This is a step-by-step stock review to answer the question, is Monolithic Power Systems (MPWR) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Monolithic Power Systems (MPWR) stock a good buy?
- Monolithic Power Systems Company History
- MOS
- Meaning
- Moat
- Management
- 4M Score
- Is Monolithic Power Systems (MPWR) stock a good buy?
1. Monolithic Power Systems Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- 1997: Monolithic Power Systems (MPS) was founded by Michael Hsing, focusing on high-performance power solutions.
- 1999: Introduced its first power management product, laying the foundation for future innovations.
- 2004: Completed its initial public offering (IPO), raising capital to expand its product offerings and market reach.
- 2000s: Expanded its product portfolio to include DC-DC converters, LED drivers, and battery management solutions.
- 2010s: Continued growth with the introduction of highly integrated power modules and advanced semiconductor technologies.
- Acquisitions: Acquired various companies to enhance its technological capabilities and expand its market presence.
- Global Expansion: Established offices and facilities worldwide, including in China, Taiwan, Korea, Japan, and Europe.
- Product Innovation: Consistently released innovative products, maintaining a competitive edge in power solutions for industrial, automotive, consumer, and computing applications.
- Sustainability: Committed to sustainability and energy efficiency, developing products that reduce power consumption and environmental impact.
- Recognition: Earned multiple awards for its innovative products and contributions to the semiconductor industry.
Monolithic Power Systems’ strong focus on innovation, strategic acquisitions, and global expansion has established it as a leading provider of high-performance power solutions in the semiconductor industry.
2. MOS (Margin of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: watch
- Score: 78/100
- MOS: 45%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Monolithic Power Systems (MPWR) makes money:
- Semiconductor Sales: Generates revenue from selling integrated circuits (ICs) and semiconductor devices used in various applications.
- Power Management Solutions: Earns from providing power management solutions, including voltage regulators, converters, and controllers for electronics.
- Custom Solutions: Profits from offering custom-designed semiconductor solutions tailored to specific customer needs and applications.
- Licensing and Royalties: Receives income from licensing its semiconductor technologies and patents to other companies.
- Engineering Services: Gains from providing engineering and design services related to its semiconductor products.
Here are a few of the other companies that Monolithic Power Systems has acquired over the years.
- Soma Networks
- Giant Magnetoresistive (GMR) Technology
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Monolithic Power Systems (MPWR) stacks up against other companies.
- NVIDIA Corporation. (NVDA) – 100
- Lattice Semiconductor Corporation. (LSCC) – 83
- Nova Ltd. (NVMI) – 78
- Axcelis Technologies, Inc. (ACLS) – 78
- Monolithic Power Systems, Inc. (MPWR) – 78
- Tower Semiconductor Ltd. (TSEM) – 72
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Founding MPS: Michael Hsing Established Monolithic Power Systems (MPS) in 1997, creating a strong foundation for the company.
- Innovative Power Solutions: Led the development of highly integrated power solutions that revolutionized the semiconductor industry.
- Steady Revenue Growth: Successfully drove consistent revenue growth, making MPS a leader in power management technology.
- Strong Leadership: Demonstrated exceptional leadership, guiding the company through various market challenges and expansions.
- Public Offering: Successfully took MPS public in 2004, enhancing the company’s financial stability and market presence.
- Global Expansion: Expanded MPS’s operations globally, establishing a significant presence in key markets.
- Technological Advancements: Championed numerous technological advancements in power electronics, contributing to industry-wide innovations.
- Employee Growth: Fostered a culture of innovation and excellence, leading to significant employee growth and development.
- Industry Recognition: Earned recognition and numerous awards for MPS’s contributions to the semiconductor industry.
Michael Hsing’s accomplishments include founding MPS, driving revenue growth, expanding globally, and advancing power management technology, solidifying MPS as an industry leader.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Monolithic Power Systems (MPWR) is 81/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Monolithic Power Systems (MPWR) stock a good buy?
Some of the top questions investors can have is Monolithic Power Systems (MPWR) stock a good buy or should I buy Monolithic Power Systems (MPWR) stock?
Monolithic Power Systems (MPS) is a compelling investment due to its leadership in innovative power solutions, high efficiency, and strong financial performance. MPS has consistently demonstrated robust revenue growth and profitability, supported by its diverse market presence across automotive, industrial, and consumer electronics sectors. The company’s commitment to research and development ensures a continuous pipeline of cutting-edge technologies, maintaining its competitive edge. With a growing global footprint, MPS is expanding its market reach and customer base, enhancing its long-term growth prospects. However, investors should consider the competitive nature of the semiconductor industry and potential economic cycles that could affect demand. Overall, Monolithic Power Systems presents strong growth potential, technological innovation, and solid financial health, making it a promising investment opportunity in the semiconductor sector.
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To truly know if Monolithic Power Systems is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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