Power Solutions (PSIX) AI Stock Analysis

• Market Cap: $602.58M
• Dividend Yield: N/A
• Average Volume (3M): 298.30K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 1.91
• Revenue Growth: 3.70%
• EPS Growth: 163.07%
• Country: US
• Employees: 700
• Sector: Industrials
• Sector Strength: 66
• Industry: Industrial - Machinery
• EPS (TTM): 3.01
• Shares Outstanding: 23,007,895
• 10 Day Avg. Volume: 424,326
• 30 Day Avg. Volume: 298,300
• PEG Ratio: 0.05
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.61
• Price to Cash Flow (P/CF): 14.00
• P/FCF Ratio: 14.50
• 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: $64.00
• Price Target Upside: 144.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Power Solutions shows strong profitability and cash flow improvements, indicating effective management. However, high leverage and bearish technical indicators present significant risk factors. The undervalued P/E ratio offers some investment appeal, but caution is advised due to financial and technical challenges.

Power Solutions Business Overview & Revenue Model

Company Description

Power Solutions International, Inc. designs, engineers, manufactures, markets, and sells engines and power systems in the United States, North America, the Pacific Rim, Europe, and internationally. The company offers alternative-fueled power systems for original equipment manufacturers of off-highway industrial equipment and on-road vehicles; and large custom-engineered integrated electrical power generation systems. It also provides basic engine blocks integrated with fuel system parts, as well as complete packaged power systems, including combined front accessory drives, cooling systems, electronic systems, air intake systems, fuel systems, housings, power takeoff systems, exhaust systems, hydraulic systems, enclosures, brackets, hoses, tubes, packaging, telematics, and other assembled components. In addition, the company offers compression and spark-ignited internal combustion engines that run on various fuels, such as natural gas, propane, gasoline, diesel, and biofuels in the energy, industrial, and transportation markets. Further, it provides standby and prime power generation, demand response, microgrid, renewable energy resiliency, arbor equipment, and combined heat and power; forklifts, wood chippers, stump grinders, sweepers/industrial scrubbers, aerial lift platforms/scissor lifts, irrigation pumps, oil and gas compression, oil lifts, off road utility vehicles, ground support equipment, ice resurfacing equipment, and pump jacks; and light and medium duty vocational trucks and vans, school and transit buses, and terminal and utility tractors. The company has a strategic collaboration agreement with Weichai Power Co., Ltd. Power Solutions International, Inc. was founded in 1985 and is headquartered in Wood Dale, Illinois.

How the Company Makes Money

Power Solutions International, Inc. generates revenue primarily through the sale of its engine and power system products. These products are sold to original equipment manufacturers (OEMs) and distributors who serve various sectors such as industrial equipment, transportation, and power generation. The company's key revenue streams include the sales of customized engines tailored to specific customer needs and applications, as well as aftermarket parts and services. Significant partnerships with OEMs and strategic alliances with industry leaders also play a crucial role in expanding its market reach and boosting sales. PSIX's focus on innovation and compliance with emissions regulations further enhances its competitive advantage and revenue potential.

Power Solutions Financial Statement Overview

Summary

Power Solutions has improved its profitability, with revenue growth and better margins. However, high debt levels and past financial instability remain concerns. Overall, the financial performance is solid, but leverage risks persist.

Income Statement

Power Solutions has shown a significant improvement in its profitability metrics over the TTM period. The gross profit margin increased to 23.53% from 23.06% in the previous year, and the net profit margin rose to 10.34% from 5.73%. Revenue grew by 14.57% in the TTM compared to the previous year. The EBIT and EBITDA margins have also improved, indicating better operational efficiency. However, the company had a history of losses in prior years, which poses a potential risk if past issues resurface.

Balance Sheet

The balance sheet shows a concerning debt-to-equity ratio due to a relatively high level of debt compared to equity. However, the company has improved its stockholders' equity, which turned positive in the TTM period. The equity ratio is still low at 12.41%, suggesting a high reliance on debt financing. Return on equity has improved significantly due to positive net income, but the overall leverage remains a risk factor.

Cash Flow

Power Solutions has shown positive free cash flow in the TTM, with a free cash flow growth rate of -48.35% compared to the previous year's high level. The operating cash flow to net income ratio stands at 0.70, indicating solid cash generation relative to earnings. The free cash flow to net income ratio of 0.62 shows that the company is effectively converting its earnings into cash, despite a decrease in free cash flow compared to the previous period.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
525.84M	458.97M	481.33M	456.25M	417.64M	546.08M
	Gross Profit
123.74M	105.86M	88.56M	41.27M	58.45M	99.89M
	EBIT
68.79M	44.27M	24.60M	-41.57M	-21.72M	17.20M
	EBITDA
71.49M	49.88M	31.29M	-34.16M	-12.78M	28.00M
	Net Income Common Stockholders
54.36M	26.31M	11.27M	-48.47M	-22.98M	8.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
54.00K	22.76M	24.30M	6.25M	20.97M	3.00K
	Total Assets
289.88M	284.30M	319.91M	300.54M	283.98M	313.67M
	Total Debt
109.33M	174.20M	224.90M	180.89M	131.09M	95.38M
	Net Debt
109.27M	151.44M	200.60M	174.63M	110.12M	95.38M
	Total Liabilities
308.46M	288.22M	350.29M	342.56M	277.88M	285.18M
	Stockholders Equity
-18.58M	-3.92M	-30.37M	-42.02M	6.10M	28.50M
Cash Flow		Free Cash Flow
33.81M	65.48M	-10.20M	-63.45M	-10.00M	14.48M
	Operating Cash Flow
38.13M	70.51M	-8.85M	-61.48M	-7.59M	18.16M
	Investing Cash Flow
-4.30M	-5.02M	-1.35M	398.00K	-1.41M	-3.66M
	Financing Cash Flow
-25.76M	-66.80M	28.37M	46.55M	33.27M	-14.55M

Power Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSIX, the sentiment is Negative. The current price of 26.19 is below the 20-day moving average (MA) of 30.00, below the 50-day MA of 34.88, and above the 200-day MA of 23.62, indicating a neutral trend. The MACD of -1.27 indicates Positive momentum. The RSI at 38.48 is Neutral, neither overbought nor oversold. The STOCH value of 15.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PSIX.

Power Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENS	72 Outperform	$3.67B	11.52	18.36%	1.00%	-2.94%	22.32%
EMR	72 Outperform	$61.26B	25.84	9.66%	1.94%	10.29%	22.72%
POWL	70 Outperform	$2.13B	13.42	37.22%	0.60%	38.27%	105.52%
ROK	69 Neutral	$29.24B	32.18	26.22%	1.98%	-11.28%	-23.69%
AEIS	64 Neutral	$3.58B	66.16	4.80%	0.42%	-10.49%	-57.78%
Sector *	62 Neutral	$8.06B	13.61	3.91%	3.11%	3.80%	-14.06%
PSIX	58 Neutral	$602.58M	8.70	225.91%	―	3.70%	163.07%

Power Solutions Corporate Events

Power Solutions Uplists to Nasdaq for Growth

Power Solutions International, Inc. announced its uplisting to the Nasdaq Stock Market, where its common stock will trade under the symbol PSIX. This move is expected to enhance the company’s visibility, attract more investors, and increase liquidity. The uplisting is a significant milestone reflecting PSI’s strategic vision, commitment to innovation, and consistent profitability, positioning the company for further growth and shareholder value creation.