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MPWR, Monolithic Power Systems Inc.

Monolithic Power Systems, Inc. is a fabless global company that provides high-performance, semiconductor-based power electronics solutions.

Industry and Product Overview Semiconductors comprise the basic building blocks of electronic systems and equipment.

Latest annual: FY2025 10-K

MPWR · Monolithic Power Systems Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$2.8B

+26.4% YoY · 27% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $3.0B 5-yr avg $2.0B

Gross margin 55% 5-yr avg 56%

Operating margin 27.1% 5-yr avg 25.6%

ROIC 25% 5-yr avg 26%

Owner-earnings margin 26% 5-yr avg 26%

Free cash flow margin 21% 5-yr avg 23%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

What moves the needle: Gross margin has run about 55% and operating margin about 19% through the cycle, a wide spread between price and the cost of what it sells — whether that advantage is durable pricing power or a margin that can erode is the question the record is for. Inventory runs near 20% of sales, so how fast it turns back into cash — and the risk of writing it down when demand softens — sits alongside the margin. Read this kind of business on process leadership and the capex cycle. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has run high across the record (median 23%, above 15% in 9 of 10 years), though buybacks and expensed R&D and brands shrink the capital base, so the figure overstates the underlying economics. The steadier read is owner earnings: roughly 27% of revenue reaches owners as cash, consistently. Whether these returns reflect real pricing power or an accounting artifact is the judgment the 10-K is for.

Every line is arithmetic on the company's filings, shown in full in the sections below.

Where the money comes from

read the 10-K →

97% of revenue comes from outside the United States.

Revenue by geography, FY2025

China55%$1.5B
Taiwan20%$550M
South Korea9%$253M
South East Asia5%$148M
Europe4%$114M
United States3%$97M
Other3%$85M

From the segment footnote of the company's own 10-K. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
											Income statement
$389M	$471M	$582M	$628M	$844M	$1.2B	$1.8B	$1.8B	$2.2B	$2.8B	$3.0B	RevenueRevenue
54%	55%	55%	55%	55%	57%	58%	56%	55%	55%	55%	Gross marginGross mgn
21%	21%	20%	21%	19%	19%	16%	15%	16%	15%	15%	SG&A / revenueSG&A/rev
19%	17%	16%	17%	16%	16%	13%	14%	15%	14%	13%	R&D / revenueR&D/rev
$54M	$77M	$113M	$103M	$159M	$262M	$527M	$482M	$539M	$729M	$801M	Operating incomeOp. inc.
14.0%	16.4%	19.5%	16.3%	18.8%	21.7%	29.4%	26.5%	24.4%	26.1%	27.1%	Operating marginOp. mgn
$53M	$65M	$105M	$109M	$164M	$242M	$438M	$427M	$1.6B	$621M	$680M	Net incomeNet inc.
8%	21%	11%	4%	3%	11%	17%	16%	—	19%	19%	Effective tax rateTax rate
											Cash flow & returns
$108M	$134M	$141M	$216M	$268M	$320M	$247M	$638M	$788M	$838M	$832M	Operating cash flowOp. cash
$15M	$16M	$12M	$15M	$19M	$29M	$37M	$40M	$36M	$53M	$56M	DepreciationDeprec.
($5M)	($100K)	($37M)	$14M	($1M)	($74M)	($389M)	$21M	($1.0B)	($63M)	($120M)	Working capital & otherWC & other
$37M	$66M	$23M	$96M	$56M	$94M	$59M	$58M	$146M	$172M	$203M	CapexCapex
9.5%	14.0%	3.9%	15.3%	6.6%	7.8%	3.3%	3.2%	6.6%	6.2%	6.8%	Capex / revenueCapex/rev
$93M	$118M	$129M	$201M	$249M	$291M	$210M	$598M	$752M	$786M	$776M	Owner earningsOwner earn.
24.0%	25.0%	22.2%	32.1%	29.4%	24.1%	11.7%	32.8%	34.1%	28.2%	26.2%	Owner earnings marginOE mgn
$71M	$68M	$119M	$120M	$212M	$226M	$188M	$581M	$642M	$666M	$630M	Free cash flowFCF
18.2%	14.5%	20.4%	19.2%	25.1%	18.7%	10.5%	31.9%	29.1%	23.9%	21.3%	Free cash flow marginFCF mgn
—	—	—	—	—	—	$0	$0	$33M	$0	$0	AcquisitionsAcquis.
—	$34M	$47M	$67M	$89M	$109M	$138M	$186M	$241M	$285M	$303M	Dividends paidDiv. paid
—	—	—	—	—	$0	$0	$4M	$636M	$7M	—	BuybacksBuybacks
16%	14%	22%	16%	24%	22%	32%	27%	24%	24%	25%	ROICROIC
12%	12%	16%	14%	17%	19%	26%	21%	54%	20%	18%	Return on equityROE
—	6%	9%	5%	8%	11%	18%	12%	46%	11%	10%	Retained to equityRetained/eq
											Balance sheet
$268M	$299M	$377M	$455M	$595M	$725M	$738M	$1.1B	$863M	$1.0B	$1.4B	Cash & investmentsCash+inv
$34M	$38M	$55M	$53M	$67M	$105M	$183M	$180M	$173M	$215M	$302M	ReceivablesReceiv.
$71M	$99M	$136M	$128M	$157M	$259M	$447M	$384M	$420M	$455M	$619M	InventoryInvent.
$17M	$23M	$23M	$27M	$38M	$83M	$61M	$63M	$103M	$127M	$174M	Accounts payablePayables
$88M	$115M	$169M	$153M	$186M	$281M	$569M	$501M	$490M	$542M	$747M	Operating working capitalOper. WC
$383M	$449M	$581M	$655M	$842M	$1.1B	$1.4B	$1.8B	$1.6B	$1.8B	$2.3B	Current assetsCur. assets
$53M	$66M	$80M	$98M	$147M	$227M	$263M	$235M	$295M	$363M	$487M	Current liabilitiesCur. liab.
7.2×	6.8×	7.2×	6.7×	5.7×	5.0×	5.4×	7.7×	5.3×	4.9×	4.8×	Current ratioCurr. ratio
$7M	$7M	$7M	$7M	$7M	$7M	$7M	$7M	$26M	$26M	$26M	GoodwillGoodwill
$511M	$653M	$793M	$956M	$1.2B	$1.6B	$2.1B	$2.4B	$3.5B	$3.7B	$4.4B	Total assetsAssets
$431M	$522M	$640M	$773M	$967M	$1.2B	$1.7B	$2.0B	$3.0B	$3.1B	$3.7B	Shareholders’ equityEquity
11.6%	11.2%	10.4%	12.5%	10.1%	10.2%	9.0%	8.2%	9.3%	8.2%	7.3%	Stock comp / revenueSBC/rev
											Per share
41.9M	43.6M	44.6M	45.8M	47.0M	47.9M	48.4M	48.8M	48.8M	48.3M	49.2M	Shares out (diluted)Shares
$9.27	$10.81	$13.06	$13.72	$17.96	$25.22	$37.10	$37.34	$45.20	$57.76	$60.05	Revenue / shareRev/sh
$1.26	$1.50	$2.36	$2.38	$3.50	$5.05	$9.05	$8.76	$32.60	$12.86	$13.80	EPS (diluted)EPS
$2.22	$2.70	$2.90	$4.40	$5.29	$6.08	$4.33	$12.26	$15.40	$16.26	$15.76	Owner earnings / shareOE/sh
$1.69	$1.56	$2.67	$2.63	$4.51	$4.71	$3.88	$11.91	$13.15	$13.79	$12.78	Free cash flow / shareFCF/sh
—	$0.78	$1.06	$1.47	$1.89	$2.28	$2.85	$3.81	$4.93	$5.90	$6.16	Dividends / shareDiv/sh
$0.89	$1.51	$0.51	$2.09	$1.18	$1.97	$1.22	$1.18	$2.99	$3.56	$4.11	Cap. spending / shareCapex/sh
$10.29	$11.98	$14.35	$16.90	$20.56	$25.98	$34.51	$42.03	$60.43	$63.62	$74.68	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+22.5%/yr	+26.3%/yr
Owner earnings / share	+24.8%/yr	+25.2%/yr
EPS	+29.5%/yr	+29.8%/yr
Dividends / share	+28.8%/yr (8-yr)	+25.6%/yr
Capital spending / share	+16.7%/yr	+24.7%/yr
Book value / share	+22.4%/yr	+25.3%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

48Mpeak FY2024

ROIC

24%low FY2017

Gross margin

55%low FY2016

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$786Mowner earningsvs.$621Mnet incomelow FY2016

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business earned $786M of owner earnings, the operating cash left after the $53M it takes just to hold its position. It put $120M more into growth; free cash flow, after that spending, was $666M.

Reported net income$621M

Owner earnings$786M · 28% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$621M	$1.6B	$427M	$438M	$242M
Depreciation & amortizationnon-cash charge added back	+$53M	+$36M	+$40M	+$37M	+$29M
Stock-based compensationreal costnon-cash, but a real cost	+$227M	+$206M	+$150M	+$161M	+$123M
Working capital & othertiming of cash in and out, other non-cash items	−$63M	−$1.0B	+$21M	−$389M	−$74M
Cash from operations	$838M	$788M	$638M	$247M	$320M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$53M	−$36M	−$40M	−$37M	−$29M
Owner earnings	$786M	$752M	$598M	$210M	$291M
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$120M	−$110M	−$17M	−$22M	−$66M
Free cash flow	$666M	$642M	$581M	$188M	$226M
Owner-earnings marginowner earnings ÷ revenue	28%	34%	33%	12%	24%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $53M, roughly its depreciation, the rate its assets wear out). The other $120M of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows. The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $227M), owner earnings is nearer $558M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Material weakness in financial controls

“We face risks in connection with our internal control over financial reporting and the identified material weakness.”

Restated past financials

“Refer to Note 17, Restatement of Previously Issued Condensed Consolidated Financial Statements, for restated interim financials for the quarterly periods ended March 31, 2025, June 30, 2025, and September 30, 2025. 3.”

The figures below are only as sound as the controls that produced them. read the note →

Will it survive?

Can it pay its interest? —

No meaningful interest burden

Little or no interest expense reported

What this means
Little or no interest expense reported, the business isn't leaning on lenders to operate.
How heavy is the debt, net of cash? +$1.0B

Net cash, debt-free

Cash $637M + ST investments $389M − debt $0

What this means
Cash and short-term investments exceed every dollar of debt by $1.0B, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 124d

Long (60+ days)

DSO 28 + DIO 133 − DPO 37 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital —

Not enough data

Industry peers: median 11%

What this means
The filing data didn't include the inputs for this check.
Owner-earnings margin 25%

High through the cycle

10-yr median margin, range 12%–34%; latest $786M = operating cash $838M − maintenance capex $53M

Industry peers: median 19%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 28% of revenue this year, a 25% median across 10 years. It chose to put $120M more into growth, so free cash flow this year was $666M — the gap is investment, not weakness. Treating stock comp as the real expense it is (less $227M of SBC) leaves $558M.
Are earnings backed by cash? 1.35×

Cash-backed

Cash from ops $838M ÷ net income $621M

In the filing’s words The filing discloses a material weakness in its financial controls — the reported numbers here, and the record built on them, are only as reliable as the controls that produced them.

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 37%

Reinvests most of it

Dividends + buybacks $291M ÷ Owner Earnings $786M

What this means
Of $786M Owner Earnings, $291M (37%) went back to shareholders, $285M dividends, $7M buybacks. But the buybacks barely exceed stock issued to employees ($227M SBC), net of dilution, little was truly returned. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 3.28×

Expanding

Capex $172M ÷ depreciation $53M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 4 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $2.8B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 4.92×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Earnings stability Pass

A profit every year (10-yr record) · no losses

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Near

Uninterrupted dividends · 9 of 10 yrs

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +1083%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $17.92/share (latest year $12.65), the averaged base the calculator's gate runs on, and book value is $62.56/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 10 of 10

What this means
Never lost money over the record, the earnings stability Graham insisted on.
Operating margin 17% → 26% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about 17% early to 26% lately, median 19% — pricing power intact or improving.
Owner earnings growth +25%/yr

What this means
Owner earnings grew about 25% a year over the record.
Worst year 2016 · 14.0% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
Share count +1.6%/yr

What this means
The share count is rising, dilution works against you on a per-share basis.
Dividend record rising

What this means
Paid and raised the dividend across the record, the continuity Graham prized.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Framed as a capability

The filing positions AI as something the company uses, not something it fears.

“For example, DC to DC solutions are used to convert and control voltages within a broad range of electronic systems, such as cloud-based and on-premises CPU servers and workstations, AI systems, memory, storage solutions, notebooks, infotainment, power sources, home appliances, n…”

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$2.3B

Cash & short-term investments$1.4B
Receivables$302M
Inventory$619M
Other current assets$43M

Current liabilities$487M

Accounts payable$174M
Other current liabilities$312M

Current ratio4.79×all current assets ÷ what's due · Graham looked for 2×

Quick ratio3.52×stricter: inventory excluded

Cash ratio2.81×strictest: cash alone against what's due

Working capital$1.8Bthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+26.1%the freshest read on whether the business is still growing

Current ratio, recent quarters6.8× → 4.8×

Deeper floors

Tangible book value$3.6Bequity stripped of goodwill & intangibles

Net current asset value$1.6BGraham's net-net: current assets less all liabilities

Debt incl. operating leases$24M$24M of it operating leases

Deferred revenue$6Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2016–2025

Over the record, the business generated $3.7B of operating cash; how management split it reads as a cash builder, a large share of cash simply built up on the balance sheet.

Reinvested$806M · 22%
Dividends$1.2B · 32%
Buybacks$647M · 17%
Retained (debt / cash)$1.1B · 28%

Returned to owners$1.8B
54% of the owner earnings the business produced over the span, $1.2B as dividends and $647M as buybacks.
Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span cash and short-term investments rose $1.1B.
Average price paid for buybacks$636.95
Across the years where the filing reports a share count, 1M shares were bought for $647M, about $636.95 each. Year to year the price paid ranged from $528.57 (2023) to $825.00 (2025); its heaviest year, 2024, paid $636.20 ($636M).
Net change in share count17.5%
The diluted count rose from 42M to 49M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record$5.90/sh
Paid in 9 of the years on record, the per-share dividend growing about 29% a year. It was never cut over the span.
Return on what it retained30%
Of the earnings it kept rather than paid out ($2.0B over the span), annual owner earnings (first three years vs last three) grew $599M, so each retained $1 added about 0.30 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Mr. Hsing	$20.3M	$114.1M	$291M
2022	Mr. Hsing	$20.7M	−$66.6M	$210M
2023	Mr. Hsing	$14.6M	$138.3M	$598M
2024	Mr. Hsing	$19.0M	$21.9M	$752M
2025	Mr. Hsing	$19.9M	$250.2M	$786M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership3.6%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio372:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$227M
The slice of the business handed to employees in shares this year, 8% of revenue, equal to 31% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Monolithic Power Systems Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

1 of the 4 tests turned up something to look into; the other 3 came back clean.

Look hereDid the share count rise anyway?17.5%
Diluted shares grew 17.5% over 2016–2025, even as the company spent $647M on buybacks. The repurchases were outrun by issuance — to staff, in a raise, or in a deal — and the filing says which; owners' slice still shrank. Read the buyback line beside this one, not on its own.

And these came back clean

Is it less profitable than it was?
Did reported profit become cash?
Did receivables and inventory outpace sales?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Income taxes, Stock compensation as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Semiconductors

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
QQnity Electronics Inc.	$4.8B	46%	20.1%	7%	20%
SWKSSkyworks Solutions Inc.	$4.1B	47%	27.8%	23%	28%
QRVOQorvo Inc.	$3.7B	40%	6.1%	3%	19%
NXTNextpower Inc.	$3.6B	26%	16.4%	59%	11%
MPWRMonolithic Power Systems Inc.	$2.8B	55%	20.6%	23%	27%
UCTTUltra Clean Holdings	$2.1B	18%	4.7%	11%	4%
CRUSCirrus Logic	$2.0B	51%	18.3%	21%	21%
OSISOSI Systems Inc. Common Stock (DE)	$1.7B	35%	9.6%	11%	6%
Group median	—	43%	17.3%	16%	19%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Monolithic Power Systems Inc. has delivered.

Today’s price $

Through the cycle, Monolithic Power Systems Inc. earns about $742M on its 26.6% median owner-earnings margin. This year’s 28.2% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($742M) Net of stock comp (−$216M) Steady-state · maintenance capex ($780M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+32%/yr

Owner-earnings growth · ’16→’25+28%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $630M on 49M shares outstanding, per the 10-Q cover, as of 2026-04-27; net cash $1.4B. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($203M) runs well above depreciation ($56M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $780M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh MPWR against another business →

The owners of MPWR: the meeting and the votes →

Cite: Owner Scorecard, "Monolithic Power Systems Inc. (MPWR), the owner's record," https://ownerscorecard.com/c/MPWR, data as of 2026-07-09.

Manual order: ← MPTI its page in the Manual MQ →

Industry order: ← MCHPP the Semiconductors chapter MRAM →