PIONEER POWER SOLUTIONS INC (PPSI)
US7238363003 - Common Stock
Overall PPSI gets a fundamental rating of 4 out of 10. We evaluated PPSI against 87 industry peers in the Electrical Equipment industry. PPSI has an average financial health and profitability rating. PPSI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year PPSI was profitable.
In the past year PPSI has reported a negative cash flow from operations.
PPSI had negative earnings in each of the past 5 years.
In the past 5 years PPSI always reported negative operating cash flow.
1.2 Ratios
PPSI's Return On Assets of 4.96% is fine compared to the rest of the industry. PPSI outperforms 76.47% of its industry peers.
PPSI has a better Return On Equity (9.59%) than 75.29% of its industry peers.
With a decent Return On Invested Capital value of 5.75%, PPSI is doing good in the industry, outperforming 71.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 9.59% | ||
| ROIC | 5.75% |
ROA(3y)-10.55%
ROA(5y)-8.6%
ROE(3y)-18.05%
ROE(5y)-21.56%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of PPSI (4.16%) is better than 71.76% of its industry peers.
PPSI has a better Operating Margin (3.27%) than 67.06% of its industry peers.
PPSI's Gross Margin of 26.74% is fine compared to the rest of the industry. PPSI outperforms 61.18% of its industry peers.
In the last couple of years the Gross Margin of PPSI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.27% | ||
| PM (TTM) | 4.16% | ||
| GM | 26.74% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y43.01%
GM growth 5Y0.94%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PPSI is destroying value.
PPSI 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 2.46 indicates that PPSI is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.46, PPSI is doing good in the industry, outperforming 64.71% of the companies in the same industry.
PPSI has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
PPSI's Debt to Equity ratio of 0.02 is fine compared to the rest of the industry. PPSI outperforms 68.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.46 |
ROIC/WACC0.56
WACC10.18%
2.3 Liquidity
PPSI has a Current Ratio of 1.82. This is a normal value and indicates that PPSI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of PPSI (1.82) is comparable to the rest of the industry.
A Quick Ratio of 1.33 indicates that PPSI should not have too much problems paying its short term obligations.
PPSI's Quick ratio of 1.33 is in line compared to the rest of the industry. PPSI outperforms 48.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 128.57% over the past year.
The Revenue has grown by 103.16% in the past year. This is a very strong growth!
The Revenue for PPSI have been decreasing by -25.08% on average. This is quite bad
EPS 1Y (TTM)128.57%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q176.92%
Revenue 1Y (TTM)103.16%
Revenue growth 3Y9.44%
Revenue growth 5Y-25.08%
Revenue growth Q2Q99.09%
3.2 Future
Based on estimates for the next years, PPSI will show a very strong growth in Earnings Per Share. The EPS will grow by 38.75% on average per year.
PPSI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 34.52% yearly.
EPS Next Y126.19%
EPS Next 2Y60.59%
EPS Next 3Y52.85%
EPS Next 5Y38.75%
Revenue Next Year59.7%
Revenue Next 2Y38.82%
Revenue Next 3Y38.4%
Revenue Next 5Y34.52%
3.3 Evolution
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
The Price/Earnings ratio is 21.39, which indicates a rather expensive current valuation of PPSI.
Compared to the rest of the industry, the Price/Earnings ratio of PPSI indicates a somewhat cheap valuation: PPSI is cheaper than 77.65% of the companies listed in the same industry.
PPSI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.97, the valuation of PPSI can be described as rather expensive.
PPSI's Price/Forward Earnings ratio is rather cheap when compared to the industry. PPSI is cheaper than 81.18% of the companies in the same industry.
PPSI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.39 | ||
| Fwd PE | 17.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PPSI is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.31 |
4.3 Compensation for Growth
PPSI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PPSI's earnings are expected to grow with 52.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y60.59%
EPS Next 3Y52.85%
5. Dividend
5.1 Amount
PPSI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PIONEER POWER SOLUTIONS INC
NASDAQ:PPSI (4/25/2024, 12:38:12 PM)
3.85
+0.17 (+4.62%)
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 Cap38.23M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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EPS NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.39 | ||
| Fwd PE | 17.97 | ||
| 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)0.17
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 9.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.27% | ||
| PM (TTM) | 4.16% | ||
| GM | 26.74% | ||
| 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 Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.33 | ||
| 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)128.57%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y126.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)103.16%
Revenue growth 3Y9.44%
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 3Y
FCF growth 5Y
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OCF growth 3Y
OCF growth 5Y