Power Solutions (PSIX) AI Stock Analysis

• Market Cap: $1.27B
• Dividend Yield: N/A
• Average Volume (3M): 778.48K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 3.00
• Revenue Growth: 54.78%
• EPS Growth: 122.61%
• Country: US
• Employees: 700
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.20
• Shares Outstanding: 23,040,930
• 10 Day Avg. Volume: 760,748
• 30 Day Avg. Volume: 778,481
• PEG Ratio: 0.06
• Price to Book (P/B): 10.48
• Price to Sales (P/S): 1.44
• P/FCF Ratio: 11.82
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 3.50
• Enterprise Value/Gross Profit: 12.71
• Enterprise Value/Ebitda: 21.08
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.29
• Revenue Forecast (FY): $605.70M

• Rating: 58 Neutral
• Price Target: $54.00 ▼(-35.44% Downside)

The overall stock score is primarily influenced by strong financial performance and undervaluation, offset by bearish technical indicators. The company's profitability and leverage improvements are positive, but the lack of revenue growth and cash flow challenges, combined with negative market momentum, weigh on the score.

Positive Factors

Leverage Management

Improved leverage management indicates stronger financial stability and reduced risk, allowing for better capital allocation and growth opportunities.

Profitability

Strong profitability margins suggest efficient cost management and pricing power, supporting long-term financial health and competitive positioning.

Innovative Business Model

The focus on innovative energy solutions positions the company well in the growing renewable energy sector, supporting sustainable long-term growth.

Negative Factors

Revenue Growth Challenges

Declining revenue growth may indicate market saturation or competitive pressures, potentially impacting future earnings and market share.

Cash Flow Concerns

Decreasing free cash flow can limit the company's ability to invest in growth opportunities and manage debt, affecting long-term financial flexibility.

High Return on Equity Volatility

Extremely high ROE may indicate volatility or reliance on one-time gains, which can lead to unsustainable financial performance and investor concerns.

Power Solutions Business Overview & Revenue Model

Company Description

Power Solutions (PSIX) is a leading provider of innovative energy solutions, specializing in the development and deployment of advanced power management technologies. Operating primarily in the renewable energy sector, PSIX focuses on delivering high-efficiency energy storage systems, smart grid technologies, and electric vehicle charging solutions. The company serves various industries, including residential, commercial, and industrial sectors, with a commitment to enhancing energy efficiency and sustainability.

How the Company Makes Money

Power Solutions generates revenue through multiple key streams. Primarily, the company earns income from the sale of its proprietary energy storage systems and related hardware, which are designed to optimize energy usage for customers. Additionally, PSIX offers installation and maintenance services for its products, further contributing to its earnings. The company also engages in partnerships with local governments and utility companies to develop smart grid solutions, which can provide significant funding and collaborative revenue opportunities. Moreover, PSIX invests in research and development to innovate new technologies, which can lead to licensing agreements and collaborations that enhance its revenue potential in the evolving energy market.

Power Solutions Financial Statement Overview

Summary

Power Solutions shows strong profitability and improved leverage management, but faces challenges in revenue growth and cash flow generation. The company's financial health is stable, with efficient operations and a focus on improving its balance sheet. However, the decline in free cash flow and revenue growth rate are areas that require attention to ensure sustainable growth.

Income Statement

Power Solutions has demonstrated strong profitability with a TTM net profit margin of 25.7% and a gross profit margin of 39.5%. However, the revenue growth rate has declined by 1.7% in the TTM period, indicating potential challenges in maintaining sales momentum. The EBIT and EBITDA margins are healthy, showing efficient operational management.

Balance Sheet

The company's debt-to-equity ratio has improved significantly to 0.95 in the TTM period, indicating better leverage management compared to previous years. However, the return on equity is extremely high at 108.3%, which may suggest volatility or one-time gains. The equity ratio is not provided, but the overall improvement in leverage is a positive sign.

Cash Flow

Free cash flow has decreased by 16.7% in the TTM period, which is a concern. The operating cash flow to net income ratio is 0.44, indicating that cash generation from operations is not fully covering net income. The free cash flow to net income ratio is relatively strong at 84.4%, suggesting that the company is still generating cash relative to its earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	675.48M	475.97M	458.97M	481.33M	456.25M	417.64M
Gross Profit	186.26M	140.54M	105.86M	88.56M	41.27M	58.45M
EBITDA	112.30M	86.84M	49.88M	31.29M	-34.16M	-12.78M
Net Income	121.20M	69.28M	26.31M	11.27M	-48.47M	-22.98M
Balance Sheet
Total Assets	458.95M	328.18M	284.30M	319.91M	300.54M	283.98M
Cash, Cash Equivalents and Short-Term Investments	49.05M	55.25M	22.76M	24.30M	6.25M	24.27M
Total Debt	154.40M	146.04M	174.20M	224.90M	195.17M	149.04M
Total Liabilities	296.49M	262.93M	288.22M	350.29M	342.56M	277.88M
Stockholders Equity	162.45M	65.25M	-3.92M	-30.37M	-42.02M	6.10M
Cash Flow
Free Cash Flow	51.81M	57.83M	65.48M	-10.20M	-63.45M	-10.00M
Operating Cash Flow	61.38M	62.39M	70.51M	-8.85M	-61.48M	-7.59M
Investing Cash Flow	-9.56M	-4.56M	-5.02M	-1.35M	398.00K	-1.41M
Financing Cash Flow	-42.77M	-25.93M	-66.80M	28.37M	46.55M	33.27M

Power Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 83.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 83.64 is above the 20-day moving average (MA) of 67.30, above the 50-day MA of 83.21, and above the 200-day MA of 60.74, indicating a bearish trend. The MACD of -8.99 indicates Positive momentum. The RSI at 32.65 is Neutral, neither overbought nor oversold. The STOCH value of 27.77 is Neutral, 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
EPAC	74 Outperform	$1.97B	21.89	22.47%	0.10%	4.65%	8.81%
SXI	73 Outperform	$2.85B	53.91	7.72%	0.54%	18.51%	-28.69%
CXT	67 Neutral	$3.15B	20.52	13.54%	1.05%	9.30%	-12.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PSIX	58 Neutral	$1.27B	10.46	118.50%	―	54.78%	122.61%
XMTR	55 Neutral	$2.84B	―	-21.46%	―	22.40%	-18.99%
ENOV	48 Neutral	$1.74B	―	-51.11%	―	11.57%	-1016.39%

Power Solutions Corporate Events

Power Solutions International Reports Strong Q3 2025 Results

Power Solutions International, Inc. is a global producer and distributor of high-performance, low-emission power systems, specializing in alternative-fueled systems for original equipment manufacturers in the industrial equipment and power generation sectors.

Power Solutions Reports Record Q3 2025 Financial Results

On November 6, 2025, Power Solutions International announced record financial results for the third quarter of 2025, with net sales reaching $203.8 million, a 62% increase from the previous year, and net income rising by 59% to $27.6 million. This growth is attributed to strong demand in the power systems market, particularly within the data center sector, leading to expanded manufacturing capacity and increased production. The company also reported a decrease in gross margin due to a shift towards lower-margin products and temporary inefficiencies from ramped-up production. Despite these challenges, PSI’s strategic focus on high-growth sectors like data centers and oil and gas is expected to drive future growth, with anticipated sales growth of 45% for 2025.

The most recent analyst rating on (PSIX) stock is a Hold with a $88.00 price target. To see the full list of analyst forecasts on Power Solutions stock, see the PSIX Stock Forecast page.

Power Solutions Announces Board Resignations and Appointments

On October 9, 2025, Power Solutions International, Inc. announced the resignation of Kui (Kevin) Jiang and Gengsheng Zhang from its Board of Directors, with their departures not stemming from any disagreements with the company. Concurrently, the company appointed Xuesen Yang and Zhao Jin to the Board, both representing Weichai America Corp., the company’s largest stockholder. These changes are expected to influence the company’s strategic direction and governance, with Yang and Jin bringing extensive experience from Weichai Holding Group Co., Ltd. Additionally, Jiwen (James) Zhang and Courtney Shea were appointed to new roles within the Board, enhancing the company’s leadership structure.

The most recent analyst rating on (PSIX) stock is a Hold with a $101.00 price target. To see the full list of analyst forecasts on Power Solutions stock, see the PSIX Stock Forecast page.

Power Solutions Appoints New General Counsel

On September 18, 2025, Power Solutions International, Inc. announced the appointment of Zhaoying (Dorothy) Du as General Counsel and Corporate Secretary, effective September 8, 2025. Ms. Du brings 20 years of experience in strategic legal counsel, having previously led Lenovo’s global supply chain legal team and served as Director and Global Head of Legal at Motorola Mobility. Her extensive background in managing complex commercial and regulatory matters is expected to enhance PSI’s legal strategies and support its business success. The appointment is part of PSI’s efforts to strengthen its leadership team and improve its industry positioning.

The most recent analyst rating on (PSIX) stock is a Buy with a $127.00 price target. To see the full list of analyst forecasts on Power Solutions stock, see the PSIX Stock Forecast page.