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POWER INTEGRATIONS INC (POWI)
US7392761034 - Common Stock
POWI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 107 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 is valied quite expensively at the moment, while it does show a decent growth rate.
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.
POWI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.80%, POWI is in the better half of the industry, outperforming 66.04% of the companies in the same industry.
With a Return On Equity value of 7.41%, POWI perfoms like the industry average, outperforming 59.43% of the companies in the same industry.
POWI has a Return On Invested Capital (3.59%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for POWI is in line with the industry average of 10.73%.
The last Return On Invested Capital (3.59%) for POWI is well below the 3 year average (12.17%), which needs to be investigated, but indicates that POWI had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 7.41% | ||
| ROIC | 3.59% |
ROA(3y)14.45%
ROA(5y)15.06%
ROE(3y)16.02%
ROE(5y)16.71%
ROIC(3y)12.17%
ROIC(5y)9.63%
1.3 Margins
POWI's Profit Margin of 12.55% is fine compared to the rest of the industry. POWI outperforms 64.15% of its industry peers.
POWI's Profit Margin has declined in the last couple of years.
POWI has a Operating Margin (7.88%) which is comparable to the rest of the industry.
POWI's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 51.50%, POWI is doing good in the industry, outperforming 66.98% 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 | 7.88% | ||
| PM (TTM) | 12.55% | ||
| GM | 51.5% |
OM growth 3Y-18.25%
OM growth 5Y-10.01%
PM growth 3Y-4.91%
PM growth 5Y-5.71%
GM growth 3Y1.07%
GM growth 5Y-0.05%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), POWI is creating some value.
POWI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for POWI has been reduced compared to 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
An Altman-Z score of 36.95 indicates that POWI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 36.95, POWI belongs to the best of the industry, outperforming 95.28% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 36.95 |
ROIC/WACC0.3
WACC12.11%
2.3 Liquidity
POWI has a Current Ratio of 10.47. This indicates that POWI is financially healthy and has no problem in meeting its short term obligations.
POWI has a better Current ratio (10.47) than 96.23% of its industry peers.
A Quick Ratio of 7.13 indicates that POWI has no problem at all paying its short term obligations.
POWI has a Quick ratio of 7.13. This is amongst the best in the industry. POWI outperforms 95.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 10.47 | ||
| Quick Ratio | 7.13 |
3. Growth
3.1 Past
The earnings per share for POWI have decreased strongly by -60.67% in the last year.
Measured over the past years, POWI shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.05% on average per year.
The Revenue for POWI has decreased by -31.73% in the past year. This is quite bad
POWI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.34% yearly.
EPS 1Y (TTM)-60.67%
EPS 3Y-8.97%
EPS 5Y-1.05%
EPS growth Q2Q-54.17%
Revenue 1Y (TTM)-31.73%
Revenue growth 3Y-3.08%
Revenue growth 5Y1.34%
Revenue growth Q2Q-28.28%
3.2 Future
The Earnings Per Share is expected to grow by 25.50% 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 12.98% yearly.
EPS Next Y-5.38%
EPS Next 2Y28.04%
EPS Next 3Y25.5%
EPS Next 5YN/A
Revenue Next Year0.83%
Revenue Next 2Y12.9%
Revenue Next 3Y12.98%
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
Based on the Price/Earnings ratio of 53.18, the valuation of POWI can be described as expensive.
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 (28.28), we can say POWI is valued expensively.
The Price/Forward Earnings ratio is 56.20, which means the current valuation is very expensive for POWI.
POWI's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of POWI to the average of the S&P500 Index (20.88), we can say POWI is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.18 | ||
| Fwd PE | 56.2 |
4.2 Price Multiples
POWI's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as POWI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 86.95 | ||
| EV/EBITDA | 45.66 |
4.3 Compensation for Growth
The decent profitability rating of POWI may justify a higher PE ratio.
POWI's earnings are expected to grow with 25.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y28.04%
EPS Next 3Y25.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.19%, POWI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.07, POWI pays a better dividend. On top of this POWI pays more dividend than 83.02% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, POWI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
The dividend of POWI is nicely growing with an annual growth rate of 19.29%!
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)19.29%
Div Incr Years11
Div Non Decr Years15
5.3 Sustainability
POWI pays out 78.91% of its income as dividend. This is not a sustainable payout ratio.
POWI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP78.91%
EPS Next 2Y28.04%
EPS Next 3Y25.5%
POWER INTEGRATIONS INC
NASDAQ:POWI (5/3/2024, 7:13:03 PM)
After market: 68.6 0 (0%)68.6
+0.63 (+0.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.90B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.18 | ||
| Fwd PE | 56.2 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 7.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.88% | ||
| PM (TTM) | 12.55% | ||
| GM | 51.5% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 10.47 | ||
| Quick Ratio | 7.13 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-60.67%
EPS 3Y-8.97%
EPS 5Y
EPS growth Q2Q
EPS Next Y-5.38%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-31.73%
Revenue growth 3Y-3.08%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y