MPWR - Embedded Expectations Analysis - 2020 07 15
Monolithic Power Systems, Inc. (MPWR:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 48.0x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may be concerned about meeting revenue targets, demand, and the 5G market opportunitySpecifically, management may lack confidence in their ability to meet their Q2 revenue targets and sustain power module sales growth, and might have concerns about their ability to position themselves to benefit from the 5G market opportunity. In addition, they may have concerns about declining consumer segment contribution to their revenue mix and slower than expected growth related to the downturn. Moreover, they may be downplaying concerns about their ability to address demand and they may be exaggerating their ability to continue to operate at near full capacity in terms of their supply chain and internal operations
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.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.