POWELL INDUSTRIES INC (POWL)
US7391281067 - Common Stock
POWL gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 86 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. POWL is growing strongly while it is still valued neutral. This is a good combination! With these ratings, POWL could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year POWL was profitable.
POWL had a positive operating cash flow in the past year.
In the past 5 years POWL has always been profitable.
In multiple years POWL reported negative operating cash flow during the last 5 years.
1.2 Ratios
POWL's Return On Assets of 9.59% is amongst the best of the industry. POWL outperforms 90.48% of its industry peers.
The Return On Equity of POWL (21.16%) is better than 91.67% of its industry peers.
POWL has a better Return On Invested Capital (18.22%) than 95.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for POWL is significantly below the industry average of 10.39%.
The last Return On Invested Capital (18.22%) for POWL is above the 3 year average (5.32%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.59% | ||
| ROE | 21.16% | ||
| ROIC | 18.22% |
ROA(3y)3.39%
ROA(5y)3.16%
ROE(3y)6.87%
ROE(5y)5.87%
ROIC(3y)5.32%
ROIC(5y)4.75%
1.3 Margins
POWL has a better Profit Margin (10.11%) than 85.71% of its industry peers.
In the last couple of years the Profit Margin of POWL has grown nicely.
POWL has a better Operating Margin (11.43%) than 76.19% of its industry peers.
In the last couple of years the Operating Margin of POWL has grown nicely.
POWL's Gross Margin of 23.00% is in line compared to the rest of the industry. POWL outperforms 52.38% of its industry peers.
POWL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.43% | ||
| PM (TTM) | 10.11% | ||
| GM | 23% |
OM growth 3Y30.97%
OM growth 5YN/A
PM growth 3Y34.27%
PM growth 5YN/A
GM growth 3Y4.97%
GM growth 5Y7.68%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), POWL is creating some value.
Compared to 1 year ago, POWL has more shares outstanding
POWL has more shares outstanding than it did 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 4.69 indicates that POWL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.69, POWL belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
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 | 4.69 |
ROIC/WACC1.72
WACC10.61%
2.3 Liquidity
A Current Ratio of 1.58 indicates that POWL should not have too much problems paying its short term obligations.
POWL has a Current ratio of 1.58. This is in the lower half of the industry: POWL underperforms 61.90% of its industry peers.
A Quick Ratio of 1.41 indicates that POWL should not have too much problems paying its short term obligations.
POWL has a Quick ratio (1.41) which is comparable to the rest of the industry.
POWL does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
POWL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 312.75%, which is quite impressive.
POWL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 44.68% yearly.
The Revenue has grown by 38.60% in the past year. This is a very strong growth!
The Revenue has been growing by 9.28% on average over the past years. This is quite good.
EPS 1Y (TTM)312.75%
EPS 3Y44.68%
EPS 5YN/A
EPS growth Q2Q1880%
Revenue 1Y (TTM)38.6%
Revenue growth 3Y10.49%
Revenue growth 5Y9.28%
Revenue growth Q2Q52.89%
3.2 Future
The Earnings Per Share is expected to grow by 35.09% on average over the next years. This is a very strong growth
Based on estimates for the next years, POWL will show a quite strong growth in Revenue. The Revenue will grow by 12.67% on average per year.
EPS Next Y83.7%
EPS Next 2Y35.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year22.45%
Revenue Next 2Y12.67%
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.
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
With a Price/Earnings ratio of 24.06, POWL is valued on the expensive side.
Based on the Price/Earnings ratio, POWL is valued a bit cheaper than the industry average as 73.81% of the companies are valued more expensively.
POWL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.84.
Based on the Price/Forward Earnings ratio of 18.99, the valuation of POWL can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of POWL indicates a somewhat cheap valuation: POWL is cheaper than 77.38% of the companies listed in the same industry.
POWL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.06 | ||
| Fwd PE | 18.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, POWL is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of POWL indicates a rather cheap valuation: POWL is cheaper than 98.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.8 | ||
| EV/EBITDA | 14.54 |
4.3 Compensation for Growth
POWL's 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.
A more expensive valuation may be justified as POWL's earnings are expected to grow with 35.09% in the coming years.
PEG (NY)0.29
PEG (5Y)N/A
EPS Next 2Y35.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, 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 2.46. POWL pays more dividend than 83.33% of the companies in the same industry.
With a Dividend Yield of 0.72, POWL pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
The dividend of POWL has a limited annual growth rate of 0.18%.
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)0.18%
Div Incr Years1
Div Non Decr Years10
5.3 Sustainability
POWL pays out 16.04% of its income as dividend. This is a sustainable payout ratio.
POWL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.04%
EPS Next 2Y35.09%
EPS Next 3YN/A
POWELL INDUSTRIES INC
NASDAQ:POWL (4/29/2024, 11:00:44 AM)
147.97
-0.85 (-0.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.06 | ||
| Fwd PE | 18.99 | ||
| 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)0.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.59% | ||
| ROE | 21.16% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 11.43% | ||
| PM (TTM) | 10.11% | ||
| GM | 23% | ||
| 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 Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.41 | ||
| 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)312.75%
EPS 3Y44.68%
EPS 5Y
EPS growth Q2Q
EPS Next Y83.7%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)38.6%
Revenue growth 3Y10.49%
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
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FCF growth 5Y
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OCF growth 5Y