Powell Industries (POWL) AI Stock Analysis

• Market Cap: $2.09B
• Dividend Yield: 0.61%
• Average Volume (3M): 444.01K
• Price to Earnings (P/E): 13.1
• Beta (1Y): 1.51
• Revenue Growth: 38.27%
• EPS Growth: 105.52%
• Country: US
• Employees: 2,748
• Sector: Industrials
• Sector Strength: 70
• Industry: Electrical Equipment & Parts
• EPS (TTM): 13.17
• Shares Outstanding: 12,064,723
• 10 Day Avg. Volume: 447,016
• 30 Day Avg. Volume: 444,009
• PEG Ratio: 0.12
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.10
• Price to Cash Flow (P/CF): 15.00
• P/FCF Ratio: 15.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $312.00
• Price Target Upside: 80.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Powell Industries demonstrates strong financial performance with significant revenue and order growth, supported by strategic initiatives and favorable market fundamentals. The technical indicators, however, suggest bearish momentum, and the valuation presents a moderate P/E ratio with a low dividend yield. Despite some challenges in maintaining cash flow and margins, the overall outlook remains positive, driven by robust earnings growth and sector expansion.

Powell Industries Business Overview & Revenue Model

Company Description

Powell Industries, Inc., together with its subsidiaries, designs, develops, manufactures, sells, and services custom-engineered equipment and systems for the distribution, control, and monitoring of electrical energy. The company's principal products include integrated power control room substations, custom-engineered modules, electrical houses, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers, and bus duct systems, as well as traditional and arc-resistant distribution switchgears and control gears. Its products have application in voltages ranging from 480 volts to 38,000 volts; and are used in oil and gas refining, onshore and offshore oil and gas production, petrochemical, liquid natural gas terminals, pipeline, terminal, mining and metals, light rail traction power, electric utility, pulp and paper, and other heavy industrial markets. It also provides value-added services, such as spare parts, field service inspection, installation, commissioning, modification and repair, retrofit and retrofill components for existing systems, and replacement circuit breakers for switchgear. The company has operations in the United States, Canada, the Middle East, Africa, Europe, Mexico, and Central and South America. Powell Industries, Inc. was founded in 1947 and is headquartered in Houston, Texas.

How the Company Makes Money

Powell Industries generates revenue through the sale of its custom-engineered electrical equipment and systems. The company’s revenue streams include the design and manufacturing of switchgear and related equipment, as well as providing aftermarket services such as maintenance, repair, and retrofitting. By serving industries that require robust and reliable electrical systems, Powell benefits from long-term contracts and repeat business opportunities. Additionally, the company may engage in strategic partnerships or collaborations with other firms to enhance its product offerings and expand its market reach.

Powell Industries Financial Statement Overview

Summary

Powell Industries exhibits a strong financial position with significant revenue growth and healthy profit margins. The company benefits from low leverage and a solid equity base, supporting its financial stability. However, attention should be paid to maintaining cash flow levels and ensuring sustainable revenue growth to avoid potential future risks.

Income Statement

Powell Industries has shown strong revenue growth, with a TTM revenue of $1.06 billion compared to $699.3 million the previous year. The company has maintained a healthy gross profit margin of approximately 26.8% and a net profit margin of about 15.1% in the TTM period. These margins indicate robust profitability, supported by a consistent increase in EBIT and EBITDA margins. However, the significant jump in revenue from the prior year may not be sustainable at this pace.

Balance Sheet

The balance sheet of Powell Industries is strong, with a low debt-to-equity ratio of approximately 0.0027, indicating low leverage and financial stability. The equity ratio stands at 54.4%, reflecting a solid equity base. A return on equity (ROE) of around 32.3% demonstrates effective use of equity to generate profits. The main concern could be the relatively low total asset growth compared to revenue growth.

Cash Flow

Powell Industries has shown positive free cash flow growth, with a TTM increase to $48.9 million. The operating cash flow to net income ratio is 0.39, suggesting room for improvement in converting net income to cash. The free cash flow to net income ratio is 0.30, indicating that a significant portion of earnings is being converted into free cash flow. While the cash flow statements reflect positive trends, the operating cash flow has decreased compared to the previous year, which might need attention.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
1.06B	1.01B	699.31M	532.58M	470.56M	518.50M
	Gross Profit
284.42M	273.09M	147.55M	85.02M	75.06M	94.58M
	EBIT
188.47M	178.77M	62.52M	-5.09M	1.02M	19.07M
	EBITDA
193.69M	178.77M	71.13M	7.22M	1.02M	31.14M
	Net Income Common Stockholders
160.53M	149.85M	54.52M	13.74M	631.00K	16.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
113.60M	358.39M	279.01M	116.51M	133.98M	178.92M
	Total Assets
413.63M	928.18M	752.24M	493.38M	436.19M	472.28M
	Total Debt
22.39M	1.22M	1.44M	2.32M	4.23M	6.59M
	Net Debt
-91.21M	-314.12M	-244.44M	-99.63M	-110.09M	-153.63M
	Total Liabilities
145.31M	445.11M	407.22M	196.17M	134.97M	165.65M
	Stockholders Equity
267.73M	483.07M	345.03M	297.21M	301.22M	306.63M
Cash Flow		Free Cash Flow
48.90M	96.68M	174.73M	-6.03M	-33.35M	67.26M
	Operating Cash Flow
61.84M	108.66M	182.55M	-3.58M	-30.46M	72.39M
	Investing Cash Flow
-29.88M	-21.87M	-26.57M	6.46M	-2.46M	-17.54M
	Financing Cash Flow
-26.56M	-19.25M	-13.06M	-13.31M	-13.17M	-13.10M

Powell Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 173.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POWL, the sentiment is Negative. The current price of 173.22 is below the 20-day moving average (MA) of 178.37, below the 50-day MA of 185.95, and below the 200-day MA of 210.37, indicating a bearish trend. The MACD of -3.42 indicates Negative momentum. The RSI at 44.84 is Neutral, neither overbought nor oversold. The STOCH value of 25.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for POWL.

Powell Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENS	72 Outperform	$3.19B	10.02	18.36%	1.17%	-2.94%	22.32%
POWL	70 Outperform	$2.09B	13.14	37.22%	0.61%	38.27%	105.52%
AEIS	66 Neutral	$3.61B	66.73	4.80%	0.46%	-10.49%	-57.78%
ENR	62 Neutral	$1.91B	33.41	37.60%	4.53%	-0.31%	-37.69%
ATKR	62 Neutral	$2.05B	5.76	25.00%	2.26%	-12.01%	-38.33%
Sector *	62 Neutral	$7.50B	12.89	3.19%	3.38%	3.64%	-14.27%
ENVX	44 Neutral	$1.27B	―	-88.04%	―	1429.35%	-36.13%