Powell Industries (POWL) AI Stock Analysis

• Market Cap: $2.33B
• Dividend Yield: 0.55%
• Average Volume (3M): 294.44K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.56
• Revenue Growth: 27.43%
• EPS Growth: 67.93%
• Country: US
• Employees: 2,748
• Sector: Industrials
• Sector Strength: 87
• Industry: Electrical Equipment & Parts
• EPS (TTM): 3.81
• Shares Outstanding: 12,068,223
• 10 Day Avg. Volume: 255,197
• 30 Day Avg. Volume: 294,443
• PEG Ratio: -0.19
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.02
• Enterprise Value/Market Cap: 0.14
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 1.10
• Enterprise Value/Ebitda: 0.44
• 1Y Price Target: $280.00
• Price Target Upside: 49.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: $210.00 ▲(11.79%Upside)

Powell Industries exhibits strong financial performance and positive earnings call outcomes, indicating a promising outlook. However, technical indicators suggest caution due to potential short-term weakness, and the valuation shows the stock is currently undervalued.

Powell Industries Business Overview & Revenue Model

Company Description

Powell Industries, Inc., together with its subsidiaries, designs, develops, manufactures, sells, and services custom-engineered equipment and systems for the distribution, control, and monitoring of electrical energy. The company's principal products include integrated power control room substations, custom-engineered modules, electrical houses, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers, and bus duct systems, as well as traditional and arc-resistant distribution switchgears and control gears. Its products have application in voltages ranging from 480 volts to 38,000 volts; and are used in oil and gas refining, onshore and offshore oil and gas production, petrochemical, liquid natural gas terminals, pipeline, terminal, mining and metals, light rail traction power, electric utility, pulp and paper, and other heavy industrial markets. It also provides value-added services, such as spare parts, field service inspection, installation, commissioning, modification and repair, retrofit and retrofill components for existing systems, and replacement circuit breakers for switchgear. The company has operations in the United States, Canada, the Middle East, Africa, Europe, Mexico, and Central and South America. Powell Industries, Inc. was founded in 1947 and is headquartered in Houston, Texas.

How the Company Makes Money

Powell 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 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.

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.

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.

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	7.22M	1.02M	19.07M
	EBITDA
214.87M	185.64M	71.13M	16.58M	11.35M	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

• Technical Analysis Sentiment: Neutral
• Last Price: 187.85
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 187.85 is above the 20-day moving average (MA) of 180.54, above the 50-day MA of 178.86, and below the 200-day MA of 216.15, indicating a neutral trend. The MACD of 2.81 indicates Negative momentum. The RSI at 54.87 is Neutral, neither overbought nor oversold. The STOCH value of 83.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$2.33B	13.55	37.08%	0.55%	27.43%	67.93%
AEIS	74 Outperform	$4.77B	63.46	6.36%	0.32%	0.06%	-28.32%
ATKR	73 Outperform	$2.27B	12.98	12.73%	1.97%	-12.02%	-67.69%
ENS	67 Neutral	$3.52B	9.99	19.82%	1.08%	-2.94%	22.32%
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%
ENR	58 Neutral	$1.56B	28.28	33.46%	5.55%	0.39%	-37.01%
ENVX	56 Neutral	$1.66B	―	-85.86%	―	77.59%	2.01%

Powell Industries Corporate Events

Powell Industries Reports Strong Q2 2025 Financial Results

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.