Monolithic Power Return On Equity vs. Profit Margin
| MPWR Stock | USD 580.81 8.34 1.46% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.20848133 | Current Value 0.22 | Quarterly Volatility 0.28726498 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.42 | 0.5607 |
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For Monolithic Power profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Monolithic Power to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Monolithic Power Systems utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Monolithic Power's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Monolithic Power Systems over time as well as its relative position and ranking within its peers.
Monolithic |
Monolithic Power's Revenue Breakdown by Earning Segment
Check out Correlation Analysis.
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Monolithic Power. If investors know Monolithic will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Monolithic Power listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.19 | Dividend Share 4.75 | Earnings Share 8.89 | Revenue Per Share 42.048 | Quarterly Revenue Growth 0.306 |
The market value of Monolithic Power Systems is measured differently than its book value, which is the value of Monolithic that is recorded on the company's balance sheet. Investors also form their own opinion of Monolithic Power's value that differs from its market value or its book value, called intrinsic value, which is Monolithic Power's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Monolithic Power's market value can be influenced by many factors that don't directly affect Monolithic Power's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Monolithic Power's value and its price as these two are different measures arrived at by different means. Investors typically determine if Monolithic Power is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Monolithic Power's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Monolithic Power Systems Profit Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Monolithic Power's current stock value. Our valuation model uses many indicators to compare Monolithic Power value to that of its competitors to determine the firm's financial worth. Monolithic Power Systems is regarded fifth in return on equity category among its peers. It is regarded fourth in profit margin category among its peers fabricating about 1.05 of Profit Margin per Return On Equity. At this time, Monolithic Power's Return On Equity is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Monolithic Power by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Monolithic Profit Margin vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Monolithic Power |
| = | 0.2 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Monolithic Power |
| = | 0.21 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Monolithic Profit Margin Comparison
Monolithic Power is currently under evaluation in profit margin category among its peers.
Monolithic Power Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Monolithic Power, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Monolithic Power will eventually generate negative long term returns. The profitability progress is the general direction of Monolithic Power's change in net profit over the period of time. It can combine multiple indicators of Monolithic Power, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -27.1 M | -25.7 M | |
| Operating Income | 481.7 M | 505.8 M | |
| Income Before Tax | 505.8 M | 531.1 M | |
| Net Income | 427.4 M | 448.7 M | |
| Total Other Income Expense Net | 24.1 M | 25.3 M | |
| Income Tax Expense | 78.5 M | 82.4 M | |
| Net Income Applicable To Common Shares | 503.3 M | 528.5 M | |
| Net Income From Continuing Ops | 449.6 M | 472 M | |
| Non Operating Income Net Other | -2.1 M | -2 M | |
| Interest Income | 20.8 M | 21.9 M | |
| Net Interest Income | 20.8 M | 10.7 M | |
| Change To Netincome | 170 M | 178.6 M | |
| Net Income Per Share | 8.98 | 9.43 | |
| Income Quality | 1.49 | 1.13 | |
| Net Income Per E B T | 0.84 | 0.63 |
Monolithic Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Monolithic Power. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Monolithic Power position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Monolithic Power's important profitability drivers and their relationship over time.
Use Monolithic Power in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Monolithic Power position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Monolithic Power will appreciate offsetting losses from the drop in the long position's value.Monolithic Power Pair Trading
Monolithic Power Systems Pair Trading Analysis
The ability to find closely correlated positions to Monolithic Power could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Monolithic Power when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Monolithic Power - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Monolithic Power Systems to buy it.
The correlation of Monolithic Power is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Monolithic Power moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Monolithic Power Systems moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Monolithic Power can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Monolithic Power position
In addition to having Monolithic Power in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Tools for Monolithic Stock Analysis
When running Monolithic Power's price analysis, check to measure Monolithic Power's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Monolithic Power is operating at the current time. Most of Monolithic Power's value examination focuses on studying past and present price action to predict the probability of Monolithic Power's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Monolithic Power's price. Additionally, you may evaluate how the addition of Monolithic Power to your portfolios can decrease your overall portfolio volatility.