Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Monolithic Power Systems Inc., FCFE calculation
US$ in thousands
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).
An analysis of the cash flow trajectory reveals a period of relative stability followed by a substantial acceleration in cash generation beginning in 2023. Both net cash provided by operating activities and free cash flow to equity (FCFE) exhibit a strong positive correlation, with a significant upward inflection point occurring between 2022 and 2023.
- Net Cash Provided by Operating Activities
- Operating cash flows experienced modest fluctuations between 2020 and 2022, peaking at 320,010 thousand US dollars in 2021 before declining to 246,674 thousand US dollars in 2022. However, a sharp increase is observed in 2023, where cash from operations rose to 638,213 thousand US dollars, representing a growth of approximately 158% over the previous year. This momentum continued into 2024, with the figure reaching 788,410 thousand US dollars.
- Free Cash Flow to Equity (FCFE)
- The FCFE trend mirrors the operating cash flow pattern, characterized by a period of consolidation from 2020 to 2022, with values ranging between 187,831 thousand and 225,590 thousand US dollars. A significant surge occurred in 2023, with FCFE increasing to 580,635 thousand US dollars. By December 31, 2024, FCFE reached 642,292 thousand US dollars, indicating a robust capacity to return capital to shareholders or fund internal growth without increasing debt.
- Cash Conversion and Capital Expenditure Trends
- The variance between operating cash flow and FCFE remains relatively tight from 2020 through 2023, suggesting a consistent and managed level of capital expenditures and debt adjustments. In 2023, the gap was approximately 57,578 thousand US dollars. In 2024, the variance expanded to 146,118 thousand US dollars, suggesting an increase in capital investments or debt repayments during the final analyzed period despite the overall increase in total cash generation.
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Price to FCFE Ratio, Current
Monolithic Power Systems Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 47,880,000 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in thousands) | 642,292) |
| FCFE per share | 13.41 |
| Current share price (P) | 627.40 |
| Valuation Ratio | |
| P/FCFE | 46.77 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Advanced Micro Devices Inc. | 94.18 |
| Analog Devices Inc. | 32.84 |
| Applied Materials Inc. | 42.30 |
| Broadcom Inc. | 57.74 |
| Intel Corp. | — |
| KLA Corp. | 44.91 |
| Lam Research Corp. | 55.94 |
| Marvell Technology Inc. | 64.09 |
| Micron Technology Inc. | 15.18 |
| NVIDIA Corp. | 45.27 |
| Qualcomm Inc. | 12.75 |
| Texas Instruments Inc. | 83.28 |
| P/FCFE, Sector | |
| Semiconductors & Semiconductor Equipment | 102.59 |
| P/FCFE, Industry | |
| Information Technology | 57.07 |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Monolithic Power Systems Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 47,866,000 | 48,661,000 | 47,305,000 | 46,509,000 | 45,621,000 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in thousands)2 | 642,292) | 580,635) | 187,831) | 225,590) | 212,193) | |
| FCFE per share3 | 13.42 | 11.93 | 3.97 | 4.85 | 4.65 | |
| Share price1, 4 | 578.92 | 720.04 | 483.06 | 461.44 | 389.05 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 43.14 | 60.34 | 121.66 | 95.13 | 83.64 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Advanced Micro Devices Inc. | 109.67 | 241.70 | 33.46 | 44.72 | — | |
| Analog Devices Inc. | 29.30 | 22.28 | 24.14 | 34.67 | 33.98 | |
| Applied Materials Inc. | 17.05 | 17.53 | 19.17 | 27.20 | 23.21 | |
| Broadcom Inc. | 26.03 | 30.06 | 14.62 | 22.35 | 9.16 | |
| Intel Corp. | — | — | — | 14.25 | — | |
| KLA Corp. | 25.11 | 26.78 | 9.01 | 28.06 | — | |
| Lam Research Corp. | 25.89 | 18.67 | 24.95 | 34.58 | — | |
| Marvell Technology Inc. | 84.46 | 34.85 | 13.90 | 72.25 | — | |
| Micron Technology Inc. | — | — | 18.66 | 37.24 | — | |
| NVIDIA Corp. | 65.45 | 151.07 | 54.83 | 35.22 | — | |
| Qualcomm Inc. | 18.57 | 11.97 | 19.13 | 17.93 | 34.91 | |
| Texas Instruments Inc. | 42.96 | 37.61 | 23.88 | 21.87 | — | |
| P/FCFE, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 46.12 | 47.29 | 28.10 | 25.18 | — | |
| P/FCFE, Industry | ||||||
| Information Technology | 36.66 | 33.12 | 26.68 | 27.39 | — | |
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).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 642,292,000 ÷ 47,866,000 = 13.42
4 Closing price as at the filing date of Monolithic Power Systems Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 578.92 ÷ 13.42 = 43.14
6 Click competitor name to see calculations.
The analysis of the Price to Free Cash Flow to Equity (P/FCFE) ratio reveals a distinct two-phase trajectory between 2020 and 2024, characterized by an initial valuation expansion followed by a significant contraction driven by fundamental cash flow growth.
- P/FCFE Ratio Dynamics
- A period of valuation expansion occurred from 2020 to 2022, with the P/FCFE ratio rising from 83.64 to a peak of 121.66. This upward trend indicates that the share price increased at a rate far exceeding the growth of free cash flow to equity during this interval. However, a sharp reversal followed, with the ratio declining to 60.34 in 2023 and further dropping to 43.14 by 2024, representing a substantial compression of the valuation multiple.
- FCFE per Share Performance
- Free cash flow to equity per share remained relatively stagnant between 2020 and 2022, experiencing a slight decline from 4.85 in 2021 to 3.97 in 2022. A pivotal shift occurred in 2023, where FCFE per share increased by approximately 200% to 11.93, continuing its upward trajectory to 13.42 in 2024. This surge in cash flow generation is the primary driver behind the reduction in the P/FCFE ratio.
- Share Price Correlation
- The share price exhibited steady growth from 2020 (389.05) through 2023, where it reached a peak of 720.04. The divergence between the share price and FCFE per share was most pronounced in 2022, contributing to the peak P/FCFE ratio. In 2024, a correction in the share price to 578.92, coupled with the continued growth in FCFE per share, accelerated the downward trend of the P/FCFE ratio to its lowest level in the observed period.
Overall, the data indicates a transition from a valuation driven by market expectations and price appreciation to one more closely aligned with realized cash flow performance. The significant increase in FCFE per share since 2023 has effectively lowered the valuation multiple, suggesting a more sustainable relationship between the company's market price and its capacity to generate cash for equity holders.
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