NasdaqGS:POWL

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Executive Summary

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. More Details


Snowflake Analysis

Flawless balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Powell Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: POWL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: POWL's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

7.2%

POWL

-4.0%

US Electrical

-3.6%

US Market


1 Year Return

-6.9%

POWL

69.7%

US Electrical

36.5%

US Market

Return vs Industry: POWL underperformed the US Electrical industry which returned 69.6% over the past year.

Return vs Market: POWL underperformed the US Market which returned 36.4% over the past year.


Shareholder returns

POWLIndustryMarket
7 Day7.2%-4.0%-3.6%
30 Day8.6%2.3%2.7%
90 Day20.5%14.9%7.5%
1 Year-3.3%-6.9%73.0%69.7%39.5%36.5%
3 Year26.2%14.7%80.5%70.4%53.5%43.6%
5 Year30.7%11.4%112.2%95.8%117.5%93.2%

Long-Term Price Volatility Vs. Market

How volatile is Powell Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Powell Industries undervalued compared to its fair value and its price relative to the market?

26.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: POWL ($31.13) is trading above our estimate of fair value ($11.51)

Significantly Below Fair Value: POWL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: POWL is good value based on its PE Ratio (26.8x) compared to the US Electrical industry average (31x).

PE vs Market: POWL is poor value based on its PE Ratio (26.8x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: POWL is poor value based on its PEG Ratio (11.5x)


Price to Book Ratio

PB vs Industry: POWL is good value based on its PB Ratio (1.3x) compared to the US Electrical industry average (4.7x).


Next Steps

Future Growth

How is Powell Industries forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

2.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: POWL's forecast earnings growth (2.3% per year) is above the savings rate (2%).

Earnings vs Market: POWL's earnings (2.3% per year) are forecast to grow slower than the US market (20.1% per year).

High Growth Earnings: POWL's earnings are forecast to grow, but not significantly.

Revenue vs Market: POWL's revenue is expected to decline over the next 3 years (-2.8% per year).

High Growth Revenue: POWL's revenue is forecast to decline over the next 3 years (-2.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if POWL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Powell Industries performed over the past 5 years?

7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: POWL has high quality earnings.

Growing Profit Margin: POWL's current net profit margins (2.8%) are lower than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: POWL's earnings have grown by 7.7% per year over the past 5 years.

Accelerating Growth: POWL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: POWL had negative earnings growth (-12.4%) over the past year, making it difficult to compare to the Electrical industry average (-11.6%).


Return on Equity

High ROE: POWL's Return on Equity (4.4%) is considered low.


Next Steps

Financial Health

How is Powell Industries's financial position?


Financial Position Analysis

Short Term Liabilities: POWL's short term assets ($310.3M) exceed its short term liabilities ($126.8M).

Long Term Liabilities: POWL's short term assets ($310.3M) exceed its long term liabilities ($13.6M).


Debt to Equity History and Analysis

Debt Level: POWL's debt to equity ratio (0.1%) is considered satisfactory.

Reducing Debt: POWL's debt to equity ratio has reduced from 0.7% to 0.1% over the past 5 years.

Debt Coverage: POWL's debt is well covered by operating cash flow (11277.5%).

Interest Coverage: POWL earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Powell Industries's current dividend yield, its reliability and sustainability?

3.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: POWL's dividend (3.34%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: POWL's dividend (3.34%) is low compared to the top 25% of dividend payers in the US market (3.77%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, POWL has been paying a dividend for less than 10 years.

Growing Dividend: POWL's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (89.5%), POWL's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.9yrs

Average management tenure


CEO

Brett Cope (52 yo)

4.33yrs

Tenure

US$2,331,120

Compensation

Mr. Brett A. Cope has been the Chief Executive Officer and President of Powell Industries, Inc. since October 1, 2016. Mr. Cope serves as Chairman of the Board of Powell Industries, Inc. since September 16...


CEO Compensation Analysis

Compensation vs Market: Brett's total compensation ($USD2.33M) is above average for companies of similar size in the US market ($USD1.50M).

Compensation vs Earnings: Brett's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Brett Cope
President4.33yrsUS$2.33m0.42%
$ 1.5m
Michael Metcalf
Executive VP2.17yrsUS$1.22m0.022%
$ 80.9k
Milburn Honeycutt
VP, Corporate Controller & Chief Accounting Officer9.42yrsUS$679.83k0.23%
$ 849.3k
Gary King
Director of Corporate Communications14.08yrsno datano data

6.9yrs

Average Tenure

52yo

Average Age

Experienced Management: POWL's management team is seasoned and experienced (6.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brett Cope
President4.33yrsUS$2.33m0.42%
$ 1.5m
Thomas Powell
Chairman Emeritus1.42yrsUS$200.98k21.62%
$ 78.6m
Christopher Cragg
Independent Director12.75yrsUS$143.98k0.12%
$ 448.3k
James McGill
Independent Director3.08yrsUS$133.98k0.072%
$ 261.5k
John White
Independent Director8.17yrsUS$135.98k0.14%
$ 526.1k
Perry Elders
Independent Director3.17yrsUS$143.98k0.055%
$ 199.2k
Richard Williams
Presiding Independent Director2yrsUS$135.98k0.098%
$ 354.9k
Katheryn Curtis
Independent Director1yrUS$107.98k0.021%
$ 74.7k

2.5yrs

Average Tenure

60.5yo

Average Age

Experienced Board: POWL's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Powell Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Powell Industries, Inc.
  • Ticker: POWL
  • Exchange: NasdaqGS
  • Founded: 1947
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Market Cap: US$363.439m
  • Shares outstanding: 11.67m
  • Website: https://www.powellind.com

Number of Employees


Location

  • Powell Industries, Inc.
  • 8550 Mosley Road
  • Houston
  • Texas
  • 77075-1180
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
POWLNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1973
PW2DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1973

Biography

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 electr...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/28 23:42
End of Day Share Price2021/02/26 00:00
Earnings2020/12/31
Annual Earnings2020/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.