POWER INTEGRATIONS INC (POWI) Stock Fundamental Analysis
USA - NASDAQ:POWI - US7392761034 - Common Stock
43.01 USD
-0.69 (-1.58%)
42.8 USD
-0.21 (-0.49%)
We assign a fundamental rating of 7 out of 10 to POWI. POWI was compared to 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
In the past year POWI was profitable.
POWI had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 4.21%, POWI is doing good in the industry, outperforming 66.96% of the companies in the same industry.
POWI has a better Return On Equity (4.77%) than 61.61% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.25%, POWI is in line with its industry, outperforming 54.46% 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 11.03%.
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 has a Profit Margin of 7.59%. This is in the better half of the industry: POWI outperforms 64.29% of its industry peers.
POWI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.72%, POWI is in line with its industry, outperforming 51.79% of the companies in the same industry.
In the last couple of years the Operating Margin of POWI has declined.
POWI has a better Gross Margin (54.83%) 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so POWI is destroying value.
The number of shares outstanding for POWI remains at a similar level compared to 1 year ago.
The number of shares outstanding for POWI has been reduced compared to 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
POWI has an Altman-Z score of 18.20. This indicates that POWI is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 18.20, POWI belongs to the best of the industry, outperforming 84.82% of the companies in the same industry.
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 | 18.2 |
ROIC/WACC0.19
WACC11.59%
2.3 Liquidity
A Current Ratio of 7.43 indicates that POWI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 7.43, POWI belongs to the top 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.
With a decent Quick ratio value of 4.84, POWI is doing good in the industry, outperforming 79.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.43 | ||
| Quick Ratio | 4.84 |
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.
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.
The Revenue has been growing slightly by 7.16% in the past 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)7.16%
Revenue growth 3Y-15.86%
Revenue growth 5Y-0.08%
Sales Q2Q%9.09%
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.
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
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
With a Price/Earnings ratio of 31.62, POWI can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of POWI indicates a somewhat cheap valuation: POWI is cheaper than 72.32% of the companies listed in the same industry.
POWI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.91.
A Price/Forward Earnings ratio of 24.75 indicates a rather expensive valuation of POWI.
Based on the Price/Forward Earnings ratio, POWI is valued a bit cheaper than 70.54% of the companies in the same industry.
POWI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.62 | ||
| Fwd PE | 24.75 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as POWI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of POWI indicates a rather cheap valuation: POWI is cheaper than 80.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.18 | ||
| EV/EBITDA | 37.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of POWI may justify a higher PE ratio.
A more expensive valuation may be justified as POWI's earnings are expected to grow with 23.65% in the coming years.
PEG (NY)2.06
PEG (5Y)N/A
EPS Next 2Y22.41%
EPS Next 3Y23.65%
5. Dividend
5.1 Amount
POWI has a Yearly Dividend Yield of 1.92%.
Compared to an average industry Dividend Yield of 2.18, POWI pays a better dividend. On top of this POWI pays more dividend than 87.50% of the companies listed in the same industry.
POWI's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
5.2 History
On average, the dividend of POWI grows each year by 18.21%, which is quite nice.
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
POWI pays out 140.13% 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.
DP140.13%
EPS Next 2Y22.41%
EPS Next 3Y23.65%
43.01
-0.69 (-1.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners103.29%
Inst Owner Change0.09%
Ins Owners1.32%
Ins Owner Change3.07%
Market Cap2.41B
Revenue(TTM)442.47M
Net Income(TTM)33.59M
Analysts81.82
Price Target62.02 (44.2%)
Short Float %4.52%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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)0%
PT rev (3m)-11.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.07%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.62 | ||
| Fwd PE | 24.75 | ||
| P/S | 5.45 | ||
| P/FCF | 29.18 | ||
| P/OCF | 23.4 | ||
| P/B | 3.43 | ||
| P/tB | 4.02 | ||
| EV/EBITDA | 37.99 |
EPS(TTM)1.36
EY3.16%
EPS(NY)1.74
Fwd EY4.04%
FCF(TTM)1.47
FCFY3.43%
OCF(TTM)1.84
OCFY4.27%
SpS7.89
BVpS12.55
TBVpS10.71
PEG (NY)2.06
PEG (5Y)N/A
Graham Number19.59
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%
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 Turnover0.55
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 | 18.2 |
F-Score7
WACC11.59%
ROIC/WACC0.19
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 Year102.58%
EBIT Next 3Y27.71%
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%
POWER INTEGRATIONS INC / POWI FAQ
What is the fundamental rating for POWI stock?
ChartMill assigns a fundamental rating of 7 / 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 6 / 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 140.13%.