443.44 USD
+1.16 (+0.26%)
443.44 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to POWL. POWL was compared to 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
- POWL had positive earnings in the past year.
- In the past year POWL had a positive cash flow from operations.
- 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
- The Return On Assets of POWL (16.30%) is better than 96.70% of its industry peers.
- POWL has a better Return On Equity (28.21%) than 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
- POWL has a better Profit Margin (16.37%) than 91.21% of its industry peers.
- POWL's Profit Margin has improved in the last couple of years.
- POWL has a Operating Margin of 19.73%. This is amongst the best in the industry. POWL outperforms 94.51% of its industry peers.
- In the last couple of years the Operating Margin of POWL has grown nicely.
- POWL has a Gross Margin of 29.37%. This is in the better half of the industry: POWL outperforms 63.74% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), POWL is creating value.
- The number of shares outstanding for POWL has been increased compared to 1 year ago.
- The number of shares outstanding for POWL has been increased compared to 5 years ago.
- 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
- POWL has an Altman-Z score of 9.82. This indicates that POWL is financially healthy and has little risk of bankruptcy at the moment.
- POWL has a Altman-Z score of 9.82. This is amongst the best in 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 | 9.82 |
ROIC/WACC2.85
WACC8.88%
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.
- Looking at the Current ratio, with a value of 2.09, POWL is in the better half of 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.
- POWL has a better Quick ratio (1.90) 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.
- Measured over the past years, POWL shows a very strong growth in Earnings Per Share. The EPS has been growing by 60.14% on average per year.
- POWL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.08%.
- POWL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.32% yearly.
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
- Based on estimates for the next years, POWL will show a small growth in Earnings Per Share. The EPS will grow by 6.02% on average per year.
- The Revenue is expected to grow by 6.48% on average over the next years.
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
- The Price/Earnings ratio is 29.86, which means the current valuation is very expensive for POWL.
- Based on the Price/Earnings ratio, POWL is valued a bit cheaper than 76.92% of the companies in the same industry.
- POWL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
- The Price/Forward Earnings ratio is 28.41, which means the current valuation is very expensive for POWL.
- Based on the Price/Forward Earnings ratio, POWL is valued a bit cheaper than 72.53% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. POWL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.86 | ||
| Fwd PE | 28.41 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, POWL is valued a bit cheaper than the industry average as 78.02% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, POWL is valued a bit cheaper than 74.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.64 | ||
| EV/EBITDA | 21.53 |
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.
- POWL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.87
PEG (5Y)0.5
EPS Next 2Y6.02%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- POWL has a yearly dividend return of 0.25%, 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 0.25, POWL pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.25% |
5.2 History
- The dividend of POWL has a limited annual growth rate of 0.51%.
- POWL has paid a dividend for at least 10 years, which is a reliable track record.
- POWL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.51%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
- POWL pays out 7.12% of its income as dividend. This is a 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 29.86 and the Price/Book (PB) ratio is 8.37.
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%.