POWELL INDUSTRIES INC (POWL) Stock Fundamental Analysis
NASDAQ:POWL - Nasdaq - US7391281067 - Common Stock - Currency: USD
Taking everything into account, POWL scores 7 out of 10 in our fundamental rating. POWL was compared to 95 industry peers in the Electrical Equipment industry. Both the health and profitability get an excellent rating, making POWL a very profitable company, without any liquidiy or solvency issues. A decent growth rate in combination with a cheap valuation! Better keep an eye on POWL. This makes POWL very considerable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year POWL was profitable.
In the past year POWL had a positive cash flow from operations.
Each year in the past 5 years POWL has been profitable.
In multiple years POWL reported negative operating cash flow during the last 5 years.
1.2 Ratios
POWL has a Return On Assets of 17.59%. This is amongst the best in the industry. POWL outperforms 97.89% of its industry peers.
POWL has a Return On Equity of 32.34%. This is amongst the best in the industry. POWL outperforms 96.84% of its industry peers.
The Return On Invested Capital of POWL (28.28%) is better than 98.95% of its industry peers.
The Average Return On Invested Capital over the past 3 years for POWL is above the industry average of 10.08%.
The 3 year average ROIC (14.37%) for POWL is below the current ROIC(28.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.59% | ||
| ROE | 32.34% | ||
| ROIC | 28.28% |
ROA(3y)8.72%
ROA(5y)5.97%
ROE(3y)17.14%
ROE(5y)11.42%
ROIC(3y)14.37%
ROIC(5y)9.67%
1.3 Margins
With an excellent Profit Margin value of 15.15%, POWL belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
POWL's Profit Margin has improved in the last couple of years.
POWL's Operating Margin of 17.71% is amongst the best of the industry. POWL outperforms 92.63% of its industry peers.
POWL's Operating Margin has improved in the last couple of years.
POWL has a better Gross Margin (26.84%) than 61.05% of its industry peers.
In the last couple of years the Gross Margin of POWL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.71% | ||
| PM (TTM) | 15.15% | ||
| GM | 26.84% |
OM growth 3Y335.74%
OM growth 5Y53.7%
PM growth 3Y387.84%
PM growth 5Y50.55%
GM growth 3Y19.12%
GM growth 5Y9.91%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so POWL is creating value.
POWL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, POWL has more shares outstanding
There is no outstanding debt for POWL. 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 6.11 indicates that POWL is not in any danger for bankruptcy at the moment.
POWL has a better Altman-Z score (6.11) than 91.58% of its industry peers.
POWL 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 | 6.11 |
ROIC/WACC3.1
WACC9.12%
2.3 Liquidity
POWL has a Current Ratio of 1.92. This is a normal value and indicates that POWL is financially healthy and should not expect problems in meeting its short term obligations.
POWL's Current ratio of 1.92 is in line compared to the rest of the industry. POWL outperforms 51.58% of its industry peers.
A Quick Ratio of 1.70 indicates that POWL should not have too much problems paying its short term obligations.
The Quick ratio of POWL (1.70) is better than 65.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.7 |
3. Growth
3.1 Past
POWL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 73.54%, which is quite impressive.
The Earnings Per Share has been growing by 73.14% on average over the past years. This is a very strong growth
POWL shows a strong growth in Revenue. In the last year, the Revenue has grown by 44.77%.
The Revenue has been growing by 14.38% on average over the past years. This is quite good.
EPS 1Y (TTM)73.54%
EPS 3Y489.48%
EPS 5Y73.14%
EPS Q2Q%38.55%
Revenue 1Y (TTM)44.77%
Revenue growth 3Y29.09%
Revenue growth 5Y14.38%
Sales Q2Q%9.22%
3.2 Future
POWL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.13% yearly.
Based on estimates for the next years, POWL will show a small growth in Revenue. The Revenue will grow by 5.93% on average per year.
EPS Next Y17.63%
EPS Next 2Y11.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.53%
Revenue Next 2Y5.93%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
POWL is valuated correctly with a Price/Earnings ratio of 12.01.
Based on the Price/Earnings ratio, POWL is valued cheaply inside the industry as 90.53% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of POWL to the average of the S&P500 Index (26.03), we can say POWL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.26, the valuation of POWL can be described as reasonable.
POWL's Price/Forward Earnings ratio is rather cheap when compared to the industry. POWL is cheaper than 88.42% of the companies in the same industry.
POWL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.01 | ||
| Fwd PE | 11.26 |
4.2 Price Multiples
93.68% of the companies in the same industry are more expensive than POWL, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of POWL indicates a somewhat cheap valuation: POWL is cheaper than 66.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.15 | ||
| EV/EBITDA | 8.4 |
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.
The excellent profitability rating of POWL may justify a higher PE ratio.
PEG (NY)0.68
PEG (5Y)0.16
EPS Next 2Y11.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.60%, POWL is not a good candidate for dividend investing.
POWL's Dividend Yield is rather good when compared to the industry average which is at 4.57. POWL pays more dividend than 83.16% of the companies in the same industry.
With a Dividend Yield of 0.60, POWL pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
The dividend of POWL has a limited annual growth rate of 0.42%.
POWL has been paying a dividend for at least 10 years, so it has a reliable track record.
POWL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.42%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
7.92% of the earnings are spent on dividend by POWL. This is a low number and sustainable payout ratio.
POWL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP7.92%
EPS Next 2Y11.13%
EPS Next 3YN/A
NASDAQ:POWL (5/22/2025, 11:42:42 AM)
170.88
-3.62 (-2.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.92%
Inst Owner Change9.66%
Ins Owners2.48%
Ins Owner Change2.78%
Market Cap2.06B
Analysts80
Price Target254.05 (48.67%)
Short Float %18.33%
Short Ratio4.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Yearly Dividend1.06
Dividend Growth(5Y)0.42%
DP7.92%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.7%
Min EPS beat(2)4.11%
Max EPS beat(2)7.29%
EPS beat(4)4
Avg EPS beat(4)33.83%
Min EPS beat(4)4.11%
Max EPS beat(4)72.02%
EPS beat(8)8
Avg EPS beat(8)84.71%
EPS beat(12)12
Avg EPS beat(12)154.07%
EPS beat(16)13
Avg EPS beat(16)-0.58%
Revenue beat(2)1
Avg Revenue beat(2)-2.06%
Min Revenue beat(2)-5.87%
Max Revenue beat(2)1.75%
Revenue beat(4)3
Avg Revenue beat(4)11.8%
Min Revenue beat(4)-5.87%
Max Revenue beat(4)27.15%
Revenue beat(8)7
Avg Revenue beat(8)10.05%
Revenue beat(12)11
Avg Revenue beat(12)9.41%
Revenue beat(16)14
Avg Revenue beat(16)7.28%
PT rev (1m)0%
PT rev (3m)0.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)1.26%
EPS NY rev (3m)1.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-1.04%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.01 | ||
| Fwd PE | 11.26 | ||
| P/S | 1.94 | ||
| P/FCF | 42.15 | ||
| P/OCF | 33.33 | ||
| P/B | 4.15 | ||
| P/tB | 4.16 | ||
| EV/EBITDA | 8.4 |
EPS(TTM)14.23
EY8.33%
EPS(NY)15.18
Fwd EY8.88%
FCF(TTM)4.05
FCFY2.37%
OCF(TTM)5.13
OCFY3%
SpS87.87
BVpS41.16
TBVpS41.03
PEG (NY)0.68
PEG (5Y)0.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.59% | ||
| ROE | 32.34% | ||
| ROCE | 36.37% | ||
| ROIC | 28.28% | ||
| ROICexc | 153.9% | ||
| ROICexgc | 156.37% | ||
| OM | 17.71% | ||
| PM (TTM) | 15.15% | ||
| GM | 26.84% | ||
| FCFM | 4.61% |
ROA(3y)8.72%
ROA(5y)5.97%
ROE(3y)17.14%
ROE(5y)11.42%
ROIC(3y)14.37%
ROIC(5y)9.67%
ROICexc(3y)68.51%
ROICexc(5y)43.46%
ROICexgc(3y)69.51%
ROICexgc(5y)44.08%
ROCE(3y)18.48%
ROCE(5y)12.44%
ROICexcg growth 3Y590.73%
ROICexcg growth 5Y99.64%
ROICexc growth 3Y588.47%
ROICexc growth 5Y99.31%
OM growth 3Y335.74%
OM growth 5Y53.7%
PM growth 3Y387.84%
PM growth 5Y50.55%
GM growth 3Y19.12%
GM growth 5Y9.91%
F-Score7
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 185.21% | ||
| Cap/Sales | 1.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 31.77% | ||
| Profit Quality | 30.46% | ||
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.7 | ||
| Altman-Z | 6.11 |
F-Score7
WACC9.12%
ROIC/WACC3.1
Cap/Depr(3y)98.5%
Cap/Depr(5y)74.44%
Cap/Sales(3y)0.93%
Cap/Sales(5y)0.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)73.54%
EPS 3Y489.48%
EPS 5Y73.14%
EPS Q2Q%38.55%
EPS Next Y17.63%
EPS Next 2Y11.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)44.77%
Revenue growth 3Y29.09%
Revenue growth 5Y14.38%
Sales Q2Q%9.22%
Revenue Next Year6.53%
Revenue Next 2Y5.93%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y114.27%
EBIT growth 3Y462.49%
EBIT growth 5Y75.8%
EBIT Next Year16.98%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y158.72%
FCF growth 3YN/A
FCF growth 5Y8.37%
OCF growth 1Y160.91%
OCF growth 3YN/A
OCF growth 5Y9.57%