Powell Industries (POWL) AI Stock Analysis

• Market Cap: $2.85B
• Dividend Yield: 0.45%
• Average Volume (3M): 267.69K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 1.81
• Revenue Growth: 14.32%
• EPS Growth: 33.76%
• Country: US
• Employees: 2,748
• Sector: Industrials
• Sector Strength: 84
• Industry: Electrical Equipment & Parts
• EPS (TTM): 3.96
• Shares Outstanding: 12,068,223
• 10 Day Avg. Volume: 267,393
• 30 Day Avg. Volume: 267,690
• PEG Ratio: 0.10
• Price to Book (P/B): 5.51
• Price to Sales (P/S): 2.63
• P/FCF Ratio: 27.51
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 1.56
• Enterprise Value/Gross Profit: 5.42
• Enterprise Value/Ebitda: 7.80
• 1Y Price Target: $274.50
• Price Target Upside: 16.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 78 Outperform
• Price Target: $260.00 ▲(10.06% Upside)

Powell Industries' strong financial performance and positive earnings call insights are the most significant factors driving the score. While technical analysis is limited, the company's valuation remains reasonable, supporting a solid overall stock score.

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 demonstrates robust financial health with impressive revenue growth, solid margins, and effective equity utilization. While free cash flow has contracted recently, overall cash flow remains positive. Low debt levels and strong profitability metrics position the company well in 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	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: 236.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 236.24 is above the 20-day moving average (MA) of 227.22, above the 50-day MA of 205.04, and above the 200-day MA of 218.70, indicating a bullish trend. The MACD of 8.32 indicates Positive momentum. The RSI at 58.97 is Neutral, neither overbought nor oversold. The STOCH value of 44.56 is Neutral, 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	78 Outperform	$2.85B	16.18	37.08%	0.45%	14.32%	33.76%
ENS	78 Outperform	$3.53B	10.16	19.82%	1.08%	1.00%	38.51%
AEIS	70 Neutral	$5.26B	63.33	7.04%	0.30%	0.06%	-28.32%
Sector *	64 Neutral	$10.64B	16.04	5.48%	2.12%	2.74%	-23.62%
ENR	63 Neutral	$2.04B	8.60	164.19%	4.02%	0.39%	-37.01%
ATKR	58 Neutral	$1.90B	18.10	7.29%	1.70%	-12.09%	-78.18%
ENVX	55 Neutral	$2.22B	―	-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.

The most recent analyst rating on (POWL) stock is a Buy with a $312.00 price target. To see the full list of analyst forecasts on Powell Industries stock, see the POWL Stock Forecast page.

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.

The most recent analyst rating on (POWL) stock is a Buy with a $312.00 price target. To see the full list of analyst forecasts on Powell Industries stock, see the POWL Stock Forecast page.