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Power Integrations
(NASDAQ:POWI)
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Rating:57Neutral
Price Target:
$52.00
▼(-5.28% Downside)
Action:Reiterated
Date:09/07/26
The score is held up by high financial quality—especially the debt-free balance sheet and solid cash generation—alongside a strong TTM revenue rebound. Offsetting that, the technical setup is notably bearish (below key moving averages with negative MACD), and valuation is stretched (P/E ~110.9) given margins and ROE remain well below prior-cycle levels.
Positive Factors
Debt-free balance sheet
A debt-free balance sheet gives Power Integrations substantial financial flexibility in a cyclical semiconductor industry. Low leverage reduces refinancing exposure and preserves capacity to fund research, product development, shareholder returns, or strategic investment through demand fluctuations.
Negative Factors
Compressed profitability
Revenue recovery has not translated into normalized profitability, leaving net margins and returns well below prior-cycle levels. This weak earnings conversion limits the benefit of top-line growth and suggests that operating expenses, product mix, or other factors may continue to constrain durable returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free balance sheet
A debt-free balance sheet gives Power Integrations substantial financial flexibility in a cyclical semiconductor industry. Low leverage reduces refinancing exposure and preserves capacity to fund research, product development, shareholder returns, or strategic investment through demand fluctuations.
Read all positive factors
Power Integrations Key Performance Indicators (KPIs)
Any
Revenue by End Market
Shows how sales are split across end markets (consumer electronics, industrial, lighting, communications, automotive/EV, renewable energy, etc.), revealing which industries drive Power Integrations’ demand. Heavy exposure to growth areas like EV chargers, data-center power, or renewable-energy equipment points to durable secular tailwinds, while concentration in consumer electronics or lighting signals greater sensitivity to economic cycles and product refreshes. Tracking these splits helps assess revenue diversification, seasonality, and how shifts in technology or regulation could affect near‑term results and long‑term growth.
Shows how sales are split across end markets (consumer electronics, industrial, lighting, communications, automotive/EV, renewable energy, etc.), revealing which industries drive Power Integrations’ demand. Heavy exposure to growth areas like EV chargers, data-center power, or renewable-energy equipment points to durable secular tailwinds, while concentration in consumer electronics or lighting signals greater sensitivity to economic cycles and product refreshes. Tracking these splits helps assess revenue diversification, seasonality, and how shifts in technology or regulation could affect near‑term results and long‑term growth.
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The Fly
The FlyPower Integrations (POWI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.82B
Dividend Yield1.69%
Average Volume (3M)751.58K
Price to Earnings (P/E)110.9
Beta (1Y)1.50
Revenue Growth1.56%
EPS Growth-23.60%
CountryUS
Employees877
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.46
Shares Outstanding55,873,300
10 Day Avg. Volume934,033
30 Day Avg. Volume751,581
Financial Highlights & Ratios
PEG Ratio-2.89
Price to Book (P/B)2.96
Price to Sales (P/S)4.49
P/FCF Ratio22.87
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$81.67Price Target Upside48.76% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)1.39
Revenue Forecast (FY)$477.42M
Power Integrations Business Overview & Revenue Model
Company Description
Power Integrations, Inc. is a global leader in the development, manufacturing, and sale of analog and mixed-signal integrated circuits (ICs), alongside other essential electronic components and circuitry. Their primary expertise lies in delivering...
How the Company Makes Money
Power Integrations primarily makes money by selling its power conversion semiconductor products (integrated circuits and related components) to electronics manufacturers and to the supply chain that serves them (including distributors). Revenue is...
Power Integrations Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed more positive operational and financial momentum than negative items. Revenue grew modestly with stronger industrial performance, sequential margin expansion, improved cash generation, clear product and customer traction (notably in industrial, automotive and early data center engagements), and constructive guidance for Q2. The principal negatives were elevated inventory days, restructuring charges, continued softness in compute/communications and consumer year-over-year decline driven by prior-year pull-ins, plus macro and FX uncertainty that temper visibility. On balance, highlights outweigh the lowlights, with management outlining credible strategic actions and near-term guidance that point to improving execution.Positive Updates
Quarterly Revenue Growth
Q1 revenue of $108.3 million, up 3% year-over-year and 5% sequentially versus Q4.
Negative Updates
Consumer Segment Year-over-Year Weakness
Consumer revenue was down versus Q1 2025 (prior year had tariff-related pull-ins), though Q1 showed a 17% sequential recovery as inventory builds cleared; company expects consumer to be flat-to-modestly-up in Q2.
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly Revenue Growth
Q1 revenue of $108.3 million, up 3% year-over-year and 5% sequentially versus Q4.
Read all positive updates
Company Guidance
Management guided Q2 revenue of $115–$120M (midpoint +8.5% sequentially) after a Q1 with $108.3M in revenue and $0.25 non‑GAAP EPS; Q1 non‑GAAP gross margin was 53.5% (up 20 bps sequentially) and Q2 gross‑margin guidance is 54–55% (midpoint ≈ +100 bps). Q1 non‑GAAP OpEx was $45.3M (below prior outlook) and Q2 OpEx is forecast at $47M ± $0.5M, implying a non‑GAAP operating‑margin target of 13.5–15.5% (Q1 was 11.7%, +200 bps sequentially). Additional metrics: non‑GAAP net income $13.9M, GAAP restructuring charges $6.6M, cash from operations $20M, free cash flow $18M, Q1 CapEx $2M with 2026 CapEx plan of 5–6% of revenue, inventory down $4M and days on hand down 21 days to 292 (target <200), channel inventory down 0.5 week to 8.9 weeks (target 8), and management expects seasonally higher revenue and margin in Q2, OpEx roughly flat in H2, and long‑term OpEx growth at less than half the rate of revenue growth.Power Integrations Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
88
Very Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 449.37M | 443.50M | 418.97M | 444.54M | 651.14M | 703.28M |
| Gross Profit | 241.03M | 241.65M | 224.75M | 228.96M | 366.91M | 360.64M |
| EBITDA | 40.31M | 49.01M | 65.34M | 83.28M | 220.77M | 211.08M |
| Net Income | 25.07M | 22.09M | 32.23M | 55.73M | 170.85M | 164.41M |
Balance Sheet | ||||||
| Total Assets | 779.01M | 772.21M | 828.83M | 819.87M | 840.10M | 1.01B |
| Cash, Cash Equivalents and Short-Term Investments | 262.61M | 249.51M | 300.00M | 311.57M | 353.81M | 530.35M |
| Total Debt | 0.00 | 0.00 | 28.19M | 17.33M | 14.56M | 19.79M |
| Total Liabilities | 98.48M | 99.36M | 79.05M | 67.63M | 84.88M | 102.45M |
| Stockholders Equity | 680.53M | 672.85M | 749.77M | 752.24M | 755.22M | 912.03M |
Cash Flow | ||||||
| Free Cash Flow | 79.04M | 87.12M | 63.90M | 44.88M | 176.13M | 183.60M |
| Operating Cash Flow | 98.08M | 111.52M | 81.18M | 65.76M | 215.34M | 230.87M |
| Investing Cash Flow | -9.96M | 36.21M | -25.92M | -14.15M | 78.34M | -232.80M |
| Financing Cash Flow | -84.45M | -139.94M | -68.22M | -93.05M | -346.42M | -98.83M |
Power Integrations Technical Analysis
Negative
54.90
Price Trends
63.40
Negative
69.02
Negative
55.99
Negative
Market Momentum
-3.87
Positive
33.03
Neutral
22.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POWI, the sentiment is Negative. The current price of 54.9 is below the 20-day moving average (MA) of 55.95, below the 50-day MA of 63.40, and below the 200-day MA of 55.99, indicating a bearish trend. The MACD of -3.87 indicates Positive momentum. The RSI at 33.03 is Neutral, neither overbought nor oversold. The STOCH value of 22.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for POWI.
Power Integrations Risk Analysis
Power Integrations disclosed 6 risk factors in its most recent earnings report. Power Integrations reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Power Integrations Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $8.12B | 70.20 | 10.96% | ― | 18.01% | 161.14% | |
69 Neutral | $8.69B | 7.47 | 32.04% | 0.78% | 69.56% | 260.84% | |
69 Neutral | $4.23B | 48.82 | 4.53% | ― | 17.80% | 36.28% | |
68 Neutral | $3.55B | 38.36 | 8.91% | ― | -3.35% | -38.92% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $2.82B | 110.85 | 3.72% | 1.69% | 1.56% | -23.60% | |
49 Neutral | $3.87B | -7.84 | -38.70% | ― | 11.44% | -940.34% |
* Technology Sector Average
POWI
Power Integrations
50.45
6.23
14.10%
ACLS
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115.08
33.26
40.65%
DIOD
Diodes
91.79
38.54
72.38%
FORM
Formfactor
103.90
74.30
251.01%
SIMO
Silicon Motion
256.21
172.51
206.09%
SYNA
Synaptics
98.99
28.42
40.27%
Power Integrations Corporate Events
Business Operations and StrategyExecutive/Board Changes
Power Integrations announces senior operations leadership transition
Neutral
Aug 14, 2026
On August 11, 2026, Power Integrations announced that Sunil Gupta, its Senior Vice President of Operations, intends to resign from the company effective August 25, 2026. The company stated that Gupta’s departure was not due to any disagreeme...
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.