POWELL INDUSTRIES INC (POWL) Stock Fundamental Analysis
NASDAQ:POWL - Nasdaq - US7391281067 - Common Stock - Currency: USD
POWL gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 94 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. With these ratings, POWL could be worth investigating further 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 17.96% is amongst the best of the industry. POWL outperforms 97.87% of its industry peers.
POWL has a better Return On Equity (32.02%) than 97.87% of its industry peers.
With an excellent Return On Invested Capital value of 28.73%, POWL belongs to the best of the industry, outperforming 98.94% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for POWL is above the industry average of 9.89%.
The 3 year average ROIC (14.37%) for POWL is below the current ROIC(28.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.96% | ||
| ROE | 32.02% | ||
| ROIC | 28.73% |
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's Profit Margin of 16.00% is amongst the best of the industry. POWL outperforms 95.74% of its industry peers.
POWL's Profit Margin has improved in the last couple of years.
POWL's Operating Margin of 19.12% is amongst the best of the industry. POWL outperforms 95.74% of its industry peers.
In the last couple of years the Operating Margin of POWL has grown nicely.
Looking at the Gross Margin, with a value of 28.17%, POWL is in the better half of the industry, outperforming 62.77% of the companies in the same industry.
POWL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.12% | ||
| PM (TTM) | 16% | ||
| GM | 28.17% |
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.
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
POWL has an Altman-Z score of 6.70. This indicates that POWL is financially healthy and has little risk of bankruptcy at the moment.
POWL has a better Altman-Z score (6.70) than 90.43% 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 | 6.7 |
ROIC/WACC2.84
WACC10.11%
2.3 Liquidity
A Current Ratio of 2.00 indicates that POWL has no problem at all paying its short term obligations.
POWL's Current ratio of 2.00 is in line compared to the rest of the industry. POWL outperforms 54.26% of its industry peers.
A Quick Ratio of 1.78 indicates that POWL should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.78, POWL is doing good in the industry, outperforming 67.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 73.54% 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 27.42%.
Measured over the past years, POWL shows a quite strong growth in Revenue. The Revenue has been growing by 14.38% on average per year.
EPS 1Y (TTM)73.54%
EPS 3Y489.48%
EPS 5Y73.14%
EPS Q2Q%38.55%
Revenue 1Y (TTM)27.42%
Revenue growth 3Y29.09%
Revenue growth 5Y14.38%
Sales Q2Q%9.22%
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 2.56% on average per year.
The Revenue is expected to grow by 5.81% on average over the next years.
EPS Next Y11.05%
EPS Next 2Y7.48%
EPS Next 3Y2.56%
EPS Next 5YN/A
Revenue Next Year5.32%
Revenue Next 2Y5.18%
Revenue Next 3Y4.69%
Revenue Next 5Y5.81%
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
With a Price/Earnings ratio of 15.36, POWL is valued correctly.
POWL's Price/Earnings ratio is rather cheap when compared to the industry. POWL is cheaper than 90.43% of the companies in the same industry.
POWL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.28.
With a Price/Forward Earnings ratio of 15.39, POWL is valued correctly.
Based on the Price/Forward Earnings ratio, POWL is valued cheaply inside the industry as 85.11% of the companies are valued more expensively.
POWL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.36 | ||
| Fwd PE | 15.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of POWL indicates a rather cheap valuation: POWL is cheaper than 91.49% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, POWL is valued a bit cheaper than the industry average as 69.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.58 | ||
| EV/EBITDA | 9.89 |
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)1.39
PEG (5Y)0.21
EPS Next 2Y7.48%
EPS Next 3Y2.56%
5. Dividend
5.1 Amount
With a yearly dividend of 0.54%, POWL is not a good candidate for dividend investing.
POWL's Dividend Yield is rather good when compared to the industry average which is at 4.40. POWL pays more dividend than 82.98% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, POWL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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
7.36% 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.
DP7.36%
EPS Next 2Y7.48%
EPS Next 3Y2.56%
218.53
+8.49 (+4.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners105.94%
Inst Owner Change9.53%
Ins Owners2.5%
Ins Owner Change0.11%
Market Cap2.64B
Analysts80
Price Target248.81 (13.86%)
Short Float %19.31%
Short Ratio6.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend1.06
Dividend Growth(5Y)0.42%
DP7.36%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.89%
Min EPS beat(2)7.29%
Max EPS beat(2)8.48%
EPS beat(4)4
Avg EPS beat(4)22.98%
Min EPS beat(4)4.11%
Max EPS beat(4)72.02%
EPS beat(8)8
Avg EPS beat(8)57.42%
EPS beat(12)12
Avg EPS beat(12)153.54%
EPS beat(16)14
Avg EPS beat(16)7.27%
Revenue beat(2)1
Avg Revenue beat(2)-0.81%
Min Revenue beat(2)-3.36%
Max Revenue beat(2)1.75%
Revenue beat(4)2
Avg Revenue beat(4)4.92%
Min Revenue beat(4)-5.87%
Max Revenue beat(4)27.15%
Revenue beat(8)6
Avg Revenue beat(8)7.84%
Revenue beat(12)10
Avg Revenue beat(12)8.53%
Revenue beat(16)13
Avg Revenue beat(16)7.05%
PT rev (1m)-2.06%
PT rev (3m)-2.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.25%
EPS NY rev (1m)-5.6%
EPS NY rev (3m)-4.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.8%
Revenue NY rev (1m)-1.14%
Revenue NY rev (3m)-2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.36 | ||
| Fwd PE | 15.39 | ||
| P/S | 2.43 | ||
| P/FCF | 51.58 | ||
| P/OCF | 39.22 | ||
| P/B | 4.87 | ||
| P/tB | 4.89 | ||
| EV/EBITDA | 9.89 |
EPS(TTM)14.23
EY6.51%
EPS(NY)14.2
Fwd EY6.5%
FCF(TTM)4.24
FCFY1.94%
OCF(TTM)5.57
OCFY2.55%
SpS89.75
BVpS44.85
TBVpS44.73
PEG (NY)1.39
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.96% | ||
| ROE | 32.02% | ||
| ROCE | 36.95% | ||
| ROIC | 28.73% | ||
| ROICexc | 94.03% | ||
| ROICexgc | 94.87% | ||
| OM | 19.12% | ||
| PM (TTM) | 16% | ||
| GM | 28.17% | ||
| FCFM | 4.72% |
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 Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 230.81% | ||
| Cap/Sales | 1.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 31.41% | ||
| Profit Quality | 29.5% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 6.7 |
F-Score7
WACC10.11%
ROIC/WACC2.84
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)73.54%
EPS 3Y489.48%
EPS 5Y73.14%
EPS Q2Q%38.55%
EPS Next Y11.05%
EPS Next 2Y7.48%
EPS Next 3Y2.56%
EPS Next 5YN/A
Revenue 1Y (TTM)27.42%
Revenue growth 3Y29.09%
Revenue growth 5Y14.38%
Sales Q2Q%9.22%
Revenue Next Year5.32%
Revenue Next 2Y5.18%
Revenue Next 3Y4.69%
Revenue Next 5Y5.81%
EBIT growth 1Y77.05%
EBIT growth 3Y462.49%
EBIT growth 5Y75.8%
EBIT Next Year22.92%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-14.91%
FCF growth 3YN/A
FCF growth 5Y8.37%
OCF growth 1Y3.62%
OCF growth 3YN/A
OCF growth 5Y9.57%