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POWER INTEGRATIONS INC (POWI) Stock Fundamental Analysis

NASDAQ:POWI - Nasdaq - US7392761034 - Common Stock - Currency: USD

58.04  -0.66 (-1.12%)

After market: 58.04 0 (0%)

Fundamental Rating

6

Overall POWI gets a fundamental rating of 6 out of 10. We evaluated POWI against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. POWI is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. POWI is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year POWI was profitable.
In the past year POWI had a positive cash flow from operations.
In the past 5 years POWI has always been profitable.
Each year in the past 5 years POWI had a positive operating cash flow.
POWI Yearly Net Income VS EBIT VS OCF VS FCFPOWI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

1.2 Ratios

With a Return On Assets value of 4.55%, POWI perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
With a Return On Equity value of 5.04%, POWI perfoms like the industry average, outperforming 55.45% of the companies in the same industry.
The Return On Invested Capital of POWI (2.51%) is comparable to the rest of the industry.
POWI had an Average Return On Invested Capital over the past 3 years of 7.88%. This is below the industry average of 10.58%.
The 3 year average ROIC (7.88%) for POWI is well above the current ROIC(2.51%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 4.55%
ROE 5.04%
ROIC 2.51%
ROA(3y)10.34%
ROA(5y)11.02%
ROE(3y)11.45%
ROE(5y)12.23%
ROIC(3y)7.88%
ROIC(5y)8.99%
POWI Yearly ROA, ROE, ROICPOWI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

1.3 Margins

POWI's Profit Margin of 8.56% is fine compared to the rest of the industry. POWI outperforms 61.82% of its industry peers.
In the last couple of years the Profit Margin of POWI has declined.
The Operating Margin of POWI (5.59%) is comparable to the rest of the industry.
POWI's Operating Margin has declined in the last couple of years.
POWI has a better Gross Margin (54.34%) than 72.73% of its industry peers.
In the last couple of years the Gross Margin of POWI has remained more or less at the same level.
Industry RankSector Rank
OM 5.59%
PM (TTM) 8.56%
GM 54.34%
OM growth 3Y-44.4%
OM growth 5Y-17.81%
PM growth 3Y-30.96%
PM growth 5Y-30.07%
GM growth 3Y1.52%
GM growth 5Y1.13%
POWI Yearly Profit, Operating, Gross MarginsPOWI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

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9

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), POWI is destroying value.
POWI has about the same amout of shares outstanding than it did 1 year ago.
POWI has less shares outstanding than it did 5 years ago.
POWI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
POWI Yearly Shares OutstandingPOWI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
POWI Yearly Total Debt VS Total AssetsPOWI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

An Altman-Z score of 27.77 indicates that POWI is not in any danger for bankruptcy at the moment.
The Altman-Z score of POWI (27.77) is better than 92.73% of its industry peers.
There is no outstanding debt for POWI. 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 27.77
ROIC/WACC0.22
WACC11.61%
POWI Yearly LT Debt VS Equity VS FCFPOWI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

2.3 Liquidity

POWI has a Current Ratio of 9.10. This indicates that POWI is financially healthy and has no problem in meeting its short term obligations.
POWI has a Current ratio of 9.10. This is amongst the best in the industry. POWI outperforms 94.55% of its industry peers.
A Quick Ratio of 6.02 indicates that POWI has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 6.02, POWI belongs to the top of the industry, outperforming 89.09% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 9.1
Quick Ratio 6.02
POWI Yearly Current Assets VS Current LiabilitesPOWI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 5.74% over the past year.
The Earnings Per Share has been decreasing by -2.03% on average over the past years.
The Revenue has been growing slightly by 0.68% in the past year.
Measured over the past years, POWI shows a decrease in Revenue. The Revenue has been decreasing by -0.08% on average per year.
EPS 1Y (TTM)5.74%
EPS 3Y-29.14%
EPS 5Y-2.03%
EPS Q2Q%72.22%
Revenue 1Y (TTM)0.68%
Revenue growth 3Y-15.86%
Revenue growth 5Y-0.08%
Sales Q2Q%15.1%

3.2 Future

The Earnings Per Share is expected to grow by 27.37% on average over the next years. This is a very strong growth
POWI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.11% yearly.
EPS Next Y37%
EPS Next 2Y32.75%
EPS Next 3Y27.37%
EPS Next 5YN/A
Revenue Next Year13.78%
Revenue Next 2Y14.94%
Revenue Next 3Y15.11%
Revenue Next 5YN/A

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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
POWI Yearly Revenue VS EstimatesPOWI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 200M 400M 600M
POWI Yearly EPS VS EstimatesPOWI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3

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3

4. Valuation

4.1 Price/Earnings Ratio

POWI is valuated quite expensively with a Price/Earnings ratio of 44.99.
The rest of the industry has a similar Price/Earnings ratio as POWI.
When comparing the Price/Earnings ratio of POWI to the average of the S&P500 Index (27.30), we can say POWI is valued expensively.
With a Price/Forward Earnings ratio of 28.39, POWI can be considered very expensive at the moment.
POWI's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.76. POWI is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 44.99
Fwd PE 28.39
POWI Price Earnings VS Forward Price EarningsPOWI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

POWI's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, POWI is valued a bit cheaper than 64.55% of the companies in the same industry.
Industry RankSector Rank
P/FCF 44.76
EV/EBITDA 48.73
POWI Per share dataPOWI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as POWI's earnings are expected to grow with 27.37% in the coming years.
PEG (NY)1.22
PEG (5Y)N/A
EPS Next 2Y32.75%
EPS Next 3Y27.37%

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6

5. Dividend

5.1 Amount

POWI has a Yearly Dividend Yield of 1.43%.
Compared to an average industry Dividend Yield of 2.17, POWI pays a better dividend. On top of this POWI pays more dividend than 84.55% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.35, POWI is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.43%

5.2 History

On average, the dividend of POWI grows each year by 18.21%, which is quite nice.
POWI has been paying a dividend for at least 10 years, so it has a reliable track record.
POWI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)18.21%
Div Incr Years12
Div Non Decr Years16
POWI Yearly Dividends per sharePOWI Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

125.74% of the earnings are spent on dividend by POWI. This is not a sustainable payout ratio.
The dividend of POWI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP125.74%
EPS Next 2Y32.75%
EPS Next 3Y27.37%
POWI Yearly Income VS Free CF VS DividendPOWI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
POWI Dividend Payout.POWI Dividend Payout, showing the Payout Ratio.POWI Dividend Payout.PayoutRetained Earnings

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POWER INTEGRATIONS INC

NASDAQ:POWI (7/11/2025, 8:00:00 PM)

After market: 58.04 0 (0%)

58.04

-0.66 (-1.12%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)05-12 2025-05-12/amc
Earnings (Next)07-31 2025-07-31/amc
Inst Owners106%
Inst Owner Change0%
Ins Owners1.27%
Ins Owner Change5.55%
Market Cap3.27B
Analysts81.82
Price Target70.18 (20.92%)
Short Float %4.9%
Short Ratio5.12
Dividend
Industry RankSector Rank
Dividend Yield 1.43%
Yearly Dividend0.81
Dividend Growth(5Y)18.21%
DP125.74%
Div Incr Years12
Div Non Decr Years16
Ex-Date05-30 2025-05-30 (0.21)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.79%
Min EPS beat(2)6.56%
Max EPS beat(2)7.01%
EPS beat(4)4
Avg EPS beat(4)6.85%
Min EPS beat(4)4.91%
Max EPS beat(4)8.93%
EPS beat(8)7
Avg EPS beat(8)14.44%
EPS beat(12)9
Avg EPS beat(12)10%
EPS beat(16)13
Avg EPS beat(16)9.28%
Revenue beat(2)0
Avg Revenue beat(2)-1.84%
Min Revenue beat(2)-1.86%
Max Revenue beat(2)-1.82%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-1.86%
Max Revenue beat(4)-0.89%
Revenue beat(8)0
Avg Revenue beat(8)-1.91%
Revenue beat(12)0
Avg Revenue beat(12)-2.38%
Revenue beat(16)1
Avg Revenue beat(16)-1.85%
PT rev (1m)-3.91%
PT rev (3m)-11.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.24%
Valuation
Industry RankSector Rank
PE 44.99
Fwd PE 28.39
P/S 7.55
P/FCF 44.76
P/OCF 35.64
P/B 4.44
P/tB 5.16
EV/EBITDA 48.73
EPS(TTM)1.29
EY2.22%
EPS(NY)2.04
Fwd EY3.52%
FCF(TTM)1.3
FCFY2.23%
OCF(TTM)1.63
OCFY2.81%
SpS7.69
BVpS13.07
TBVpS11.24
PEG (NY)1.22
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 4.55%
ROE 5.04%
ROCE 3.18%
ROIC 2.51%
ROICexc 4.06%
ROICexgc 5.2%
OM 5.59%
PM (TTM) 8.56%
GM 54.34%
FCFM 16.86%
ROA(3y)10.34%
ROA(5y)11.02%
ROE(3y)11.45%
ROE(5y)12.23%
ROIC(3y)7.88%
ROIC(5y)8.99%
ROICexc(3y)14.11%
ROICexc(5y)18.03%
ROICexgc(3y)18.24%
ROICexgc(5y)23.71%
ROCE(3y)9.98%
ROCE(5y)11.38%
ROICexcg growth 3Y-55.85%
ROICexcg growth 5Y-25.1%
ROICexc growth 3Y-55.34%
ROICexc growth 5Y-23.04%
OM growth 3Y-44.4%
OM growth 5Y-17.81%
PM growth 3Y-30.96%
PM growth 5Y-30.07%
GM growth 3Y1.52%
GM growth 5Y1.13%
F-Score6
Asset Turnover0.53
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 56.96%
Cap/Sales 4.31%
Interest Coverage 250
Cash Conversion 160.95%
Profit Quality 196.91%
Current Ratio 9.1
Quick Ratio 6.02
Altman-Z 27.77
F-Score6
WACC11.61%
ROIC/WACC0.22
Cap/Depr(3y)70.32%
Cap/Depr(5y)119.47%
Cap/Sales(3y)4.95%
Cap/Sales(5y)7.21%
Profit Quality(3y)127.26%
Profit Quality(5y)114.14%
High Growth Momentum
Growth
EPS 1Y (TTM)5.74%
EPS 3Y-29.14%
EPS 5Y-2.03%
EPS Q2Q%72.22%
EPS Next Y37%
EPS Next 2Y32.75%
EPS Next 3Y27.37%
EPS Next 5YN/A
Revenue 1Y (TTM)0.68%
Revenue growth 3Y-15.86%
Revenue growth 5Y-0.08%
Sales Q2Q%15.1%
Revenue Next Year13.78%
Revenue Next 2Y14.94%
Revenue Next 3Y15.11%
Revenue Next 5YN/A
EBIT growth 1Y-18.65%
EBIT growth 3Y-53.22%
EBIT growth 5Y-17.88%
EBIT Next Year82.16%
EBIT Next 3Y31.38%
EBIT Next 5YN/A
FCF growth 1Y-43.28%
FCF growth 3Y-29.66%
FCF growth 5Y-20.36%
OCF growth 1Y-41.73%
OCF growth 3Y-29.42%
OCF growth 5Y-18.41%