POWELL INDUSTRIES INC (POWL) Stock Fundamental Analysis
NASDAQ:POWL - Nasdaq - US7391281067 - Common Stock - Currency: USD
Overall POWL gets a fundamental rating of 7 out of 10. We evaluated POWL against 93 industry peers in the Electrical Equipment industry. POWL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. POWL is not valued too expensively and it also shows a decent growth rate. These ratings would make POWL suitable for quality investing!
1. Profitability
1.1 Basic Checks
POWL had positive earnings in the past year.
POWL had a positive operating cash flow in the past year.
In the past 5 years POWL has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: POWL reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.14%, POWL belongs to the top of the industry, outperforming 97.83% of the companies in the same industry.
With an excellent Return On Equity value of 31.02%, POWL belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
With an excellent Return On Invested Capital value of 27.70%, POWL belongs to the best of the industry, outperforming 98.91% of the companies in the same industry.
POWL had an Average Return On Invested Capital over the past 3 years of 14.37%. This is above the industry average of 10.19%.
The 3 year average ROIC (14.37%) for POWL is below the current ROIC(27.70%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.14% | ||
| ROE | 31.02% | ||
| ROIC | 27.7% |
ROA(3y)8.72%
ROA(5y)5.97%
ROE(3y)17.14%
ROE(5y)11.42%
ROIC(3y)14.37%
ROIC(5y)9.67%
1.3 Margins
Looking at the Profit Margin, with a value of 14.80%, POWL belongs to the top of the industry, outperforming 92.39% of the companies in the same industry.
POWL's Profit Margin has improved in the last couple of years.
POWL has a better Operating Margin (17.60%) than 93.48% of its industry peers.
POWL's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 26.98%, POWL is doing good in the industry, outperforming 63.04% of the companies in the same industry.
POWL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.6% | ||
| PM (TTM) | 14.8% | ||
| GM | 26.98% |
OM growth 3Y335.74%
OM growth 5Y53.7%
PM growth 3Y387.84%
PM growth 5Y50.55%
GM growth 3Y19.12%
GM growth 5Y9.91%
2. Health
2.1 Basic Checks
POWL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, POWL has more shares outstanding
POWL has more shares outstanding than it did 5 years ago.
There is no outstanding debt for POWL. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 6.65 indicates that POWL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.65, POWL belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
POWL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.65 |
ROIC/WACC2.68
WACC10.33%
2.3 Liquidity
POWL has a Current Ratio of 1.81. This is a normal value and indicates that POWL is financially healthy and should not expect problems in meeting its short term obligations.
POWL has a Current ratio (1.81) which is comparable to the rest of the industry.
A Quick Ratio of 1.61 indicates that POWL should not have too much problems paying its short term obligations.
The Quick ratio of POWL (1.61) is better than 66.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
POWL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 187.82%, which is quite impressive.
The Earnings Per Share has been growing by 73.14% on average over the past years. This is a very strong growth
POWL shows a strong growth in Revenue. In the last year, the Revenue has grown by 44.76%.
POWL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.38% yearly.
EPS 1Y (TTM)187.82%
EPS 3Y489.48%
EPS 5Y73.14%
EPS Q2Q%93.33%
Revenue 1Y (TTM)44.76%
Revenue growth 3Y29.09%
Revenue growth 5Y14.38%
Sales Q2Q%31.84%
3.2 Future
The Earnings Per Share is expected to grow by 10.83% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.63% on average over the next years.
EPS Next Y12.79%
EPS Next 2Y10.83%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.78%
Revenue Next 2Y5.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.97, the valuation of POWL can be described as rather expensive.
Based on the Price/Earnings ratio, POWL is valued cheaply inside the industry as 84.78% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.47. POWL is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 16.82, POWL is valued correctly.
82.61% of the companies in the same industry are more expensive than POWL, based on the Price/Forward Earnings ratio.
POWL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.97 | ||
| Fwd PE | 16.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, POWL is valued cheaper than 82.61% of the companies in the same industry.
POWL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. POWL is cheaper than 77.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.06 | ||
| EV/EBITDA | 12.74 |
4.3 Compensation for Growth
POWL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
POWL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.48
PEG (5Y)0.26
EPS Next 2Y10.83%
EPS Next 3YN/A
5. Dividend
5.1 Amount
POWL has a yearly dividend return of 0.45%, which is pretty low.
The stock price of POWL dropped by -32.69% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
POWL's Dividend Yield is rather good when compared to the industry average which is at 3.57. POWL pays more dividend than 80.43% of the companies in the same industry.
With a Dividend Yield of 0.45, POWL pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
The dividend of POWL has a limited annual growth rate of 0.42%.
POWL has paid a dividend for at least 10 years, which is a reliable track record.
POWL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.42%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
POWL pays out 8.44% of its income as dividend. This is a sustainable payout ratio.
POWL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP8.44%
EPS Next 2Y10.83%
EPS Next 3YN/A
POWELL INDUSTRIES INC
NASDAQ:POWL (2/4/2025, 8:02:05 PM)
After market: 233.14 0 (0%)233.14
-2.66 (-1.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.72%
Inst Owner Change-3.33%
Ins Owners2.03%
Ins Owner Change-1.05%
Market Cap2.80B
Analysts80
Price Target252.69 (8.39%)
Short Float %13.98%
Short Ratio2.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly Dividend1.06
Dividend Growth(5Y)0.42%
DP8.44%
Div Incr Years2
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)38.07%
Min EPS beat(2)4.11%
Max EPS beat(2)72.02%
EPS beat(4)4
Avg EPS beat(4)64.78%
Min EPS beat(4)4.11%
Max EPS beat(4)131.09%
EPS beat(8)8
Avg EPS beat(8)120.31%
EPS beat(12)11
Avg EPS beat(12)96.43%
EPS beat(16)12
Avg EPS beat(16)-8.14%
Revenue beat(2)1
Avg Revenue beat(2)10.64%
Min Revenue beat(2)-5.87%
Max Revenue beat(2)27.15%
Revenue beat(4)3
Avg Revenue beat(4)12.48%
Min Revenue beat(4)-5.87%
Max Revenue beat(4)27.15%
Revenue beat(8)7
Avg Revenue beat(8)10.66%
Revenue beat(12)10
Avg Revenue beat(12)8.61%
Revenue beat(16)13
Avg Revenue beat(16)7.01%
PT rev (1m)0%
PT rev (3m)27.3%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)52.83%
EPS NY rev (1m)-0.95%
EPS NY rev (3m)9.16%
Revenue NQ rev (1m)0.76%
Revenue NQ rev (3m)15.29%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.97 | ||
| Fwd PE | 16.82 | ||
| P/S | 2.77 | ||
| P/FCF | 29.06 | ||
| P/OCF | 25.79 | ||
| P/B | 5.8 | ||
| P/tB | 5.82 | ||
| EV/EBITDA | 12.74 |
EPS(TTM)12.29
EY5.27%
EPS(NY)13.86
Fwd EY5.95%
FCF(TTM)8.02
FCFY3.44%
OCF(TTM)9.04
OCFY3.88%
SpS84.22
BVpS40.19
TBVpS40.06
PEG (NY)1.48
PEG (5Y)0.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.14% | ||
| ROE | 31.02% | ||
| ROCE | 35.62% | ||
| ROIC | 27.7% | ||
| ROICexc | 140.34% | ||
| ROICexgc | 142.51% | ||
| OM | 17.6% | ||
| PM (TTM) | 14.8% | ||
| GM | 26.98% | ||
| FCFM | 9.53% |
ROA(3y)8.72%
ROA(5y)5.97%
ROE(3y)17.14%
ROE(5y)11.42%
ROIC(3y)14.37%
ROIC(5y)9.67%
ROICexc(3y)68.51%
ROICexc(5y)43.46%
ROICexgc(3y)69.51%
ROICexgc(5y)44.08%
ROCE(3y)18.48%
ROCE(5y)12.44%
ROICexcg growth 3Y590.73%
ROICexcg growth 5Y99.64%
ROICexc growth 3Y588.47%
ROICexc growth 5Y99.31%
OM growth 3Y335.74%
OM growth 5Y53.7%
PM growth 3Y387.84%
PM growth 5Y50.55%
GM growth 3Y19.12%
GM growth 5Y9.91%
F-Score7
Asset Turnover1.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 178.04% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.72% | ||
| Profit Quality | 64.35% | ||
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 6.65 |
F-Score7
WACC10.33%
ROIC/WACC2.68
Cap/Depr(3y)98.5%
Cap/Depr(5y)74.44%
Cap/Sales(3y)0.93%
Cap/Sales(5y)0.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)187.82%
EPS 3Y489.48%
EPS 5Y73.14%
EPS Q2Q%93.33%
EPS Next Y12.79%
EPS Next 2Y10.83%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)44.76%
Revenue growth 3Y29.09%
Revenue growth 5Y14.38%
Sales Q2Q%31.84%
Revenue Next Year5.78%
Revenue Next 2Y5.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y183.7%
EBIT growth 3Y462.49%
EBIT growth 5Y75.8%
EBIT Next Year19.39%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-44.81%
FCF growth 3YN/A
FCF growth 5Y8.37%
OCF growth 1Y-40.48%
OCF growth 3YN/A
OCF growth 5Y9.57%