Powell Industries (POWL) AI Stock Analysis

• Market Cap: $3.30B
• Dividend Yield: 0.39%
• Average Volume (3M): 313.45K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 2.03
• Revenue Growth: 14.32%
• EPS Growth: 33.76%
• Country: US
• Employees: 2,748
• Sector: Industrials
• Sector Strength: 76
• Industry: Electrical Equipment & Parts
• EPS (TTM): 3.96
• Shares Outstanding: 12,068,548
• 10 Day Avg. Volume: 262,445
• 30 Day Avg. Volume: 313,449
• 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: 0.65
• Enterprise Value/Revenue: 1.97
• Enterprise Value/Gross Profit: 6.84
• Enterprise Value/Ebitda: 9.86
• 1Y Price Target: $289.50
• Price Target Upside: 5.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 80 Outperform
• Price Target: $299.00 ▲(9.43% Upside)

Powell Industries demonstrates robust financial performance and positive earnings call sentiment, driving a strong overall score. While technical indicators show bullish momentum, potential overbought conditions and a low dividend yield slightly temper the outlook.

Powell Industries Business Overview & Revenue Model

Company Description

Powell Industries (POWL) is a leading provider of equipment and services for the electrical power generation and distribution market. The company operates primarily in the energy, industrial, and commercial sectors, focusing on the design and manufacture of custom-engineered solutions such as control systems, switchgear, and power distribution equipment. Powell Industries is dedicated to delivering high-quality products that enhance reliability and efficiency in electrical operations, catering to a diverse clientele that includes utility companies, oil and gas operators, and renewable energy firms.

How the Company Makes Money

Powell Industries generates revenue through the sale of its core products, which include electrical equipment and systems designed for power generation and distribution. The company's revenue model is primarily based on direct sales of engineered-to-order products, as well as project-based contracts that involve manufacturing and installation services. Key revenue streams include the sale of switchgear, control systems, and related services, such as maintenance and support. Additionally, Powell may benefit from partnerships with major energy companies and participation in large-scale projects that require specialized electrical solutions, enhancing its market reach and financial performance.

Powell Industries Financial Statement Overview

Summary

Powell Industries exhibits strong financial health with high profitability, minimal leverage, and solid cash flow generation. Despite a recent revenue decline, efficient operations and a strong equity position provide a stable foundation for future growth.

Income Statement

Powell Industries shows strong profitability with a TTM gross profit margin of 28.17% and a net profit margin of 16.00%. Despite a recent revenue decline of 17.5% in the TTM, the company has demonstrated robust EBIT and EBITDA margins of 19.61% and 19.84%, respectively, indicating efficient cost management and operational strength.

Balance Sheet

The balance sheet is solid with a very low debt-to-equity ratio of 0.26%, indicating minimal leverage and financial risk. The return on equity is impressive at 33.16%, reflecting strong profitability relative to shareholder investments. The equity ratio is healthy, showcasing a strong capital structure.

Cash Flow

Cash flow analysis reveals a significant free cash flow growth of 58.45% in the TTM, highlighting improved cash generation. However, the operating cash flow to net income ratio is relatively low at 16.61%, suggesting potential challenges in converting profits into cash. The free cash flow to net income ratio is robust at 76.05%, indicating efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.08B	1.01B	699.31M	532.58M	470.56M	518.50M
Gross Profit	311.29M	273.09M	147.55M	85.02M	75.06M	94.58M
EBITDA	216.00M	185.64M	71.13M	16.58M	11.35M	31.14M
Net Income	175.38M	149.85M	54.52M	13.74M	631.00K	16.66M
Balance Sheet
Total Assets	1.04B	928.18M	752.24M	493.38M	436.19M	472.28M
Cash, Cash Equivalents and Short-Term Investments	433.04M	358.39M	279.01M	116.51M	133.98M	178.92M
Total Debt	1.22M	1.22M	1.44M	2.32M	4.23M	6.59M
Total Liabilities	447.31M	445.11M	407.22M	196.17M	134.97M	165.65M
Stockholders Equity	594.90M	483.07M	345.03M	297.21M	301.22M	306.63M
Cash Flow
Free Cash Flow	81.03M	96.68M	174.73M	-6.03M	-33.35M	67.26M
Operating Cash Flow	100.87M	108.66M	182.55M	-3.58M	-30.46M	72.39M
Investing Cash Flow	-13.11M	-21.87M	-26.57M	6.46M	-2.46M	-17.54M
Financing Cash Flow	-24.97M	-19.25M	-13.06M	-13.31M	-13.17M	-13.10M

Powell Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 273.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 273.23 is above the 20-day moving average (MA) of 250.88, above the 50-day MA of 228.40, and above the 200-day MA of 217.24, indicating a bullish trend. The MACD of 10.99 indicates Negative momentum. The RSI at 65.30 is Neutral, neither overbought nor oversold. The STOCH value of 80.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for POWL.

Powell Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POWL	80 Outperform	$3.30B	17.94	34.00%	0.39%	14.32%	33.76%
ENS	80 Outperform	$3.82B	11.57	19.13%	0.94%	3.73%	32.29%
ENR	77 Outperform	$1.90B	8.07	164.19%	4.31%	1.15%	2358.45%
AEIS	75 Outperform	$5.76B	70.11	7.04%	0.26%	8.49%	-7.65%
ATKR	65 Neutral	$1.98B	18.89	7.29%	2.21%	-12.09%	-78.18%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%
ENVX	51 Neutral	$2.05B	―	-68.46%	―	60.04%	52.49%

Powell Industries Corporate Events

Powell Industries Reports Q3 2025 Financial Results

On August 5, 2025, Powell Industries announced its third-quarter fiscal 2025 results, highlighting a gross profit increase of 8% and a net income rise of 4% compared to the previous year. The company reported revenues of $286 million, with notable growth in the Electric Utility and Commercial & Other Industrial markets. Powell also declared a quarterly cash dividend and announced a definitive agreement to acquire Remsdaq Ltd., enhancing its Electric Automation platform. This acquisition, along with strong order activity and strategic initiatives, positions Powell for continued growth and value delivery to its stakeholders.

Powell Industries Expands Board with New Director

On July 18, 2025, Powell Industries‘ Board of Directors expanded from eight to nine members, appointing Mark W. Smith as a new director. Smith’s term will begin on August 1, 2025, and he will serve on the Audit Committee. He will receive compensation under the company’s standard arrangement for non-employee directors and an initial stock award valued at $50,000.