Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Monolithic Power Systems, Inc. (MPWR)

Company Dividend Discount ModelIndustry: SemiconductorsSector: Technology

Valuation Snapshot

Stable Growth$396.40 - $613.39$496.96
Multi-Stage$325.58 - $354.67$339.86
Blended Fair Value$418.41
Current Price$920.64
Upside-54.55%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS29.02%35.35%5.003.862.872.271.841.400.990.700.690.62
YoY Growth--29.48%34.70%26.15%23.18%31.94%41.75%39.94%2.50%10.46%157.03%
Dividend Yield--0.86%0.58%0.57%0.47%0.52%0.83%0.70%0.61%0.75%0.98%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,895.15
(-) Cash Dividends Paid (M)271.84
(=) Cash Retained (M)1,623.32
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)379.03236.89142.14
Cash Retained (M)1,623.321,623.321,623.32
(-) Cash Required (M)-379.03-236.89-142.14
(=) Excess Retained (M)1,244.291,386.421,481.18
(/) Shares Outstanding (M)48.1448.1448.14
(=) Excess Retained per Share25.8528.8030.77
LTM Dividend per Share5.655.655.65
(+) Excess Retained per Share25.8528.8030.77
(=) Adjusted Dividend31.4934.4536.41
WACC / Discount Rate13.88%13.88%13.88%
Growth Rate5.50%6.50%7.50%
Fair Value$396.40$496.96$613.39
Upside / Downside-56.94%-46.02%-33.37%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,895.152,018.342,149.532,289.252,438.052,596.532,674.42
Payout Ratio14.34%29.47%44.61%59.74%74.87%90.00%92.50%
Projected Dividends (M)271.84594.90958.821,367.541,825.342,336.872,473.84

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate13.88%13.88%13.88%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)517.48522.39527.29
Year 2 PV (M)725.50739.32753.27
Year 3 PV (M)900.09925.93952.26
Year 4 PV (M)1,045.051,085.241,126.58
Year 5 PV (M)1,163.801,220.011,278.37
PV of Terminal Value (M)11,321.7811,868.6312,436.41
Equity Value (M)15,673.7116,361.5217,074.18
Shares Outstanding (M)48.1448.1448.14
Fair Value$325.58$339.86$354.67
Upside / Downside-64.64%-63.08%-61.48%

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