POWELL INDUSTRIES INC (NASDAQ:POWL): good value for what you're paying.

Our stock screening tool has identified POWELL INDUSTRIES INC (NASDAQ:POWL) as an undervalued gem with strong fundamentals. POWL boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

Assessing Valuation Metrics for POWL

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. POWL was assigned a score of 7 for valuation:

• Based on the Price/Earnings ratio, POWL is valued cheaper than 87.10% of the companies in the same industry.
• POWL is valuated cheaply when we compare the Price/Earnings ratio to 28.63, which is the current average of the S&P500 Index.
• Based on the Price/Forward Earnings ratio, POWL is valued cheaper than 87.10% of the companies in the same industry.
• POWL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.72.
• POWL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. POWL is cheaper than 90.32% of the companies in the same industry.
• POWL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. POWL is cheaper than 68.82% of the companies in the same industry.
• POWL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The excellent profitability rating of POWL may justify a higher PE ratio.

Profitability Examination for POWL

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For POWL, the assigned 9 is a significant indicator of profitability:

• POWL's Return On Assets of 17.59% is amongst the best of the industry. POWL outperforms 98.92% of its industry peers.
• The Return On Equity of POWL (32.34%) is better than 96.77% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 28.28%, POWL belongs to the top of the industry, outperforming 98.92% 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 9.82%.
• The 3 year average ROIC (14.37%) for POWL is below the current ROIC(28.28%), indicating increased profibility in the last year.
• POWL's Profit Margin of 15.15% is amongst the best of the industry. POWL outperforms 96.77% of its industry peers.
• POWL's Profit Margin has improved in the last couple of years.
• POWL's Operating Margin of 17.71% is amongst the best of the industry. POWL outperforms 93.55% of its industry peers.
• In the last couple of years the Operating Margin of POWL has grown nicely.
• The Gross Margin of POWL (26.84%) is better than 62.37% of its industry peers.
• In the last couple of years the Gross Margin of POWL has grown nicely.

Understanding POWL's Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of POWL, the assigned 7 reflects its health status:

• POWL has an Altman-Z score of 6.23. This indicates that POWL is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 6.23, POWL belongs to the best of the industry, outperforming 93.55% 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.
• POWL has a Quick ratio of 1.70. This is in the better half of the industry: POWL outperforms 66.67% of its industry peers.

Growth Examination for POWL

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. POWL scores a 6 out of 10:

• The Earnings Per Share has grown by an impressive 114.15% over the past year.
• POWL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 73.14% yearly.
• POWL shows a strong growth in Revenue. In the last year, the Revenue has grown by 38.27%.
• POWL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.38% yearly.
• The Earnings Per Share is expected to grow by 10.83% on average over the next years. This is quite good.

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Our latest full fundamental report of POWL contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.