POWELL INDUSTRIES INC (POWL) Stock Fundamental Analysis
NASDAQ:POWL - Nasdaq - US7391281067 - Common Stock - Currency: USD
Overall POWL gets a fundamental rating of 8 out of 10. We evaluated POWL against 94 industry peers in the Electrical Equipment industry. POWL gets an excellent profitability rating and is at the same time showing great financial health properties. POWL scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes POWL very considerable for value and quality investing!
1. Profitability
1.1 Basic Checks
POWL had positive earnings in the past year.
In the past year POWL had a positive cash flow from operations.
POWL had positive earnings in each of the past 5 years.
In multiple years POWL reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 17.96%, POWL belongs to the top of the industry, outperforming 97.87% of the companies in the same industry.
POWL has a better Return On Equity (32.02%) than 97.87% of its industry peers.
Looking at the Return On Invested Capital, with a value of 28.73%, POWL belongs to the top of the industry, outperforming 98.94% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for POWL is above the industry average of 9.87%.
The last Return On Invested Capital (28.73%) for POWL is above the 3 year average (14.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.96% | ||
| ROE | 32.02% | ||
| ROIC | 28.73% |
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 16.00%, POWL belongs to the best of the industry, outperforming 95.74% of the companies in the same industry.
In the last couple of years the Profit Margin of POWL has grown nicely.
POWL has a better Operating Margin (19.12%) than 95.74% of its industry peers.
POWL's Operating Margin has improved in the last couple of years.
POWL has a better Gross Margin (28.17%) than 62.77% of its industry peers.
In the last couple of years the Gross Margin of POWL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.12% | ||
| PM (TTM) | 16% | ||
| GM | 28.17% |
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
POWL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for POWL has been increased compared to 1 year ago.
The number of shares outstanding for POWL has been increased compared to 5 years ago.
POWL 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 6.41 indicates that POWL is not in any danger for bankruptcy at the moment.
POWL has a Altman-Z score of 6.41. This is amongst the best in the industry. POWL outperforms 90.43% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.41 |
ROIC/WACC3.17
WACC9.05%
2.3 Liquidity
A Current Ratio of 2.00 indicates that POWL has no problem at all paying its short term obligations.
POWL has a Current ratio (2.00) which is in line with its industry peers.
A Quick Ratio of 1.78 indicates that POWL should not have too much problems paying its short term obligations.
POWL has a Quick ratio of 1.78. This is in the better half of the industry: POWL outperforms 67.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 73.54% over the past year.
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 27.42%.
POWL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.38% yearly.
EPS 1Y (TTM)73.54%
EPS 3Y489.48%
EPS 5Y73.14%
EPS Q2Q%38.55%
Revenue 1Y (TTM)27.42%
Revenue growth 3Y29.09%
Revenue growth 5Y14.38%
Sales Q2Q%9.22%
3.2 Future
The Earnings Per Share is expected to grow by 11.13% on average over the next years. This is quite good.
POWL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.93% yearly.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
POWL is valuated correctly with a Price/Earnings ratio of 13.59.
91.49% of the companies in the same industry are more expensive than POWL, based on the Price/Earnings ratio.
POWL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.60.
A Price/Forward Earnings ratio of 12.74 indicates a correct valuation of POWL.
POWL's Price/Forward Earnings ratio is rather cheap when compared to the industry. POWL is cheaper than 86.17% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, POWL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 12.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, POWL is valued cheaper than 93.62% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, POWL is valued a bit cheaper than 68.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.63 | ||
| EV/EBITDA | 8.94 |
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.
POWL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.77
PEG (5Y)0.19
EPS Next 2Y11.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
POWL has a yearly dividend return of 0.59%, which is pretty low.
Compared to an average industry Dividend Yield of 4.28, POWL pays a better dividend. On top of this POWL pays more dividend than 82.98% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, POWL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
The dividend of POWL has a limited annual growth rate of 0.42%.
POWL has paid a dividend for at least 10 years, which is a reliable track record.
POWL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.42%
Div Incr Years2
Div Non Decr Years11
5.3 Sustainability
7.36% 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.
DP7.36%
EPS Next 2Y11.13%
EPS Next 3YN/A
193.33
+0.53 (+0.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.92%
Inst Owner Change9.53%
Ins Owners2.48%
Ins Owner Change0.37%
Market Cap2.33B
Analysts80
Price Target243.17 (25.78%)
Short Float %18.88%
Short Ratio5.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend1.06
Dividend Growth(5Y)0.42%
DP7.36%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.89%
Min EPS beat(2)7.29%
Max EPS beat(2)8.48%
EPS beat(4)4
Avg EPS beat(4)22.98%
Min EPS beat(4)4.11%
Max EPS beat(4)72.02%
EPS beat(8)8
Avg EPS beat(8)57.42%
EPS beat(12)12
Avg EPS beat(12)153.54%
EPS beat(16)14
Avg EPS beat(16)7.27%
Revenue beat(2)1
Avg Revenue beat(2)-0.81%
Min Revenue beat(2)-3.36%
Max Revenue beat(2)1.75%
Revenue beat(4)2
Avg Revenue beat(4)4.92%
Min Revenue beat(4)-5.87%
Max Revenue beat(4)27.15%
Revenue beat(8)6
Avg Revenue beat(8)7.84%
Revenue beat(12)10
Avg Revenue beat(12)8.53%
Revenue beat(16)13
Avg Revenue beat(16)7.05%
PT rev (1m)-4.28%
PT rev (3m)-4.28%
EPS NQ rev (1m)-3.25%
EPS NQ rev (3m)-3.25%
EPS NY rev (1m)1.26%
EPS NY rev (3m)1.26%
Revenue NQ rev (1m)-1.8%
Revenue NQ rev (3m)-1.8%
Revenue NY rev (1m)-1.13%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 12.74 | ||
| P/S | 2.15 | ||
| P/FCF | 45.63 | ||
| P/OCF | 34.7 | ||
| P/B | 4.31 | ||
| P/tB | 4.32 | ||
| EV/EBITDA | 8.94 |
EPS(TTM)14.23
EY7.36%
EPS(NY)15.18
Fwd EY7.85%
FCF(TTM)4.24
FCFY2.19%
OCF(TTM)5.57
OCFY2.88%
SpS89.75
BVpS44.85
TBVpS44.73
PEG (NY)0.77
PEG (5Y)0.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.96% | ||
| ROE | 32.02% | ||
| ROCE | 36.95% | ||
| ROIC | 28.73% | ||
| ROICexc | 94.03% | ||
| ROICexgc | 94.87% | ||
| OM | 19.12% | ||
| PM (TTM) | 16% | ||
| GM | 28.17% | ||
| FCFM | 4.72% |
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 Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 230.81% | ||
| Cap/Sales | 1.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 31.41% | ||
| Profit Quality | 29.5% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | 6.41 |
F-Score7
WACC9.05%
ROIC/WACC3.17
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)27.42%
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 1Y77.05%
EBIT growth 3Y462.49%
EBIT growth 5Y75.8%
EBIT Next Year22.92%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-14.91%
FCF growth 3YN/A
FCF growth 5Y8.37%
OCF growth 1Y3.62%
OCF growth 3YN/A
OCF growth 5Y9.57%