POWELL INDUSTRIES INC (POWL) Stock Fundamental Analysis
NASDAQ:POWL - US7391281067 - Common Stock
262.95 USD
+12.02 (+4.79%)
262.95 USD
0 (0%)
Overall POWL gets a fundamental rating of 7 out of 10. We evaluated POWL against 93 industry peers in the Electrical Equipment industry. POWL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. POWL has a correct valuation and a medium growth rate. These ratings would make POWL suitable 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.
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's Return On Assets of 16.83% is amongst the best of the industry. POWL outperforms 97.85% of its industry peers.
POWL's Return On Equity of 29.48% is amongst the best of the industry. POWL outperforms 96.77% of its industry peers.
POWL's Return On Invested Capital of 26.55% is amongst the best of the industry. POWL outperforms 98.92% of its industry peers.
POWL had an Average Return On Invested Capital over the past 3 years of 14.37%. This is above the industry average of 10.01%.
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 94.62% 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.
POWL has a better Gross Margin (28.79%) than 62.37% of its industry peers.
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
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
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 7.26 indicates that POWL is not in any danger for bankruptcy at the moment.
POWL has a better Altman-Z score (7.26) than 91.40% 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 | 7.26 |
ROIC/WACC2.98
WACC8.9%
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 Current ratio (2.06) which is comparable to the rest of the industry.
POWL has a Quick Ratio of 1.85. This is a normal value and indicates that POWL is financially healthy and should not expect problems in meeting its short term obligations.
POWL has a better Quick ratio (1.85) 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.
The Earnings Per Share has been growing by 73.14% on average over the past years. This is a very strong growth
The Revenue has grown by 14.32% in the past year. This is quite good.
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)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
The Earnings Per Share is expected to grow by 9.39% 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 5.81% yearly.
EPS Next Y18.85%
EPS Next 2Y11.13%
EPS Next 3Y9.39%
EPS Next 5YN/A
Revenue Next Year4.94%
Revenue Next 2Y5.23%
Revenue Next 3Y5.34%
Revenue Next 5Y5.81%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 rather expensively with a Price/Earnings ratio of 18.26.
POWL's Price/Earnings ratio is rather cheap when compared to the industry. POWL is cheaper than 87.10% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.24. POWL is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.32, the valuation of POWL can be described as rather expensive.
84.95% of the companies in the same industry are more expensive than POWL, based on the Price/Forward Earnings ratio.
POWL is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.26 | ||
| Fwd PE | 17.32 |
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 87.10% 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 73.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.17 | ||
| EV/EBITDA | 12.31 |
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.
PEG (NY)0.97
PEG (5Y)0.25
EPS Next 2Y11.13%
EPS Next 3Y9.39%
5. Dividend
5.1 Amount
POWL has a yearly dividend return of 0.43%, which is pretty low.
Compared to an average industry Dividend Yield of 3.55, POWL pays a better dividend. On top of this POWL pays more dividend than 81.72% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, POWL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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 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 7.31% of its income as dividend. This is a sustainable payout ratio.
The dividend of POWL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP7.31%
EPS Next 2Y11.13%
EPS Next 3Y9.39%
262.95
+12.02 (+4.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners107.23%
Inst Owner Change6.72%
Ins Owners2.35%
Ins Owner Change-1.22%
Market Cap3.17B
Analysts80
Price Target250.85 (-4.6%)
Short Float %18.38%
Short Ratio5.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
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)0.82%
PT rev (3m)-1.26%
EPS NQ rev (1m)1.34%
EPS NQ rev (3m)-0.35%
EPS NY rev (1m)7.03%
EPS NY rev (3m)1.03%
Revenue NQ rev (1m)-1.31%
Revenue NQ rev (3m)-1.92%
Revenue NY rev (1m)-0.35%
Revenue NY rev (3m)-1.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.26 | ||
| Fwd PE | 17.32 | ||
| P/S | 2.93 | ||
| P/FCF | 39.17 | ||
| P/OCF | 31.46 | ||
| P/B | 5.33 | ||
| P/tB | 5.35 | ||
| EV/EBITDA | 12.31 |
EPS(TTM)14.4
EY5.48%
EPS(NY)15.18
Fwd EY5.77%
FCF(TTM)6.71
FCFY2.55%
OCF(TTM)8.36
OCFY3.18%
SpS89.59
BVpS49.29
TBVpS49.16
PEG (NY)0.97
PEG (5Y)0.25
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 | 7.26 |
F-Score6
WACC8.9%
ROIC/WACC2.98
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 Y18.85%
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 Year4.94%
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 Year22.92%
EBIT Next 3YN/A
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%