Powell Industries (POWL) AI Stock Analysis

• Market Cap: $2.30B
• Dividend Yield: 0.56%
• Average Volume (3M): 288.47K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.56
• Revenue Growth: 27.43%
• EPS Growth: 67.93%
• Country: US
• Employees: 2,748
• Sector: Industrials
• Sector Strength: 90
• Industry: Electrical Equipment & Parts
• EPS (TTM): 3.81
• Shares Outstanding: 12,068,223
• 10 Day Avg. Volume: 255,085
• 30 Day Avg. Volume: 288,471
• PEG Ratio: 1.43
• Price to Book (P/B): 4.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 47.36
• 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: $280.00
• Price Target Upside: 47.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: $210.00 ▲(10.39%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 (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 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 exhibits a strong financial position with significant revenue growth and healthy profit margins. The company benefits from low leverage and a solid equity base, supporting its financial stability. However, attention should be paid to maintaining cash flow levels and ensuring sustainable revenue growth to avoid potential future risks.

Income Statement

Powell Industries has shown strong revenue growth, with a TTM revenue of $1.06 billion compared to $699.3 million the previous year. The company has maintained a healthy gross profit margin of approximately 26.8% and a net profit margin of about 15.1% in the TTM period. These margins indicate robust profitability, supported by a consistent increase in EBIT and EBITDA margins. However, the significant jump in revenue from the prior year may not be sustainable at this pace.

Balance Sheet

The balance sheet of Powell Industries is strong, with a low debt-to-equity ratio of approximately 0.0027, indicating low leverage and financial stability. The equity ratio stands at 54.4%, reflecting a solid equity base. A return on equity (ROE) of around 32.3% demonstrates effective use of equity to generate profits. The main concern could be the relatively low total asset growth compared to revenue growth.

Cash Flow

Powell Industries has shown positive free cash flow growth, with a TTM increase to $48.9 million. The operating cash flow to net income ratio is 0.39, suggesting room for improvement in converting net income to cash. The free cash flow to net income ratio is 0.30, indicating that a significant portion of earnings is being converted into free cash flow. While the cash flow statements reflect positive trends, the operating cash flow has decreased compared to the previous year, which might need attention.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
1.06B	1.01B	699.31M	532.58M	470.56M	518.50M
	Gross Profit
284.42M	273.09M	147.55M	85.02M	75.06M	94.58M
	EBIT
188.47M	178.77M	62.52M	-5.09M	1.02M	19.07M
	EBITDA
195.45M	185.64M	71.13M	7.22M	1.02M	31.14M
	Net Income Common Stockholders
160.53M	149.85M	54.52M	13.74M	631.00K	16.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
373.40M	358.39M	279.01M	116.51M	133.98M	178.92M
	Total Assets
912.67M	928.18M	752.24M	493.38M	436.19M	472.28M
	Total Debt
1.36M	1.22M	1.44M	2.32M	4.23M	6.59M
	Net Debt
-324.23M	-314.12M	-244.44M	-99.63M	-110.09M	-153.63M
	Total Liabilities
416.34M	445.11M	407.22M	196.17M	134.97M	165.65M
	Stockholders Equity
496.33M	483.07M	345.03M	297.21M	301.22M	306.63M
Cash Flow		Free Cash Flow
48.90M	96.68M	174.73M	-6.03M	-33.35M	67.26M
	Operating Cash Flow
61.84M	108.66M	182.55M	-3.58M	-30.46M	72.39M
	Investing Cash Flow
-29.88M	-21.87M	-26.57M	6.46M	-2.46M	-17.54M
	Financing Cash Flow
-26.56M	-19.25M	-13.06M	-13.31M	-13.17M	-13.10M

Powell Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 190.24
• 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 Positive. The current price of 190.24 is above the 20-day moving average (MA) of 179.77, above the 50-day MA of 177.73, and below the 200-day MA of 216.03, indicating a neutral trend. The MACD of 0.97 indicates Negative momentum. The RSI at 59.30 is Neutral, neither overbought nor oversold. The STOCH value of 90.77 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	$2.30B	13.43	37.08%	0.56%	27.43%	67.93%
AEIS	74 Outperform	$4.58B	62.82	6.36%	0.33%	0.06%	-28.32%
ATKR	73 Outperform	$2.30B	13.15	12.73%	1.89%	-12.02%	-67.69%
ENS	67 Neutral	$3.41B	9.66	19.82%	1.09%	-2.94%	22.32%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
ENR	58 Neutral	$1.62B	30.61	33.46%	5.35%	0.39%	-37.01%
ENVX	56 Neutral	$1.60B	―	-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.