POWER SOLUTIONS INTERNATIONA (PSIX) Stock Fundamental Analysis
NASDAQ:PSIX - Nasdaq - US73933G2021 - Common Stock - Currency: USD
Overall PSIX gets a fundamental rating of 6 out of 10. We evaluated PSIX against 94 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 correct valuation and a medium growth rate. These ratings could make PSIX a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year PSIX was profitable.
PSIX had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PSIX reported negative net income in multiple years.
In multiple years PSIX reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of PSIX (21.80%) is better than 98.94% of its industry peers.
PSIX's Return On Equity of 96.33% is amongst the best of the industry. PSIX outperforms 100.00% of its industry peers.
The Return On Invested Capital of PSIX (31.06%) is better than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PSIX is significantly above the industry average of 9.87%.
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 94.68% of its industry peers.
PSIX's Profit Margin has improved in the last couple of years.
PSIX's Operating Margin of 18.52% is amongst the best of the industry. PSIX outperforms 94.68% of its industry peers.
In the last couple of years the Operating Margin of PSIX has grown nicely.
Looking at the Gross Margin, with a value of 30.04%, PSIX is in the better half of the industry, outperforming 71.28% of the companies in the same industry.
PSIX's Gross Margin has improved in the last couple of years.
| 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.
PSIX has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, PSIX has more shares outstanding
The debt/assets ratio for PSIX has been reduced compared to a year ago.
2.2 Solvency
PSIX has an Altman-Z score of 4.47. This indicates that PSIX is financially healthy and has little risk of bankruptcy at the moment.
PSIX's Altman-Z score of 4.47 is fine compared to the rest of the industry. PSIX outperforms 79.79% of its industry peers.
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.
PSIX's Debt to FCF ratio of 2.29 is amongst the best of the industry. PSIX outperforms 86.17% of its industry peers.
A Debt/Equity ratio of 1.31 is on the high side and indicates that PSIX has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.31, PSIX is doing worse than 72.34% of the companies in the same industry.
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 | 4.47 |
ROIC/WACC3.12
WACC9.95%
2.3 Liquidity
PSIX has a Current Ratio of 1.16. This is a normal value and indicates that PSIX is financially healthy and should not expect problems in meeting its short term obligations.
PSIX has a Current ratio of 1.16. This is in the lower half of the industry: PSIX underperforms 67.02% of its industry peers.
A Quick Ratio of 0.67 indicates that PSIX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.67, PSIX is doing worse than 72.34% 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
The Earnings Per Share has grown by an impressive 152.27% over the past year.
The Earnings Per Share has been growing by 51.27% on average over the past years. This is a very strong growth
Looking at the last year, PSIX shows a quite strong growth in Revenue. The Revenue has grown by 17.90% in the last year.
The Revenue has been decreasing by -2.71% on average over the past years.
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
Based on estimates for the next years, PSIX will show a small growth in Earnings Per Share. The EPS will grow by 7.78% on average per year.
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
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 16.08, PSIX is valued correctly.
Based on the Price/Earnings ratio, PSIX is valued cheaply inside the industry as 87.23% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PSIX to the average of the S&P500 Index (26.57), we can say PSIX is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.40, the valuation of PSIX can be described as correct.
PSIX's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PSIX is cheaper than 79.79% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.41, PSIX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.08 | ||
| Fwd PE | 16.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PSIX indicates a rather cheap valuation: PSIX is cheaper than 88.30% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PSIX is valued cheaper than 80.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.44 | ||
| EV/EBITDA | 10.91 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of PSIX may justify a higher PE ratio.
PEG (NY)1.74
PEG (5Y)0.31
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 |
53.53
+3.6 (+7.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners13.66%
Inst Owner Change43.54%
Ins Owners1.7%
Ins Owner Change-16.6%
Market Cap1.23B
Analysts82.86
Price Target65.28 (21.95%)
Short Float %5.57%
Short Ratio1.05
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)16.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)35.94%
EPS NY rev (1m)0%
EPS NY rev (3m)5.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)11.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.08 | ||
| Fwd PE | 16.4 | ||
| P/S | 2.39 | ||
| P/FCF | 25.44 | ||
| P/OCF | 22.16 | ||
| P/B | 14.6 | ||
| P/tB | 23.52 | ||
| EV/EBITDA | 10.91 |
EPS(TTM)3.33
EY6.22%
EPS(NY)3.26
Fwd EY6.1%
FCF(TTM)2.1
FCFY3.93%
OCF(TTM)2.42
OCFY4.51%
SpS22.43
BVpS3.67
TBVpS2.28
PEG (NY)1.74
PEG (5Y)0.31
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 | 4.47 |
F-Score5
WACC9.95%
ROIC/WACC3.12
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%