Don't overlook NASDAQ:POWL—it's a hidden gem with strong fundamentals and an attractive price tag.

Discover POWELL INDUSTRIES INC (NASDAQ:POWL), an undervalued stock highlighted by our stock screener. NASDAQ:POWL showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Unpacking NASDAQ:POWL's Valuation Rating

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:POWL was assigned a score of 8 for valuation:

• Based on the Price/Earnings ratio, POWL is valued cheaper than 88.04% of the companies in the same industry.
• The average S&P500 Price/Earnings ratio is at 29.53. POWL is valued rather cheaply when compared to this.
• Based on the Price/Forward Earnings ratio of 11.23, the valuation of POWL can be described as reasonable.
• Based on the Price/Forward Earnings ratio, POWL is valued cheaper than 89.13% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of POWL to the average of the S&P500 Index (22.65), we can say POWL is valued rather cheaply.
• 93.48% of the companies in the same industry are more expensive than POWL, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of POWL indicates a somewhat cheap valuation: POWL is cheaper than 69.57% of the companies listed in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The excellent profitability rating of POWL may justify a higher PE ratio.

Evaluating Profitability: NASDAQ:POWL

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:POWL, the assigned 9 is a significant indicator of profitability:

• POWL has a better Return On Assets (17.59%) than 98.91% of its industry peers.
• POWL has a better Return On Equity (32.34%) than 96.74% of its industry peers.
• With an excellent Return On Invested Capital value of 28.28%, POWL belongs to the best of the industry, outperforming 98.91% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for POWL is above the industry average of 10.21%.
• The 3 year average ROIC (14.37%) for POWL is below the current ROIC(28.28%), indicating increased profibility in the last year.
• POWL has a better Profit Margin (15.15%) than 94.57% of its industry peers.
• POWL's Profit Margin has improved in the last couple of years.
• POWL has a better Operating Margin (17.71%) than 93.48% of its industry peers.
• In the last couple of years the Operating Margin of POWL has grown nicely.
• The Gross Margin of POWL (26.84%) is better than 63.04% of its industry peers.
• POWL's Gross Margin has improved in the last couple of years.

Unpacking NASDAQ:POWL's Health Rating

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:POWL has earned a 7 out of 10:

• An Altman-Z score of 6.02 indicates that POWL is not in any danger for bankruptcy at the moment.
• POWL's Altman-Z score of 6.02 is amongst the best of the industry. POWL outperforms 92.39% of its industry peers.
• POWL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• POWL has a better Quick ratio (1.70) than 67.39% of its industry peers.

Deciphering NASDAQ:POWL's Growth Rating

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:POWL boasts a 6 out of 10:

• The Earnings Per Share has grown by an impressive 114.15% over the past year.
• POWL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 73.14% yearly.
• POWL shows a strong growth in Revenue. In the last year, the Revenue has grown by 38.27%.
• The Revenue has been growing by 14.38% on average over the past years. This is quite good.
• The Earnings Per Share is expected to grow by 10.83% on average over the next years. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Check the latest full fundamental report of POWL for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.