Power Solutions Ltd. (4450) AI Stock Analysis

• Market Cap: ¥6.29B
• Dividend Yield: 1.16%
• Average Volume (3M): 15.37K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.34
• Revenue Growth: 21.32%
• EPS Growth: 6.83%
• Country: JP
• Employees: 379
• Sector: Technology
• Sector Strength: 84
• Industry: Information Technology Services
• EPS (TTM): 36.42
• Shares Outstanding: 3,098,034
• 10 Day Avg. Volume: 29,060
• 30 Day Avg. Volume: 15,370
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,450.00
• Price Target Upside: -29.20% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥1,450.00 ▼(-29.20% Downside)

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 provider of energy solutions, specializing in renewable energy technologies, energy storage systems, and smart grid solutions. The company operates primarily in the clean energy sector, focusing on solar, wind, and battery storage solutions designed for commercial, industrial, and residential applications. With a commitment to sustainability and innovation, Power Solutions Ltd. aims to enhance energy efficiency and reduce carbon footprints for its clients.

How the Company Makes Money

Power Solutions Ltd. generates revenue through multiple streams, including the sale and installation of renewable energy systems such as solar panels and wind turbines. Additionally, the company earns income from energy storage solutions, offering batteries and related technologies to optimize energy usage. Service contracts for maintenance and monitoring of installed systems contribute to recurring revenue. Strategic partnerships with energy providers, government agencies, and other stakeholders enhance its market reach and provide access to funding for large-scale projects. Furthermore, Power Solutions Ltd. benefits from incentives and subsidies related to renewable energy initiatives, which bolster its profit margins.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.20B	6.75B	5.93B	5.31B	3.80B	2.68B
Gross Profit	2.41B	2.25B	2.01B	1.78B	1.28B	823.30M
EBITDA	672.05M	603.89M	697.59M	559.01M	425.14M	133.70M
Net Income	342.29M	327.49M	446.00M	318.29M	253.56M	69.92M
Balance Sheet
Total Assets	5.95B	5.72B	4.94B	3.42B	2.82B	2.11B
Cash, Cash Equivalents and Short-Term Investments	1.73B	1.53B	1.84B	1.34B	991.96M	878.24M
Total Debt	652.83M	704.00M	850.00M	0.00	0.00	0.00
Total Liabilities	2.54B	2.41B	2.14B	1.13B	899.16M	456.00M
Stockholders Equity	3.27B	3.17B	2.79B	2.29B	1.92B	1.65B
Cash Flow
Free Cash Flow	0.00	-136.25M	-99.00M	427.15M	320.76M	-70.05M
Operating Cash Flow	0.00	-115.80M	-78.00M	430.81M	372.33M	-33.74M
Investing Cash Flow	0.00	61.87M	-210.44M	-78.90M	-251.64M	-225.79M
Financing Cash Flow	0.00	-252.54M	782.82M	1.03M	-6.98M	-44.90M

Power Solutions Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2048.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 2048 is below the 20-day moving average (MA) of 2051.15, above the 50-day MA of 1862.04, and above the 200-day MA of 1420.43, indicating a neutral trend. The MACD of 30.32 indicates Positive momentum. The RSI at 57.78 is Neutral, neither overbought nor oversold. The STOCH value of 94.95 is Negative, 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	80 Outperform	¥4.41B	9.50		4.03%	3.21%	22.41%
4450	69 Neutral	¥6.29B	15.00		1.16%	21.32%	6.83%
4068	65 Neutral	¥3.69B	37.45		―	17.03%	642.80%
3682	63 Neutral	¥4.04B	18.42		3.29%	2.04%	-3.43%
4416	55 Neutral	¥4.20B	1,249.30		―	-0.93%	-97.16%
Sector *	54 Neutral	$299.21M	3.29	-13.34%	2.64%	5.71%	-76.50%
5255	45 Neutral	¥14.16B	―		―	-34.51%	52.07%