Loading...
Back to narrative

POWL: Discount Rate Increase Will Pressure Future Earnings Performance

Update shared on 08 Nov 2025

n/a
n/a
AnalystConsensusTarget's Fair Value
n/a
Loading
1Y
18.4%
7D
-9.8%

Analysts have maintained their price target for Powell Industries at $269.26. They cite stable revenue growth and profit margin forecasts, despite a slight uptick in the discount rate and future price-to-earnings expectation.

What's in the News

  • Powell Industries announced a $12.4 million investment to expand production capacity at its Jacintoport manufacturing facility in Houston (Key Developments).
  • This expansion increases the Jacintoport fabrication yard’s cumulative investment to approximately $20 million over the past eight years (Key Developments).
  • Nearly $40 million has now been invested across Powell’s three Houston manufacturing facilities in support of organic growth (Key Developments).
  • The Jacintoport project will add 335,000 square feet of productive capacity and will double the length of the shoreline bulkhead, boosting flexibility for customers' varied project timelines (Key Developments).
  • Construction for the expansion is expected to begin in the first quarter of Fiscal 2026 and is expected to be completed by late Fiscal 2026 (Key Developments).

Valuation Changes

  • Consensus Analyst Price Target remains unchanged at $269.26 per share.
  • The Discount Rate has risen slightly from 8.88% to 9.11%.
  • The Revenue Growth projection is essentially unchanged, holding steady at approximately 5.75%.
  • The Net Profit Margin forecast remains stable at around 13.97%.
  • The future P/E ratio has increased marginally from 23.34x to 23.49x.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.