Power Integrations, Inc.
Power Integrations, Inc. Fundamental Analysis
Power Integrations, Inc. (POWI) shows weak financial fundamentals with a PE ratio of 114.02, profit margin of 4.98%, and ROE of 3.17%. The company generates $0.4B in annual revenue with weak year-over-year growth of -5.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze POWI's fundamental strength across five key dimensions:
Efficiency Score
WeakPOWI struggles to generate sufficient returns from assets.
Valuation Score
WeakPOWI trades at a premium to fair value.
Growth Score
WeakPOWI faces weak or negative growth trends.
Financial Health Score
ExcellentPOWI maintains a strong and stable balance sheet.
Profitability Score
WeakPOWI struggles to sustain strong margins.
Key Financial Metrics
Is POWI Expensive or Cheap?
P/E Ratio
POWI trades at 114.02 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, POWI's PEG of 4.42 indicates potential overvaluation.
Price to Book
The market values Power Integrations, Inc. at 3.74 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 59.93 times EBITDA. This signals the market has high growth expectations.
How Well Does POWI Make Money?
Net Profit Margin
For every $100 in sales, Power Integrations, Inc. keeps $4.98 as profit after all expenses.
Operating Margin
Core operations generate 5.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.17 in profit for every $100 of shareholder equity.
ROA
Power Integrations, Inc. generates $2.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Power Integrations, Inc. generates strong operating cash flow of $111.87M, reflecting robust business health.
Free Cash Flow
Power Integrations, Inc. generates strong free cash flow of $87.40M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.57 in free cash annually.
FCF Yield
POWI converts 3.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
114.02
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How POWI Stacks Against Its Sector Peers
| Metric | POWI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 114.02 | 35.19 | Worse (Expensive) |
| ROE | 3.17% | 1155.00% | Weak |
| Net Margin | 4.98% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 6.51 | 4.71 | Strong Liquidity |
| ROA | 2.86% | -314918.00% (disorted) | Weak |
POWI outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Power Integrations, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
2.60%
Industry Style: Growth, Innovation, High Beta
GrowingEPS CAGR
-82.84%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-62.75%
Industry Style: Growth, Innovation, High Beta
Declining