POWER SOLUTIONS INTERNATIONA (PSIX) Stock Fundamental Analysis
NASDAQ:PSIX - Nasdaq - US73933G2021 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to PSIX. PSIX was compared to 93 industry peers in the Electrical Equipment industry. PSIX scores excellent points on both the profitability and health parts. This is a solid base for a good stock. PSIX has a decent growth rate and is not valued too expensively. These ratings could make PSIX a good candidate 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 has a Return On Assets of 21.80%. This is amongst the best in the industry. PSIX outperforms 98.92% of its industry peers.
With an excellent Return On Equity value of 96.33%, PSIX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
PSIX has a better Return On Invested Capital (31.06%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PSIX is significantly above the industry average of 9.89%.
The last Return On Invested Capital (31.06%) for PSIX is above the 3 year average (27.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.8% | ||
| ROE | 96.33% | ||
| ROIC | 31.06% |
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 15.74% is amongst the best of the industry. PSIX outperforms 94.62% of its industry peers.
In the last couple of years the Profit Margin of PSIX has grown nicely.
PSIX's Operating Margin of 18.52% is amongst the best of the industry. PSIX outperforms 94.62% of its industry peers.
PSIX's Operating Margin has improved in the last couple of years.
PSIX has a Gross Margin of 30.04%. This is in the better half of the industry: PSIX outperforms 69.89% of its industry peers.
In the last couple of years the Gross Margin of PSIX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.52% | ||
| PM (TTM) | 15.74% | ||
| GM | 30.04% |
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.
Compared to 1 year ago, PSIX has about the same amount of shares outstanding.
PSIX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PSIX has been reduced compared to a year ago.
2.2 Solvency
PSIX has an Altman-Z score of 6.39. This indicates that PSIX is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.39, PSIX belongs to the best of the industry, outperforming 90.32% of the companies in the same industry.
PSIX has a debt to FCF ratio of 2.29. This is a good value and a sign of high solvency as PSIX would need 2.29 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.29, PSIX belongs to the best of the industry, outperforming 84.95% of the companies in the same industry.
A Debt/Equity ratio of 1.31 is on the high side and indicates that PSIX has dependencies on debt financing.
PSIX's Debt to Equity ratio of 1.31 is on the low side compared to the rest of the industry. PSIX is outperformed by 72.04% of its industry peers.
Even though the debt/equity ratio score it not favorable for PSIX, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 2.29 | ||
| Altman-Z | 6.39 |
ROIC/WACC3.54
WACC8.77%
2.3 Liquidity
A Current Ratio of 1.16 indicates that PSIX should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.16, PSIX is doing worse than 66.67% of the companies in the same industry.
PSIX has a Quick Ratio of 1.16. This is a bad value and indicates that PSIX is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.67, PSIX is doing worse than 72.04% of the companies in the same industry.
PSIX does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.16 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
PSIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 152.27%, which is quite impressive.
The Earnings Per Share has been growing by 51.27% on average over the past years. This is a very strong growth
PSIX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.90%.
PSIX shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.71% yearly.
EPS 1Y (TTM)152.27%
EPS 3YN/A
EPS 5Y51.27%
EPS Q2Q%167.74%
Revenue 1Y (TTM)17.9%
Revenue growth 3Y1.42%
Revenue growth 5Y-2.71%
Sales Q2Q%42.22%
3.2 Future
PSIX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.78% yearly.
Based on estimates for the next years, PSIX will show a quite strong growth in Revenue. The Revenue will grow by 9.76% on average per year.
EPS Next Y9.26%
EPS Next 2Y7.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.18%
Revenue Next 2Y9.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.03 indicates a quite expensive valuation of PSIX.
Based on the Price/Earnings ratio, PSIX is valued a bit cheaper than the industry average as 76.34% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PSIX to the average of the S&P500 Index (27.54), we can say PSIX is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 27.57, the valuation of PSIX can be described as expensive.
73.12% of the companies in the same industry are more expensive than PSIX, based on the Price/Forward Earnings ratio.
PSIX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.03 | ||
| Fwd PE | 27.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PSIX is valued a bit cheaper than the industry average as 75.27% of the companies are valued more expensively.
PSIX's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PSIX is cheaper than 73.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.77 | ||
| EV/EBITDA | 20.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PSIX does not grow enough to justify the current Price/Earnings ratio.
PSIX has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.92
PEG (5Y)0.53
EPS Next 2Y7.78%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PSIX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
90
+5.97 (+7.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners13.66%
Inst Owner Change0.61%
Ins Owners1.7%
Ins Owner Change-15.56%
Market Cap2.07B
Analysts82.86
Price Target65.28 (-27.47%)
Short Float %12.81%
Short Ratio1.87
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)51.56%
Min EPS beat(2)26.23%
Max EPS beat(2)76.9%
EPS beat(4)4
Avg EPS beat(4)55.44%
Min EPS beat(4)22.55%
Max EPS beat(4)96.08%
EPS beat(8)8
Avg EPS beat(8)82.39%
EPS beat(12)12
Avg EPS beat(12)362.6%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)12.56%
Min Revenue beat(2)0.55%
Max Revenue beat(2)24.57%
Revenue beat(4)2
Avg Revenue beat(4)4.87%
Min Revenue beat(4)-4.98%
Max Revenue beat(4)24.57%
Revenue beat(8)2
Avg Revenue beat(8)-0.93%
Revenue beat(12)6
Avg Revenue beat(12)1.1%
Revenue beat(16)6
Avg Revenue beat(16)-1.01%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)24.29%
EPS NY rev (1m)0%
EPS NY rev (3m)2.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)11.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.03 | ||
| Fwd PE | 27.57 | ||
| P/S | 4.01 | ||
| P/FCF | 42.77 | ||
| P/OCF | 37.27 | ||
| P/B | 24.55 | ||
| P/tB | 39.55 | ||
| EV/EBITDA | 20.06 |
EPS(TTM)3.33
EY3.7%
EPS(NY)3.26
Fwd EY3.63%
FCF(TTM)2.1
FCFY2.34%
OCF(TTM)2.42
OCFY2.68%
SpS22.43
BVpS3.67
TBVpS2.28
PEG (NY)2.92
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.8% | ||
| ROE | 96.33% | ||
| ROCE | 71.77% | ||
| ROIC | 31.06% | ||
| ROICexc | 39.1% | ||
| ROICexgc | 46.85% | ||
| OM | 18.52% | ||
| PM (TTM) | 15.74% | ||
| GM | 30.04% | ||
| FCFM | 9.38% |
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 Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 2.29 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 138.4% | ||
| Cap/Sales | 1.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 55.14% | ||
| Profit Quality | 59.6% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | 6.39 |
F-Score5
WACC8.77%
ROIC/WACC3.54
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)152.27%
EPS 3YN/A
EPS 5Y51.27%
EPS Q2Q%167.74%
EPS Next Y9.26%
EPS Next 2Y7.78%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)17.9%
Revenue growth 3Y1.42%
Revenue growth 5Y-2.71%
Sales Q2Q%42.22%
Revenue Next Year11.18%
Revenue Next 2Y9.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y106.09%
EBIT growth 3YN/A
EBIT growth 5Y36.55%
EBIT Next Year13.47%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y314.23%
FCF growth 3YN/A
FCF growth 5Y31.91%
OCF growth 1Y310.72%
OCF growth 3YN/A
OCF growth 5Y28%