POWELL INDUSTRIES INC (POWL) Stock Fundamental Analysis
NASDAQ:POWL - Nasdaq - US7391281067 - Common Stock - Currency: USD
POWL gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 93 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 valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make POWL a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
POWL had positive earnings in the past year.
POWL had a positive operating cash flow in the past year.
Each year in the past 5 years POWL has been profitable.
The reported operating cash flow has been mixed in the past 5 years: POWL reported negative operating cash flow in multiple 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.
Looking at the Return On Equity, with a value of 32.02%, POWL belongs to the top of the industry, outperforming 97.87% of the companies in the same industry.
POWL has a Return On Invested Capital of 28.73%. This is amongst the best in the industry. POWL outperforms 98.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for POWL is above the industry average of 9.89%.
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
POWL's Profit Margin of 16.00% is amongst the best of the industry. POWL outperforms 95.74% of its industry peers.
POWL's Profit Margin has improved in the last couple of years.
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
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.
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 6.74 indicates that POWL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.74, POWL belongs to the top of the industry, outperforming 90.43% of the companies in the same industry.
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 | 6.74 |
ROIC/WACC3.17
WACC9.07%
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.
POWL has a Quick Ratio of 1.78. This is a normal value and indicates that POWL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.78, POWL is in the better half of the industry, outperforming 67.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.78 |
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
Looking at the last year, POWL shows a very strong growth in Revenue. The Revenue has grown by 27.42%.
Measured over the past years, POWL shows a quite strong growth in Revenue. The Revenue has been growing by 14.38% on average per year.
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 2.56% on average over the next years.
POWL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.81% yearly.
EPS Next Y11.05%
EPS Next 2Y7.48%
EPS Next 3Y2.56%
EPS Next 5YN/A
Revenue Next Year5.32%
Revenue Next 2Y5.18%
Revenue Next 3Y4.69%
Revenue Next 5Y5.81%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 14.94, the valuation of POWL can be described as correct.
Based on the Price/Earnings ratio, POWL is valued cheaply inside the industry as 90.43% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.41. POWL is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.97, POWL is valued correctly.
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.
The average S&P500 Price/Forward Earnings ratio is at 35.19. POWL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.94 | ||
| Fwd PE | 14.97 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of POWL indicates a rather cheap valuation: POWL is cheaper than 91.49% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of POWL indicates a somewhat cheap valuation: POWL is cheaper than 69.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.18 | ||
| EV/EBITDA | 10.03 |
4.3 Compensation for Growth
POWL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
POWL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.35
PEG (5Y)0.2
EPS Next 2Y7.48%
EPS Next 3Y2.56%
5. Dividend
5.1 Amount
With a yearly dividend of 0.50%, POWL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.27, 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 2.35, POWL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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
POWL pays out 7.36% 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.
DP7.36%
EPS Next 2Y7.48%
EPS Next 3Y2.56%
212.62
-0.25 (-0.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners105.94%
Inst Owner Change-0.01%
Ins Owners2.5%
Ins Owner Change-1.13%
Market Cap2.57B
Analysts80
Price Target248.81 (17.02%)
Short Float %19.31%
Short Ratio6.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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)2.32%
PT rev (3m)-2.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.25%
EPS NY rev (1m)-5.6%
EPS NY rev (3m)-4.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.8%
Revenue NY rev (1m)-1.14%
Revenue NY rev (3m)-2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.94 | ||
| Fwd PE | 14.97 | ||
| P/S | 2.37 | ||
| P/FCF | 50.18 | ||
| P/OCF | 38.16 | ||
| P/B | 4.74 | ||
| P/tB | 4.75 | ||
| EV/EBITDA | 10.03 |
EPS(TTM)14.23
EY6.69%
EPS(NY)14.2
Fwd EY6.68%
FCF(TTM)4.24
FCFY1.99%
OCF(TTM)5.57
OCFY2.62%
SpS89.75
BVpS44.85
TBVpS44.73
PEG (NY)1.35
PEG (5Y)0.2
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 | 6.74 |
F-Score7
WACC9.07%
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 Y11.05%
EPS Next 2Y7.48%
EPS Next 3Y2.56%
EPS Next 5YN/A
Revenue 1Y (TTM)27.42%
Revenue growth 3Y29.09%
Revenue growth 5Y14.38%
Sales Q2Q%9.22%
Revenue Next Year5.32%
Revenue Next 2Y5.18%
Revenue Next 3Y4.69%
Revenue Next 5Y5.81%
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%