Power Solutions Ltd. (4450) AI Stock Analysis

• Market Cap: ¥3.98B
• Dividend Yield: 1.64%
• Average Volume (3M): 2.15K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.34
• Revenue Growth: 17.68%
• EPS Growth: -31.19%
• Country: JP
• Employees: 379
• Sector: Technology
• Sector Strength: 84
• Industry: Information Technology Services
• EPS (TTM): 38.56
• Shares Outstanding: 2,965,258
• 10 Day Avg. Volume: 330
• 30 Day Avg. Volume: 2,153
• PEG Ratio: 0.24
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.97
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥1,450.00 ▲(7.97%Upside)

Power Solutions Ltd. shows strong revenue growth and financial stability, but faces challenges with declining profit margins and negative cash flow, impacting its financial performance score. Technical analysis indicates mixed momentum signals, while the valuation remains reasonable, contributing to a moderate overall stock score.

Power Solutions Ltd. Business Overview & Revenue Model

Company Description

Power Solutions Ltd. (4450) is a leading company in the energy sector, specializing in the development, manufacturing, and distribution of innovative power generation and energy storage solutions. The company caters to a diverse range of industries, including renewable energy, industrial, and commercial sectors, providing cutting-edge products and services that enhance energy efficiency and sustainability.

How the Company Makes Money

Power Solutions Ltd. generates revenue through the sale of its advanced power generation systems and energy storage solutions. The company's key revenue streams include direct sales to industrial and commercial clients, long-term contracts with utility companies, and partnerships with renewable energy developers for large-scale projects. Additionally, Power Solutions Ltd. leverages strategic alliances with technology firms to integrate state-of-the-art innovations into their products, further enhancing their market appeal and driving sales. The company also offers maintenance and support services, providing a steady stream of recurring income from service contracts.

Power Solutions Ltd. Financial Statement Overview

Summary

Power Solutions Ltd. demonstrates strong revenue growth and a solid equity foundation, supporting long-term stability. However, challenges include a declining net profit margin and negative cash flow, signaling a need for improved cash management.

Income Statement

Power Solutions Ltd. has demonstrated strong revenue growth over the years, with a notable increase from 2023 to 2024. The gross profit margin is healthy at 33.4% for 2024, indicating efficient cost management. However, the net profit margin decreased to 4.8% in 2024, suggesting increased expenses or a decline in operational efficiency. The EBIT and EBITDA margins remain stable, reflecting consistent core profitability.

Balance Sheet

The company's balance sheet shows a strong equity position, with an equity ratio of 55.5% for 2024, indicating financial stability and low reliance on debt. The debt-to-equity ratio remains low at 0.22, reflecting prudent financial management. However, the return on equity declined to 10.3% in 2024, suggesting reduced profitability relative to shareholder equity.

Cash Flow

Power Solutions Ltd. faces challenges in cash flow management, with a negative free cash flow of -135 million in 2024. Although the operating cash flow has improved since 2023, it remains negative, indicating potential liquidity issues. The free cash flow to net income ratio is concerning, reflecting a disconnect between profitability and cash generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.75B	5.93B	5.31B	3.80B	2.68B
	Gross Profit
2.25B	2.01B	1.78B	1.28B	823.30M
	EBIT
528.43M	474.00M	471.11M	360.53M	83.12M
	EBITDA
603.89M	697.59M	559.01M	425.14M	133.70M
	Net Income Common Stockholders
327.49M	446.00M	318.29M	253.56M	69.92M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.53B	1.84B	1.34B	991.96M	878.24M
	Total Assets
5.72B	4.94B	3.42B	2.82B	2.11B
	Total Debt
704.00M	850.00M	0.00	0.00	0.00
	Net Debt
-827.00M	-988.00M	-1.34B	-991.96M	-878.24M
	Total Liabilities
2.41B	0.00	1.13B	899.16M	456.00M
	Stockholders Equity
3.17B	2.79B	2.29B	1.92B	1.65B
Cash Flow		Free Cash Flow
-135.00M	-99.00M	427.15M	320.76M	-70.05M
	Operating Cash Flow
-115.80M	-78.00M	430.81M	372.33M	-33.74M
	Investing Cash Flow
71.00M	-210.44M	-78.90M	-251.64M	-225.79M
	Financing Cash Flow
-252.54M	782.82M	1.03M	-6.98M	-44.90M

Power Solutions Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1343.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4450, the sentiment is Positive. The current price of 1343 is below the 20-day moving average (MA) of 1349.20, above the 50-day MA of 1311.42, and above the 200-day MA of 1303.13, indicating a bullish trend. The MACD of 9.53 indicates Positive momentum. The RSI at 58.30 is Neutral, neither overbought nor oversold. The STOCH value of 73.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4450.

Power Solutions Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7120	78 Outperform	¥4.03B	7.44		4.41%	4.70%	31.78%
4416	70 Outperform	¥4.81B	380.23		―	-2.43%	-78.05%
4450	69 Neutral	¥3.98B	11.54		1.64%	17.68%	-31.19%
3682	63 Neutral	¥4.06B	18.45		3.28%	9.26%	1.71%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
4068	54 Neutral	¥3.76B	26.36		―	30.73%	―
5255	47 Neutral	¥4.04B	―		―	-32.31%	-226.05%