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Powell Industries (POWL)
NASDAQ:POWL
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Powell Industries
(NASDAQ:POWL)
Rating:80Outperform
Price Target:
$210.00
▲(8.92%Upside)
Powell Industries (POWL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.24B
Dividend Yield0.58%
Average Volume (3M)292.75K
Price to Earnings (P/E)13.1
Beta (1Y)1.56
Revenue Growth27.43%
EPS Growth67.93%
CountryUS
Employees2,748
SectorIndustrials
Sector Strength88
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)3.81
Shares Outstanding12,068,223
10 Day Avg. Volume253,909
30 Day Avg. Volume292,751
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.84
Price to Sales (P/S)0.00
P/FCF Ratio-41.22
Enterprise Value/Market Cap0.07
Enterprise Value/Revenue0.04
Enterprise Value/Gross Profit0.49
Enterprise Value/Ebitda0.20
Forecast
1Y Price Target
$280.00Price Target Upside45.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Powell Industries Business Overview & Revenue Model
Company DescriptionPowell Industries (POWL) is a leading provider of custom-engineered solutions for the management and control of electrical energy and other critical processes. Operating primarily in the industrial sector, Powell is known for its expertise in designing, manufacturing, and servicing complex electrical power management systems and equipment. The company serves a diverse customer base, including utilities, industrial plants, and commercial facilities, offering a range of products and services such as switchgear, transformers, motor control centers, and automation systems.
How the Company Makes MoneyPowell Industries generates revenue primarily through the sale of its electrical power management systems and related services. The company's key revenue streams include the manufacturing and sale of electrical distribution equipment, as well as providing engineering and support services to ensure optimal performance and reliability of these systems. Powell also benefits from long-term service contracts and maintenance agreements, which provide recurring revenue and strengthen customer relationships. Strategic partnerships and collaborations with key players in the energy and industrial sectors further enhance Powell's market position and revenue potential by expanding its reach and innovation capabilities.
Powell Industries Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q2-2025)
| % Change Since: 1.53%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant financial achievements, including record earnings per share, revenue growth, and strong performance in specific sectors such as electric utility and commercial industries. There were some challenges noted in the core industrial sectors, but the overall outlook remains positive with strong backlog and new product launches. The highlights significantly outweigh the lowlights, indicating a robust performance and a positive outlook.Q2-2025 Updates
Positive Updates
Record Earnings Per Diluted Share
Powell Industries reported a record earnings per diluted share of $3.81, which is a 38% increase compared to the prior year.
Strong Revenue and Gross Profit Growth
The company achieved a revenue growth of 9% and a gross profit increase of 33% in the second quarter.
Significant Sector Growth
The electric utility sector grew by 48% and the commercial and industrial sectors grew by 16% compared to the prior year.
New Large Project Awards
Powell booked two large projects, each worth approximately $50 million, in the Greenfield LNG facility and a mining project in Canada.
Strong Backlog and Revenue Visibility
The company reported a strong backlog of $1.3 billion, providing revenue visibility well into fiscal 2027.
Launch of Innovative Products
The company launched several new products, including a grounding switch and a compact substation, which are expected to enhance future revenues.
Negative Updates
Decline in Core Industrial Sectors
Revenues in the petrochemical sector and the oil and gas sector were lower by 13% and 3%, respectively, compared to the same period one year ago.
Decrease in Project Book-to-Bill Ratio
The company reported a book-to-bill ratio of 0.9x in the current quarter, which is a slight decline sequentially.
Company Guidance
During the Powell Industries earnings call for the second quarter of fiscal year 2025, the company reported significant financial achievements and provided optimistic guidance for the future. The quarter saw a 9% increase in revenue, reaching $279 million, and a 33% rise in gross profit dollars. Record earnings per diluted share were reported at $3.81, marking a 38% increase from the previous year. New orders totaled $249 million, a 6% increase year-over-year, driven by strong performance in the electric utility and commercial and industrial sectors, which grew by 48% and 16%, respectively. Powell's backlog stood at $1.3 billion, offering revenue visibility into fiscal 2027. Gross margin for the quarter was 29.9%, supported by disciplined project execution and operational efficiency. The company highlighted strategic progress with new product launches and facility expansions, aiming to enhance its product-centric strategy to balance project-based revenues. Powell anticipates continued strong performance and remains well-positioned for growth in its key market sectors, with a positive outlook for the remainder of fiscal 2025.Powell Industries Financial Statement Overview
Summary
Powell Industries showcases robust financial health with strong revenue growth, solid profit margins, and effective equity utilization. Despite a decrease in free cash flow, the company maintains positive cash flow and low debt levels, positioning it well within its industry.Income Statement
Powell Industries shows a strong revenue growth trajectory, with a significant 54.92% increase in revenue from 2023 to 2024 and a further 7% increase in TTM (Trailing-Twelve-Months). Gross profit and net profit margins are healthy at 28.16% and 16.01% respectively for TTM. This indicates strong operational efficiency and profitability.85
Very Positive
Balance Sheet
The company's balance sheet is solid with a low debt-to-equity ratio, indicating low leverage risk. The equity ratio stands at 56.08% for TTM, reflecting a strong equity base. Return on Equity (ROE) is an impressive 32.03%, showcasing effective use of shareholders' equity. However, the relatively low cash position compared to total assets could be a point to monitor.78
Positive
Cash Flow
Operating cash flow has decreased in TTM, but still covers net income well, with a ratio of 0.39. Free cash flow has shown a decline in comparison to the previous year, with a growth rate of -47.09%. Despite declines, the company maintains positive free cash flow, which is a strength.70
Positive
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.08B | 1.01B | 699.31M | 532.58M | 470.56M | 518.50M | Gross Profit |
| 305.13M | 273.09M | 147.55M | 85.02M | 75.06M | 94.58M | EBIT |
| 207.90M | 178.77M | 62.52M | -5.09M | 1.02M | 19.07M | EBITDA |
| 214.87M | 185.64M | 71.13M | 7.22M | 1.02M | 31.14M | Net Income Common Stockholders |
| 173.37M | 149.85M | 54.52M | 13.74M | 631.00K | 16.66M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 389.29M | 358.39M | 279.01M | 116.51M | 133.98M | 178.92M | Total Assets |
| 965.37M | 928.18M | 752.24M | 493.38M | 436.19M | 472.28M | Total Debt |
| 1.41M | 1.22M | 1.44M | 2.32M | 4.23M | 6.59M | Net Debt |
| -358.13M | -314.12M | -244.44M | -99.63M | -110.09M | -153.63M | Total Liabilities |
| 424.00M | 445.11M | 407.22M | 196.17M | 134.97M | 165.65M | Stockholders Equity |
| 541.36M | 483.07M | 345.03M | 297.21M | 301.22M | 306.63M |
| Cash Flow | Free Cash Flow | ||||
| 51.14M | 96.68M | 174.73M | -6.03M | -33.35M | 67.26M | Operating Cash Flow |
| 67.25M | 108.66M | 182.55M | -3.58M | -30.46M | 72.39M | Investing Cash Flow |
| -6.06M | -21.87M | -26.57M | 6.46M | -2.46M | -17.54M | Financing Cash Flow |
| -24.88M | -19.25M | -13.06M | -13.31M | -13.17M | -13.10M |
Powell Industries Technical Analysis
Positive
192.80
Price Trends
178.37
Positive
190.47
Positive
216.17
Negative
Market Momentum
2.12
Negative
59.93
Neutral
80.44
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POWL, the sentiment is Positive. The current price of 192.8 is above the 20-day moving average (MA) of 179.58, above the 50-day MA of 178.37, and below the 200-day MA of 216.17, indicating a neutral trend. The MACD of 2.12 indicates Negative momentum. The RSI at 59.93 is Neutral, neither overbought nor oversold. The STOCH value of 80.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for POWL.
Powell Industries Risk Analysis
Powell Industries disclosed 33 risk factors in its most recent earnings report. Powell Industries 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
Powell Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $2.24B | 13.06 | 37.08% | 0.58% | 27.43% | 67.93% | |
74 Outperform | $4.78B | 65.58 | 6.36% | 0.32% | 0.06% | -28.32% | |
73 Outperform | $2.38B | 13.60 | 12.73% | 1.87% | -12.02% | -67.69% | |
67 Neutral | $3.51B | 9.97 | 19.82% | 1.07% | -2.94% | 22.32% | |
66 Neutral | $4.51B | 12.29 | 5.40% | 3.67% | 4.15% | -12.21% | |
58 Neutral | $1.62B | 30.61 | 33.46% | 5.35% | 0.39% | -37.01% | |
56 Neutral | $1.66B | ― | -85.86% | ― | 77.59% | 2.01% |
* Industrials Sector Average
Performance Comparison
POWL
Powell Industries
192.80
17.56
10.02%
AEIS
Advanced Energy
127.72
19.12
17.61%
ENR
Energizer Holdings
21.80
-5.50
-20.15%
ENS
EnerSys
89.86
-14.72
-14.08%
ATKR
Atkore International Group
67.38
-72.73
-51.91%
ENVX
Enovix
8.68
-4.21
-32.66%
Powell Industries Corporate Events
Business Operations and StrategyFinancial Disclosures
Powell Industries Reports Strong Q2 2025 Financial Results
Positive
May 6, 2025
On May 6, 2025, Powell Industries announced its second quarter fiscal 2025 results, reporting a 9% increase in revenues to $279 million and a 38% rise in net income to $46 million compared to the previous year. The company highlighted strong project execution and operational efficiency, with significant contributions from the Electric Utility and Commercial sectors, despite a decline in the Petrochemical sector. The expansion of the Electrical Products facility in Houston is nearing completion, which is expected to enhance Powell’s manufacturing capabilities and support future growth in key markets.
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.