Power Solutions International, Inc.
Power Solutions International, Inc. Fundamental Analysis
Power Solutions International, Inc. (PSIX) shows strong financial fundamentals with a PE ratio of 11.53, profit margin of 15.78%, and ROE of 81.27%. The company generates $0.7B in annual revenue with moderate year-over-year growth of 3.70%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PSIX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPSIX demonstrates superior asset utilization.
Valuation Score
ExcellentPSIX trades at attractive valuation levels.
Growth Score
WeakPSIX faces weak or negative growth trends.
Financial Health Score
ExcellentPSIX maintains a strong and stable balance sheet.
Profitability Score
ExcellentPSIX achieves industry-leading margins.
Key Financial Metrics
Is PSIX Expensive or Cheap?
P/E Ratio
PSIX trades at 11.53 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PSIX's PEG of -1.96 indicates potential undervaluation.
Price to Book
The market values Power Solutions International, Inc. at 7.36 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 10.30 times EBITDA. This signals the market has high growth expectations.
How Well Does PSIX Make Money?
Net Profit Margin
For every $100 in sales, Power Solutions International, Inc. keeps $15.78 as profit after all expenses.
Operating Margin
Core operations generate 15.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $81.27 in profit for every $100 of shareholder equity.
ROA
Power Solutions International, Inc. generates $25.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Power Solutions International, Inc. generates limited operating cash flow of $24.14M, signaling weaker underlying cash strength.
Free Cash Flow
Power Solutions International, Inc. generates weak or negative free cash flow of $14.15M, restricting financial flexibility.
FCF Per Share
Each share generates $0.61 in free cash annually.
FCF Yield
PSIX converts 1.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.96
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.36
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.86
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.81
vs 25 benchmark
ROA
Return on assets percentage
0.26
vs 25 benchmark
ROCE
Return on capital employed
0.31
vs 25 benchmark
How PSIX Stacks Against Its Sector Peers
| Metric | PSIX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.53 | 25.84 | Better (Cheaper) |
| ROE | 81.27% | 1279.00% | Weak |
| Net Margin | 15.78% | -43714.00% (disorted) | Strong |
| Debt/Equity | 0.86 | 0.80 | Neutral |
| Current Ratio | 3.15 | 10.62 | Strong Liquidity |
| ROA | 25.65% | -1537441.00% (disorted) | Strong |
PSIX outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Power Solutions International, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-18.42%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
686.19%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
221.62%
Industry Style: Cyclical, Value, Infrastructure
High Growth