POWER INTEGRATIONS INC (POWI) Stock Fundamental Analysis
NASDAQ:POWI - Nasdaq - US7392761034 - Common Stock - Currency: USD
POWI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals 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 has a decent growth rate and is not valued too expensively.
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.
POWI had positive earnings in each of the past 5 years.
POWI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of POWI (4.55%) is better than 64.55% of its industry peers.
POWI has a Return On Equity (5.04%) which is in line with its industry peers.
POWI has a Return On Invested Capital (2.51%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for POWI is below the industry average of 10.87%.
The last Return On Invested Capital (2.51%) 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 | 4.55% | ||
| 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%
1.3 Margins
Looking at the Profit Margin, with a value of 8.56%, POWI is in the better half of the industry, outperforming 62.73% of the companies in the same industry.
POWI's Profit Margin has declined in the last couple of years.
POWI's Operating Margin of 5.59% is in line compared to the rest of the industry. POWI outperforms 53.64% of its industry peers.
POWI's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 54.34%, POWI is doing good in the industry, outperforming 70.00% of the companies in the same industry.
POWI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so POWI is destroying value.
Compared to 1 year ago, POWI has about the same amount of shares outstanding.
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.
2.2 Solvency
An Altman-Z score of 21.38 indicates that POWI is not in any danger for bankruptcy at the moment.
POWI has a better Altman-Z score (21.38) than 91.82% 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 | 21.38 |
ROIC/WACC0.22
WACC11.38%
2.3 Liquidity
A Current Ratio of 9.10 indicates that POWI has no problem at all paying its short term obligations.
POWI's Current ratio of 9.10 is amongst the best of 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.
POWI has a Quick ratio of 6.02. This is amongst the best in the industry. POWI outperforms 89.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9.1 | ||
| Quick Ratio | 6.02 |
3. Growth
3.1 Past
POWI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.30%, which is quite good.
POWI shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.03% yearly.
Looking at the last year, POWI shows a decrease in Revenue. The Revenue has decreased by -5.75% in the last 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)19.3%
EPS 3Y-29.14%
EPS 5Y-2.03%
EPS Q2Q%25%
Revenue 1Y (TTM)-5.75%
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 27.37% 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 15.11% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 33.67, the valuation of POWI can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of POWI indicates a somewhat cheap valuation: POWI is cheaper than 63.64% of the companies listed in the same industry.
POWI is valuated rather expensively when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.40, which indicates a rather expensive current valuation of POWI.
Based on the Price/Forward Earnings ratio, POWI is valued a bit cheaper than the industry average as 67.27% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 33.87. POWI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.67 | ||
| Fwd PE | 22.4 |
4.2 Price Multiples
POWI's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of POWI indicates a somewhat cheap valuation: POWI is cheaper than 70.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.31 | ||
| EV/EBITDA | 34.04 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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)0.91
PEG (5Y)N/A
EPS Next 2Y32.75%
EPS Next 3Y27.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.90%, 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 2.47. POWI pays more dividend than 87.27% of the companies in the same industry.
POWI's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
5.2 History
The dividend of POWI is nicely growing with an annual growth rate of 18.21%!
POWI has been paying a dividend for at least 10 years, so it has 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
125.74% 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.
DP125.74%
EPS Next 2Y32.75%
EPS Next 3Y27.37%
NASDAQ:POWI (8/12/2025, 1:44:52 PM)
45.79
+1.95 (+4.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners105.39%
Inst Owner Change-1.07%
Ins Owners1.31%
Ins Owner Change4.03%
Market Cap2.58B
Analysts81.82
Price Target70.18 (53.26%)
Short Float %4.38%
Short Ratio5.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.9% |
Yearly Dividend0.81
Dividend Growth(5Y)18.21%
DP125.74%
Div Incr Years12
Div Non Decr Years16
Ex-Date
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)0%
PT rev (3m)-3.91%
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)0.06%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.67 | ||
| Fwd PE | 22.4 | ||
| P/S | 5.96 | ||
| P/FCF | 35.31 | ||
| P/OCF | 28.12 | ||
| P/B | 3.5 | ||
| P/tB | 4.07 | ||
| EV/EBITDA | 34.04 |
EPS(TTM)1.36
EY2.97%
EPS(NY)2.04
Fwd EY4.46%
FCF(TTM)1.3
FCFY2.83%
OCF(TTM)1.63
OCFY3.56%
SpS7.69
BVpS13.07
TBVpS11.24
PEG (NY)0.91
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 21.38 |
F-Score6
WACC11.38%
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)19.3%
EPS 3Y-29.14%
EPS 5Y-2.03%
EPS Q2Q%25%
EPS Next Y37%
EPS Next 2Y32.75%
EPS Next 3Y27.37%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.75%
Revenue growth 3Y-15.86%
Revenue growth 5Y-0.08%
Sales Q2Q%9.09%
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%