September 03, 2025 a 02:47 am
MPWR: Dividend Analysis - Monolithic Power Systems, Inc.
Monolithic Power Systems, Inc. offers a consistently growing dividend profile, showcasing reliable historical performance and potential for future growth. The company presents a promising opportunity for investors prioritizing steady income, despite a relatively modest dividend yield compared to industry peers. As a prominent player, its financial stability and strong cash flow management further enhance its appeal to dividend-seeking investors.
📊 Overview
Monolithic Power Systems operates within a dynamic sector, characterized by rapid technological advancements and competitive pressures. Despite these challenges, the company has built a robust track record of dividend payments.
| Parameter | Details |
|---|---|
| Sector | Technology |
| Dividend yield | 0.77% |
| Current dividend per share | 4.95 USD |
| Dividend history | 13 years |
| Last cut or suspension | None |
🗣️ Dividend History
The historical dividend payments of Monolithic Power Systems emphasize its commitment to shareholder returns. This history provides strong evidence of the company's stable cash flow and prudent financial management, which are crucial for maintaining investor confidence.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 3.12 |
| 2024 | 5.00 |
| 2023 | 4.00 |
| 2022 | 3.00 |
| 2021 | 2.40 |
📈 Dividend Growth
Monolithic Power Systems exhibits moderate but steady dividend growth, reflecting its strategic financial planning and commitment to increasing shareholder value through enhanced distributions over time.
| 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
Payout ratios offer insight into how sustainable a company’s dividend payments are by measuring them against earnings and free cash flows. Keeping these ratios at prudent levels helps ensure ongoing dividend payments.
| Key Figure | Ratio |
|---|---|
| EPS-based | 12.73% |
| Free cash flow-based | 33.67% |
The low EPS payout ratio of 12.73% indicates that Monolithic Power Systems preserves a significant portion of its earnings, suggesting robust dividend sustainability. The free cash flow payout ratio of 33.67% also highlights adequate cash flow management.
⚠️ Cashflow & Capital Efficiency
Evaluation of cash flow and capital efficiency metrics provides critical insights into the company's operational effectiveness and financial health, which are pivotal for sustaining dividend growth.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 2.23% | 1.93% | 1.14% |
| Earnings Yield | 6.21% | 1.42% | 2.65% |
| CAPEX to Operating Cash Flow | 18.53% | 9.02% | 23.85% |
| Stock-based Compensation to Revenue | 9.31% | 8.22% | 8.97% |
| Free Cash Flow / Operating Cash Flow Ratio | 81.47% | 90.98% | 76.15% |
The company's comprehensive cash flow efficiency demonstrates its effective capital utilization. This stability underscores its ability to maintain or enhance dividend payouts while investing in future growth prospects.
📉 Balance Sheet & Leverage Analysis
A thorough balance sheet review provides insight into the firm's financial stability, highlighting its leverage and liquidity positions crucial for long-term viability.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.41% | 0.27% | 0.10% |
| Debt-to-Assets | 0.36% | 0.23% | 0.08% |
| Debt-to-Capital | 0.41% | 0.27% | 0.10% |
| Net Debt to EBITDA | -1.18x | -1.00x | -0.51x |
| Current Ratio | 5.31x | 7.74x | 5.36x |
| Quick Ratio | 3.89x | 6.11x | 3.66x |
| Financial Leverage | 1.15x | 1.19x | 1.23x |
The analysis reveals a prudent debt management approach with low leverage ratios, suggesting strong financial health and ample liquidity to support ongoing corporate initiatives and dividend payments.
📊 Fundamental Strength & Profitability
These fundamental metrics provide insight into the company’s ability to generate profits and deliver value to shareholders, critical for evaluating its potential for sustainable growth and dividends.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 56.80% | 20.85% | 26.23% |
| Return on Assets | 49.40% | 17.56% | 21.26% |
| Net Margin | 80.95% | 23.47% | 24.39% |
| EBIT Margin | 24.44% | 26.45% | 29.36% |
| EBITDA Margin | 26.09% | 28.66% | 31.43% |
| Gross Margin | 55.32% | 56.07% | 58.44% |
| R&D to Revenue | 14.71% | 14.48% | 13.39% |
The high profitability margins and robust returns on equity/assets highlight Monolithic Power Systems’s financial strength, reinforcing its capacity to reinvest earnings into further growth and sustain its dividend policies.
⚡ Price Development
🌟 Dividend Scoring System
| Category | Score | Scale |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 5 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Total Score: 36/40
💼 Rating
Monolithic Power Systems, Inc. showcases an outstanding ability to sustain and grow its dividend payouts due to its solid financial footing and operational efficiency. Investors seeking a growth-oriented dividend stock should strongly consider this company, given its commitment to shareholder returns and resilient market positioning.