before adjusting to 578.92 US$ by March 2025. Parallel to this, operating profit per share grew from 0.22 US$ in 2006 to 11.27 US$ in March 2025. A notable acceleration in profitability occurred between 2021 and 2023, where operating profit per share increased from 3.48 US$ to 11.14 US$, representing a rapid expansion of operational efficiency.
P/OP Ratio Volatility and Outliers
The Price to Operating Profit (P/OP) ratio showed extreme volatility in the early years of the sequence. A significant outlier occurred in March 2007, where the ratio spiked to 336.88. This peak was driven by a sharp decline in operating profit per share to 0.04 US$ while the share price remained relatively stable, indicating a temporary decoupling of market valuation from operational earnings.
Mid-Term Valuation Stability
Between 2013 and 2020, the P/OP ratio entered a period of relative stability, generally fluctuating within a range of 51.50 to 68.99. During this phase, the share price and operating profit per share grew in closer tandem, suggesting a consistent market valuation of the operational earnings generated during this interval.
Recent Valuation Expansion and Normalization
A second significant surge in the P/OP ratio occurred in March 2021, reaching 111.71. This increase indicates that the share price grew faster than operating profits during this window. However, a subsequent normalization is observed; as operating profit per share rose sharply to 11.27 US$ by March 2025, the P/OP ratio compressed to 51.38, aligning the valuation more closely with historical mid-term averages.

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Comparison to Competitors

Monolithic Power Systems Inc., P/OP, long-term trends, comparison to competitors

Microsoft Excel
Monolithic Power Systems Inc. Advanced Micro Devices Inc. Analog Devices Inc. Applied Materials Inc. Broadcom Inc. Intel Corp. Lam Research Corp. Marvell Technology Inc. Micron Technology Inc. NVIDIA Corp. Qualcomm Inc. Texas Instruments Inc.
Mar 3, 2025 51.38 95.53 53.48 17.52 76.87 — 24.29 — 86.94 51.16 19.08 30.49
Nov 6, 2024 79.32 675.69 23.53 17.58 31.96 1,984.43 16.79 147.29 — 136.19 15.85 19.75
Feb 24, 2023 43.38 100.42 26.16 11.35 16.33 49.91 11.79 — 5.93 66.12 7.95 16.29
Feb 25, 2022 81.78 39.48 56.12 18.85 30.78 10.82 18.34 — 12.48 75.08 15.84 17.67
Mar 1, 2021 111.71 75.77 33.76 18.50 44.04 9.72 20.40 — 19.51 66.40 23.32 26.53
Feb 28, 2020 68.99 91.66 24.74 16.36 36.85 13.29 12.13 295.81 6.83 24.79 12.60 21.46
Mar 1, 2019 51.50 51.38 17.62 6.74 19.42 9.40 8.67 24.26 3.20 45.61 103.26 15.00
Mar 1, 2018 63.00 59.52 30.97 14.35 44.92 11.86 13.68 78.88 7.98 31.31 30.15 16.81
Mar 1, 2017 67.63 — 21.85 16.54 — 13.40 13.46 — 106.63 23.80 15.26 16.07
Feb 29, 2016 57.81 — 22.69 12.92 23.80 9.66 14.45 18.85 6.04 16.52 15.68 12.34
Mar 2, 2015 60.28 — 23.01 19.66 59.05 10.60 16.98 27.46 11.23 19.66 17.00 15.64
Mar 10, 2014 59.53 26.08 20.62 46.30 23.31 10.02 64.12 18.01 74.52 12.16 16.30 17.02
Mar 5, 2013 51.86 — 14.67 31.47 13.51 7.13 26.84 15.14 — 14.06 17.43 19.14
Mar 12, 2012 46.37 14.16 9.26 6.04 12.05 7.62 5.54 11.35 7.18 40.70 17.45 12.75
Mar 4, 2011 17.49 7.42 11.93 12.82 13.69 7.79 10.92 39.12 4.84 — 22.51 9.25
Feb 16, 2010 39.08 8.03 30.48 — 81.90 20.19 — 35.44 — — 32.90 15.16
Feb 27, 2009 19.47 — 7.90 10.25 — 7.50 9.41 — — 13.27 14.67 8.01
Mar 11, 2008 58.24 — 16.49 10.36 — 14.36 6.12 10,050.76 — 22.39 22.57 11.81
Mar 16, 2007 336.88 — 20.89 12.54 — 21.27 14.39 46.71 30.18 24.63 22.34 13.27
Mar 28, 2006 71.39 84.32 26.80 21.07 — 9.99 10.23 59.44 39.55 37.70 27.83 17.12

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).