Power Solutions (PSIX) AI Stock Analysis

• Market Cap: $2.20B
• Dividend Yield: N/A
• Average Volume (3M): 725.67K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 2.45
• Revenue Growth: 40.10%
• EPS Growth: 147.12%
• Country: US
• Employees: 700
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Machinery
• EPS (TTM): 2.24
• Shares Outstanding: 23,029,846
• 10 Day Avg. Volume: 831,712
• 30 Day Avg. Volume: 725,672
• 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: 0.72
• Enterprise Value/Revenue: 2.62
• Enterprise Value/Gross Profit: 10.25
• Enterprise Value/Ebitda: 16.82
• 1Y Price Target: $121.00
• Price Target Upside: 49.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 80 Outperform
• Price Target: $115.00 ▲(41.61% Upside)

Power Solutions International (PSIX) demonstrates strong financial performance and technical momentum, supported by recent record financial results. The company's strategic improvements and market positioning are significant strengths. While the valuation is fair, the absence of a dividend yield may deter some investors. Overall, the stock is well-positioned for growth, with attention needed on leverage and free cash flow.

Power Solutions Business Overview & Revenue Model

Company Description

Power Solutions (PSIX) is a leading provider of advanced energy solutions focused on delivering innovative power management technologies across various sectors, including renewable energy, industrial applications, and electric vehicle infrastructure. The company specializes in designing and manufacturing high-efficiency power systems, energy storage solutions, and smart grid technologies, aiming to enhance energy efficiency and sustainability for its clients.

How the Company Makes Money

Power Solutions generates revenue primarily through the sale of its core products, including power management systems, energy storage devices, and related software solutions. The company also earns income from service contracts for system installations, maintenance, and technical support. Additionally, PSIX has established strategic partnerships with key players in the renewable energy sector and electric vehicle industries, which enable it to expand its market reach and enhance its product offerings. Revenue is further bolstered by government contracts and incentives aimed at promoting clean energy initiatives, along with ongoing research and development aimed at innovation in energy technology.

Power Solutions Financial Statement Overview

Summary

Power Solutions exhibits strong financial performance marked by substantial revenue growth and improved profitability. The balance sheet shows improved equity, but the level of leverage remains a concern. Cash flows are managed well, although there is room for improvement in free cash flow. Overall, the company is on a positive trajectory with effective financial management, but attention to debt levels and free cash flow would enhance stability.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	605.59M	475.97M	458.97M	481.33M	456.25M	417.64M
Gross Profit	154.71M	140.54M	105.86M	88.56M	41.27M	58.45M
EBITDA	94.23M	86.84M	49.88M	31.29M	-34.16M	-12.78M
Net Income	81.25M	69.28M	26.31M	11.27M	-48.47M	-22.98M
Balance Sheet
Total Assets	372.73M	328.18M	284.30M	319.91M	300.54M	283.98M
Cash, Cash Equivalents and Short-Term Investments	50.02M	55.25M	22.76M	24.30M	6.25M	20.97M
Total Debt	138.01M	146.04M	174.20M	224.90M	195.17M	149.04M
Total Liabilities	288.38M	262.93M	288.22M	350.29M	342.56M	277.88M
Stockholders Equity	84.34M	65.25M	-3.92M	-30.37M	-42.02M	6.10M
Cash Flow
Free Cash Flow	48.55M	57.83M	65.48M	-10.20M	-63.45M	-10.00M
Operating Cash Flow	55.70M	62.39M	70.51M	-8.85M	-61.48M	-7.59M
Investing Cash Flow	-7.15M	-4.56M	-5.02M	-1.35M	398.00K	-1.41M
Financing Cash Flow	-31.12M	-25.93M	-66.80M	28.37M	46.55M	33.27M

Power Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 81.21
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 81.21 is below the 20-day moving average (MA) of 90.13, above the 50-day MA of 73.51, and above the 200-day MA of 41.44, indicating a neutral trend. The MACD of 4.77 indicates Positive momentum. The RSI at 46.68 is Neutral, neither overbought nor oversold. The STOCH value of 19.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PSIX.

Power Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSIX	80 Outperform	$2.20B	18.80	138.29%	―	40.10%	147.12%
CYD	73 Outperform	$1.07B	17.35	4.73%	1.81%	18.01%	39.01%
OFLX	72 Outperform	$340.48M	20.00	20.68%	3.98%	-4.53%	-11.25%
GHM	69 Neutral	$550.88M	41.41	11.97%	―	14.64%	182.19%
PKOH	64 Neutral	$280.20M	8.08	11.16%	2.46%	-2.82%	69.68%
Sector *	58 Neutral	HK$13.62B	5.49	-2.78%	5.72%	2.29%	-57.50%
NPWR	51 Neutral	$545.87M	43.62	-26.88%	―	-94.96%	-579.85%

Power Solutions Corporate Events

Power Solutions Reports Record Q2 2025 Financial Results

On August 7, 2025, Power Solutions International, Inc. announced record financial results for the second quarter of 2025, with sales reaching $191.9 million, a 74% increase from the previous year, and net income of $51.2 million, up 138%. The company achieved significant growth in the power systems market, particularly in data centers, despite challenges from tariffs and production scaling. This performance, along with strategic financial moves like amending its Revolving Credit Agreement, has strengthened PSI’s capital structure and resolved previous going concern issues, enhancing its industry positioning and stakeholder confidence.

The most recent analyst rating on (PSIX) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Power Solutions stock, see the PSIX Stock Forecast page.

Power Solutions Amends Revolving Credit Agreement

On July 30, 2025, Power Solutions International, Inc. amended its existing Uncommitted Revolving Credit Agreement with Standard Chartered Bank, allowing it to borrow up to $135 million on a committed basis until July 30, 2027. This amendment includes conditions such as minimum adjusted EBITDA and interest coverage ratio covenants, with interest rates tied to the Secured Overnight Financing Rate. The amendment also stipulates an increased interest rate if the majority shareholder, Weichai America Corp., holds less than 50% of the company’s common equity. Prior to this amendment, the company settled all outstanding borrowings under a previous loan agreement with Weichai.

The most recent analyst rating on (PSIX) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Power Solutions stock, see the PSIX Stock Forecast page.

Power Solutions Shareholders Approve Incentive Plan Extension

On July 23, 2025, Kenneth W. Landini resigned from the Board of Power Solutions International, Inc., citing concerns over fiduciary duties and board practices. The Board disagreed with his allegations. On July 24, 2025, the company held its annual meeting where all proposals, including the extension of the 2012 Incentive Compensation Plan, were approved by shareholders.

The most recent analyst rating on (PSIX) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Power Solutions stock, see the PSIX Stock Forecast page.