POWELL INDUSTRIES INC (POWL)
US7391281067 - Common Stock
POWL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 88 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 correct valuation and a medium growth rate. 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.
In multiple years POWL reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of POWL (16.14%) is better than 97.73% of its industry peers.
Looking at the Return On Equity, with a value of 31.02%, POWL belongs to the top of the industry, outperforming 96.59% of the companies in the same industry.
POWL has a better Return On Invested Capital (27.70%) than 98.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for POWL is above the industry average of 9.38%.
The last Return On Invested Capital (27.70%) for POWL is above the 3 year average (14.37%), which is a sign of increasing profitability.
| 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
The Profit Margin of POWL (14.80%) is better than 92.05% of its industry peers.
In the last couple of years the Profit Margin of POWL has grown nicely.
The Operating Margin of POWL (17.60%) is better than 93.18% of its industry peers.
POWL's Operating Margin has improved in the last couple of years.
POWL's Gross Margin of 26.98% is fine compared to the rest of the industry. POWL outperforms 63.64% of its industry peers.
In the last couple of years the Gross Margin of POWL has grown nicely.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), POWL is creating value.
Compared to 1 year ago, POWL has more shares outstanding
POWL has more shares outstanding than it did 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
An Altman-Z score of 6.64 indicates that POWL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.64, POWL belongs to the best of the industry, outperforming 89.77% of the companies in the same industry.
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 | 6.64 |
ROIC/WACC2.7
WACC10.27%
2.3 Liquidity
A Current Ratio of 1.81 indicates that POWL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.81, POWL is in line with its industry, outperforming 44.32% of the companies in the same industry.
A Quick Ratio of 1.61 indicates that POWL should not have too much problems paying its short term obligations.
POWL's Quick ratio of 1.61 is fine compared to the rest of the industry. POWL outperforms 64.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.81 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 187.82% over the past year.
The Earnings Per Share has been growing by 73.14% on average over the past years. This is a very strong growth
Looking at the last year, POWL shows a very strong growth in Revenue. The Revenue has grown by 44.76%.
The Revenue has been growing by 14.38% on average over the past years. This is quite good.
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
Based on estimates for the next years, POWL will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.50% on average per year.
POWL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.98% yearly.
EPS Next Y13.87%
EPS Next 2Y12.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.25%
Revenue Next 2Y5.98%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
POWL is valuated rather expensively with a Price/Earnings ratio of 18.82.
Compared to the rest of the industry, the Price/Earnings ratio of POWL indicates a rather cheap valuation: POWL is cheaper than 82.95% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.55, POWL is valued a bit cheaper.
POWL is valuated correctly with a Price/Forward Earnings ratio of 16.53.
Based on the Price/Forward Earnings ratio, POWL is valued cheaper than 82.95% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, POWL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.82 | ||
| Fwd PE | 16.53 |
4.2 Price Multiples
82.95% of the companies in the same industry are more expensive than POWL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, POWL is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.83 | ||
| EV/EBITDA | 12.71 |
4.3 Compensation for Growth
POWL's 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.
A more expensive valuation may be justified as POWL's earnings are expected to grow with 12.50% in the coming years.
PEG (NY)1.36
PEG (5Y)0.26
EPS Next 2Y12.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
POWL has a yearly dividend return of 0.44%, which is pretty low.
POWL's Dividend Yield is a higher than the industry average which is at 3.42.
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 | 0.44% |
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
8.44% 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.
DP8.44%
EPS Next 2Y12.5%
EPS Next 3YN/A
POWELL INDUSTRIES INC
NASDAQ:POWL (12/26/2024, 5:47:01 PM)
After market: 231.28 0 (0%)231.28
-1.32 (-0.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.72%
Inst Owner Change-4.06%
Ins Owners2.03%
Ins Owner Change-1.34%
Market Cap2.78B
Analysts80
Price Target219.91 (-4.92%)
Short Float %19.57%
Short Ratio4.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
Dividend Growth(5Y)0.42%
DP8.44%
Div Incr Years2
Div Non Decr Years11
Ex-Date
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)10.79%
PT rev (3m)19.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)52.63%
EPS NY rev (1m)10.2%
EPS NY rev (3m)10.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)14.43%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)2.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.82 | ||
| Fwd PE | 16.53 | ||
| P/S | 2.75 | ||
| P/FCF | 28.83 | ||
| P/OCF | 25.58 | ||
| P/B | 5.75 | ||
| P/tB | 5.77 | ||
| EV/EBITDA | 12.71 |
EPS(TTM)12.29
EY5.31%
EPS(NY)13.99
Fwd EY6.05%
FCF(TTM)8.02
FCFY3.47%
OCF(TTM)9.04
OCFY3.91%
SpS84.22
BVpS40.19
TBVpS40.06
PEG (NY)1.36
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 | 6.64 |
F-Score7
WACC10.27%
ROIC/WACC2.7
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 Y13.87%
EPS Next 2Y12.5%
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 Year6.25%
Revenue Next 2Y5.98%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y183.7%
EBIT growth 3Y462.49%
EBIT growth 5Y75.8%
EBIT Next Year7.45%
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%