Power Solutions (PSIX) AI Stock Analysis

• Market Cap: $2.11B
• Dividend Yield: N/A
• Average Volume (3M): 624.34K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 2.38
• Revenue Growth: 17.92%
• EPS Growth: 173.25%
• Country: US
• Employees: 700
• Sector: Industrials
• Sector Strength: 94
• Industry: Industrial - Machinery
• EPS (TTM): 0.83
• Shares Outstanding: 23,008,219
• 10 Day Avg. Volume: 712,897
• 30 Day Avg. Volume: 624,342
• PEG Ratio: 1.24
• Price to Book (P/B): 20.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 35.85
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 11.82
• Enterprise Value/Ebitda: 5.89
• 1Y Price Target: $66.00
• Price Target Upside: -26.27% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• 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 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 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

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	180.89M	131.09M
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: 89.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PSIX	77 Outperform	$2.11B	25.93	185.56%	―	17.92%	173.25%
GHM	74 Outperform	$597.86M	49.19	10.86%	―	13.13%	164.29%
OFLX	73 Outperform	$344.82M	20.58	21.33%	3.98%	-6.47%	-9.76%
CYD	69 Neutral	$899.69M	21.01	3.51%	0.10%	4.26%	11.69%
Sector *	65 Neutral	$11.06B	15.73	5.16%	1.93%	3.12%	-25.59%
PKOH	60 Neutral	$254.00M	6.69	12.58%	2.88%	-0.59%	190.35%
NPWR	48 Neutral	$633.10M	43.62	-24.23%	―	100.00%	6.28%

Power Solutions Corporate Events

Power Solutions Reports Strong Q1 2025 Financial Results

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.

Power Solutions Announces General Counsel Departure Agreement

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.