POWER INTEGRATIONS INC (POWI) Fundamental Analysis & Valuation

NASDAQ:POWI • US7392761034

Current stock price

73.32 USD
+0.61 (+0.84%)
At close:
73.6918 USD
+0.37 (+0.51%)
After Hours:

This POWI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. POWI Profitability Analysis

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.
  • POWI had a positive operating cash flow in each of the past 5 years.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M

1.2 Ratios

  • POWI has a Return On Assets of 2.86%. This is comparable to the rest of the industry: POWI outperforms 60.00% of its industry peers.
  • Looking at the Return On Equity, with a value of 3.28%, POWI is in line with its industry, outperforming 54.78% of the companies in the same industry.
  • With a Return On Invested Capital value of 1.15%, POWI perfoms like the industry average, outperforming 50.43% of the companies in the same industry.
  • POWI had an Average Return On Invested Capital over the past 3 years of 2.19%. This is significantly below the industry average of 10.73%.
Industry RankSector Rank
ROA 2.86%
ROE 3.28%
ROIC 1.15%
ROA(3y)4.52%
ROA(5y)10.02%
ROE(3y)5%
ROE(5y)11.13%
ROIC(3y)2.19%
ROIC(5y)7.9%
POWI Yearly ROA, ROE, ROICPOWI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • The Profit Margin of POWI (4.98%) is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of POWI has declined.
  • POWI's Operating Margin of 2.30% is in line compared to the rest of the industry. POWI outperforms 50.43% of its industry peers.
  • POWI's Operating Margin has declined in the last couple of years.
  • POWI has a Gross Margin of 54.49%. This is in the better half of the industry: POWI outperforms 72.17% of its industry peers.
  • In the last couple of years the Gross Margin of POWI has grown nicely.
Industry RankSector Rank
OM 2.3%
PM (TTM) 4.98%
GM 54.49%
OM growth 3Y-56.39%
OM growth 5Y-30.75%
PM growth 3Y-42.53%
PM growth 5Y-19.33%
GM growth 3Y-1.12%
GM growth 5Y1.78%
POWI Yearly Profit, Operating, Gross MarginsPOWI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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9

2. POWI Health Analysis

2.1 Basic Checks

  • POWI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, POWI has less shares outstanding
  • POWI has less shares outstanding than it did 5 years ago.
  • 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.
POWI Yearly Shares OutstandingPOWI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M 40M 50M
POWI Yearly Total Debt VS Total AssetsPOWI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

2.2 Solvency

  • An Altman-Z score of 26.81 indicates that POWI is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 26.81, POWI belongs to the best of the industry, outperforming 85.22% of the companies in the same industry.
  • 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 26.81
ROIC/WACC0.09
WACC12.84%
POWI Yearly LT Debt VS Equity VS FCFPOWI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

2.3 Liquidity

  • A Current Ratio of 6.51 indicates that POWI has no problem at all paying its short term obligations.
  • With an excellent Current ratio value of 6.51, POWI belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
  • POWI has a Quick Ratio of 4.14. This indicates that POWI is financially healthy and has no problem in meeting its short term obligations.
  • POWI's Quick ratio of 4.14 is fine compared to the rest of the industry. POWI outperforms 71.30% of its industry peers.
Industry RankSector Rank
Current Ratio 6.51
Quick Ratio 4.14
POWI Yearly Current Assets VS Current LiabilitesPOWI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. POWI Growth Analysis

3.1 Past

  • POWI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.76%.
  • Measured over the past years, POWI shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.07% on average per year.
  • POWI shows a small growth in Revenue. In the last year, the Revenue has grown by 5.86%.
  • The Revenue has been decreasing by -1.91% on average over the past years.
EPS 1Y (TTM)7.76%
EPS 3Y-27.5%
EPS 5Y-6.07%
EPS Q2Q%-23.33%
Revenue 1Y (TTM)5.86%
Revenue growth 3Y-12.01%
Revenue growth 5Y-1.91%
Sales Q2Q%-1.94%

3.2 Future

  • Based on estimates for the next years, POWI will show a very strong growth in Earnings Per Share. The EPS will grow by 21.54% on average per year.
  • POWI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.87% yearly.
EPS Next Y5.59%
EPS Next 2Y22.6%
EPS Next 3Y21.54%
EPS Next 5YN/A
Revenue Next Year6.04%
Revenue Next 2Y11.17%
Revenue Next 3Y12.87%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 200M 400M 600M
POWI Yearly EPS VS EstimatesPOWI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3

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3

4. POWI Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 58.66, which means the current valuation is very expensive for POWI.
  • POWI's Price/Earnings ratio is a bit cheaper when compared to the industry. POWI is cheaper than 66.96% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.64, POWI is valued quite expensively.
  • A Price/Forward Earnings ratio of 55.55 indicates a quite expensive valuation of POWI.
  • POWI's Price/Forward Earnings is on the same level as the industry average.
  • POWI is valuated expensively when we compare the Price/Forward Earnings ratio to 21.36, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 58.66
Fwd PE 55.55
POWI Price Earnings VS Forward Price EarningsPOWI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • POWI's Enterprise Value to EBITDA is on the same level as the industry average.
  • POWI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. POWI is cheaper than 78.26% of the companies in the same industry.
Industry RankSector Rank
P/FCF 46.71
EV/EBITDA 94.06
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 high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates POWI does not grow enough to justify the current Price/Earnings ratio.
  • A more expensive valuation may be justified as POWI's earnings are expected to grow with 21.54% in the coming years.
PEG (NY)10.49
PEG (5Y)N/A
EPS Next 2Y22.6%
EPS Next 3Y21.54%

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6

5. POWI Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.18%, POWI has a reasonable but not impressive dividend return.
  • POWI's Dividend Yield is rather good when compared to the industry average which is at 0.42. POWI pays more dividend than 89.57% of the companies in the same industry.
  • POWI's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.18%

5.2 History

  • The dividend of POWI is nicely growing with an annual growth rate of 14.76%!
  • POWI has paid a dividend for at least 10 years, which is a reliable track record.
  • POWI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.76%
Div Incr Years13
Div Non Decr Years17
POWI Yearly Dividends per sharePOWI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8

5.3 Sustainability

  • 213.51% of the earnings are spent on dividend by POWI. This is not a sustainable payout ratio.
  • POWI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP213.51%
EPS Next 2Y22.6%
EPS Next 3Y21.54%
POWI Yearly Income VS Free CF VS DividendPOWI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
POWI Dividend Payout.POWI Dividend Payout, showing the Payout Ratio.POWI Dividend Payout.PayoutRetained Earnings

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POWI Fundamentals: All Metrics, Ratios and Statistics

POWER INTEGRATIONS INC

NASDAQ:POWI (5/1/2026, 8:00:01 PM)

After market: 73.6918 +0.37 (+0.51%)

73.32

+0.61 (+0.84%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Industry Strength93.17
Industry Growth91.93
Earnings (Last)02-05
Earnings (Next)05-07
Inst Owners110.24%
Inst Owner Change-0.02%
Ins Owners1.4%
Ins Owner Change11.03%
Market Cap4.07B
Revenue(TTM)443.50M
Net Income(TTM)22.09M
Analysts81.82
Price Target54.06 (-26.27%)
Short Float %7.61%
Short Ratio4.44
Dividend
Industry RankSector Rank
Dividend Yield 1.18%
Yearly Dividend0.84
Dividend Growth(5Y)14.76%
DP213.51%
Div Incr Years13
Div Non Decr Years17
Ex-Date02-27
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.34%
Min EPS beat(2)2.01%
Max EPS beat(2)18.68%
EPS beat(4)3
Avg EPS beat(4)6.72%
Min EPS beat(4)-0.83%
Max EPS beat(4)18.68%
EPS beat(8)7
Avg EPS beat(8)11.3%
EPS beat(12)9
Avg EPS beat(12)11.23%
EPS beat(16)12
Avg EPS beat(16)9.03%
Revenue beat(2)0
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-1.78%
Max Revenue beat(2)-1.56%
Revenue beat(4)0
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)-1.21%
Revenue beat(8)0
Avg Revenue beat(8)-1.28%
Revenue beat(12)0
Avg Revenue beat(12)-1.75%
Revenue beat(16)0
Avg Revenue beat(16)-2.12%
PT rev (1m)3.92%
PT rev (3m)7.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.67%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.44%
Valuation
Industry RankSector Rank
PE 58.66
Fwd PE 55.55
P/S 9.18
P/FCF 46.71
P/OCF 36.49
P/B 6.05
P/tB 7.13
EV/EBITDA 94.06
EPS(TTM)1.25
EY1.7%
EPS(NY)1.32
Fwd EY1.8%
FCF(TTM)1.57
FCFY2.14%
OCF(TTM)2.01
OCFY2.74%
SpS7.99
BVpS12.12
TBVpS10.28
PEG (NY)10.49
PEG (5Y)N/A
Graham Number18.4653 (-74.82%)
Profitability
Industry RankSector Rank
ROA 2.86%
ROE 3.28%
ROCE 1.45%
ROIC 1.15%
ROICexc 1.78%
ROICexgc 2.3%
OM 2.3%
PM (TTM) 4.98%
GM 54.49%
FCFM 19.64%
ROA(3y)4.52%
ROA(5y)10.02%
ROE(3y)5%
ROE(5y)11.13%
ROIC(3y)2.19%
ROIC(5y)7.9%
ROICexc(3y)3.6%
ROICexc(5y)15.54%
ROICexgc(3y)4.59%
ROICexgc(5y)20.29%
ROCE(3y)2.77%
ROCE(5y)10%
ROICexgc growth 3Y-62.38%
ROICexgc growth 5Y-34.7%
ROICexc growth 3Y-62.33%
ROICexc growth 5Y-34.01%
OM growth 3Y-56.39%
OM growth 5Y-30.75%
PM growth 3Y-42.53%
PM growth 5Y-19.33%
GM growth 3Y-1.12%
GM growth 5Y1.78%
F-Score7
Asset Turnover0.57
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 87.05%
Cap/Sales 5.5%
Interest Coverage 250
Cash Conversion 291.78%
Profit Quality 394.34%
Current Ratio 6.51
Quick Ratio 4.14
Altman-Z 26.81
F-Score7
WACC12.84%
ROIC/WACC0.09
Cap/Depr(3y)64.3%
Cap/Depr(5y)86.63%
Cap/Sales(3y)4.77%
Cap/Sales(5y)5.41%
Profit Quality(3y)224.36%
Profit Quality(5y)177.56%
High Growth Momentum
Growth
EPS 1Y (TTM)7.76%
EPS 3Y-27.5%
EPS 5Y-6.07%
EPS Q2Q%-23.33%
EPS Next Y5.59%
EPS Next 2Y22.6%
EPS Next 3Y21.54%
EPS Next 5YN/A
Revenue 1Y (TTM)5.86%
Revenue growth 3Y-12.01%
Revenue growth 5Y-1.91%
Sales Q2Q%-1.94%
Revenue Next Year6.04%
Revenue Next 2Y11.17%
Revenue Next 3Y12.87%
Revenue Next 5YN/A
EBIT growth 1Y-44.45%
EBIT growth 3Y-61.63%
EBIT growth 5Y-32.07%
EBIT Next Year44.19%
EBIT Next 3Y26.24%
EBIT Next 5YN/A
FCF growth 1Y36.35%
FCF growth 3Y-20.91%
FCF growth 5Y9.64%
OCF growth 1Y37.37%
OCF growth 3Y-19.69%
OCF growth 5Y-2.35%

POWER INTEGRATIONS INC / POWI Fundamental Analysis FAQ

What is the fundamental rating for POWI stock?

ChartMill assigns a fundamental rating of 6 / 10 to POWI.


What is the valuation status of POWER INTEGRATIONS INC (POWI) stock?

ChartMill assigns a valuation rating of 3 / 10 to POWER INTEGRATIONS INC (POWI). This can be considered as Overvalued.


Can you provide the profitability details for POWER INTEGRATIONS INC?

POWER INTEGRATIONS INC (POWI) has a profitability rating of 4 / 10.


What is the earnings growth outlook for POWER INTEGRATIONS INC?

The Earnings per Share (EPS) of POWER INTEGRATIONS INC (POWI) is expected to grow by 5.59% in the next year.


Can you provide the dividend sustainability for POWI stock?

The dividend rating of POWER INTEGRATIONS INC (POWI) is 6 / 10 and the dividend payout ratio is 213.51%.