Report
Valens Research

MPWR - Embedded Expectations Analysis - 2019 11 08

Monolithic Power Systems, Inc. (MPWR:USA) currently trades above historical averages relative to UAFRS-based (Uniform) Earnings, with a 32.1x Uniform P/E, implying bullish expectations for the firm. However, management may be concerned about growth, 5G positioning, and revenue.

Specifically, management may lack confidence in their ability to meet their aggressive growth targets, and they may be concerned about ongoing declines in market demand for wearable applications and set-top boxes. Furthermore, they may lack confidence in the value of their positioning around 5G, and they may lack confidence in their ability to sustain recent net income growth rates. Finally, they may lack confidence in their ability to meet their Q4 revenue guidance and in their ability to manage their inventory levels.
Underlying
Monolithic Power Systems Inc.

Monolithic Power Systems is a fabless semiconductor company. The company designs, develops and markets power solutions for systems found in consumer, computing and storage, automotive, industrial, communications and consumer applications. The company's primary product families include the following: Direct Current (DC) to DC products, which are used to convert and control voltages within a range of electronic systems such as portable electronic devices, wireless Local Area Network access points, computers, and monitors, automobiles and medical equipment; and Lighting Control Products, which include lighting control integrated circuits that are used in backlighting and general illumination products.

Provider
Valens Research
Valens Research

In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:

  • GAAP and IFRS have failed to provide rules for reliable financial statement reporting
  • Stock analyst recommendations are not grounded in disciplined financial analysis
  • Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
  • Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available

We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.

  • Corporate credit ratings remain years behind the fundamental underpinnings of company performance
  • Stock analysts continue to make recommendations with deeply inherent biases
  • Research firms have failed to break down the walls between credit, equity, and macroeconomic research
  • The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming

The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.

Analysts
Valens Research

Other Reports on these Companies
Other Reports from Valens Research

ResearchPool Subscriptions

Get the most out of your insights

Get in touch