78.17 USD
-0.65 (-0.82%)
PSIX gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 91 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 is evaluated to be cheap and growing strongly. This does not happen too often! These ratings could make PSIX a good candidate for value and growth and quality investing.
1. Profitability
1.1 Basic Checks
- PSIX had positive earnings in the past year.
- In the past year PSIX had a positive cash flow from operations.
- In multiple years PSIX reported negative net income over the last 5 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 better Return On Assets (26.41%) than 97.80% of its industry peers.
- PSIX has a better Return On Equity (74.60%) than 98.90% of its industry peers.
- The Return On Invested Capital of PSIX (27.37%) is better than 100.00% of its industry peers.
- PSIX had an Average Return On Invested Capital over the past 3 years of 27.16%. This is significantly above the industry average of 9.92%.
- The last Return On Invested Capital (27.37%) for PSIX is above the 3 year average (27.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.41% | ||
| ROE | 74.6% | ||
| ROIC | 27.37% |
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
- The Profit Margin of PSIX (17.94%) is better than 94.51% of its industry peers.
- PSIX's Profit Margin has improved in the last couple of years.
- PSIX has a Operating Margin of 16.38%. This is amongst the best in the industry. PSIX outperforms 91.21% of its industry peers.
- In the last couple of years the Operating Margin of PSIX has grown nicely.
- The Gross Margin of PSIX (27.57%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of PSIX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.38% | ||
| PM (TTM) | 17.94% | ||
| GM | 27.57% |
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.
- 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 6.43. This indicates that PSIX is financially healthy and has little risk of bankruptcy at the moment.
- PSIX's Altman-Z score of 6.43 is amongst the best of the industry. PSIX outperforms 82.42% of its industry peers.
- The Debt to FCF ratio of PSIX is 1.87, which is an excellent value as it means it would take PSIX, only 1.87 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.87, PSIX belongs to the top of the industry, outperforming 90.11% of the companies in the same industry.
- A Debt/Equity ratio of 0.59 indicates that PSIX is somewhat dependend on debt financing.
- The Debt to Equity ratio of PSIX (0.59) is comparable to the rest of the industry.
- 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 | 0.59 | ||
| Debt/FCF | 1.87 | ||
| Altman-Z | 6.43 |
ROIC/WACC3.2
WACC8.56%
2.3 Liquidity
- A Current Ratio of 2.28 indicates that PSIX has no problem at all paying its short term obligations.
- With a decent Current ratio value of 2.28, PSIX is doing good in the industry, outperforming 69.23% of the companies in the same industry.
- A Quick Ratio of 1.19 indicates that PSIX should not have too much problems paying its short term obligations.
- PSIX's Quick ratio of 1.19 is in line compared to the rest of the industry. PSIX outperforms 54.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
- PSIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 150.00%, which is quite impressive.
- 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.
- PSIX shows a strong growth in Revenue. In the last year, the Revenue has grown by 54.78%.
- The Revenue has been decreasing by -2.71% on average over the past years.
EPS 1Y (TTM)150%
EPS 3YN/A
EPS 5Y51.27%
EPS Q2Q%60%
Revenue 1Y (TTM)54.78%
Revenue growth 3Y1.42%
Revenue growth 5Y-2.71%
Sales Q2Q%61.97%
3.2 Future
- Based on estimates for the next years, PSIX will show a very strong growth in Earnings Per Share. The EPS will grow by 46.10% on average per year.
- The Revenue is expected to grow by 24.87% on average over the next years. This is a very strong growth
EPS Next Y78.55%
EPS Next 2Y44.88%
EPS Next 3Y46.1%
EPS Next 5YN/A
Revenue Next Year48.52%
Revenue Next 2Y33.56%
Revenue Next 3Y28.9%
Revenue Next 5Y24.87%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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
- Based on the Price/Earnings ratio of 14.75, the valuation of PSIX can be described as correct.
- 92.31% of the companies in the same industry are more expensive than PSIX, based on the Price/Earnings ratio.
- PSIX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 13.25, which indicates a correct valuation of PSIX.
- Based on the Price/Forward Earnings ratio, PSIX is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. PSIX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.75 | ||
| Fwd PE | 13.25 |
4.2 Price Multiples
- 84.62% of the companies in the same industry are more expensive than PSIX, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, PSIX is valued a bit cheaper than the industry average as 74.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.76 | ||
| EV/EBITDA | 16.08 |
4.3 Compensation for Growth
- PSIX's 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.
- A more expensive valuation may be justified as PSIX's earnings are expected to grow with 46.10% in the coming years.
PEG (NY)0.19
PEG (5Y)0.29
EPS Next 2Y44.88%
EPS Next 3Y46.1%
5. Dividend
5.1 Amount
- PSIX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
POWER SOLUTIONS INTERNATIONA / PSIX FAQ
What is the ChartMill fundamental rating of POWER SOLUTIONS INTERNATIONA (PSIX) stock?
ChartMill assigns a fundamental rating of 7 / 10 to PSIX.
What is the valuation status for PSIX stock?
ChartMill assigns a valuation rating of 8 / 10 to POWER SOLUTIONS INTERNATIONA (PSIX). This can be considered as Undervalued.
Can you provide the profitability details for POWER SOLUTIONS INTERNATIONA?
POWER SOLUTIONS INTERNATIONA (PSIX) has a profitability rating of 8 / 10.
What are the PE and PB ratios of POWER SOLUTIONS INTERNATIONA (PSIX) stock?
The Price/Earnings (PE) ratio for POWER SOLUTIONS INTERNATIONA (PSIX) is 14.75 and the Price/Book (PB) ratio is 11.09.
What is the earnings growth outlook for POWER SOLUTIONS INTERNATIONA?
The Earnings per Share (EPS) of POWER SOLUTIONS INTERNATIONA (PSIX) is expected to grow by 78.55% in the next year.