POWER INTEGRATIONS INC (POWI) Stock Fundamental Analysis
NASDAQ:POWI - US7392761034 - Common Stock
44.73 USD
+0.82 (+1.87%)
44.73 USD
0 (0%)
POWI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. POWI has an excellent financial health rating, but there are some minor concerns on its profitability. POWI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
POWI had positive earnings in the past year.
POWI had a positive operating cash flow in the past year.
In the past 5 years POWI has always been profitable.
Each year in the past 5 years POWI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of POWI (4.21%) is better than 66.96% of its industry peers.
POWI has a Return On Equity of 4.77%. This is in the better half of the industry: POWI outperforms 61.61% of its industry peers.
The Return On Invested Capital of POWI (2.25%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for POWI is below the industry average of 10.74%.
The last Return On Invested Capital (2.25%) for POWI is well below the 3 year average (7.88%), which needs to be investigated, but indicates that POWI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 4.77% | ||
| ROIC | 2.25% |
ROA(3y)10.34%
ROA(5y)11.02%
ROE(3y)11.45%
ROE(5y)12.23%
ROIC(3y)7.88%
ROIC(5y)8.99%
1.3 Margins
POWI's Profit Margin of 7.59% is fine compared to the rest of the industry. POWI outperforms 64.29% of its industry peers.
In the last couple of years the Profit Margin of POWI has declined.
POWI's Operating Margin of 4.72% is in line compared to the rest of the industry. POWI outperforms 51.79% of its industry peers.
POWI's Operating Margin has declined in the last couple of years.
The Gross Margin of POWI (54.83%) is better than 74.11% 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.72% | ||
| PM (TTM) | 7.59% | ||
| GM | 54.83% |
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%
2. Health
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.
The number of shares outstanding for POWI remains at a similar level compared to 1 year ago.
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.
2.2 Solvency
POWI has an Altman-Z score of 18.27. This indicates that POWI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of POWI (18.27) is better than 88.39% of its industry peers.
POWI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 18.27 |
ROIC/WACC0.2
WACC11.37%
2.3 Liquidity
POWI has a Current Ratio of 7.43. This indicates that POWI is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 7.43, POWI belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
POWI has a Quick Ratio of 4.84. This indicates that POWI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 4.84, POWI belongs to the top of the industry, outperforming 80.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.43 | ||
| Quick Ratio | 4.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.30% over the past year.
Measured over the past years, POWI shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.03% on average per year.
POWI shows a small growth in Revenue. In the last year, the Revenue has grown by 7.16%.
POWI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.08% yearly.
EPS 1Y (TTM)19.3%
EPS 3Y-29.14%
EPS 5Y-2.03%
EPS Q2Q%25%
Revenue 1Y (TTM)7.16%
Revenue growth 3Y-15.86%
Revenue growth 5Y-0.08%
Sales Q2Q%9.09%
3.2 Future
The Earnings Per Share is expected to grow by 23.65% on average over the next years. This is a very strong growth
Based on estimates for the next years, POWI will show a quite strong growth in Revenue. The Revenue will grow by 13.38% on average per year.
EPS Next Y15.37%
EPS Next 2Y22.41%
EPS Next 3Y23.65%
EPS Next 5YN/A
Revenue Next Year8.92%
Revenue Next 2Y11.6%
Revenue Next 3Y13.38%
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.
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
The Price/Earnings ratio is 32.89, which means the current valuation is very expensive for POWI.
Based on the Price/Earnings ratio, POWI is valued a bit cheaper than the industry average as 63.39% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of POWI to the average of the S&P500 Index (26.84), we can say POWI is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 25.74, the valuation of POWI can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of POWI is on the same level as its industry peers.
POWI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.48, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.89 | ||
| Fwd PE | 25.74 |
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 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.35 | ||
| EV/EBITDA | 38.21 |
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.
POWI has a very decent profitability rating, which may justify a higher PE ratio.
POWI's earnings are expected to grow with 23.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.14
PEG (5Y)N/A
EPS Next 2Y22.41%
EPS Next 3Y23.65%
5. Dividend
5.1 Amount
POWI has a Yearly Dividend Yield of 1.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.35, POWI pays a better dividend. On top of this POWI pays more dividend than 88.39% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.32, POWI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
5.2 History
The dividend of POWI is nicely growing with an annual growth rate of 18.21%!
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)18.21%
Div Incr Years12
Div Non Decr Years16
5.3 Sustainability
140.13% 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.
DP140.13%
EPS Next 2Y22.41%
EPS Next 3Y23.65%
44.73
+0.82 (+1.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners105.39%
Inst Owner Change-3.52%
Ins Owners1.31%
Ins Owner Change2.7%
Market Cap2.51B
Analysts81.82
Price Target62.02 (38.65%)
Short Float %4.34%
Short Ratio4.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.81% |
Yearly Dividend0.81
Dividend Growth(5Y)18.21%
DP140.13%
Div Incr Years12
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.09%
Min EPS beat(2)-0.83%
Max EPS beat(2)7.01%
EPS beat(4)3
Avg EPS beat(4)5.42%
Min EPS beat(4)-0.83%
Max EPS beat(4)8.93%
EPS beat(8)6
Avg EPS beat(8)13.8%
EPS beat(12)8
Avg EPS beat(12)9.66%
EPS beat(16)12
Avg EPS beat(16)8.66%
Revenue beat(2)0
Avg Revenue beat(2)-1.51%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)-1.21%
Revenue beat(4)0
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-1.86%
Max Revenue beat(4)-1.06%
Revenue beat(8)0
Avg Revenue beat(8)-1.9%
Revenue beat(12)0
Avg Revenue beat(12)-2.05%
Revenue beat(16)0
Avg Revenue beat(16)-2.01%
PT rev (1m)-11.63%
PT rev (3m)-15.08%
EPS NQ rev (1m)-22.07%
EPS NQ rev (3m)-23.79%
EPS NY rev (1m)-15.79%
EPS NY rev (3m)-15.79%
Revenue NQ rev (1m)-6.82%
Revenue NQ rev (3m)-6.63%
Revenue NY rev (1m)-4.27%
Revenue NY rev (3m)-4.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.89 | ||
| Fwd PE | 25.74 | ||
| P/S | 5.67 | ||
| P/FCF | 30.35 | ||
| P/OCF | 24.34 | ||
| P/B | 3.57 | ||
| P/tB | 4.18 | ||
| EV/EBITDA | 38.21 |
EPS(TTM)1.36
EY3.04%
EPS(NY)1.74
Fwd EY3.89%
FCF(TTM)1.47
FCFY3.29%
OCF(TTM)1.84
OCFY4.11%
SpS7.89
BVpS12.55
TBVpS10.71
PEG (NY)2.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.21% | ||
| ROE | 4.77% | ||
| ROCE | 2.85% | ||
| ROIC | 2.25% | ||
| ROICexc | 3.56% | ||
| ROICexgc | 4.57% | ||
| OM | 4.72% | ||
| PM (TTM) | 7.59% | ||
| GM | 54.83% | ||
| FCFM | 18.68% |
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-Score7
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 65.32% | ||
| Cap/Sales | 4.62% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 197.71% | ||
| Profit Quality | 246.13% | ||
| Current Ratio | 7.43 | ||
| Quick Ratio | 4.84 | ||
| Altman-Z | 18.27 |
F-Score7
WACC11.37%
ROIC/WACC0.2
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)19.3%
EPS 3Y-29.14%
EPS 5Y-2.03%
EPS Q2Q%25%
EPS Next Y15.37%
EPS Next 2Y22.41%
EPS Next 3Y23.65%
EPS Next 5YN/A
Revenue 1Y (TTM)7.16%
Revenue growth 3Y-15.86%
Revenue growth 5Y-0.08%
Sales Q2Q%9.09%
Revenue Next Year8.92%
Revenue Next 2Y11.6%
Revenue Next 3Y13.38%
Revenue Next 5YN/A
EBIT growth 1Y9.42%
EBIT growth 3Y-53.22%
EBIT growth 5Y-17.88%
EBIT Next Year82.16%
EBIT Next 3Y31.38%
EBIT Next 5YN/A
FCF growth 1Y5.72%
FCF growth 3Y-29.66%
FCF growth 5Y-20.36%
OCF growth 1Y6.62%
OCF growth 3Y-29.42%
OCF growth 5Y-18.41%