POWELL INDUSTRIES INC (POWL) Stock Fundamental Analysis
USA - NASDAQ:POWL - US7391281067 - Common Stock
390.7 USD
+7.31 (+1.91%)
371 USD
-19.7 (-5.04%)
We assign a fundamental rating of 7 out of 10 to POWL. POWL was compared to 92 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 is not valued too expensively and it also shows a decent growth rate. This makes POWL very considerable 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 16.83% is amongst the best of the industry. POWL outperforms 96.74% of its industry peers.
POWL has a Return On Equity of 29.48%. This is amongst the best in the industry. POWL outperforms 97.83% of its industry peers.
Looking at the Return On Invested Capital, with a value of 26.55%, POWL belongs to the top of the industry, outperforming 98.91% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for POWL is above the industry average of 10.26%.
The 3 year average ROIC (14.37%) for POWL is below the current ROIC(26.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.83% | ||
| ROE | 29.48% | ||
| ROIC | 26.55% |
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 16.22%, POWL belongs to the top of the industry, outperforming 91.30% 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 (19.41%) than 96.74% of its industry peers.
In the last couple of years the Operating Margin of POWL has grown nicely.
The Gross Margin of POWL (28.79%) is better than 63.04% of its industry peers.
POWL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.41% | ||
| PM (TTM) | 16.22% | ||
| GM | 28.79% |
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
The number of shares outstanding for POWL has been increased compared to 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
POWL has an Altman-Z score of 9.21. This indicates that POWL is financially healthy and has little risk of bankruptcy at the moment.
POWL has a better Altman-Z score (9.21) than 91.30% 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 | 9.21 |
ROIC/WACC3.03
WACC8.75%
2.3 Liquidity
POWL has a Current Ratio of 2.06. This indicates that POWL is financially healthy and has no problem in meeting its short term obligations.
POWL has a Current ratio of 2.06. This is comparable to the rest of the industry: POWL outperforms 59.78% of its industry peers.
POWL has a Quick Ratio of 1.85. This is a normal value and indicates that POWL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.85, POWL is in the better half of the industry, outperforming 71.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
POWL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.54%, which is quite impressive.
Measured over the past years, POWL shows a very strong growth in Earnings Per Share. The EPS has been growing by 73.14% on average per year.
Looking at the last year, POWL shows a quite strong growth in Revenue. The Revenue has grown by 14.32% in the last year.
The Revenue has been growing by 14.38% on average over the past years. This is quite good.
EPS 1Y (TTM)37.54%
EPS 3Y489.48%
EPS 5Y73.14%
EPS Q2Q%4.49%
Revenue 1Y (TTM)14.32%
Revenue growth 3Y29.09%
Revenue growth 5Y14.38%
Sales Q2Q%-0.66%
3.2 Future
POWL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.48% yearly.
POWL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.81% yearly.
EPS Next Y19.59%
EPS Next 2Y11.23%
EPS Next 3Y9.48%
EPS Next 5YN/A
Revenue Next Year4.48%
Revenue Next 2Y5.23%
Revenue Next 3Y5.78%
Revenue Next 5Y5.81%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 27.13, the valuation of POWL can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of POWL indicates a rather cheap valuation: POWL is cheaper than 80.43% of the companies listed in the same industry.
POWL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
POWL is valuated quite expensively with a Price/Forward Earnings ratio of 25.70.
Based on the Price/Forward Earnings ratio, POWL is valued a bit cheaper than 75.00% of the companies in the same industry.
POWL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.53.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.13 | ||
| Fwd PE | 25.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, POWL is valued a bit cheaper than the industry average as 79.35% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, POWL is valued a bit cheaper than 70.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.19 | ||
| EV/EBITDA | 19.02 |
4.3 Compensation for Growth
The 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)1.38
PEG (5Y)0.37
EPS Next 2Y11.23%
EPS Next 3Y9.48%
5. Dividend
5.1 Amount
With a yearly dividend of 0.28%, POWL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.00, POWL pays a better dividend. On top of this POWL pays more dividend than 81.52% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, POWL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
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
7.31% of the earnings are spent on dividend by POWL. This is a low number and sustainable payout ratio.
POWL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP7.31%
EPS Next 2Y11.23%
EPS Next 3Y9.48%
390.7
+7.31 (+1.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners106.9%
Inst Owner Change-0.16%
Ins Owners2.26%
Ins Owner Change-2.55%
Market Cap4.72B
Revenue(TTM)1.08B
Net Income(TTM)175.38M
Analysts80
Price Target274.65 (-29.7%)
Short Float %20.01%
Short Ratio8.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
Yearly Dividend1.06
Dividend Growth(5Y)0.42%
DP7.31%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.73%
Min EPS beat(2)2.98%
Max EPS beat(2)8.48%
EPS beat(4)4
Avg EPS beat(4)5.72%
Min EPS beat(4)2.98%
Max EPS beat(4)8.48%
EPS beat(8)8
Avg EPS beat(8)42.07%
EPS beat(12)12
Avg EPS beat(12)105.68%
EPS beat(16)15
Avg EPS beat(16)117.87%
Revenue beat(2)0
Avg Revenue beat(2)-5.17%
Min Revenue beat(2)-6.97%
Max Revenue beat(2)-3.36%
Revenue beat(4)1
Avg Revenue beat(4)-3.61%
Min Revenue beat(4)-6.97%
Max Revenue beat(4)1.75%
Revenue beat(8)5
Avg Revenue beat(8)5.66%
Revenue beat(12)9
Avg Revenue beat(12)7.67%
Revenue beat(16)12
Avg Revenue beat(16)6.5%
PT rev (1m)9.49%
PT rev (3m)10.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.34%
EPS NY rev (1m)0%
EPS NY rev (3m)7.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.13 | ||
| Fwd PE | 25.7 | ||
| P/S | 4.36 | ||
| P/FCF | 58.19 | ||
| P/OCF | 46.75 | ||
| P/B | 7.93 | ||
| P/tB | 7.95 | ||
| EV/EBITDA | 19.02 |
EPS(TTM)14.4
EY3.69%
EPS(NY)15.2
Fwd EY3.89%
FCF(TTM)6.71
FCFY1.72%
OCF(TTM)8.36
OCFY2.14%
SpS89.59
BVpS49.29
TBVpS49.16
PEG (NY)1.38
PEG (5Y)0.37
Graham Number126.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.83% | ||
| ROE | 29.48% | ||
| ROCE | 34.14% | ||
| ROIC | 26.55% | ||
| ROICexc | 110.84% | ||
| ROICexgc | 111.98% | ||
| OM | 19.41% | ||
| PM (TTM) | 16.22% | ||
| GM | 28.79% | ||
| FCFM | 7.49% |
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%
ROICexgc growth 3Y590.73%
ROICexgc 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-Score6
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 282.89% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.5% | ||
| Profit Quality | 46.21% | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.85 | ||
| Altman-Z | 9.21 |
F-Score6
WACC8.75%
ROIC/WACC3.03
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)37.54%
EPS 3Y489.48%
EPS 5Y73.14%
EPS Q2Q%4.49%
EPS Next Y19.59%
EPS Next 2Y11.23%
EPS Next 3Y9.48%
EPS Next 5YN/A
Revenue 1Y (TTM)14.32%
Revenue growth 3Y29.09%
Revenue growth 5Y14.38%
Sales Q2Q%-0.66%
Revenue Next Year4.48%
Revenue Next 2Y5.23%
Revenue Next 3Y5.78%
Revenue Next 5Y5.81%
EBIT growth 1Y37.51%
EBIT growth 3Y462.49%
EBIT growth 5Y75.8%
EBIT Next Year25.24%
EBIT Next 3Y12.15%
EBIT Next 5YN/A
FCF growth 1Y-35.07%
FCF growth 3YN/A
FCF growth 5Y8.37%
OCF growth 1Y-22.11%
OCF growth 3YN/A
OCF growth 5Y9.57%
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.
What is the valuation status for POWL stock?
ChartMill assigns a valuation rating of 5 / 10 to POWELL INDUSTRIES INC (POWL). This can be considered as Fairly Valued.
Can you provide the profitability details for POWELL INDUSTRIES INC?
POWELL INDUSTRIES INC (POWL) has a profitability rating of 9 / 10.
What is the valuation of POWELL INDUSTRIES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for POWELL INDUSTRIES INC (POWL) is 27.13 and the Price/Book (PB) ratio is 7.93.
What is the financial health of POWELL INDUSTRIES INC (POWL) stock?
The financial health rating of POWELL INDUSTRIES INC (POWL) is 8 / 10.