Power Solutions (PSIX) AI Stock Analysis

• Market Cap: $890.65M
• Dividend Yield: N/A
• Average Volume (3M): 308.24K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 2.21
• Revenue Growth: 17.92%
• EPS Growth: 173.25%
• Country: US
• Employees: 700
• Sector: Industrials
• Sector Strength: 92
• Industry: Industrial - Machinery
• EPS (TTM): 0.83
• Shares Outstanding: 23,008,219
• 10 Day Avg. Volume: 394,201
• 30 Day Avg. Volume: 308,238
• PEG Ratio: 0.37
• Price to Book (P/B): 10.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.08
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 5.65
• Enterprise Value/Ebitda: 2.94
• 1Y Price Target: $64.00
• Price Target Upside: 65.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: $38.00 ▼( -1.83% Downside)

Power Solutions demonstrates a strong financial turnaround with improved profitability and cash flow, supported by promising technical indicators and a favorable valuation. However, challenges remain with revenue volatility and high leverage. The overall score reflects these strengths and risks, highlighting a moderate investment opportunity with potential for growth if financial stability continues to improve.

Power Solutions Business Overview & Revenue Model

Company Description

Power Solutions International, Inc. (PSIX) is a leading provider in the design, engineering, and manufacturing of emission-certified engines and power systems. These products are utilized across a variety of sectors, including industrial, on-road, and power generation markets. The company's offerings include a broad range of power solutions, ranging from 27 to 65-liter engines, designed to run on a variety of fuels including gasoline, natural gas, and diesel.

How the Company Makes Money

Power Solutions International, Inc. generates revenue primarily through the sale of its engine and power system products. These products are sold to original equipment manufacturers (OEMs) and distributors who serve various sectors such as industrial equipment, transportation, and power generation. The company's key revenue streams include the sales of customized engines tailored to specific customer needs and applications, as well as aftermarket parts and services. Significant partnerships with OEMs and strategic alliances with industry leaders also play a crucial role in expanding its market reach and boosting sales. PSIX's focus on innovation and compliance with emissions regulations further enhances its competitive advantage and revenue potential.

Power Solutions Financial Statement Overview

Summary

Power Solutions has improved profitability and cash flow, with a strong net profit margin and positive cash flow figures. However, revenue has declined, and the company remains highly leveraged, which poses potential risks.

Income Statement

Power Solutions has shown a significant improvement in profitability with a strong increase in net income and gross profit margin, indicating effective cost management. The gross profit margin improved from 23.1% in 2019 to 100% in 2024, and the net profit margin rose from 1.5% to 49.3% in the same period. However, the revenue has been volatile, showing a decline over recent years from $546 million in 2019 to $140 million in 2024. The EBIT and EBITDA margins also show strong improvements, reflecting enhanced operational efficiency.

Balance Sheet

The balance sheet reflects a mixed financial position. The company has improved its equity position from negative to positive in 2024, showing financial recovery. The debt-to-equity ratio is high, albeit improving, indicating a significant reliance on debt. The equity ratio is low but has seen improvement with a positive stockholders' equity in 2024. These changes suggest a gradual strengthening of the company's financial foundation, though risks remain due to leverage.

Cash Flow

Power Solutions has demonstrated robust cash flow improvements. The company reversed negative operating and free cash flows in earlier years to positive figures, with a free cash flow of $57.8 million in 2024. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to net income. The positive trend in cash flow metrics is a significant strength, indicating enhanced liquidity and operational efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
475.97M	458.97M	481.33M	456.25M	417.64M
	Gross Profit
140.54M	105.86M	88.56M	41.27M	58.45M
	EBIT
81.64M	44.27M	24.60M	-41.57M	-21.72M
	EBITDA
86.84M	49.88M	31.29M	-34.16M	-12.78M
	Net Income Common Stockholders
69.28M	26.31M	11.27M	-48.47M	-22.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
55.25M	22.76M	24.30M	6.25M	20.97M
	Total Assets
328.18M	284.30M	319.91M	300.54M	283.98M
	Total Debt
146.04M	174.20M	224.90M	180.89M	131.09M
	Net Debt
90.79M	151.44M	200.60M	174.63M	110.12M
	Total Liabilities
262.93M	288.22M	350.29M	342.56M	277.88M
	Stockholders Equity
65.25M	-3.92M	-30.37M	-42.02M	6.10M
Cash Flow		Free Cash Flow
57.83M	65.48M	-10.20M	-63.45M	-10.00M
	Operating Cash Flow
62.39M	70.51M	-8.85M	-61.48M	-7.59M
	Investing Cash Flow
-4.56M	-5.02M	-1.35M	398.00K	-1.41M
	Financing Cash Flow
-25.93M	-66.80M	28.37M	46.55M	33.27M

Power Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 38.71 is above the 20-day moving average (MA) of 31.72, above the 50-day MA of 28.37, and above the 200-day MA of 27.14, indicating a bullish trend. The MACD of 3.17 indicates Negative momentum. The RSI at 70.72 is Negative, neither overbought nor oversold. The STOCH value of 79.17 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
GHM	77 Outperform	$401.12M	44.12	8.41%	―	11.22%	229.35%
OFLX	71 Outperform	$323.22M	18.62	21.33%	4.21%	-6.47%	-9.76%
PSIX	68 Neutral	$890.65M	10.97	185.56%	―	17.92%	173.25%
CYD	66 Neutral	$641.94M	14.99	3.51%	2.22%	4.26%	11.69%
Sector *	64 Neutral	$4.39B	11.81	5.20%	249.38%	3.96%	-12.36%
PKOH	63 Neutral	$258.12M	6.80	12.58%	2.76%	-0.59%	190.35%
NPWR	42 Neutral	$346.13M	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.