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 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 valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, POWL could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year POWL was profitable.
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 17.59% is amongst the best of the industry. POWL outperforms 98.91% of its industry peers.
With an excellent Return On Equity value of 32.34%, POWL belongs to the best of the industry, outperforming 96.74% of the companies in the same industry.
POWL has a Return On Invested Capital of 28.28%. This is amongst the best in the industry. POWL outperforms 98.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for POWL is above the industry average of 9.89%.
The last Return On Invested Capital (28.28%) for POWL is above the 3 year average (14.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.59% | ||
| ROE | 32.34% | ||
| ROIC | 28.28% |
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 15.15% is amongst the best of the industry. POWL outperforms 95.65% of its industry peers.
In the last couple of years the Profit Margin of POWL has grown nicely.
POWL's Operating Margin of 17.71% is amongst the best of the industry. POWL outperforms 93.48% of its industry peers.
POWL's Operating Margin has improved in the last couple of years.
The Gross Margin of POWL (26.84%) is better than 61.96% of its industry peers.
POWL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.71% | ||
| PM (TTM) | 15.15% | ||
| GM | 26.84% |
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.
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 5.91. This indicates that POWL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.91, POWL belongs to the top of the industry, outperforming 93.48% 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 | 5.91 |
ROIC/WACC3.16
WACC8.96%
2.3 Liquidity
POWL has a Current Ratio of 1.92. 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 Current ratio (1.92) which is comparable to the rest of the industry.
A Quick Ratio of 1.70 indicates that POWL should not have too much problems paying its short term obligations.
The Quick ratio of POWL (1.70) is better than 68.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 114.15% over the past year.
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.
POWL shows a strong growth in Revenue. In the last year, the Revenue has grown by 38.27%.
The Revenue has been growing by 14.38% on average over the past years. This is quite good.
EPS 1Y (TTM)114.15%
EPS 3Y489.48%
EPS 5Y73.14%
EPS Q2Q%44.44%
Revenue 1Y (TTM)38.27%
Revenue growth 3Y29.09%
Revenue growth 5Y14.38%
Sales Q2Q%24.44%
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 10.83% yearly.
POWL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.80% yearly.
EPS Next Y16.16%
EPS Next 2Y10.83%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.65%
Revenue Next 2Y5.8%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 correctly with a Price/Earnings ratio of 12.37.
Compared to the rest of the industry, the Price/Earnings ratio of POWL indicates a rather cheap valuation: POWL is cheaper than 88.04% of the companies listed in the same industry.
POWL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
Based on the Price/Forward Earnings ratio of 10.79, the valuation of POWL can be described as reasonable.
Based on the Price/Forward Earnings ratio, POWL is valued cheaply inside the industry as 86.96% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of POWL to the average of the S&P500 Index (22.10), we can say POWL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.37 | ||
| Fwd PE | 10.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, POWL is valued cheaply inside the industry as 92.39% of the companies are valued more expensively.
POWL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. POWL is cheaper than 68.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.17 | ||
| EV/EBITDA | 7.68 |
4.3 Compensation for Growth
POWL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
POWL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.77
PEG (5Y)0.17
EPS Next 2Y10.83%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, POWL is not a good candidate for dividend investing.
The stock price of POWL dropped by -41.91% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
POWL's Dividend Yield is rather good when compared to the industry average which is at 3.97. POWL pays more dividend than 83.70% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, POWL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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
7.92% of the earnings are spent on dividend by POWL. This is a low number and sustainable payout ratio.
The dividend of POWL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP7.92%
EPS Next 2Y10.83%
EPS Next 3YN/A
162.86
+5.5 (+3.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.92%
Inst Owner Change-1.31%
Ins Owners2.48%
Ins Owner Change0.35%
Market Cap1.96B
Analysts80
Price Target254.05 (55.99%)
Short Float %16.9%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend1.06
Dividend Growth(5Y)0.42%
DP7.92%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.7%
Min EPS beat(2)4.11%
Max EPS beat(2)7.29%
EPS beat(4)4
Avg EPS beat(4)33.83%
Min EPS beat(4)4.11%
Max EPS beat(4)72.02%
EPS beat(8)8
Avg EPS beat(8)84.71%
EPS beat(12)12
Avg EPS beat(12)154.07%
EPS beat(16)13
Avg EPS beat(16)-0.58%
Revenue beat(2)1
Avg Revenue beat(2)-2.06%
Min Revenue beat(2)-5.87%
Max Revenue beat(2)1.75%
Revenue beat(4)3
Avg Revenue beat(4)11.8%
Min Revenue beat(4)-5.87%
Max Revenue beat(4)27.15%
Revenue beat(8)7
Avg Revenue beat(8)10.05%
Revenue beat(12)11
Avg Revenue beat(12)9.41%
Revenue beat(16)14
Avg Revenue beat(16)7.28%
PT rev (1m)0.54%
PT rev (3m)15.52%
EPS NQ rev (1m)1.47%
EPS NQ rev (3m)-1.48%
EPS NY rev (1m)2.99%
EPS NY rev (3m)2.02%
Revenue NQ rev (1m)1.22%
Revenue NQ rev (3m)0.28%
Revenue NY rev (1m)1.76%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.37 | ||
| Fwd PE | 10.79 | ||
| P/S | 1.85 | ||
| P/FCF | 40.17 | ||
| P/OCF | 31.76 | ||
| P/B | 3.96 | ||
| P/tB | 3.97 | ||
| EV/EBITDA | 7.68 |
EPS(TTM)13.17
EY8.09%
EPS(NY)15.1
Fwd EY9.27%
FCF(TTM)4.05
FCFY2.49%
OCF(TTM)5.13
OCFY3.15%
SpS87.87
BVpS41.16
TBVpS41.03
PEG (NY)0.77
PEG (5Y)0.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.59% | ||
| ROE | 32.34% | ||
| ROCE | 36.37% | ||
| ROIC | 28.28% | ||
| ROICexc | 153.9% | ||
| ROICexgc | 156.37% | ||
| OM | 17.71% | ||
| PM (TTM) | 15.15% | ||
| GM | 26.84% | ||
| FCFM | 4.61% |
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 Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 185.21% | ||
| Cap/Sales | 1.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 31.77% | ||
| Profit Quality | 30.46% | ||
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z | 5.91 |
F-Score7
WACC8.96%
ROIC/WACC3.16
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)114.15%
EPS 3Y489.48%
EPS 5Y73.14%
EPS Q2Q%44.44%
EPS Next Y16.16%
EPS Next 2Y10.83%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)38.27%
Revenue growth 3Y29.09%
Revenue growth 5Y14.38%
Sales Q2Q%24.44%
Revenue Next Year7.65%
Revenue Next 2Y5.8%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y114.27%
EBIT growth 3Y462.49%
EBIT growth 5Y75.8%
EBIT Next Year19.39%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y158.72%
FCF growth 3YN/A
FCF growth 5Y8.37%
OCF growth 1Y160.91%
OCF growth 3YN/A
OCF growth 5Y9.57%