POWER SOLUTIONS INTERNATIONA (PSIX) Stock Fundamental Analysis
NASDAQ:PSIX - Nasdaq - US73933G2021 - Common Stock - Currency: USD
PSIX gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 503 industry peers in the Electrical Equipment industry. Both the health and profitability get an excellent rating, making PSIX a very profitable company, without any liquidiy or solvency issues. PSIX is not valued too expensively and it also shows a decent growth rate. These ratings would make PSIX suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year PSIX was profitable.
PSIX had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PSIX reported negative net income in multiple years.
In multiple years PSIX reported negative operating cash flow during the last 5 years.
1.2 Ratios
PSIX has a better Return On Assets (21.80%) than 98.94% of its industry peers.
PSIX has a better Return On Equity (96.33%) than 100.00% of its industry peers.
PSIX's Return On Invested Capital of 31.06% is amongst the best of the industry. PSIX outperforms 100.00% of its industry peers.
PSIX had an Average Return On Invested Capital over the past 3 years of 27.16%. This is significantly above the industry average of 13.68%.
The 3 year average ROIC (27.16%) for PSIX is below the current ROIC(31.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.8% | ||
| ROE | 96.33% | ||
| ROIC | 31.06% |
ROA(3y)11.3%
ROA(5y)1.93%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)27.16%
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 15.74%, PSIX belongs to the best of the industry, outperforming 94.68% of the companies in the same industry.
In the last couple of years the Profit Margin of PSIX has grown nicely.
With an excellent Operating Margin value of 18.52%, PSIX belongs to the best of the industry, outperforming 94.68% of the companies in the same industry.
In the last couple of years the Operating Margin of PSIX has grown nicely.
PSIX has a better Gross Margin (30.04%) than 71.28% of its industry peers.
In the last couple of years the Gross Margin of PSIX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.52% | ||
| PM (TTM) | 15.74% | ||
| GM | 30.04% |
OM growth 3YN/A
OM growth 5Y40.35%
PM growth 3YN/A
PM growth 5Y57.51%
GM growth 3Y48.31%
GM growth 5Y10.05%
2. Health
2.1 Basic Checks
PSIX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for PSIX remains at a similar level compared to 1 year ago.
PSIX has more shares outstanding than it did 5 years ago.
PSIX has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.18 indicates that PSIX is not in any danger for bankruptcy at the moment.
The Altman-Z score of PSIX (5.18) is better than 81.91% of its industry peers.
PSIX has a debt to FCF ratio of 2.29. This is a good value and a sign of high solvency as PSIX would need 2.29 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.29, PSIX belongs to the top of the industry, outperforming 85.11% of the companies in the same industry.
PSIX has a Debt/Equity ratio of 1.31. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.31, PSIX is not doing good in the industry: 72.34% of the companies in the same industry are doing better.
Although PSIX does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 2.29 | ||
| Altman-Z | 5.18 |
ROIC/WACC3.11
WACC9.99%
2.3 Liquidity
PSIX has a Current Ratio of 1.16. This is a normal value and indicates that PSIX is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of PSIX (1.16) is worse than 67.02% of its industry peers.
PSIX has a Quick Ratio of 1.16. This is a bad value and indicates that PSIX is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.67, PSIX is not doing good in the industry: 72.34% of the companies in the same industry are doing better.
PSIX does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 152.27% over the past year.
PSIX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 51.27% yearly.
Looking at the last year, PSIX shows a quite strong growth in Revenue. The Revenue has grown by 17.90% in the last year.
Measured over the past years, PSIX shows a decrease in Revenue. The Revenue has been decreasing by -2.71% on average per year.
EPS 1Y (TTM)152.27%
EPS 3YN/A
EPS 5Y51.27%
EPS Q2Q%167.74%
Revenue 1Y (TTM)17.9%
Revenue growth 3Y1.42%
Revenue growth 5Y-2.71%
Sales Q2Q%42.22%
3.2 Future
Based on estimates for the next years, PSIX will show a small growth in Earnings Per Share. The EPS will grow by 7.78% on average per year.
PSIX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.76% yearly.
EPS Next Y9.26%
EPS Next 2Y7.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.18%
Revenue Next 2Y9.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.41, PSIX is valued on the expensive side.
Based on the Price/Earnings ratio, PSIX is valued cheaply inside the industry as 81.91% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.15, PSIX is valued a bit cheaper.
A Price/Forward Earnings ratio of 19.80 indicates a rather expensive valuation of PSIX.
Based on the Price/Forward Earnings ratio, PSIX is valued a bit cheaper than the industry average as 78.72% of the companies are valued more expensively.
PSIX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.41 | ||
| Fwd PE | 19.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PSIX indicates a somewhat cheap valuation: PSIX is cheaper than 79.79% of the companies listed in the same industry.
75.53% of the companies in the same industry are more expensive than PSIX, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.72 | ||
| EV/EBITDA | 14.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PSIX does not grow enough to justify the current Price/Earnings ratio.
PSIX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.1
PEG (5Y)0.38
EPS Next 2Y7.78%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for PSIX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:PSIX (7/1/2025, 12:13:09 PM)
64.64
-0.04 (-0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners13.66%
Inst Owner Change43.54%
Ins Owners1.7%
Ins Owner Change-15.85%
Market Cap1.49B
Analysts82.86
Price Target65.28 (0.99%)
Short Float %5.25%
Short Ratio0.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)51.56%
Min EPS beat(2)26.23%
Max EPS beat(2)76.9%
EPS beat(4)4
Avg EPS beat(4)55.44%
Min EPS beat(4)22.55%
Max EPS beat(4)96.08%
EPS beat(8)8
Avg EPS beat(8)82.39%
EPS beat(12)12
Avg EPS beat(12)362.6%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)12.56%
Min Revenue beat(2)0.55%
Max Revenue beat(2)24.57%
Revenue beat(4)2
Avg Revenue beat(4)4.87%
Min Revenue beat(4)-4.98%
Max Revenue beat(4)24.57%
Revenue beat(8)2
Avg Revenue beat(8)-0.93%
Revenue beat(12)6
Avg Revenue beat(12)1.1%
Revenue beat(16)6
Avg Revenue beat(16)-1.01%
PT rev (1m)0%
PT rev (3m)16.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)35.94%
EPS NY rev (1m)0%
EPS NY rev (3m)5.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)11.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.41 | ||
| Fwd PE | 19.8 | ||
| P/S | 2.88 | ||
| P/FCF | 30.72 | ||
| P/OCF | 26.77 | ||
| P/B | 17.63 | ||
| P/tB | 28.41 | ||
| EV/EBITDA | 14.28 |
EPS(TTM)3.33
EY5.15%
EPS(NY)3.26
Fwd EY5.05%
FCF(TTM)2.1
FCFY3.26%
OCF(TTM)2.42
OCFY3.74%
SpS22.43
BVpS3.67
TBVpS2.28
PEG (NY)2.1
PEG (5Y)0.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.8% | ||
| ROE | 96.33% | ||
| ROCE | 71.77% | ||
| ROIC | 31.06% | ||
| ROICexc | 39.1% | ||
| ROICexgc | 46.85% | ||
| OM | 18.52% | ||
| PM (TTM) | 15.74% | ||
| GM | 30.04% | ||
| FCFM | 9.38% |
ROA(3y)11.3%
ROA(5y)1.93%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)27.16%
ROIC(5y)N/A
ROICexc(3y)36.27%
ROICexc(5y)N/A
ROICexgc(3y)71.34%
ROICexgc(5y)N/A
ROCE(3y)1434.71%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y25.96%
ROICexc growth 3YN/A
ROICexc growth 5Y30.55%
OM growth 3YN/A
OM growth 5Y40.35%
PM growth 3YN/A
PM growth 5Y57.51%
GM growth 3Y48.31%
GM growth 5Y10.05%
F-Score5
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 2.29 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 138.4% | ||
| Cap/Sales | 1.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 55.14% | ||
| Profit Quality | 59.6% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 5.18 |
F-Score5
WACC9.99%
ROIC/WACC3.11
Cap/Depr(3y)65.93%
Cap/Depr(5y)50.73%
Cap/Sales(3y)0.78%
Cap/Sales(5y)0.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)152.27%
EPS 3YN/A
EPS 5Y51.27%
EPS Q2Q%167.74%
EPS Next Y9.26%
EPS Next 2Y7.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)17.9%
Revenue growth 3Y1.42%
Revenue growth 5Y-2.71%
Sales Q2Q%42.22%
Revenue Next Year11.18%
Revenue Next 2Y9.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y106.09%
EBIT growth 3YN/A
EBIT growth 5Y36.55%
EBIT Next Year13.47%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y314.23%
FCF growth 3YN/A
FCF growth 5Y31.91%
OCF growth 1Y310.72%
OCF growth 3YN/A
OCF growth 5Y28%