Powell Industries, Inc.
Powell Industries, Inc. Fundamental Analysis
Powell Industries, Inc. (POWL) shows moderate financial fundamentals with a PE ratio of 35.44, profit margin of 16.82%, and ROE of 30.64%. The company generates $1.1B in annual revenue with moderate year-over-year growth of 9.08%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 86.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze POWL's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPOWL demonstrates superior asset utilization.
Valuation Score
WeakPOWL trades at a premium to fair value.
Growth Score
ExcellentPOWL delivers strong and consistent growth momentum.
Financial Health Score
ExcellentPOWL maintains a strong and stable balance sheet.
Profitability Score
ExcellentPOWL achieves industry-leading margins.
Key Financial Metrics
Is POWL Expensive or Cheap?
P/E Ratio
POWL trades at 35.44 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, POWL's PEG of 10.02 indicates potential overvaluation.
Price to Book
The market values Powell Industries, Inc. at 9.93 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 30.17 times EBITDA. This signals the market has high growth expectations.
How Well Does POWL Make Money?
Net Profit Margin
For every $100 in sales, Powell Industries, Inc. keeps $16.82 as profit after all expenses.
Operating Margin
Core operations generate 20.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $30.64 in profit for every $100 of shareholder equity.
ROA
Powell Industries, Inc. generates $17.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Powell Industries, Inc. produces operating cash flow of $174.98M, showing steady but balanced cash generation.
Free Cash Flow
Powell Industries, Inc. generates strong free cash flow of $161.96M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $13.34 in free cash annually.
FCF Yield
POWL converts 2.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
35.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
10.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.98
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.002
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.17
vs 25 benchmark
ROCE
Return on capital employed
0.32
vs 25 benchmark
How POWL Stacks Against Its Sector Peers
| Metric | POWL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 35.44 | 26.76 | Worse (Expensive) |
| ROE | 30.64% | 1300.00% | Weak |
| Net Margin | 16.82% | -29570.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.29 | 10.68 | Strong Liquidity |
| ROA | 17.12% | -1545134.00% (disorted) | Strong |
POWL outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Powell Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
105.25%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
945.52%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
123.55%
Industry Style: Cyclical, Value, Infrastructure
High Growth