Powell Industries (POWL) AI Stock Analysis

• Market Cap: $2.29B
• Dividend Yield: 0.6%
• Average Volume (3M): 321.29K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 1.53
• Revenue Growth: 27.43%
• EPS Growth: 67.93%
• Country: US
• Employees: 2,748
• Sector: Industrials
• Sector Strength: 82
• Industry: Electrical Equipment & Parts
• EPS (TTM): 3.81
• Shares Outstanding: 12,064,723
• 10 Day Avg. Volume: 241,892
• 30 Day Avg. Volume: 321,286
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 8.50
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $280.00
• Price Target Upside: 60.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Powell Industries is in a strong financial position, with notable revenue growth and robust profit margins. The company maintains low leverage and a solid equity base, supporting financial stability. Technical indicators are mixed, with short-term bullish signs but long-term caution. The valuation is fair, offering a balanced risk-reward profile. The recent earnings call provided optimistic guidance and highlighted significant achievements, although some challenges remain in core industrial sectors.

Powell Industries Business Overview & Revenue Model

Company Description

Powell Industries, Inc., together with its subsidiaries, designs, develops, manufactures, sells, and services custom-engineered equipment and systems for the distribution, control, and monitoring of electrical energy. The company's principal products include integrated power control room substations, custom-engineered modules, electrical houses, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers, and bus duct systems, as well as traditional and arc-resistant distribution switchgears and control gears. Its products have application in voltages ranging from 480 volts to 38,000 volts; and are used in oil and gas refining, onshore and offshore oil and gas production, petrochemical, liquid natural gas terminals, pipeline, terminal, mining and metals, light rail traction power, electric utility, pulp and paper, and other heavy industrial markets. It also provides value-added services, such as spare parts, field service inspection, installation, commissioning, modification and repair, retrofit and retrofill components for existing systems, and replacement circuit breakers for switchgear. The company has operations in the United States, Canada, the Middle East, Africa, Europe, Mexico, and Central and South America. Powell Industries, Inc. was founded in 1947 and is headquartered in Houston, Texas.

How the Company Makes Money

Powell Industries generates revenue through the sale of its custom-engineered electrical equipment and systems. The company’s revenue streams include the design and manufacturing of switchgear and related equipment, as well as providing aftermarket services such as maintenance, repair, and retrofitting. By serving industries that require robust and reliable electrical systems, Powell benefits from long-term contracts and repeat business opportunities. Additionally, the company may engage in strategic partnerships or collaborations with other firms to enhance its product offerings and expand its market reach.

Powell Industries Financial Statement Overview

Summary

Powell Industries exhibits a strong financial position with significant revenue growth and healthy profit margins. The company benefits from low leverage and a solid equity base, supporting its financial stability. However, attention should be paid to maintaining cash flow levels and ensuring sustainable revenue growth to avoid potential future risks.

Income Statement

Powell Industries has shown strong revenue growth, with a TTM revenue of $1.06 billion compared to $699.3 million the previous year. The company has maintained a healthy gross profit margin of approximately 26.8% and a net profit margin of about 15.1% in the TTM period. These margins indicate robust profitability, supported by a consistent increase in EBIT and EBITDA margins. However, the significant jump in revenue from the prior year may not be sustainable at this pace.

Balance Sheet

The balance sheet of Powell Industries is strong, with a low debt-to-equity ratio of approximately 0.0027, indicating low leverage and financial stability. The equity ratio stands at 54.4%, reflecting a solid equity base. A return on equity (ROE) of around 32.3% demonstrates effective use of equity to generate profits. The main concern could be the relatively low total asset growth compared to revenue growth.

Cash Flow

Powell Industries has shown positive free cash flow growth, with a TTM increase to $48.9 million. The operating cash flow to net income ratio is 0.39, suggesting room for improvement in converting net income to cash. The free cash flow to net income ratio is 0.30, indicating that a significant portion of earnings is being converted into free cash flow. While the cash flow statements reflect positive trends, the operating cash flow has decreased compared to the previous year, which might need attention.

Breakdown
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
1.01B	699.31M	532.58M	470.56M	518.50M
	Gross Profit
273.09M	147.55M	85.02M	75.06M	94.58M
	EBIT
178.77M	62.52M	-5.09M	1.02M	19.07M
	EBITDA
185.64M	71.13M	7.22M	1.02M	31.14M
	Net Income Common Stockholders
149.85M	54.52M	13.74M	631.00K	16.66M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
358.39M	279.01M	116.51M	133.98M	178.92M
	Total Assets
928.18M	752.24M	493.38M	436.19M	472.28M
	Total Debt
1.22M	1.44M	2.32M	4.23M	6.59M
	Net Debt
-314.12M	-244.44M	-99.63M	-110.09M	-153.63M
	Total Liabilities
445.11M	407.22M	196.17M	134.97M	165.65M
	Stockholders Equity
483.07M	345.03M	297.21M	301.22M	306.63M
Cash Flow		Free Cash Flow
96.68M	174.73M	-6.03M	-33.35M	67.26M
	Operating Cash Flow
108.66M	182.55M	-3.58M	-30.46M	72.39M
	Investing Cash Flow
-21.87M	-26.57M	6.46M	-2.46M	-17.54M
	Financing Cash Flow
-19.25M	-13.06M	-13.31M	-13.17M	-13.10M

Powell Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 174.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For POWL, the sentiment is Negative. The current price of 174.77 is below the 20-day moving average (MA) of 178.59, below the 50-day MA of 175.15, and below the 200-day MA of 213.99, indicating a bearish trend. The MACD of 1.23 indicates Positive momentum. The RSI at 45.87 is Neutral, neither overbought nor oversold. The STOCH value of 16.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for POWL.

Powell Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POWL	77 Outperform	$2.29B	14.58	37.08%	0.60%	27.43%	67.93%
AEIS	73 Outperform	$4.04B	56.86	6.36%	0.36%	0.06%	-28.32%
ATKR	71 Outperform	$2.24B	12.88	12.73%	1.86%	-12.02%	-67.69%
ENS	67 Neutral	$3.58B	11.23	18.36%	1.02%	-2.94%	22.32%
Sector *	64 Neutral	$4.30B	11.84	5.23%	249.82%	4.06%	-10.21%
ENR	59 Neutral	$1.72B	35.13	33.46%	5.42%	0.39%	-37.01%
ENVX	49 Neutral	$1.17B	―	-85.86%	―	77.59%	2.01%

Powell Industries Corporate Events

Powell Industries Reports Strong Q2 2025 Financial Results

On May 6, 2025, Powell Industries announced its second quarter fiscal 2025 results, reporting a 9% increase in revenues to $279 million and a 38% rise in net income to $46 million compared to the previous year. The company highlighted strong project execution and operational efficiency, with significant contributions from the Electric Utility and Commercial sectors, despite a decline in the Petrochemical sector. The expansion of the Electrical Products facility in Houston is nearing completion, which is expected to enhance Powell’s manufacturing capabilities and support future growth in key markets.

Spark’s Take on POWL Stock

According to Spark, TipRanks’ AI Analyst, POWL is a Outperform.

Powell Industries demonstrates strong financial performance with significant revenue growth and solid profit margins, supported by a robust balance sheet. The positive earnings call further underscores the company’s potential, despite flat gross margins. Technical analysis shows short-term bullish signs but longer-term caution. The valuation appears fair, offering a balanced risk-reward profile.

To see Spark’s full report on POWL stock, click here.