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Monolithic Power Systems has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Monolithic Power Systems Inc shows strong financial strength.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate Monolithic Power Systems's interest coverage with the available data.
Monolithic Power Systems's debt to revenue ratio for the quarter that ended in Mar. 2026 was 0.01.
As of today, Monolithic Power Systems's Altman Z-Score is 57.13.
Monolithic Power Systems (NAS:MPWR) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Monolithic Power Systems has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Monolithic Power Systems Financial Strength Related Terms
MPWR vs NXPI, ALAB, CBRS: Financial Strength Comparison
For the Semiconductors subindustry, Monolithic Power Systems's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Monolithic Power Systems Financial Strength vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Monolithic Power Systems's Financial Strength distribution charts can be found below:
* The bar in red indicates where Monolithic Power Systems's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
GuruFocus does not calculate Monolithic Power Systems's interest coverage with the available data.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Monolithic Power Systems Inc has enough cash to cover all of its debt. Its financial situation is stable.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Monolithic Power Systems has a Z-score of 57.13, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 57.13 is strong.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Monolithic Power Systems (MPWR) has a Financial Strength of 8 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Monolithic Power Systems and its competitors. This is 11% below median its historical median of 9.00. Over the past decade, Monolithic Power Systems' Financial Strength has ranged from 8.00 to 10.00.
Is Monolithic Power Systems' Financial Strength too high?
Monolithic Power Systems' current Financial Strength of 8 is 11% below median its 10-year median of 9.00. Over the past 10 years, this metric has ranged from a low of 8.00 to a high of 10.00. Overall, Monolithic Power Systems has a GF Score™ of 98/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Monolithic Power Systems' Financial Strength compare to NXPI and ALAB?
Monolithic Power Systems' Financial Strength of 8 can be compared against companies in the Semiconductors industry. Historically, Monolithic Power Systems' own Financial Strength has ranged from 8.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Semiconductors company?
A good Financial Strength depends on the Semiconductors industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Monolithic Power Systems and its competitors. Monolithic Power Systems's current Financial Strength is 8, which is 11% below median its own 10-year median of 9.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Monolithic Power Systems stock overvalued right now?
Based on GuruFocus' analysis, Monolithic Power Systems (MPWR) is currently considered Modestly Overvalued. The stock's GF Value™ is $1,150.50, compared to a current price of $1,344.37 — trading 16.9% above its estimated fair value. The current Financial Strength is 8, which is 11% below median its 10-year median of 9.00. Monolithic Power Systems' overall GF Score™ is 98/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Monolithic Power Systems (MPWR), the current Financial Strength is 8 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Monolithic Power Systems (MPWR) Overvalued in 2026?
Based on GuruFocus' analysis, Monolithic Power Systems stock appears to be overvalued.
The current stock price of $1,344.37 is trading 16.9% above its estimated GF Value™ of $1,150.50.
GuruFocus considers Monolithic Power Systems to be Modestly Overvalued.
Key valuation signals for MPWR:
Financial Strength: 8 (11% below median its 10-year median of 9.00)
GF Value™: $1,150.50 vs. price of $1,344.37 (16.9% above fair value)
No single metric tells the full story. See the MPWR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Monolithic Power Systems is an analog and mixed-signal chipmaker specializing in power management solutions. Its mission is to reduce total energy consumption in end systems. It serves the computing, automotive, industrial, communications, and consumer end markets. MPS uses a fabless manufacturing model, partnering with third-party chip foundries to host its proprietary BCD process technology.
98GF Score
Get the complete analysis for MPWR
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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