33.06 USD
+2.14 (+6.92%)
33.06 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to POWI. POWI was compared to 112 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
POWI had positive earnings in the past year.
In the past year POWI had a positive cash flow from operations.
In the past 5 years POWI has always been profitable.
In the past 5 years POWI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of POWI (2.32%) is comparable to the rest of the industry.
POWI has a Return On Equity (2.67%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 0.60%, POWI is in line with its industry, outperforming 48.21% of the companies in the same industry.
POWI had an Average Return On Invested Capital over the past 3 years of 7.88%. This is below the industry average of 10.84%.
The last Return On Invested Capital (0.60%) 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 | 2.32% | ||
| ROE | 2.67% | ||
| ROIC | 0.6% |
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
The Profit Margin of POWI (4.03%) is comparable to the rest of the industry.
POWI's Profit Margin has declined in the last couple of years.
POWI has a Operating Margin of 1.20%. This is comparable to the rest of the industry: POWI outperforms 48.21% 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 75.00% of its industry peers.
POWI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.2% | ||
| PM (TTM) | 4.03% | ||
| 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.
Compared to 1 year ago, POWI has about the same amount of shares outstanding.
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
POWI has an Altman-Z score of 13.33. This indicates that POWI is financially healthy and has little risk of bankruptcy at the moment.
POWI has a better Altman-Z score (13.33) than 82.14% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 13.33 |
ROIC/WACC0.06
WACC10.61%
2.3 Liquidity
A Current Ratio of 6.41 indicates that POWI has no problem at all paying its short term obligations.
POWI's Current ratio of 6.41 is amongst the best of the industry. POWI outperforms 83.04% of its industry peers.
POWI has a Quick Ratio of 4.10. 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 4.10, POWI is in the better half of the industry, outperforming 75.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.41 | ||
| Quick Ratio | 4.1 |
3. Growth
3.1 Past
POWI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.22%, which is quite impressive.
The Earnings Per Share has been decreasing by -2.03% on average over the past years.
POWI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.50%.
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)22.22%
EPS 3Y-29.14%
EPS 5Y-2.03%
EPS Q2Q%-10%
Revenue 1Y (TTM)10.5%
Revenue growth 3Y-15.86%
Revenue growth 5Y-0.08%
Sales Q2Q%2.66%
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 23.65% on average per year.
POWI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.38% yearly.
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
Based on the Price/Earnings ratio of 25.05, the valuation of POWI can be described as expensive.
POWI's Price/Earnings ratio is a bit cheaper when compared to the industry. POWI is cheaper than 77.68% of the companies in the same industry.
POWI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.02 indicates a rather expensive valuation of POWI.
POWI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. POWI is cheaper than 76.79% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.46. POWI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.05 | ||
| Fwd PE | 19.02 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as POWI.
Based on the Price/Free Cash Flow ratio, POWI is valued cheaply inside the industry as 82.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.88 | ||
| EV/EBITDA | 41.06 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
POWI's earnings are expected to grow with 23.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.63
PEG (5Y)N/A
EPS Next 2Y22.41%
EPS Next 3Y23.65%
5. Dividend
5.1 Amount
POWI has a Yearly Dividend Yield of 2.72%. Purely for dividend investing, there may be better candidates out there.
The stock price of POWI dropped by -30.28% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.30, POWI pays a better dividend. On top of this POWI pays more dividend than 92.86% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, POWI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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 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
5.3 Sustainability
265.02% 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.
DP265.02%
EPS Next 2Y22.41%
EPS Next 3Y23.65%
33.06
+2.14 (+6.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners103.29%
Inst Owner Change0.43%
Ins Owners1.32%
Ins Owner Change3.21%
Market Cap1.83B
Revenue(TTM)445.55M
Net Income(TTM)17.94M
Analysts81.82
Price Target50.39 (52.42%)
Short Float %6.71%
Short Ratio3.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
Yearly Dividend0.81
Dividend Growth(5Y)18.21%
DP265.02%
Div Incr Years12
Div Non Decr Years16
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.59%
Min EPS beat(2)-0.83%
Max EPS beat(2)2.01%
EPS beat(4)3
Avg EPS beat(4)3.69%
Min EPS beat(4)-0.83%
Max EPS beat(4)7.01%
EPS beat(8)7
Avg EPS beat(8)14.64%
EPS beat(12)9
Avg EPS beat(12)9.89%
EPS beat(16)12
Avg EPS beat(16)8.42%
Revenue beat(2)0
Avg Revenue beat(2)-1.38%
Min Revenue beat(2)-1.56%
Max Revenue beat(2)-1.21%
Revenue beat(4)0
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-1.86%
Max Revenue beat(4)-1.21%
Revenue beat(8)0
Avg Revenue beat(8)-1.39%
Revenue beat(12)0
Avg Revenue beat(12)-1.81%
Revenue beat(16)0
Avg Revenue beat(16)-2.04%
PT rev (1m)-18.75%
PT rev (3m)-28.2%
EPS NQ rev (1m)-42.07%
EPS NQ rev (3m)-42.07%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.79%
Revenue NQ rev (1m)-11.57%
Revenue NQ rev (3m)-11.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.05 | ||
| Fwd PE | 19.02 | ||
| P/S | 4.11 | ||
| P/FCF | 22.88 | ||
| P/OCF | 18.24 | ||
| P/B | 2.72 | ||
| P/tB | 3.21 | ||
| EV/EBITDA | 41.06 |
EPS(TTM)1.32
EY3.99%
EPS(NY)1.74
Fwd EY5.26%
FCF(TTM)1.44
FCFY4.37%
OCF(TTM)1.81
OCFY5.48%
SpS8.05
BVpS12.14
TBVpS10.29
PEG (NY)1.63
PEG (5Y)N/A
Graham Number18.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.32% | ||
| ROE | 2.67% | ||
| ROCE | 0.76% | ||
| ROIC | 0.6% | ||
| ROICexc | 0.92% | ||
| ROICexgc | 1.18% | ||
| OM | 1.2% | ||
| PM (TTM) | 4.03% | ||
| GM | 54.83% | ||
| FCFM | 17.95% |
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%
ROICexgc growth 3Y-55.85%
ROICexgc 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 Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 71.09% | ||
| Cap/Sales | 4.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 295.39% | ||
| Profit Quality | 445.67% | ||
| Current Ratio | 6.41 | ||
| Quick Ratio | 4.1 | ||
| Altman-Z | 13.33 |
F-Score7
WACC10.61%
ROIC/WACC0.06
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)22.22%
EPS 3Y-29.14%
EPS 5Y-2.03%
EPS Q2Q%-10%
EPS Next Y15.37%
EPS Next 2Y22.41%
EPS Next 3Y23.65%
EPS Next 5YN/A
Revenue 1Y (TTM)10.5%
Revenue growth 3Y-15.86%
Revenue growth 5Y-0.08%
Sales Q2Q%2.66%
Revenue Next Year8.92%
Revenue Next 2Y11.6%
Revenue Next 3Y13.38%
Revenue Next 5YN/A
EBIT growth 1Y-60.09%
EBIT growth 3Y-53.22%
EBIT growth 5Y-17.88%
EBIT Next Year102.58%
EBIT Next 3Y27.71%
EBIT Next 5YN/A
FCF growth 1Y50.6%
FCF growth 3Y-29.66%
FCF growth 5Y-20.36%
OCF growth 1Y36.29%
OCF growth 3Y-29.42%
OCF growth 5Y-18.41%
POWER INTEGRATIONS INC / POWI FAQ
What is the fundamental rating for POWI stock?
ChartMill assigns a fundamental rating of 6 / 10 to POWI.
What is the valuation status for POWI stock?
ChartMill assigns a valuation rating of 5 / 10 to POWER INTEGRATIONS INC (POWI). This can be considered as Fairly Valued.
How profitable is POWER INTEGRATIONS INC (POWI) stock?
POWER INTEGRATIONS INC (POWI) has a profitability rating of 5 / 10.
How financially healthy is POWER INTEGRATIONS INC?
The financial health rating of POWER INTEGRATIONS INC (POWI) is 9 / 10.
How sustainable is the dividend of POWER INTEGRATIONS INC (POWI) stock?
The dividend rating of POWER INTEGRATIONS INC (POWI) is 6 / 10 and the dividend payout ratio is 265.02%.