423.66 USD
-3.21 (-0.75%)
Overall POWL gets a fundamental rating of 7 out of 10. We evaluated POWL against 91 industry peers in the Electrical Equipment industry. POWL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. POWL has a decent growth rate and is not valued too expensively. These ratings could make POWL a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
- In the past year POWL was profitable.
- POWL had a positive operating cash flow in the past year.
- POWL had positive earnings in each of the past 5 years.
- 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
- POWL's Return On Assets of 16.30% is amongst the best of the industry. POWL outperforms 96.70% of its industry peers.
- POWL has a Return On Equity of 28.21%. This is amongst the best in the industry. POWL outperforms 95.60% of its industry peers.
- With an excellent Return On Invested Capital value of 25.29%, POWL belongs to the best of the industry, outperforming 98.90% of the companies in the same industry.
- POWL had an Average Return On Invested Capital over the past 3 years of 22.00%. This is significantly above the industry average of 9.92%.
- The last Return On Invested Capital (25.29%) for POWL is above the 3 year average (22.00%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.3% | ||
| ROE | 28.21% | ||
| ROIC | 25.29% |
ROA(3y)13.23%
ROA(5y)8.52%
ROE(3y)25.01%
ROE(5y)15.97%
ROIC(3y)22%
ROIC(5y)13.63%
1.3 Margins
- The Profit Margin of POWL (16.37%) is better than 91.21% of its industry peers.
- In the last couple of years the Profit Margin of POWL has grown nicely.
- POWL has a Operating Margin of 19.73%. This is amongst the best in the industry. POWL outperforms 94.51% of its industry peers.
- POWL's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 29.37%, POWL is in the better half of the industry, outperforming 63.74% of the companies in the same industry.
- In the last couple of years the Gross Margin of POWL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.73% | ||
| PM (TTM) | 16.37% | ||
| GM | 29.37% |
OM growth 3Y140.96%
OM growth 5Y37.88%
PM growth 3Y85.3%
PM growth 5Y38.42%
GM growth 3Y22.55%
GM growth 5Y9.99%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so POWL is creating value.
- POWL has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, POWL has more shares outstanding
- POWL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 9.58 indicates that POWL is not in any danger for bankruptcy at the moment.
- POWL's Altman-Z score of 9.58 is amongst the best of the industry. POWL outperforms 91.21% of its industry peers.
- 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 9.58 |
ROIC/WACC2.84
WACC8.9%
2.3 Liquidity
- POWL has a Current Ratio of 2.09. This indicates that POWL is financially healthy and has no problem in meeting its short term obligations.
- With a decent Current ratio value of 2.09, POWL is doing good in the industry, outperforming 61.54% of the companies in the same industry.
- POWL has a Quick Ratio of 1.90. This is a normal value and indicates that POWL is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of POWL (1.90) is better than 75.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.09 | ||
| Quick Ratio | 1.9 |
3. Growth
3.1 Past
- POWL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.83%, which is quite impressive.
- The Earnings Per Share has been growing by 60.14% on average over the past years. This is a very strong growth
- The Revenue has grown by 9.08% in the past year. This is quite good.
- The Revenue has been growing by 16.32% on average over the past years. This is quite good.
EPS 1Y (TTM)20.83%
EPS 3Y134.61%
EPS 5Y60.14%
EPS Q2Q%11.94%
Revenue 1Y (TTM)9.08%
Revenue growth 3Y27.52%
Revenue growth 5Y16.32%
Sales Q2Q%8.33%
3.2 Future
- POWL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.02% yearly.
- Based on estimates for the next years, POWL will show a small growth in Revenue. The Revenue will grow by 6.48% on average per year.
EPS Next Y5.09%
EPS Next 2Y6.02%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.68%
Revenue Next 2Y6.82%
Revenue Next 3Y5.66%
Revenue Next 5Y6.48%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- A Price/Earnings ratio of 28.53 indicates a quite expensive valuation of POWL.
- Based on the Price/Earnings ratio, POWL is valued a bit cheaper than 79.12% of the companies in the same industry.
- POWL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
- A Price/Forward Earnings ratio of 27.15 indicates a quite expensive valuation of POWL.
- POWL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. POWL is cheaper than 73.63% of the companies in the same industry.
- POWL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.53 | ||
| Fwd PE | 27.15 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, POWL is valued a bit cheaper than 78.02% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, POWL is valued a bit cheaper than 75.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.09 | ||
| EV/EBITDA | 20.7 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates POWL does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of POWL may justify a higher PE ratio.
PEG (NY)5.6
PEG (5Y)0.47
EPS Next 2Y6.02%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- POWL has a yearly dividend return of 0.26%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.26, POWL pays a better dividend. On top of this POWL pays more dividend than 83.52% of the companies listed in the same industry.
- With a Dividend Yield of 0.26, POWL pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.26% |
5.2 History
- The dividend of POWL has a limited annual growth rate of 0.51%.
- POWL has been paying a dividend for at least 10 years, so it has 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)0.51%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
- 7.12% of the earnings are spent on dividend by POWL. This is a low number and sustainable payout ratio.
- The dividend of POWL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP7.12%
EPS Next 2Y6.02%
EPS Next 3YN/A
POWELL INDUSTRIES INC / POWL FAQ
Can you provide the ChartMill fundamental rating for POWELL INDUSTRIES INC?
ChartMill assigns a fundamental rating of 7 / 10 to POWL.
Can you provide the valuation status for POWELL INDUSTRIES INC?
ChartMill assigns a valuation rating of 4 / 10 to POWELL INDUSTRIES INC (POWL). This can be considered as Fairly Valued.
How profitable is POWELL INDUSTRIES INC (POWL) stock?
POWELL INDUSTRIES INC (POWL) has a profitability rating of 9 / 10.
What are the PE and PB ratios of POWELL INDUSTRIES INC (POWL) stock?
The Price/Earnings (PE) ratio for POWELL INDUSTRIES INC (POWL) is 28.53 and the Price/Book (PB) ratio is 7.99.
Is the dividend of POWELL INDUSTRIES INC sustainable?
The dividend rating of POWELL INDUSTRIES INC (POWL) is 6 / 10 and the dividend payout ratio is 7.12%.