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Power Solutions (PSIX)
NASDAQ:PSIX
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Power Solutions (PSIX) AI Stock Analysis

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PSIX

Power Solutions

(NASDAQ:PSIX)

Rating:77Outperform
Price Target:
$104.00
▲(16.18%Upside)
The most significant factors contributing to Power Solutions' overall stock score are its strong financial performance and positive technical indicators, indicating robust growth and market momentum. The company's moderate valuation adds to its appeal, though potential risks from leverage and volatility remain. Overall, the company is on a positive trajectory with strong market positioning and financial discipline.

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

Power Solutions Business Overview & Revenue Model

Company DescriptionPower 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 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 significant revenue growth and improved profitability. However, the balance sheet shows notable leverage, indicating potential risks. Cash flows are managed well, but there's room for improvement in free cash flow, which affects overall stability.
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 Revenue605.59M475.97M458.97M481.33M456.25M417.64M
Gross Profit154.71M140.54M105.86M88.56M41.27M58.45M
EBITDA94.23M86.84M49.88M31.29M-34.16M-12.78M
Net Income81.25M69.28M26.31M11.27M-48.47M-22.98M
Balance Sheet
Total Assets372.73M328.18M284.30M319.91M300.54M283.98M
Cash, Cash Equivalents and Short-Term Investments50.02M55.25M22.76M24.30M6.25M20.97M
Total Debt138.01M146.04M174.20M224.90M180.89M131.09M
Total Liabilities288.38M262.93M288.22M350.29M342.56M277.88M
Stockholders Equity84.34M65.25M-3.92M-30.37M-42.02M6.10M
Cash Flow
Free Cash Flow48.55M57.83M65.48M-10.20M-63.45M-10.00M
Operating Cash Flow55.70M62.39M70.51M-8.85M-61.48M-7.59M
Investing Cash Flow-7.15M-4.56M-5.02M-1.35M398.00K-1.41M
Financing Cash Flow-31.12M-25.93M-66.80M28.37M46.55M33.27M

Power Solutions Technical Analysis

Technical Analysis Sentiment
Positive
Last Price89.52
Price Trends
50DMA
57.90
Positive
100DMA
42.44
Positive
200DMA
36.34
Positive
Market Momentum
MACD
9.10
Negative
RSI
67.95
Neutral
STOCH
63.48
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 89.52 is above the 20-day moving average (MA) of 76.02, above the 50-day MA of 57.90, and above the 200-day MA of 36.34, indicating a bullish trend. The MACD of 9.10 indicates Negative momentum. The RSI at 67.95 is Neutral, neither overbought nor oversold. The STOCH value of 63.48 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$2.11B25.93185.56%17.92%173.25%
74
Outperform
$597.86M49.1910.86%13.13%164.29%
73
Outperform
$344.82M20.5821.33%3.98%-6.47%-9.76%
69
Neutral
$899.69M21.013.51%0.10%4.26%11.69%
65
Neutral
$11.06B15.735.16%1.93%3.12%-25.59%
60
Neutral
$254.00M6.6912.58%2.88%-0.59%190.35%
48
Neutral
$633.10M43.62-24.23%100.00%6.28%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PSIX
Power Solutions
89.52
77.57
649.12%
CYD
China Yuchai International
23.53
14.42
158.29%
GHM
Graham
54.09
21.13
64.11%
OFLX
Omega Flex
34.16
-17.16
-33.44%
PKOH
Park-Ohio Holdings
17.35
-12.84
-42.53%
NPWR
NET Power
2.74
-6.87
-71.49%

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: Jul 24, 2025