Monolithic Power SystemsBSP:M2PR34 -5.58%69 Return-on-Tangible-Equity is 21.20% as of Mar. 2026, which is 10% above its 10-year median of 19.21. GuruFocus rates BSP:M2PR34 with a GF Score™ of 69/100 and a GF Value™ of R$92.53 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 987 Semiconductors companies, Monolithic Power Systems ranks better than 83.89% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Monolithic Power Systems's annualized net income for the quarter that ended in Mar. 2026 was R$4,042 Mil. Monolithic Power Systems's average shareholder tangible equity for the quarter that ended in Mar. 2026 was R$19,064 Mil. Therefore, Monolithic Power Systems's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 21.20%.
The historical rank and industry rank for Monolithic Power Systems's Return-on-Tangible-Equity or its related term are showing as below:
BSP:M2PR34'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 13.55 Med: 19.21 Max: 64.21
Current: 19.71
During the past 13 years, Monolithic Power Systems's highest Return-on-Tangible-Equity was 64.21%. The lowest was 13.55%. And the median was 19.21%.
BSP:M2PR34's Return-on-Tangible-Equity is ranked better than 83.89% of 987
companies
in the Semiconductors industry
Industry Median: 5.08
vs BSP:M2PR34: 19.71
Monolithic Power Systems (BSP:M2PR34) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Monolithic Power Systems Return-on-Tangible-Equity Related Terms
Monolithic Power Systems Return-on-Tangible-Equity Historical Data
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The historical data trend for Monolithic Power Systems's Return-on-Tangible-Equity can be seen below:
* 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 Return-on-Tangible-Equity Chart
BSP:M2PR34 vs NXPI, ALAB, CBRS: Return-on-Tangible-Equity Comparison
For the Semiconductors subindustry, Monolithic Power Systems's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Monolithic Power Systems's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Monolithic Power Systems's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 21.20% mean?
Monolithic Power Systems (BSP:M2PR34) has a Return-on-Tangible-Equity of 21.20% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Monolithic Power Systems and its competitors. This is 10% above median its historical median of 19.21. Over the past decade, Monolithic Power Systems' Return-on-Tangible-Equity has ranged from 13.55 to 64.21. According to the industry distribution chart, Monolithic Power Systems ranks #159 out of 987 companies in the Semiconductors industry, placing it in the top 16.1%.
Is Monolithic Power Systems' Return-on-Tangible-Equity too high?
Monolithic Power Systems' current Return-on-Tangible-Equity of 21.20% is 10% above median its 10-year median of 19.21. Over the past 10 years, this metric has ranged from a low of 13.55 to a high of 64.21. The Semiconductors industry median Return-on-Tangible-Equity is 5.08. Monolithic Power Systems' value of 21.20% is 317.3% above this industry median. Based on the distribution chart, Monolithic Power Systems ranks #159 out of 987 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Monolithic Power Systems has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Monolithic Power Systems' Return-on-Tangible-Equity compare to NXPI and ALAB?
According to the Semiconductors industry distribution chart, Monolithic Power Systems ranks #159 out of 987 companies for Return-on-Tangible-Equity. This places Monolithic Power Systems in the top 16% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.08. Monolithic Power Systems' value of 21.20% is 317.3% above this benchmark. Historically, Monolithic Power Systems' own Return-on-Tangible-Equity has ranged from 13.55 to 64.21 over the past decade. While the company's 10-year median is 19.21 vs. the industry median of 5.08, Monolithic Power Systems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Semiconductors company?
The median Return-on-Tangible-Equity among Semiconductors companies is 5.08, based on 987 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Monolithic Power Systems's current Return-on-Tangible-Equity of 21.20% is 317.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Monolithic Power Systems and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Equity is 5.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Monolithic Power Systems's current Return-on-Tangible-Equity is 21.20%, which is 10% above median its own 10-year median of 19.21. 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 (BSP:M2PR34) is currently considered Significantly Overvalued. The stock's GF Value™ is R$92.53, compared to a current price of R$123.11 — trading 33% above its estimated fair value. The current Return-on-Tangible-Equity is 21.20%, which is 10% above median its 10-year median of 19.21 and 317.3% above the Semiconductors industry median of 5.08. Monolithic Power Systems' overall GF Score™ is 69/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Monolithic Power Systems (BSP:M2PR34), the current Return-on-Tangible-Equity is 21.20% 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 (BSP:M2PR34) Overvalued in 2026?
Based on GuruFocus' analysis, Monolithic Power Systems stock appears to be overvalued.
The current stock price of R$123.11 is trading 33% above its estimated GF Value™ of R$92.53.
GuruFocus considers Monolithic Power Systems to be Significantly Overvalued.
Key valuation signals for BSP:M2PR34:
Return-on-Tangible-Equity: 21.20% (10% above median its 10-year median of 19.21)
GF Value™: R$92.53 vs. price of R$123.11 (33% above fair value)
Industry Position: 317.3% above the Semiconductors median (#159 of 987)
No single metric tells the full story. See the BSP:M2PR34 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.
69GF Score
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