tiprankstipranks
Trending News
More News >
Power Solutions (PSIX)
NASDAQ:PSIX
US Market

Power Solutions (PSIX) AI Stock Analysis

Compare
332 Followers

Top Page

PS

Power Solutions

(NASDAQ:PSIX)

Rating:82Outperform
Price Target:
$79.00
▲(12.42%Upside)
Power Solutions' stock score reflects robust financial performance and strong technical indicators, underscored by positive corporate events. The company's strategic financial management and market positioning drive its strong performance, with caution advised due to overbought technical indicators. The absence of a dividend yield slightly impacts valuation appeal.

Power Solutions (PSIX) vs. SPDR S&P 500 ETF (SPY)

Power Solutions Business Overview & Revenue Model

Company DescriptionPower Solutions International, Inc. (PSIX) is a leading provider in the design, engineering, and manufacture of a broad range of advanced, emission-certified engines and power systems. The company primarily serves the industrial, on-road, and energy sectors, offering products that are utilized in a diverse array of applications, including power generation, industrial equipment, and transportation vehicles. PSIX is recognized for its commitment to innovation and sustainability, providing customized power solutions that meet stringent emissions standards.
How the Company Makes MoneyPower Solutions International, Inc. generates revenue through the sale of its advanced engine and power system products. The company caters to original equipment manufacturers (OEMs) and end users across various sectors by providing tailored solutions that meet specific power needs, especially in markets that demand high-performance and emission-compliant engines. Key revenue streams include the sale of industrial engines used for power generation and industrial applications, on-road engines for transportation, and energy systems for oil and gas sectors. Additionally, PSIX benefits from partnerships and collaborations with leading OEMs, which help in expanding its market reach and enhancing its product offerings. The company's focus on research and development, as well as its ability to adapt to changing regulatory environments, plays a crucial role in maintaining its competitive edge and driving revenue growth.

Power Solutions Financial Statement Overview

Summary
Power Solutions exhibits strong financial performance with substantial revenue growth and improved profitability, though leverage remains a concern. The income statement reflects robust growth and operational efficiency, the balance sheet indicates improved equity but notable debt levels, and cash flows are managed well with room for improvement in free cash flow.
Income Statement
82
Very Positive
Power Solutions exhibits strong revenue growth, with TTM revenue increasing significantly from $475.97M to $605.59M, a healthy growth rate of 27.2%. Gross profit margin improved to 25.55% from the previous year, indicating efficient cost management. Net profit margin also shows an upward trend to 13.42%, reflecting enhanced profitability. The EBIT margin of 15.79% and a strong EBITDA margin of 15.56% further demonstrate the company's operational efficiency. Overall, the income statement reflects robust growth and profitability.
Balance Sheet
65
Positive
The company's debt-to-equity ratio is notable at 1.64, reflecting a moderate level of leverage. Return on equity (ROE) stands at a substantial 96.34%, indicating effective use of equity to generate profits. However, the equity ratio remains low at 22.63%, highlighting potential risks associated with financial stability. Overall, the balance sheet shows improved equity but still carries notable debt levels which could pose risks in volatile market conditions.
Cash Flow
78
Positive
Free cash flow growth is positive at -16.03%, reflecting solid cash generation capabilities despite a decline from the previous year. The operating cash flow to net income ratio of 0.69 indicates good cash conversion efficiency. Additionally, the free cash flow to net income ratio of 0.60 underscores the company's ability to convert its profits into cash. The cash flow statement suggests efficient cash management with a need to enhance free cash flow further.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue471.30M475.97M458.97M481.33M456.25M417.64M
Gross Profit68.81M140.54M105.86M88.56M41.27M58.45M
EBITDA12.04M86.84M49.88M31.29M-34.16M-12.78M
Net Income-5.62M69.28M26.31M11.27M-48.47M-22.98M
Balance Sheet
Total Assets328.18M328.18M284.30M319.91M300.54M283.98M
Cash, Cash Equivalents and Short-Term Investments55.25M55.25M22.76M24.30M6.25M20.97M
Total Debt146.04M146.04M174.20M224.90M180.89M131.09M
Total Liabilities262.93M262.93M288.22M350.29M342.56M277.88M
Stockholders Equity65.25M65.25M-3.92M-30.37M-42.02M6.10M
Cash Flow
Free Cash Flow-42.61M57.83M65.48M-10.20M-63.45M-10.00M
Operating Cash Flow-41.81M62.39M70.51M-8.85M-61.48M-7.59M
Investing Cash Flow-788.00K-4.56M-5.02M-1.35M398.00K-1.41M
Financing Cash Flow54.56M-25.93M-66.80M28.37M46.55M33.27M

Power Solutions Technical Analysis

Technical Analysis Sentiment
Positive
Last Price70.27
Price Trends
50DMA
42.27
Positive
100DMA
36.08
Positive
200DMA
31.84
Positive
Market Momentum
MACD
7.53
Negative
RSI
78.03
Negative
STOCH
79.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PSIX, the sentiment is Positive. The current price of 70.27 is above the 20-day moving average (MA) of 56.51, above the 50-day MA of 42.27, and above the 200-day MA of 31.84, indicating a bullish trend. The MACD of 7.53 indicates Negative momentum. The RSI at 78.03 is Negative, neither overbought nor oversold. The STOCH value of 79.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSIX.

Power Solutions Risk Analysis

Power Solutions disclosed 29 risk factors in its most recent earnings report. Power Solutions reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Power Solutions Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$1.51B19.91185.56%17.92%173.25%
76
Outperform
$362.39M20.8721.33%3.79%-6.47%-9.76%
GHGHM
74
Outperform
$555.41M45.8110.86%13.13%164.29%
CYCYD
69
Neutral
$890.68M20.803.51%2.23%4.26%11.69%
62
Neutral
$267.09M7.0312.58%2.66%-0.59%190.35%
58
Neutral
$1.34B4.20-2.93%7.41%3.67%-51.13%
52
Neutral
$556.43M43.62-24.23%100.00%6.28%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PSIX
Power Solutions
70.27
59.77
569.24%
CYD
China Yuchai International
23.74
15.10
174.77%
GHM
Graham
50.73
22.67
80.79%
OFLX
Omega Flex
35.90
-13.74
-27.68%
PKOH
Park-Ohio Holdings
18.77
-5.33
-22.12%
NPWR
NET Power
2.54
-6.93
-73.18%

Power Solutions Corporate Events

Business Operations and StrategyFinancial Disclosures
Power Solutions Reports Strong Q1 2025 Financial Results
Positive
May 8, 2025

On May 8, 2025, Power Solutions International, Inc. announced its financial results for the first quarter of 2025, reporting a significant increase in sales and profitability. The company achieved a 42% year-over-year sales growth, with net income rising by 168% to $19.1 million. This performance underscores the growing demand for their power systems solutions, particularly in the data center sector, and reflects strategic market prioritization and operational enhancements. The company also reduced its debt by $10 million, showcasing financial discipline and a strong commitment to maintaining competitiveness amid evolving tariff environments and external challenges.

Executive/Board Changes
Power Solutions Announces General Counsel Departure Agreement
Neutral
Apr 30, 2025

On April 30, 2025, Power Solutions International, Inc. announced the mutual termination of the employment agreement with its General Counsel, Randall D. Lehner, effective March 4, 2024. A Separation Agreement was reached, effective April 24, 2025, granting Mr. Lehner a severance package including a year’s salary, car allowance, additional consideration, and health coverage under COBRA, while he agreed to confidentiality and other covenants.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 27, 2025