POWER SOLUTIONS INTERNATIONA (PSIX) Stock Fundamental Analysis
USA - NASDAQ:PSIX - US73933G2021 - Common Stock
87.06 USD
-1.72 (-1.94%)
88 USD
+0.94 (+1.08%)
Taking everything into account, PSIX scores 6 out of 10 in our fundamental rating. PSIX was compared to 92 industry peers in the Electrical Equipment industry. PSIX gets an excellent profitability rating and is at the same time showing great financial health properties. PSIX has a decent growth rate and is not valued too expensively. This makes PSIX very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year PSIX was profitable.
In the past year PSIX had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PSIX reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: PSIX reported negative operating cash flow in multiple years.
1.2 Ratios
PSIX's Return On Assets of 25.34% is amongst the best of the industry. PSIX outperforms 98.91% of its industry peers.
PSIX has a Return On Equity of 81.77%. This is amongst the best in the industry. PSIX outperforms 98.91% of its industry peers.
With an excellent Return On Invested Capital value of 28.40%, PSIX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PSIX is significantly above the industry average of 10.15%.
The last Return On Invested Capital (28.40%) for PSIX is above the 3 year average (27.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.34% | ||
| ROE | 81.77% | ||
| ROIC | 28.4% |
ROA(3y)11.3%
ROA(5y)1.93%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)27.16%
ROIC(5y)N/A
1.3 Margins
PSIX's Profit Margin of 18.56% is amongst the best of the industry. PSIX outperforms 97.83% of its industry peers.
PSIX's Profit Margin has improved in the last couple of years.
PSIX's Operating Margin of 17.20% is amongst the best of the industry. PSIX outperforms 91.30% of its industry peers.
In the last couple of years the Operating Margin of PSIX has grown nicely.
PSIX has a better Gross Margin (29.12%) than 68.48% of its industry peers.
PSIX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.2% | ||
| PM (TTM) | 18.56% | ||
| GM | 29.12% |
OM growth 3YN/A
OM growth 5Y40.35%
PM growth 3YN/A
PM growth 5Y57.51%
GM growth 3Y48.31%
GM growth 5Y10.05%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), PSIX is creating value.
The number of shares outstanding for PSIX remains at a similar level compared to 1 year ago.
Compared to 5 years ago, PSIX has more shares outstanding
Compared to 1 year ago, PSIX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.23 indicates that PSIX is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.23, PSIX belongs to the best of the industry, outperforming 85.87% of the companies in the same industry.
The Debt to FCF ratio of PSIX is 1.56, which is an excellent value as it means it would take PSIX, only 1.56 years of fcf income to pay off all of its debts.
PSIX has a better Debt to FCF ratio (1.56) than 90.22% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that PSIX is somewhat dependend on debt financing.
PSIX's Debt to Equity ratio of 0.71 is in line compared to the rest of the industry. PSIX outperforms 41.30% of its industry peers.
Although PSIX does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 1.56 | ||
| Altman-Z | 6.23 |
ROIC/WACC3.39
WACC8.37%
2.3 Liquidity
A Current Ratio of 1.26 indicates that PSIX should not have too much problems paying its short term obligations.
PSIX has a worse Current ratio (1.26) than 64.13% of its industry peers.
A Quick Ratio of 0.65 indicates that PSIX may have some problems paying its short term obligations.
PSIX has a worse Quick ratio (0.65) than 71.74% of its industry peers.
The current and quick ratio evaluation for PSIX is rather negative, while it does have 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 | 1.26 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 175.57% over the past year.
Measured over the past years, PSIX shows a very strong growth in Earnings Per Share. The EPS has been growing by 51.27% on average per year.
The Revenue has grown by 40.10% in the past year. This is a very strong growth!
The Revenue has been decreasing by -2.71% on average over the past years.
EPS 1Y (TTM)175.57%
EPS 3YN/A
EPS 5Y51.27%
EPS Q2Q%211.11%
Revenue 1Y (TTM)40.1%
Revenue growth 3Y1.42%
Revenue growth 5Y-2.71%
Sales Q2Q%73.54%
3.2 Future
PSIX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.89% yearly.
PSIX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.83% yearly.
EPS Next Y19.42%
EPS Next 2Y19.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year28.22%
Revenue Next 2Y19.83%
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 17.95, PSIX is valued on the expensive side.
Based on the Price/Earnings ratio, PSIX is valued cheaply inside the industry as 88.04% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PSIX to the average of the S&P500 Index (27.40), we can say PSIX is valued slightly cheaper.
With a Price/Forward Earnings ratio of 21.55, PSIX is valued on the expensive side.
PSIX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PSIX is cheaper than 78.26% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, PSIX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 21.55 |
4.2 Price Multiples
PSIX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PSIX is cheaper than 77.17% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PSIX indicates a somewhat cheap valuation: PSIX is cheaper than 78.26% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.22 | ||
| EV/EBITDA | 18.14 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of PSIX may justify a higher PE ratio.
PSIX's earnings are expected to grow with 19.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.92
PEG (5Y)0.35
EPS Next 2Y19.89%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PSIX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
87.06
-1.72 (-1.94%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners15.62%
Inst Owner Change5.04%
Ins Owners1.45%
Ins Owner Change-15.8%
Market Cap2.00B
Analysts82.86
Price Target129.54 (48.79%)
Short Float %6.17%
Short Ratio0.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)114.66%
Min EPS beat(2)76.9%
Max EPS beat(2)152.42%
EPS beat(4)4
Avg EPS beat(4)69.52%
Min EPS beat(4)22.55%
Max EPS beat(4)152.42%
EPS beat(8)8
Avg EPS beat(8)89.44%
EPS beat(12)12
Avg EPS beat(12)361.52%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)31.2%
Min Revenue beat(2)24.57%
Max Revenue beat(2)37.83%
Revenue beat(4)3
Avg Revenue beat(4)15.57%
Min Revenue beat(4)-0.66%
Max Revenue beat(4)37.83%
Revenue beat(8)3
Avg Revenue beat(8)4.05%
Revenue beat(12)6
Avg Revenue beat(12)3.71%
Revenue beat(16)7
Avg Revenue beat(16)1.37%
PT rev (1m)0%
PT rev (3m)98.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)53.13%
EPS NY rev (1m)0%
EPS NY rev (3m)9.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)35.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)15.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.95 | ||
| Fwd PE | 21.55 | ||
| P/S | 3.36 | ||
| P/FCF | 32.22 | ||
| P/OCF | 28.36 | ||
| P/B | 14.78 | ||
| P/tB | 19.28 | ||
| EV/EBITDA | 18.14 |
EPS(TTM)4.85
EY5.57%
EPS(NY)4.04
Fwd EY4.64%
FCF(TTM)2.7
FCFY3.1%
OCF(TTM)3.07
OCFY3.53%
SpS25.94
BVpS5.89
TBVpS4.51
PEG (NY)0.92
PEG (5Y)0.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 25.34% | ||
| ROE | 81.77% | ||
| ROCE | 53.85% | ||
| ROIC | 28.4% | ||
| ROICexc | 34.34% | ||
| ROICexgc | 39.66% | ||
| OM | 17.2% | ||
| PM (TTM) | 18.56% | ||
| GM | 29.12% | ||
| FCFM | 10.42% |
ROA(3y)11.3%
ROA(5y)1.93%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)27.16%
ROIC(5y)N/A
ROICexc(3y)36.27%
ROICexc(5y)N/A
ROICexgc(3y)71.34%
ROICexgc(5y)N/A
ROCE(3y)1434.71%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y25.96%
ROICexc growth 3YN/A
ROICexc growth 5Y30.55%
OM growth 3YN/A
OM growth 5Y40.35%
PM growth 3YN/A
PM growth 5Y57.51%
GM growth 3Y48.31%
GM growth 5Y10.05%
F-Score5
Asset Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 1.56 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 163.63% | ||
| Cap/Sales | 1.42% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.5% | ||
| Profit Quality | 56.1% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | 6.23 |
F-Score5
WACC8.37%
ROIC/WACC3.39
Cap/Depr(3y)65.93%
Cap/Depr(5y)50.73%
Cap/Sales(3y)0.78%
Cap/Sales(5y)0.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)175.57%
EPS 3YN/A
EPS 5Y51.27%
EPS Q2Q%211.11%
EPS Next Y19.42%
EPS Next 2Y19.89%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)40.1%
Revenue growth 3Y1.42%
Revenue growth 5Y-2.71%
Sales Q2Q%73.54%
Revenue Next Year28.22%
Revenue Next 2Y19.83%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y70.01%
EBIT growth 3YN/A
EBIT growth 5Y36.55%
EBIT Next Year32.27%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y35.81%
FCF growth 3YN/A
FCF growth 5Y31.91%
OCF growth 1Y47.57%
OCF growth 3YN/A
OCF growth 5Y28%