June 28, 2025 a 02:46 am
MPWR: Dividend Analysis - Monolithic Power Systems, Inc.
Monolithic Power Systems, Inc. (MPWR) offers a modest dividend yield of 0.76% with a consistent history of payments over 13 years. The absence of recent cuts or suspensions reflects stability. This analysis delves into its dividend profile and financial health to assess its dividend sustainability and growth potential.
📊 Overview
The company operates within the technology sector, delivering a dividend yield of 0.76%. The current dividend per share stands at $4.95, backed by a history of 13 consecutive years of payments without cuts, underscoring resilience.
| Metric | Value |
|---|---|
| Sector | Technology |
| Dividend Yield | 0.76% |
| Current Dividend per Share | $4.95 |
| Dividend History | 13 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
Maintaining a stable dividend payment is crucial for investors seeking income. MPWR demonstrates a strong track record with no recent dividend reductions.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 3.12 |
| 2024 | 5.00 |
| 2023 | 4.00 |
| 2022 | 3.00 |
| 2021 | 2.40 |
📈 Dividend Growth
Dividend growth is a crucial indicator of a company's ability to increase payments over time, often signaling financial strength and confidence.
| Time | Growth |
|---|---|
| 3 years | 27.72% |
| 5 years | 25.59% |
The average dividend growth is 25.59% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
An analysis of payout ratios reveals insights into how much of the company's earnings and free cash flow are used to pay dividends.
| Key Figure | Ratio |
|---|---|
| EPS-based | 12.96% |
| Free Cash Flow-based | 37.85% |
The low EPS payout ratio of 12.96% and a FCF payout ratio of 37.85% suggest a sustainable dividend policy with room for growth.
⚖️ Cashflow & Capital Efficiency
Evaluating cash flow and capital efficiency is essential for understanding a company’s ability to generate sufficient cash to sustain operations and investments.
| Metric | 2023 | 2024 |
|---|---|---|
| Free Cash Flow Yield | 1.93% | 2.23% |
| Earnings Yield | 1.42% | 6.21% |
| CAPEX to Operating Cash Flow | 9.02% | 18.53% |
| Stock-based Comp. to Revenue | 8.22% | 9.31% |
| Free Cash Flow / Operating Cash Flow Ratio | 90.97% | 81.47% |
The data suggest strong cash generation, supporting stable payouts. Capital efficiency appears high, indicating effective use of invested capital.
⚠️ Balance Sheet & Leverage Analysis
A comprehensive assessment of the balance sheet and leverage metrics provides insight into financial stability and liquidity.
| Metric | 2023 | 2024 |
|---|---|---|
| Debt-to-Equity | 0.27% | 0.41% |
| Debt-to-Assets | 0.23% | 0.36% |
| Debt-to-Capital | 0.27% | 0.41% |
| Net Debt to EBITDA | -1.00 | -1.18 |
| Current Ratio | 6.10 | 5.31 |
| Quick Ratio | 6.11 | 3.89 |
| Financial Leverage | 1.19 | 1.15 |
Low leverage ratios indicate strong financial stability. High liquidity ratios suggest the company is well-equipped to meet short-term obligations.
📈 Fundamental Strength & Profitability
Assessing profitability and fundamental strength helps identify the ability to generate returns and support dividends.
| Metric | 2023 | 2024 |
|---|---|---|
| Return on Equity | 20.85% | 56.80% |
| Return on Assets | 17.56% | 49.40% |
| Net Margin | 23.47% | 80.95% |
| EBIT Margin | 26.45% | 24.44% |
| EBITDA Margin | 28.66% | 26.09% |
| Gross Margin | 56.07% | 55.32% |
| R&D to Revenue | 14.48% | 14.71% |
The robust return metrics and healthy margins signify a strong profitability profile, allowing for sustained capital reinvestment and dividend support.
📉 Price Development
🗳️ Dividend Scoring System
| Category | Score | Bar |
|---|---|---|
| Dividend Yield | 2 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 5 | |
| Financial Stability | 5 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Overall Score: 35/40
🔍 Rating
Monolithic Power Systems, Inc. demonstrates a strong dividend profile underpinned by outstanding financial performance and stability. Its superior earnings, consistent payout history, and robust balance sheet quality make it a compelling consideration for dividend-focused investors seeking steady income potential.