POWELL INDUSTRIES INC (POWL) Stock Fundamental Analysis
USA - NASDAQ:POWL - US7391281067 - Common Stock
330.71 USD
-7.61 (-2.25%)
333.6 USD
+2.89 (+0.87%)
POWL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 92 industry peers in the Electrical Equipment industry. POWL gets an excellent profitability rating and is at the same time showing great financial health properties. POWL has a correct valuation and a medium growth rate. This makes POWL very considerable 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.
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
POWL's Return On Assets of 16.83% is amongst the best of the industry. POWL outperforms 97.83% of its industry peers.
The Return On Equity of POWL (29.48%) is better than 96.74% of its industry peers.
With an excellent Return On Invested Capital value of 26.55%, POWL belongs to the best 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 10.15%.
The last Return On Invested Capital (26.55%) for POWL is above the 3 year average (14.37%), which is a sign of increasing profitability.
| 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
POWL has a better Profit Margin (16.22%) than 92.39% of its industry peers.
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.
POWL has a Gross Margin of 28.79%. This is in the better half of the industry: POWL outperforms 63.04% of its industry peers.
In the last couple of years the Gross Margin of POWL has grown nicely.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), POWL is creating value.
POWL has more shares outstanding than it did 1 year ago.
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 8.36 indicates that POWL is not in any danger for bankruptcy at the moment.
POWL has a Altman-Z score of 8.36. This is amongst the best in the industry. POWL outperforms 91.30% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 8.36 |
ROIC/WACC3.07
WACC8.66%
2.3 Liquidity
A Current Ratio of 2.06 indicates that POWL has no problem at all paying its short term obligations.
POWL's Current ratio of 2.06 is in line compared 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.
With a decent Quick ratio value of 1.85, POWL is doing good in 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.
The Earnings Per Share has been growing by 73.14% on average over the past years. This is a very strong growth
POWL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.32%.
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 9.39% yearly.
The Revenue is expected to grow by 5.81% on average over the next years.
EPS Next Y19.59%
EPS Next 2Y11.13%
EPS Next 3Y9.39%
EPS Next 5YN/A
Revenue Next Year4.48%
Revenue Next 2Y5.23%
Revenue Next 3Y5.34%
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
The Price/Earnings ratio is 22.97, which indicates a rather expensive current valuation of POWL.
POWL's Price/Earnings ratio is rather cheap when compared to the industry. POWL is cheaper than 82.61% of the companies in the same industry.
POWL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.42, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.79, which indicates a rather expensive current valuation of POWL.
Based on the Price/Forward Earnings ratio, POWL is valued a bit cheaper than 76.09% 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 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.97 | ||
| Fwd PE | 21.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, POWL is valued cheaper than 83.70% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of POWL indicates a somewhat cheap valuation: POWL is cheaper than 71.74% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.26 | ||
| EV/EBITDA | 16.08 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of POWL may justify a higher PE ratio.
PEG (NY)1.17
PEG (5Y)0.31
EPS Next 2Y11.13%
EPS Next 3Y9.39%
5. Dividend
5.1 Amount
POWL has a yearly dividend return of 0.32%, which is pretty low.
Compared to an average industry Dividend Yield of 3.09, 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 2.36, POWL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
5.2 History
The dividend of POWL has a limited annual growth rate of 0.42%.
POWL has been paying a dividend for at least 10 years, so it has a reliable track record.
POWL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.42%
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 2Y11.13%
EPS Next 3Y9.39%
330.71
-7.61 (-2.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners106.9%
Inst Owner Change0.11%
Ins Owners2.26%
Ins Owner Change-2.52%
Market Cap3.99B
Analysts80
Price Target250.85 (-24.15%)
Short Float %19.94%
Short Ratio7.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
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)0%
PT rev (3m)0.82%
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 | 22.97 | ||
| Fwd PE | 21.79 | ||
| P/S | 3.69 | ||
| P/FCF | 49.26 | ||
| P/OCF | 39.57 | ||
| P/B | 6.71 | ||
| P/tB | 6.73 | ||
| EV/EBITDA | 16.08 |
EPS(TTM)14.4
EY4.35%
EPS(NY)15.18
Fwd EY4.59%
FCF(TTM)6.71
FCFY2.03%
OCF(TTM)8.36
OCFY2.53%
SpS89.59
BVpS49.29
TBVpS49.16
PEG (NY)1.17
PEG (5Y)0.31
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%
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-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 | 8.36 |
F-Score6
WACC8.66%
ROIC/WACC3.07
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 2Y11.13%
EPS Next 3Y9.39%
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 3Y5.34%
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%