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Power Solutions International (PSIX)
:PSIX
US Market

Power Solutions (PSIX) AI Stock Analysis

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Power Solutions

(NASDAQ:PSIX)

69Neutral
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 (PSIX) vs. S&P 500 (SPY)

Power Solutions Business Overview & Revenue Model

Company DescriptionPower 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 MoneyPower 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
70
Positive
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
55
Neutral
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
65
Positive
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
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
525.84M458.97M481.33M456.25M417.64M546.08M
Gross Profit
123.74M105.86M88.56M41.27M58.45M99.89M
EBIT
68.79M44.27M24.60M-41.57M-21.72M17.20M
EBITDA
71.49M49.88M31.29M-34.16M-12.78M28.00M
Net Income Common Stockholders
54.36M26.31M11.27M-48.47M-22.98M8.25M
Balance SheetCash, Cash Equivalents and Short-Term Investments
54.00K22.76M24.30M6.25M20.97M3.00K
Total Assets
289.88M284.30M319.91M300.54M283.98M313.67M
Total Debt
109.33M174.20M224.90M180.89M131.09M95.38M
Net Debt
109.27M151.44M200.60M174.63M110.12M95.38M
Total Liabilities
308.46M288.22M350.29M342.56M277.88M285.18M
Stockholders Equity
-18.58M-3.92M-30.37M-42.02M6.10M28.50M
Cash FlowFree Cash Flow
33.81M65.48M-10.20M-63.45M-10.00M14.48M
Operating Cash Flow
38.13M70.51M-8.85M-61.48M-7.59M18.16M
Investing Cash Flow
-4.30M-5.02M-1.35M398.00K-1.41M-3.66M
Financing Cash Flow
-25.76M-66.80M28.37M46.55M33.27M-14.55M

Power Solutions Technical Analysis

Technical Analysis Sentiment
Negative
Last Price28.98
Price Trends
50DMA
35.25
Negative
100DMA
30.72
Negative
200DMA
21.91
Positive
Market Momentum
MACD
-2.43
Positive
RSI
41.13
Neutral
STOCH
26.45
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 Risk Analysis

Power Solutions disclosed 29 risk factors in its most recent earnings report. Power Solutions reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Power Solutions Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ENENS
79
Outperform
$3.88B12.3418.36%0.93%-2.94%22.32%
EMEMR
72
Outperform
$63.06B28.219.66%1.88%10.29%22.72%
70
Outperform
$1.97B12.0237.22%0.67%38.27%105.52%
69
Neutral
$666.53M12.26364.82%-11.16%99.28%
ROROK
69
Neutral
$29.98B33.6526.22%1.89%-11.28%-23.69%
64
Neutral
$3.89B73.624.80%0.38%-10.49%-57.78%
62
Neutral
$8.16B12.850.64%3.04%3.83%-15.83%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PSIX
Power Solutions
29.39
27.29
1299.52%
AEIS
Advanced Energy
103.25
5.46
5.58%
EMR
Emerson Electric Company
110.72
2.33
2.15%
ENS
EnerSys
98.50
7.08
7.74%
POWL
Powell Industries
163.49
-5.05
-3.00%
ROK
Rockwell Automation
265.15
-14.01
-5.02%

Power Solutions Corporate Events

Delistings and Listing Changes
Power Solutions Uplists to Nasdaq for Growth
Positive
Dec 27, 2024

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.

Business Operations and StrategyFinancial Disclosures
Power Solutions Reports Robust Q3 2024 Financial Growth
Positive
Nov 7, 2024

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.