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Power Integrations
(NASDAQ:POWI)
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Rating:72Outperform
Price Target:
$97.00
▲(65.39% Upside)
Action:Reiterated
Date:06/05/26
The score is led by strong financial stability (debt-free balance sheet and ongoing cash generation) and a clearly positive technical trend. These positives are partially offset by compressed profitability versus prior peaks and a very demanding valuation (P/E ~284), while earnings-call guidance points to improving margins and sequential growth but with inventory and end-market softness still key risks.
Positive Factors
Debt-free balance sheet
Zero reported debt and a large equity base give Power Integrations durable financial flexibility. This capital structure lowers default and refinancing risk, preserves borrowing optionality for M&A or capex, and supports shareholder returns or R&D spending through cycles over the next 2–6 months.
Negative Factors
Compressed profitability
Margins have narrowed despite stable gross margins, signaling weaker operating leverage or higher structural costs. Reduced EBIT and net margins constrain retained earnings, lower ROE, and limit reinvestment capacity; this makes earnings and return recovery dependent on sustained revenue mix improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
Zero reported debt and a large equity base give Power Integrations durable financial flexibility. This capital structure lowers default and refinancing risk, preserves borrowing optionality for M&A or capex, and supports shareholder returns or R&D spending through cycles over the next 2–6 months.
Read all positive factors
Power Integrations Key Performance Indicators (KPIs)
Power Integrations (POWI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.85B
Dividend Yield2.27%
Average Volume (3M)1.29M
Price to Earnings (P/E)291.2
Beta (1Y)1.52
Revenue Growth3.11%
EPS Growth-54.05%
CountryUS
Employees865
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.30
Shares Outstanding55,719,982
10 Day Avg. Volume1,124,354
30 Day Avg. Volume1,293,936
Financial Highlights & Ratios
PEG Ratio-2.89
Price to Book (P/B)2.96
Price to Sales (P/S)4.49
P/FCF Ratio22.87
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue9.94
Enterprise Value/Gross Profit18.45
Enterprise Value/Ebitda105.21
Forecast
1Y Price Target
$76.20Price Target Upside29.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)1.32
Revenue Forecast (FY)$474.95M
Power Integrations Business Overview & Revenue Model
Company Description
Power Integrations, Inc. is a global leader in the development, manufacturing, and sale of analog and mixed-signal integrated circuits (ICs), alongside other essential electronic components and circuitry. Their primary expertise lies in delivering...
How the Company Makes Money
Power Integrations primarily makes money by selling power-management semiconductor products (high-voltage power-conversion ICs and related components/solutions) to electronics manufacturers through the standard semiconductor supply chain. Revenue ...
Power Integrations Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed more positive operational and financial momentum than negative items. Revenue grew modestly with stronger industrial performance, sequential margin expansion, improved cash generation, clear product and customer traction (notably in industrial, automotive and early data center engagements), and constructive guidance for Q2. The principal negatives were elevated inventory days, restructuring charges, continued softness in compute/communications and consumer year-over-year decline driven by prior-year pull-ins, plus macro and FX uncertainty that temper visibility. On balance, highlights outweigh the lowlights, with management outlining credible strategic actions and near-term guidance that point to improving execution.Positive Updates
Quarterly Revenue Growth
Q1 revenue of $108.3 million, up 3% year-over-year and 5% sequentially versus Q4.
Negative Updates
Consumer Segment Year-over-Year Weakness
Consumer revenue was down versus Q1 2025 (prior year had tariff-related pull-ins), though Q1 showed a 17% sequential recovery as inventory builds cleared; company expects consumer to be flat-to-modestly-up in Q2.
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly Revenue Growth
Q1 revenue of $108.3 million, up 3% year-over-year and 5% sequentially versus Q4.
Read all positive updates
Company Guidance
Management guided Q2 revenue of $115–$120M (midpoint +8.5% sequentially) after a Q1 with $108.3M in revenue and $0.25 non‑GAAP EPS; Q1 non‑GAAP gross margin was 53.5% (up 20 bps sequentially) and Q2 gross‑margin guidance is 54–55% (midpoint ≈ +100 bps). Q1 non‑GAAP OpEx was $45.3M (below prior outlook) and Q2 OpEx is forecast at $47M ± $0.5M, implying a non‑GAAP operating‑margin target of 13.5–15.5% (Q1 was 11.7%, +200 bps sequentially). Additional metrics: non‑GAAP net income $13.9M, GAAP restructuring charges $6.6M, cash from operations $20M, free cash flow $18M, Q1 CapEx $2M with 2026 CapEx plan of 5–6% of revenue, inventory down $4M and days on hand down 21 days to 292 (target <200), channel inventory down 0.5 week to 8.9 weeks (target 8), and management expects seasonally higher revenue and margin in Q2, OpEx roughly flat in H2, and long‑term OpEx growth at less than half the rate of revenue growth.Power Integrations Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
90
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 446.28M | 443.50M | 418.97M | 444.54M | 651.14M | 703.28M |
| Gross Profit | 240.35M | 241.65M | 224.75M | 228.96M | 366.91M | 360.64M |
| EBITDA | 42.15M | 49.01M | 65.34M | 83.28M | 220.77M | 211.08M |
| Net Income | 16.60M | 22.09M | 32.23M | 55.73M | 170.85M | 164.41M |
Balance Sheet | ||||||
| Total Assets | 770.69M | 772.21M | 828.83M | 819.87M | 840.10M | 1.01B |
| Cash, Cash Equivalents and Short-Term Investments | 257.20M | 249.51M | 300.00M | 311.57M | 353.81M | 530.35M |
| Total Debt | 0.00 | 0.00 | 28.19M | 17.33M | 14.56M | 19.79M |
| Total Liabilities | 98.88M | 99.36M | 79.05M | 67.63M | 84.88M | 102.45M |
| Stockholders Equity | 671.81M | 672.85M | 749.77M | 752.24M | 755.22M | 912.03M |
Cash Flow | ||||||
| Free Cash Flow | 84.51M | 87.12M | 63.90M | 44.88M | 176.13M | 183.60M |
| Operating Cash Flow | 105.18M | 111.52M | 81.18M | 65.76M | 215.34M | 230.87M |
| Investing Cash Flow | 25.53M | 36.21M | -25.92M | -14.15M | 78.34M | -232.80M |
| Financing Cash Flow | -116.93M | -139.94M | -68.22M | -93.05M | -346.42M | -98.83M |
Power Integrations Technical Analysis
Positive
58.65
Price Trends
75.44
Positive
61.91
Positive
50.61
Positive
Market Momentum
2.22
Positive
50.25
Neutral
37.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POWI, the sentiment is Positive. The current price of 58.65 is below the 20-day moving average (MA) of 81.20, below the 50-day MA of 75.44, and above the 200-day MA of 50.61, indicating a neutral trend. The MACD of 2.22 indicates Positive momentum. The RSI at 50.25 is Neutral, neither overbought nor oversold. The STOCH value of 37.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for POWI.
Power Integrations Risk Analysis
Power Integrations disclosed 6 risk factors in its most recent earnings report. Power Integrations reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Power Integrations Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $5.76B | 57.12 | 9.79% | ― | -11.75% | -41.15% | |
72 Outperform | $4.85B | 291.22 | 2.44% | 2.27% | 3.11% | -54.05% | |
72 Outperform | $10.25B | 15.08 | 20.24% | 2.22% | 36.05% | 80.83% | |
71 Outperform | $11.66B | 170.30 | 6.68% | ― | 9.60% | 25.63% | |
70 Outperform | $4.78B | 56.29 | 4.54% | ― | 15.97% | 234.66% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $5.44B | ― | -3.47% | ― | 12.81% | -129.65% |
* Technology Sector Average
POWI
Power Integrations
79.37
24.45
44.52%
ACLS
Axcelis Technologies
173.23
103.54
148.57%
DIOD
Diodes
104.14
51.25
96.90%
FORM
Formfactor
130.74
96.33
279.95%
SIMO
Silicon Motion
305.28
231.46
313.54%
SYNA
Synaptics
121.00
56.18
86.67%
Power Integrations Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Power Integrations Shareholders Back Board, Pay and Incentive Plan
Positive
Jun 4, 2026
On June 3, 2026, Power Integrations held its 2026 annual meeting of stockholders, with approximately 96.45% of eligible shares represented, and shareholders elected seven directors, approved on an advisory basis the compensation of named executive...
Business Operations and StrategyExecutive/Board ChangesDividendsFinancial Disclosures
Power Integrations Appoints New Global Sales Leader
Positive
May 7, 2026
Power Integrations has appointed veteran semiconductor executive Mike Balow as senior vice president of worldwide sales, effective May 4, 2026, under a compensation package combining a $450,000 base salary with performance stock units, restricted ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.