PWR Holdings (PWH) AI Stock Analysis

• Market Cap: $703.95M
• Dividend Yield: 2%
• Average Volume (3M): 280.79K
• Price to Earnings (P/E): 36.8
• Beta (1Y): 0.72
• Revenue Growth: 6.23%
• EPS Growth: -19.62%
• Country: AU
• Employees: 578
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Auto - Parts
• EPS (TTM): 0.04
• Shares Outstanding: 100,563,910
• 10 Day Avg. Volume: 202,968
• 30 Day Avg. Volume: 280,793
• PEG Ratio: -1.52
• Price to Book (P/B): 7.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 91.81
• 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: $8.32
• Price Target Upside: 22.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 67 Neutral
• Price Target: AU$7.50 ▲( 10.62% Upside)

PWR Holdings Ltd. receives a strong score due to its robust financial performance and stability. However, the stock's overvaluation and mixed technical signals moderate the overall outlook. The lack of earnings call data and corporate events leaves the analysis primarily dependent on financial and market performance indicators.

PWR Holdings Business Overview & Revenue Model

Company Description

PWR Holdings Ltd. (PWH) is an Australian-based company that specializes in the design and manufacturing of advanced cooling solutions for the automotive, aerospace, and motorsports industries. The company's core products include high-performance radiators, intercoolers, and oil coolers, which are used in various high-performance and racing vehicles around the world. PWR Holdings is renowned for its innovative engineering and manufacturing capabilities, catering to a global client base that includes leading automotive brands and racing teams.

How the Company Makes Money

PWR Holdings Ltd. generates revenue primarily through the sale of its high-performance cooling solutions to automotive manufacturers, motorsport teams, and the aerospace sector. The company designs and manufactures custom and standard cooling systems that meet the specific requirements of each client, allowing them to charge premium prices for their specialized products. Key revenue streams include contracts with top-tier motorsport teams, such as those in Formula 1, NASCAR, and other racing series, as well as partnerships with leading automotive manufacturers who integrate PWR's products into their vehicles. The company's strong focus on research and development and its reputation for quality and innovation contribute significantly to its earnings by attracting and retaining a loyal customer base.

PWR Holdings Financial Statement Overview

Summary

PWR Holdings Ltd. demonstrates strong financial health with robust revenue and profit growth, efficient operational performance, and solid cash flow generation. The company maintains a stable balance sheet with prudent leverage and high liquidity, positioning it well within the Auto - Parts industry.

Income Statement

PWR Holdings Ltd. has shown robust revenue growth with a compound annual growth rate of 16.09% over the last five years. The gross profit margin for the latest fiscal year stands at 80.00%, reflecting strong cost management and competitive pricing in the Auto - Parts industry. The net profit margin is 17.80%, showcasing consistent profitability. Both EBIT and EBITDA margins are healthy at 23.61% and 32.68% respectively, indicating efficient operational performance.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.16, indicating prudent financial leverage. The equity ratio is strong at 71.93%, suggesting financial stability and a well-capitalized structure. Return on Equity (ROE) is commendable at 24.73%, demonstrating effective use of shareholder funds to generate profits.

Cash Flow

PWR Holdings Ltd. exhibits strong cash flow generation with a 60.55% growth in free cash flow year-over-year. The operating cash flow to net income ratio is 1.32, indicating robust cash generation relative to accounting earnings. The free cash flow to net income ratio is 0.83, underlining effective cash conversion and capital expenditure management.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
138.07M	139.39M	118.33M	101.07M	79.21M	65.73M
	Gross Profit
110.03M	111.51M	38.91M	34.10M	24.52M	18.46M
	EBIT
36.11M	32.90M	28.69M	26.93M	23.22M	14.55M
	EBITDA
35.07M	45.56M	37.38M	34.38M	28.63M	22.75M
	Net Income Common Stockholders
19.11M	24.80M	21.75M	20.84M	16.80M	13.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.54M	21.66M	17.63M	21.50M	19.86M	20.80M
	Total Assets
136.71M	139.42M	123.16M	98.53M	90.77M	86.21M
	Total Debt
20.89M	15.87M	18.29M	6.74M	8.46M	18.03M
	Net Debt
9.35M	-5.80M	5.66M	-9.76M	-11.40M	-2.78M
	Total Liabilities
39.98M	39.13M	34.69M	22.13M	26.81M	31.96M
	Stockholders Equity
96.73M	100.29M	88.47M	76.40M	63.96M	54.25M
Cash Flow		Free Cash Flow
7.57M	20.56M	12.80M	12.04M	16.07M	8.44M
	Operating Cash Flow
27.99M	32.85M	27.85M	17.06M	26.43M	16.21M
	Investing Cash Flow
-20.14M	-11.80M	-17.05M	-3.87M	-10.31M	-6.70M
	Financing Cash Flow
-12.25M	-17.02M	-14.64M	-11.54M	-17.22M	-8.47M

PWR Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.78
• 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 AU:PWH, the sentiment is Negative. The current price of 6.78 is below the 20-day moving average (MA) of 6.82, below the 50-day MA of 6.78, and below the 200-day MA of 8.18, indicating a bearish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 47.97 is Neutral, neither overbought nor oversold. The STOCH value of 35.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:PWH.

PWR Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARB	75 Outperform	$2.59B	25.12	15.18%	2.27%	6.17%	10.45%
SUL	73 Outperform	AU$3.15B	13.91	17.52%	4.88%	2.56%	-13.62%
RWC	72 Outperform	AU$3.49B	18.62	10.01%	1.82%	8.95%	3.33%
PWH	67 Neutral	$703.95M	36.82	20.90%	2.00%	6.23%	-19.62%
Sector *	62 Neutral	$6.97B	11.36	2.77%	3.91%	2.66%	-22.00%
AMA	55 Neutral	AU$425.65M	425.00	1.53%	―	-1.09%	―
BAP	54 Neutral	€1.76B	―	-16.06%	2.86%	-0.30%	-267.50%

PWR Holdings Corporate Events

JPMorgan Chase Acquires Substantial Stake in PWR Holdings

JPMorgan Chase & Co. and its affiliates have become substantial holders in PWR Holdings Ltd, acquiring a 5.58% voting power through various securities transactions. This development indicates a significant investment by JPMorgan, potentially impacting PWR Holdings’ market dynamics and signaling confidence in the company’s future prospects.

The most recent analyst rating on (AU:PWH) stock is a Hold with a A$10.97 price target. To see the full list of analyst forecasts on PWR Holdings stock, see the AU:PWH Stock Forecast page.

PWR Holdings Director Increases Shareholding

PWR Holdings Ltd. has announced a change in the director’s interest notice, with Amanda Jane Holt acquiring an additional 4,000 fully paid ordinary shares through an on-market trade. This change increases her direct holding to 15,000 shares, while her indirect holding remains unchanged at 533 shares held by Martin Stuart Holt. This acquisition reflects a strategic move by the director, potentially signaling confidence in the company’s future performance and stability, which may have implications for stakeholders and market perception.

PWR Holdings Announces Leadership Transition Amidst Founder’s Medical Leave

PWR Holdings Ltd. has announced that its Founder and Managing Director, Kees Weel, is taking temporary medical leave to focus on his health. During his absence, the Executive Leadership Team, led by Matthew Bryson as Acting CEO, will manage the company’s operations. This leadership transition occurs as PWR embarks on a significant move to its new headquarters, indicating a period of operational change and continuity for the company.

PWR Holdings Ltd. Minimizes Impact of New US Tariffs with Strategic Expansion

PWR Holdings Ltd. has announced that the new US tariffs, including a 10% tariff on imports from Australia and 25% tariffs on aluminium and automotive products, will have minimal impact on its financial results. The company is proactively expanding its US manufacturing capabilities and diversifying its supply chain to mitigate potential risks and capitalize on new opportunities in the evolving global trade environment.

PWR Holdings Ltd. Director’s Interest Update

PWR Holdings Ltd. has announced a change in the director’s interest notice, specifically involving Amanda Jane Holt. The change involves the acquisition of 10,000 fully paid ordinary shares by Amanda Jane Holt through an on-market trade, increasing her direct holdings to 11,000 shares, while her indirect holdings remain unchanged at 533 shares held by her husband, Martin Stuart Holt.

PWR Holdings Director Increases Shareholding

PWR Holdings Ltd. announced a change in the director’s interest, with Jason Conroy acquiring an additional 10,000 fully paid ordinary shares, bringing his total to 20,000 shares. This transaction, conducted through an on-market trade, reflects a strategic move by the director, potentially indicating confidence in the company’s future performance and stability.

PWR Holdings Director Acquires Significant Shareholding

PWR Holdings Limited has announced a change in the director’s interest, with Kristen Lee Podagiel acquiring 20,341 fully paid ordinary shares through on-market trades. This acquisition reflects a significant personal investment by the director, potentially indicating confidence in the company’s future performance and stability.

AustralianSuper Increases Stake in PWR Holdings Ltd

AustralianSuper Pty Ltd has increased its voting power in PWR Holdings Ltd from 7.45% to 8.65%, indicating a growing interest and influence in the company. This change in substantial holding reflects AustralianSuper’s strategic positioning within PWR Holdings, potentially impacting the company’s governance and future decision-making processes.

PWR Holdings Director Increases Shareholding

PWR Holdings Limited has announced a change in the director’s interest, specifically involving Kym Osley. The notice reveals that Kym Osley’s indirect interest, through his wife Debra Leanne Osley, has increased by acquiring 10,000 fully paid ordinary shares on the market, bringing the total to 13,000 shares. This transaction, conducted at a price of $6.81 per share, reflects a significant increase in the director’s stake, potentially indicating confidence in the company’s future performance.

AustralianSuper Increases Stake in PWR Holdings

AustralianSuper Pty Ltd has increased its voting power in PWR Holdings Ltd from 6.40% to 7.45%, indicating a growing interest in the company. This change in substantial holding could impact PWR Holdings’ shareholder dynamics and influence future corporate decisions, reflecting AustralianSuper’s confidence in the company’s market position and potential growth.