Powell Industries (POWL) AI Stock Analysis

• Market Cap: $4.14B
• Dividend Yield: 0.31%
• Average Volume (3M): 246.16K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 2.30
• Revenue Growth: 9.08%
• EPS Growth: 19.86%
• Country: US
• Employees: 2,748
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 4.22
• Shares Outstanding: 12,092,083
• 10 Day Avg. Volume: 168,358
• 30 Day Avg. Volume: 246,156
• PEG Ratio: 1.03
• Price to Book (P/B): 5.74
• Price to Sales (P/S): 3.33
• P/FCF Ratio: 23.75
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 2.99
• Enterprise Value/Gross Profit: 10.40
• Enterprise Value/Ebitda: 14.87
• 1Y Price Target: $350.00
• Price Target Upside: 2.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 14.91
• Revenue Forecast (FY): $1.16B

• Rating: 76 Outperform
• Price Target: $387.00 ▲(13.11% Upside)

Powell Industries exhibits strong financial performance and a positive outlook from recent earnings, supported by strategic acquisitions and a healthy backlog. Technical indicators are mixed, and valuation metrics suggest the stock is fairly valued. The recent dividend declaration further boosts investor confidence.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Strong Backlog

A robust backlog ensures future revenue streams and operational stability, providing a buffer against market fluctuations.

Acquisition of Remsdaq

The acquisition expands product offerings and market reach, enhancing competitive positioning and potential for revenue growth.

Negative Factors

Decline in Key Sectors

Declines in major sectors can impact overall revenue and profitability, highlighting potential vulnerabilities in market demand.

Increased SG&A Expenses

Rising SG&A expenses can pressure margins and reduce profitability, affecting financial performance if not managed effectively.

Challenges in Petrochemical Sector

Ongoing challenges in the Petrochemical sector may hinder growth and require strategic adjustments to maintain market position.

Powell Industries Business Overview & Revenue Model

Company Description

Powell Industries, Inc. is a leading provider of electrical equipment and solutions primarily servicing the oil and gas, petrochemical, and power generation industries. The company specializes in the design and manufacture of custom electrical distribution and control systems, switchgear, and various enclosures, providing essential infrastructure and support for critical operations. With a focus on innovation and safety, Powell Industries serves both domestic and international markets, ensuring reliable power management solutions for high-demand applications.

How the Company Makes Money

Powell Industries generates revenue through the sale of its electrical equipment, including switchgear and control systems, which are essential for managing electrical power in industrial settings. The company's revenue model is primarily based on project-based contracts, where they provide engineering, procurement, and construction services to clients in their target sectors. Key revenue streams include the sale of custom-built electrical distribution systems, ongoing maintenance and support services, and aftermarket parts. Strategic partnerships with major industrial players and collaborations with engineering firms enhance their market reach and contribute to revenue growth. Additionally, as industries increasingly focus on safety and efficiency, Powell Industries benefits from increased demand for its high-quality, reliable electrical solutions.

Powell Industries Financial Statement Overview

Summary

Powell Industries demonstrates strong financial performance with consistent revenue growth, high profitability margins, minimal leverage, and robust cash flow generation. The company's financial health is solid, with a low debt-to-equity ratio and impressive return on equity.

Income Statement

Powell Industries has demonstrated strong revenue growth with a consistent increase over the past few years, highlighted by a 2.12% growth in the latest year. The company maintains a robust gross profit margin of 29.37% and a net profit margin of 16.37%, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also healthy, reflecting strong operational performance.

Balance Sheet

The balance sheet is solid with a very low debt-to-equity ratio of 0.0026, indicating minimal leverage and financial risk. The return on equity is impressive at 28.21%, showcasing effective use of equity to generate profits. The equity ratio of 57.78% suggests a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

The cash flow statement reveals a significant growth in free cash flow by 91.01%, enhancing financial flexibility. The operating cash flow to net income ratio of 0.38 and free cash flow to net income ratio of 0.92 indicate strong cash generation relative to earnings, supporting ongoing operations and potential investments.

Breakdown	TTM	Dec 2025	Dec 2025	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	1.08B	―	1.10B	1.01B	699.31M	532.58M
Gross Profit	311.29M	―	324.38M	273.09M	147.55M	85.02M
EBITDA	217.74M	―	240.81M	185.64M	71.13M	16.58M
Net Income	175.38M	―	180.75M	149.85M	54.52M	13.74M
Balance Sheet
Total Assets	1.04B	―	1.11B	928.18M	752.24M	493.38M
Cash, Cash Equivalents and Short-Term Investments	433.04M	―	475.53M	358.39M	279.01M	116.51M
Total Debt	1.22M	―	1.66M	1.22M	1.44M	2.32M
Total Liabilities	447.31M	―	468.21M	445.11M	407.22M	196.17M
Stockholders Equity	594.90M	―	640.77M	483.07M	345.03M	297.21M
Cash Flow
Free Cash Flow	81.03M	―	154.79M	96.68M	174.73M	-6.03M
Operating Cash Flow	100.87M	―	167.94M	108.66M	182.55M	-3.58M
Investing Cash Flow	-13.11M	―	-8.34M	-21.87M	-26.57M	6.46M
Financing Cash Flow	-24.97M	―	-25.12M	-19.25M	-13.06M	-13.31M

Powell Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 342.13
• 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 342.13 is above the 20-day moving average (MA) of 324.77, above the 50-day MA of 335.57, and above the 200-day MA of 240.45, indicating a bullish trend. The MACD of -1.89 indicates Negative momentum. The RSI at 55.13 is Neutral, neither overbought nor oversold. The STOCH value of 83.95 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
ENS	79 Outperform	$5.45B	17.26	18.22%	0.67%	6.17%	20.86%
POWL	76 Outperform	$4.14B	23.03	32.17%	0.31%	9.08%	19.86%
NVT	76 Outperform	$17.38B	29.68	8.57%	0.75%	5.31%	5.76%
PLPC	71 Outperform	$1.07B	28.79	8.33%	0.37%	15.93%	12.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ATKR	51 Neutral	$2.15B	―	-1.11%	2.05%	-10.98%	-103.99%
TE	40 Underperform	$1.24B	―	-55.98%	―	―	-394.37%

Powell Industries Corporate Events

Powell Industries Declares Quarterly Cash Dividend

On November 4, 2025, Powell Industries announced that its Board of Directors declared a quarterly cash dividend of $0.2675 per share, payable on December 17, 2025, to shareholders of record as of November 19, 2025. This announcement underscores Powell Industries’ commitment to returning value to its shareholders and may positively impact its market positioning by reinforcing investor confidence.