How to buy Monolithic Power Systems shares

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Monolithic Power Systems, Inc (MPWR) is a leading semiconductors business with stocks listed in the US. It opened the day at US$344.87 after a previous close of US$343.4. During the day the price has varied from a low of USD340.93 to a high of USD347.51. The latest price was USD347.16 (25 minute delay). Monolithic Power Systems is listed on the NASDAQ. All prices are listed in US Dollars.

How to buy shares in Monolithic Power Systems

  1. Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Monolithic Power Systems. Find the share by name or ticker symbol: MPWR. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Monolithic Power Systems reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. At last close price of US$347.03, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Monolithic Power Systems, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Monolithic Power Systems. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

Monolithic Power Systems share price

Use our graph to track the performance of MPWR stocks over time.

Monolithic Power Systems shares at a glance

Information last updated 2021-06-11.
OpenUS$344.87
HighUS$347.51
LowUS$340.93
CloseUS$347.16
Previous closeUS$343.4
Change US$3.76
Change % 1.0949%
Volume 220,126
Information last updated 2021-06-10.
52-week rangeUS$207.0404 - US$406.0333
50-day moving average US$341.6977
200-day moving average US$352.9046
Target priceUS$428
PE ratio 93.1802
Dividend yield US$2.1 (0.62%)
Earnings per share (TTM) US$3.679

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The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.

Is it a good time to buy Monolithic Power Systems stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Monolithic Power Systems price performance over time

Historical closes compared with the last close of $347.16

1 week (2021-06-02) 1.03%
1 month (2021-05-13) 13.33%
3 months (2021-03-12) 4.88%
6 months (2020-12-11) 13.24%
1 year (2020-06-12) 62.22%
2 years (2019-06-13) 167.15%
3 years (2018-06-13) 152.19%
5 years (2016-06-13) 406.06%

Is Monolithic Power Systems under- or over-valued?

Valuing Monolithic Power Systems stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Monolithic Power Systems's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Monolithic Power Systems's P/E ratio

Monolithic Power Systems's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 93x. In other words, Monolithic Power Systems shares trade at around 93x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

Monolithic Power Systems's PEG ratio

Monolithic Power Systems's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.3961. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Monolithic Power Systems's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Monolithic Power Systems's EBITDA

Monolithic Power Systems's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$206.4 million.

The EBITDA is a measure of a Monolithic Power Systems's overall financial performance and is widely used to measure a its profitability.

Monolithic Power Systems financials

Revenue TTM US$933.1 million
Operating margin TTM 19.93%
Gross profit TTM US$466 million
Return on assets TTM 10.04%
Return on equity TTM 18.97%
Profit margin 18.65%
Book value 22.336
Market capitalisation US$15.7 billion

TTM: trailing 12 months

Shorting Monolithic Power Systems shares

There are currently 697,744 Monolithic Power Systems shares held short by investors – that's known as Monolithic Power Systems's "short interest". This figure is 6.3% up from 656,296 last month.

There are a few different ways that this level of interest in shorting Monolithic Power Systems shares can be evaluated.

Monolithic Power Systems's "short interest ratio" (SIR)

Monolithic Power Systems's "short interest ratio" (SIR) is the quantity of Monolithic Power Systems shares currently shorted divided by the average quantity of Monolithic Power Systems shares traded daily (recently around 401002.29885057). Monolithic Power Systems's SIR currently stands at 1.74. In other words for every 100,000 Monolithic Power Systems shares traded daily on the market, roughly 1740 shares are currently held short.

However Monolithic Power Systems's short interest can also be evaluated against the total number of Monolithic Power Systems shares, or, against the total number of tradable Monolithic Power Systems shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Monolithic Power Systems's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 Monolithic Power Systems shares in existence, roughly 20 shares are currently held short) or 0.0207% of the tradable shares (for every 100,000 tradable Monolithic Power Systems shares, roughly 21 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Monolithic Power Systems.

Find out more about how you can short Monolithic Power Systems stock.

Monolithic Power Systems share dividends

38%

Dividend payout ratio: 37.91% of net profits

Recently Monolithic Power Systems has paid out, on average, around 37.91% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.7% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Monolithic Power Systems shareholders could enjoy a 0.7% return on their shares, in the form of dividend payments. In Monolithic Power Systems's case, that would currently equate to about $2.1 per share.

While Monolithic Power Systems's payout ratio might seem fairly standard, it's worth remembering that Monolithic Power Systems may be investing much of the rest of its net profits in future growth.

Monolithic Power Systems's most recent dividend payout was on 14 April 2021. The latest dividend was paid out to all shareholders who bought their shares by 29 March 2021 (the "ex-dividend date").

Monolithic Power Systems share price volatility

Over the last 12 months, Monolithic Power Systems's shares have ranged in value from as little as US$207.0404 up to US$406.0333. A popular way to gauge a stock's volatility is its "beta".

MPWR.US volatility(beta: 0.9)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Monolithic Power Systems's is 0.8967. This would suggest that Monolithic Power Systems's shares are less volatile than average (for this exchange).

Monolithic Power Systems overview

Monolithic Power Systems, Inc. designs, develops, and markets integrated power semiconductor solutions and power delivery architectures for computing and storage, automotive, industrial, communications, and consumer applications markets. It offers direct current (DC) to DC integrated circuits (ICs) that are used to convert and control voltages of various electronic systems, such as portable electronic devices, wireless LAN access points, computers and notebooks, monitors, infotainment applications, and medical equipment. The company also provides lighting control ICs for backlighting that are used in systems, which provide the light source for LCD panels in notebook computers, monitors, car navigation systems, and televisions, as well as for general illumination products. The company sells its products through third-party distributors, and value-added resellers, as well as directly to original equipment manufacturers, original design manufacturers, electronic manufacturing service providers, and other end customers in China, Taiwan, Europe, South Korea, Southeast Asia, Japan, the United States, and internationally. Monolithic Power Systems, Inc. was incorporated in 1997 and is headquartered in Kirkland, Washington.

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