Power Solutions (PSIX) AI Stock Analysis

• Market Cap: $666.53M
• Dividend Yield: N/A
• Average Volume (3M): 295.06K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 2.05
• Revenue Growth: -11.16%
• EPS Growth: 99.28%
• Country: US
• Employees: 700
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial Goods
• EPS (TTM): 2.36
• Shares Outstanding: 22,999,617
• 10 Day Avg. Volume: 236,607
• 30 Day Avg. Volume: 295,059
• PEG Ratio: 0.12
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.43
• Price to Cash Flow (P/CF): 12.40
• P/FCF Ratio: 12.90
• 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: $55.00
• Price Target Upside: 89.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Power Solutions shows strong financial improvement and positive corporate developments, particularly the Nasdaq uplisting and Q3 growth. However, concerns about high debt levels and past instability weigh on the score. Technical indicators support a positive trend, and the valuation suggests potential for growth.

Power Solutions Business Overview & Revenue Model

Company Description

Power Solutions International, Inc. engages in the design, manufacture, and trade of power systems and electrical power generation equipment. It also offers turnkey power solutions to original equipment manufacturers in the industrial, construction, agricultural, and on-road markets. The company was founded by Gary S. Winemaster and William Winemaster in February 1985 and is headquartered in Wood Dale, IL.

How the Company Makes Money

Power Solutions International, Inc. generates revenue through the sale of its customized high-performance engines and power systems. The company's primary revenue streams include the manufacturing and distribution of alternative-fuel power systems and internal combustion engines to original equipment manufacturers (OEMs) and end-users across various industries. Key factors contributing to its earnings include strategic partnerships with major OEMs, a focus on eco-friendly and alternative energy solutions, and the ability to tailor products to meet specific customer needs, thereby enhancing its market competitiveness and appeal.

Power Solutions Financial Statement Overview

Summary

Power Solutions has improved its profitability, with revenue growth and better margins. However, high debt levels and past financial instability remain concerns. Overall, the financial performance is solid, but leverage risks persist.

Income Statement

Power Solutions has shown a significant improvement in its profitability metrics over the TTM period. The gross profit margin increased to 23.53% from 23.06% in the previous year, and the net profit margin rose to 10.34% from 5.73%. Revenue grew by 14.57% in the TTM compared to the previous year. The EBIT and EBITDA margins have also improved, indicating better operational efficiency. However, the company had a history of losses in prior years, which poses a potential risk if past issues resurface.

Balance Sheet

The balance sheet shows a concerning debt-to-equity ratio due to a relatively high level of debt compared to equity. However, the company has improved its stockholders' equity, which turned positive in the TTM period. The equity ratio is still low at 12.41%, suggesting a high reliance on debt financing. Return on equity has improved significantly due to positive net income, but the overall leverage remains a risk factor.

Cash Flow

Power Solutions has shown positive free cash flow in the TTM, with a free cash flow growth rate of -48.35% compared to the previous year's high level. The operating cash flow to net income ratio stands at 0.70, indicating solid cash generation relative to earnings. The free cash flow to net income ratio of 0.62 shows that the company is effectively converting its earnings into cash, despite a decrease in free cash flow compared to the previous period.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
525.84M	458.97M	481.33M	456.25M	417.64M	546.08M
	Gross Profit
123.74M	105.86M	88.56M	41.27M	58.45M	99.89M
	EBIT
68.79M	44.27M	24.60M	-41.57M	-21.72M	17.20M
	EBITDA
71.49M	49.88M	31.29M	-34.16M	-12.78M	28.00M
	Net Income Common Stockholders
54.36M	26.31M	11.27M	-48.47M	-22.98M	8.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
54.00K	22.76M	24.30M	6.25M	20.97M	3.00K
	Total Assets
289.88M	284.30M	319.91M	300.54M	283.98M	313.67M
	Total Debt
109.33M	174.20M	224.90M	180.89M	131.09M	95.38M
	Net Debt
109.27M	151.44M	200.60M	174.63M	110.12M	95.38M
	Total Liabilities
308.46M	288.22M	350.29M	342.56M	277.88M	285.18M
	Stockholders Equity
-18.58M	-3.92M	-30.37M	-42.02M	6.10M	28.50M
Cash Flow		Free Cash Flow
33.81M	65.48M	-10.20M	-63.45M	-10.00M	14.48M
	Operating Cash Flow
38.13M	70.51M	-8.85M	-61.48M	-7.59M	18.16M
	Investing Cash Flow
-4.30M	-5.02M	-1.35M	398.00K	-1.41M	-3.66M
	Financing Cash Flow
-25.76M	-66.80M	28.37M	46.55M	33.27M	-14.55M

Power Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSIX, the sentiment is Negative. The current price of 28.98 is below the 20-day moving average (MA) of 33.34, below the 50-day MA of 35.25, and above the 200-day MA of 21.91, indicating a neutral trend. The MACD of -2.43 indicates Positive momentum. The RSI at 41.13 is Neutral, neither overbought nor oversold. The STOCH value of 26.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PSIX.

Power Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENS	79 Outperform	$3.88B	12.34	18.36%	0.93%	-2.94%	22.32%
EMR	72 Outperform	$63.06B	28.21	9.66%	1.88%	10.29%	22.72%
POWL	70 Outperform	$1.97B	12.02	37.22%	0.67%	38.27%	105.52%
PSIX	69 Neutral	$666.53M	12.26	364.82%	―	-11.16%	99.28%
ROK	69 Neutral	$29.98B	33.65	26.22%	1.89%	-11.28%	-23.69%
AEIS	64 Neutral	$3.89B	73.62	4.80%	0.38%	-10.49%	-57.78%
Sector *	62 Neutral	$8.16B	12.85	0.64%	3.04%	3.83%	-15.83%

Power Solutions Corporate Events

Power Solutions Uplists to Nasdaq for Growth

Power Solutions International, Inc. announced its uplisting to the Nasdaq Stock Market, where its common stock will trade under the symbol PSIX. This move is expected to enhance the company’s visibility, attract more investors, and increase liquidity. The uplisting is a significant milestone reflecting PSI’s strategic vision, commitment to innovation, and consistent profitability, positioning the company for further growth and shareholder value creation.

Power Solutions Reports Robust Q3 2024 Financial Growth

Power Solutions International, Inc. announced impressive third quarter 2024 results, with net income soaring to $17.3 million, a 122% increase from the previous year. The company attributed this growth to higher sales in the power systems sector and operational excellence. With a strategic focus on expanding capacity and managing expenses efficiently, PSI aims to drive long-term growth. Additionally, refinancing efforts have enhanced financial flexibility, positioning the company to capitalize on emerging opportunities in the evolving market landscape.