POWELL INDUSTRIES INC (POWL) Stock Fundamental Analysis
USA - NASDAQ:POWL - US7391281067 - Common Stock
311.7 USD
+7.64 (+2.51%)
311 USD
-0.7 (-0.22%)
Overall POWL gets a fundamental rating of 7 out of 10. We evaluated POWL against 93 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 is not valued too expensively and it also shows a decent growth rate. These ratings could make POWL a good candidate for 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 16.83%, POWL belongs to the top of the industry, outperforming 97.85% of the companies in the same industry.
POWL's Return On Equity of 29.48% is amongst the best of the industry. POWL outperforms 96.77% of its industry peers.
POWL has a better Return On Invested Capital (26.55%) than 98.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for POWL is above the industry average of 10.14%.
The 3 year average ROIC (14.37%) for POWL is below the current ROIC(26.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.83% | ||
| ROE | 29.48% | ||
| ROIC | 26.55% |
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 has a better Profit Margin (16.22%) than 92.47% of its industry peers.
In the last couple of years the Profit Margin of POWL has grown nicely.
Looking at the Operating Margin, with a value of 19.41%, POWL belongs to the top of the industry, outperforming 96.77% of the companies in the same industry.
POWL's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 28.79%, POWL is doing good in the industry, outperforming 62.37% of the companies in the same industry.
In the last couple of years the Gross Margin of POWL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.41% | ||
| PM (TTM) | 16.22% | ||
| GM | 28.79% |
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.
Compared to 1 year ago, POWL has more shares outstanding
The number of shares outstanding for POWL has been increased compared to 5 years ago.
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 8.05 indicates that POWL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.05, POWL belongs to the best of the industry, outperforming 90.32% 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 | 8.05 |
ROIC/WACC3.03
WACC8.77%
2.3 Liquidity
A Current Ratio of 2.06 indicates that POWL has no problem at all paying its short term obligations.
POWL has a better Current ratio (2.06) than 60.22% of its industry peers.
A Quick Ratio of 1.85 indicates that POWL should not have too much problems paying its short term obligations.
The Quick ratio of POWL (1.85) is better than 72.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.85 |
3. Growth
3.1 Past
POWL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 37.54%, which is quite impressive.
Measured over the past years, POWL shows a very strong growth in Earnings Per Share. The EPS has been growing by 73.14% on average per year.
The Revenue has grown by 14.32% in the past year. This is quite good.
The Revenue has been growing by 14.38% on average over the past years. This is quite good.
EPS 1Y (TTM)37.54%
EPS 3Y489.48%
EPS 5Y73.14%
EPS Q2Q%4.49%
Revenue 1Y (TTM)14.32%
Revenue growth 3Y29.09%
Revenue growth 5Y14.38%
Sales Q2Q%-0.66%
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 9.39% yearly.
Based on estimates for the next years, POWL will show a small growth in Revenue. The Revenue will grow by 5.81% on average per year.
EPS Next Y19.59%
EPS Next 2Y11.13%
EPS Next 3Y9.39%
EPS Next 5YN/A
Revenue Next Year4.48%
Revenue Next 2Y5.23%
Revenue Next 3Y5.34%
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
The Price/Earnings ratio is 21.65, which indicates a rather expensive current valuation of POWL.
Based on the Price/Earnings ratio, POWL is valued cheaply inside the industry as 82.80% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.90, POWL is valued a bit cheaper.
POWL is valuated rather expensively with a Price/Forward Earnings ratio of 20.54.
Compared to the rest of the industry, the Price/Forward Earnings ratio of POWL indicates a somewhat cheap valuation: POWL is cheaper than 79.57% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.36. POWL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.65 | ||
| Fwd PE | 20.54 |
4.2 Price Multiples
84.95% of the companies in the same industry are more expensive than POWL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, POWL is valued a bit cheaper than 72.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.43 | ||
| EV/EBITDA | 15.03 |
4.3 Compensation for Growth
The 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)1.1
PEG (5Y)0.3
EPS Next 2Y11.13%
EPS Next 3Y9.39%
5. Dividend
5.1 Amount
POWL has a yearly dividend return of 0.35%, which is pretty low.
Compared to an average industry Dividend Yield of 3.13, POWL pays a better dividend. On top of this POWL pays more dividend than 81.72% of the companies listed in the same industry.
With a Dividend Yield of 0.35, POWL pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
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 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
POWL pays out 7.31% 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.
DP7.31%
EPS Next 2Y11.13%
EPS Next 3Y9.39%
311.7
+7.64 (+2.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners106.9%
Inst Owner Change0%
Ins Owners2.26%
Ins Owner Change-2.52%
Market Cap3.76B
Analysts80
Price Target250.85 (-19.52%)
Short Float %19.94%
Short Ratio7.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Yearly Dividend1.06
Dividend Growth(5Y)0.42%
DP7.31%
Div Incr Years2
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.73%
Min EPS beat(2)2.98%
Max EPS beat(2)8.48%
EPS beat(4)4
Avg EPS beat(4)5.72%
Min EPS beat(4)2.98%
Max EPS beat(4)8.48%
EPS beat(8)8
Avg EPS beat(8)42.07%
EPS beat(12)12
Avg EPS beat(12)105.68%
EPS beat(16)15
Avg EPS beat(16)117.87%
Revenue beat(2)0
Avg Revenue beat(2)-5.17%
Min Revenue beat(2)-6.97%
Max Revenue beat(2)-3.36%
Revenue beat(4)1
Avg Revenue beat(4)-3.61%
Min Revenue beat(4)-6.97%
Max Revenue beat(4)1.75%
Revenue beat(8)5
Avg Revenue beat(8)5.66%
Revenue beat(12)9
Avg Revenue beat(12)7.67%
Revenue beat(16)12
Avg Revenue beat(16)6.5%
PT rev (1m)0%
PT rev (3m)0.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.34%
EPS NY rev (1m)0.63%
EPS NY rev (3m)7.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.15%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.65 | ||
| Fwd PE | 20.54 | ||
| P/S | 3.48 | ||
| P/FCF | 46.43 | ||
| P/OCF | 37.3 | ||
| P/B | 6.32 | ||
| P/tB | 6.34 | ||
| EV/EBITDA | 15.03 |
EPS(TTM)14.4
EY4.62%
EPS(NY)15.18
Fwd EY4.87%
FCF(TTM)6.71
FCFY2.15%
OCF(TTM)8.36
OCFY2.68%
SpS89.59
BVpS49.29
TBVpS49.16
PEG (NY)1.1
PEG (5Y)0.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.83% | ||
| ROE | 29.48% | ||
| ROCE | 34.14% | ||
| ROIC | 26.55% | ||
| ROICexc | 110.84% | ||
| ROICexgc | 111.98% | ||
| OM | 19.41% | ||
| PM (TTM) | 16.22% | ||
| GM | 28.79% | ||
| FCFM | 7.49% |
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-Score6
Asset Turnover1.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 282.89% | ||
| Cap/Sales | 1.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.5% | ||
| Profit Quality | 46.21% | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 1.85 | ||
| Altman-Z | 8.05 |
F-Score6
WACC8.77%
ROIC/WACC3.03
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)37.54%
EPS 3Y489.48%
EPS 5Y73.14%
EPS Q2Q%4.49%
EPS Next Y19.59%
EPS Next 2Y11.13%
EPS Next 3Y9.39%
EPS Next 5YN/A
Revenue 1Y (TTM)14.32%
Revenue growth 3Y29.09%
Revenue growth 5Y14.38%
Sales Q2Q%-0.66%
Revenue Next Year4.48%
Revenue Next 2Y5.23%
Revenue Next 3Y5.34%
Revenue Next 5Y5.81%
EBIT growth 1Y37.51%
EBIT growth 3Y462.49%
EBIT growth 5Y75.8%
EBIT Next Year25.24%
EBIT Next 3Y12.15%
EBIT Next 5YN/A
FCF growth 1Y-35.07%
FCF growth 3YN/A
FCF growth 5Y8.37%
OCF growth 1Y-22.11%
OCF growth 3YN/A
OCF growth 5Y9.57%