Stock Analysis on Net

Monolithic Power Systems Inc. (NASDAQ:MPWR)

$22.49

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

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Calculation

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

Microsoft Excel

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.


Share Price Trend
The share price exhibits a general upward trend over the observed period. Beginning at $15.75 in March 2006, the share price experiences some volatility but steadily increases, reaching a peak of $785.29 in November 2024. Notable growth phases include the rise from 2014 onwards, with a substantial jump between 2020 and 2021, where the share price more than doubles from $158.64 to $389.05. Some fluctuations occur after reaching the peak, as observed with a decrease to $578.92 by March 2025.
Operating Profit Per Share (OPPS) Trend
Operating profit per share shows an overall increasing trend, starting from $0.22 in March 2006 and ending at $11.27 by March 2025. Initial periods indicate modest gains with some fluctuations. Significant growth is evident post-2015, with operating profit per share accelerating dramatically, particularly from 2018 onward where it rises from $1.84 to a peak of $11.14 in February 2024, followed by a slight decline and renewed rise towards the final reported period.
Price to Operating Profit Ratio (P/OP)
The P/OP ratio reflects substantial volatility over the period. Early on, the ratio is very high, peaking at 336.88 in March 2007, which indicates share price valuation was extremely elevated relative to operating profits at that time. Subsequently, the P/OP ratio fluctuates significantly, generally declining through 2009 to 2014 but later experiences notable spikes, such as the 111.71 ratio in March 2021. Towards the end of the period, ratios range widely, including a distinct drop to 43.38 in 2023 and an increase to 79.32 in November 2024, before settling at 51.38 in March 2025. This volatility suggests changing market perception and differing investor sentiment relating to operational profitability.
Combined Observations
The strong upward trajectory in both share price and operating profit per share indicates overall positive business performance and growing profitability over time. However, the fluctuations in P/OP ratio imply periods where the price gains are not always proportionally matched by operating profit growth, suggesting moments of potential overvaluation or market exuberance. The substantial rise in share price particularly in the later years compared to operating profit underscores a possible reassessment of future expectations or growth potential by the market.

Comparison to Competitors

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

Microsoft Excel

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).