Power Solutions (PSIX) AI Stock Analysis

• Market Cap: $1.15B
• Dividend Yield: N/A
• Average Volume (3M): 307.14K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 2.25
• Revenue Growth: 17.92%
• EPS Growth: 173.25%
• Country: US
• Employees: 700
• Sector: Industrials
• Sector Strength: 87
• Industry: Industrial - Machinery
• EPS (TTM): 0.83
• Shares Outstanding: 23,008,219
• 10 Day Avg. Volume: 291,041
• 30 Day Avg. Volume: 307,143
• PEG Ratio: -0.01
• Price to Book (P/B): -1.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.08
• Enterprise Value/Market Cap: 0.16
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 1.20
• Enterprise Value/Ebitda: 0.60
• 1Y Price Target: $64.00
• Price Target Upside: 28.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: $53.00 ▲(6.15%Upside)

Power Solutions' strong financial performance and recent corporate achievements contribute significantly to its overall score. Technical indicators suggest potential short-term corrections despite a strong upward trend. The valuation is fair, but the absence of dividend yield may deter income-focused investors.

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 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 exhibits strong financial performance with substantial revenue growth and improved profitability, though leverage remains a concern. The income statement reflects robust growth and operational efficiency, the balance sheet indicates improved equity but notable debt levels, and cash flows are managed well with room for improvement in free cash flow.

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
471.30M	475.97M	458.97M	481.33M	456.25M	417.64M
	Gross Profit
68.81M	140.54M	105.86M	88.56M	41.27M	58.45M
	EBIT
5.05M	81.64M	44.27M	24.60M	-41.57M	-21.72M
	EBITDA
12.04M	86.84M	49.88M	31.29M	-34.16M	-12.78M
	Net Income Common Stockholders
-5.62M	69.28M	26.31M	11.27M	-48.47M	-22.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
55.25M	55.25M	22.76M	24.30M	6.25M	20.97M
	Total Assets
328.18M	328.18M	284.30M	319.91M	300.54M	283.98M
	Total Debt
146.04M	146.04M	174.20M	224.90M	180.89M	131.09M
	Net Debt
90.79M	90.79M	151.44M	200.60M	174.63M	110.12M
	Total Liabilities
262.93M	262.93M	288.22M	350.29M	342.56M	277.88M
	Stockholders Equity
65.25M	65.25M	-3.92M	-30.37M	-42.02M	6.10M
Cash Flow		Free Cash Flow
-42.61M	57.83M	65.48M	-10.20M	-63.45M	-10.00M
	Operating Cash Flow
-41.81M	62.39M	70.51M	-8.85M	-61.48M	-7.59M
	Investing Cash Flow
-788.00K	-4.56M	-5.02M	-1.35M	398.00K	-1.41M
	Financing Cash Flow
54.56M	-25.93M	-66.80M	28.37M	46.55M	33.27M

Power Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 49.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 49.93 is above the 20-day moving average (MA) of 42.86, above the 50-day MA of 32.66, and above the 200-day MA of 29.24, indicating a bullish trend. The MACD of 4.89 indicates Negative momentum. The RSI at 75.37 is Negative, neither overbought nor oversold. The STOCH value of 90.54 is Negative, 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	$506.15M	41.75	10.86%	―	11.22%	229.35%
PSIX	75 Outperform	$1.15B	14.15	185.56%	―	17.92%	173.25%
OFLX	71 Outperform	$320.70M	18.21	21.33%	4.34%	-6.47%	-9.76%
CYD	67 Neutral	$782.26M	18.27	3.51%	1.82%	4.26%	11.69%
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%
PKOH	63 Neutral	$256.13M	6.46	12.58%	2.90%	-0.59%	190.35%
NPWR	53 Neutral	$563.00M	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.