Company Research | Monolithic Power Systems

December 21, 2023by Anton Tryhubchenko

Today, we will talk about Monolithic Power Systems, whose shares are among the top three growth leaders over the past 3 months.

During this period, Monolithic Power Systems stock has grown by +36.4%. At the same time, the information technology sector, to which the company belongs, has grown by +12.3%, and the S&P 500 index by +5.8%. As you can see, Monolithic Power Systems stock has shown better returns than the sector average.

Monolithic Power Systems is a supplier of chips for computers, displays, navigation systems, and other electronic devices. The company mainly serves the automotive industry, telecommunications infrastructure, and industrial equipment manufacturers.

The company operates in the semiconductors and semiconductor equipment industry. It was founded in 1997. In 2004, it was listed on the NASDAQ and in 2021 was included in the S&P 500 index. For the past 26 years, the company has been headed by Michael Hsing and a team of qualified managers.

The main competitors of Monolithic Power Systems are Texas Instruments, Analog Devices and Microchip Technology. As you can see from the table above, they are ahead of Monolithic Power Systems in terms of capitalization, but the company has a number of competitive advantages.

The strengths of Monolithic Power Systems are based on the fact that the automotive industry is the fastest growing segment of the company’s revenue with an average annual growth rate of +43.2% over the past 5 years. According to forecasts, the automotive DC power supply industry is expected to grow at a CAGR of +38.8% through 2025. Therefore, this segment has good prospects of remaining one of the key growth drivers for Monolithic Power Systems.

Monolithic Power Systems published its latest report on October 30. Manufacturing costs make up 45% of the revenue structure and gross revenue is 55%. Over the past quarter, the company made a profit of $121M. And its market capitalization is now $30B.
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