NasdaqGS:POWL

Stock Analysis Report

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.

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.


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


Market Performance


7 Day Return

1.3%

POWL

2.0%

US Electrical

0.4%

US Market


1 Year Return

25.3%

POWL

3.7%

US Electrical

6.9%

US Market

Return vs Industry: POWL exceeded the US Electrical industry which returned 3.7% over the past year.

Return vs Market: POWL exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

POWLIndustryMarket
7 Day1.3%2.0%0.4%
30 Day-3.2%0.2%-1.2%
90 Day3.9%2.6%-0.4%
1 Year29.1%25.3%6.0%3.7%9.3%6.9%
3 Year12.2%2.2%41.7%33.3%45.8%36.4%
5 Year3.2%-11.7%36.9%23.2%62.9%45.1%

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?

90.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: POWL ($38.23) is trading above our estimate of fair value ($32.68)

Significantly Undervalued: POWL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: POWL is poor value based on its PE Ratio (90.3x) compared to the Electrical industry average (14.9x).

PE vs Market: POWL is poor value based on its PE Ratio (90.3x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: POWL is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: POWL is good value based on its PB Ratio (1.5x) compared to the US Electrical industry average (1.6x).


Next Steps

Future Growth

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

86.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: POWL's forecast earnings growth (86.2% per year) is above the savings rate (2.7%).

Earnings vs Market: POWL's earnings (86.2% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: POWL's revenue (7.6% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: POWL's revenue (7.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: POWL's Return on Equity is forecast to be low in 3 years time (1.4%).


Next Steps

Past Performance

How has Powell Industries performed over the past 5 years?

-51.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: POWL's earnings have declined by -51.2% per year over the past 5 years.

Accelerating Growth: POWL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: POWL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electrical industry (16.3%).


Return on Equity

High ROE: POWL's Return on Equity (1.7%) is considered low.


Return on Assets

ROA vs Industry: POWL's Return on Assets is below or equal to the Electrical industry average last year.


Return on Capital Employed

ROCE Improving: POWL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Powell Industries's financial position?


Financial Position Analysis

Short Term Liabilities: POWL's short term assets ($287.3M) exceeds its short term liabilities ($129.8M)

Long Term Liabilities: POWL's short term assets (287.3M) exceeds its long term liabilities (11.6M)


Debt to Equity History and Analysis

Debt Level: POWL's debt to equity ratio (0.4%) is considered satisfactory

Reducing Debt: POWL's debt to equity ratio has reduced from 0.9% to 0.4% over the past 5 years.

Debt Coverage: POWL's debt is well covered by operating cash flow (2620.8%).

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


Balance Sheet

Inventory Level: POWL has a high level of physical assets or inventory.

Debt Coverage by Assets: POWL's debt is covered by short term assets (assets are 239.391660x debt).


Next Steps

Dividend

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

2.72%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: POWL's dividend (2.72%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: POWL's dividend (2.72%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (245.7%), POWL's dividend payments are not well 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

What is the CEO of Powell Industries's salary, the management and board of directors tenure and is there insider trading?

8.1yrs

Average management tenure


CEO

Brett Cope (51yo)

3yrs

Tenure

US$1,862,653

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 ($USD1.86M) is about average for companies of similar size in the US market ($USD1.79M).

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


Management Age and Tenure

8.1yrs

Average Tenure

56.5yo

Average Age

Experienced Management: POWL's management team is seasoned and experienced (8.1 years average tenure).


Board Age and Tenure

1.8yrs

Average Tenure

59yo

Average Age

Experienced Board: POWL's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: POWL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$75,78013 Aug 19
Bonnie Hancock
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$38.03

Ownership Breakdown


Management Team

  • Milburn Honeycutt (56yo)

    VP, Corporate Controller & Chief Accounting Officer

    • Tenure: 8.1yrs
    • Compensation: US$634.06k
  • Don Madison (62yo)

    Consultant

    • Tenure: 12.7yrs
    • Compensation: US$1.30m
  • Gary King

    Director of Corporate Communications

    • Tenure: 12.8yrs
  • Brett Cope (51yo)

    President

    • Tenure: 3yrs
    • Compensation: US$1.86m
  • Michael Metcalf (57yo)

    CFO, Executive VP

    • Tenure: 0.8yrs

Board Members

  • Tom Powell (78yo)

    Chairman Emeritus

    • Tenure: 0.08yrs
    • Compensation: US$216.76k
  • Chris Cragg (58yo)

    Independent Director

    • Tenure: 11.4yrs
    • Compensation: US$110.76k
  • Bonnie Hancock (57yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: US$96.76k
  • Jim McGill (63yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$75.30k
  • John White (70yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$101.76k
  • Perry Elders (57yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$96.26k
  • Dick Williams (60yo)

    Presiding Independent Director

    • Tenure: 0yrs
    • Compensation: US$98.76k
  • Brett Cope (51yo)

    President

    • Tenure: 3yrs
    • Compensation: US$1.86m

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$442.197m
  • Shares outstanding: 11.57m
  • Website: https://www.powellind.com

Number of Employees


Location

  • Powell Industries, Inc.
  • 8550 Mosley Road
  • Houston
  • Texas
  • 77075
  • 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 Analysis2019/10/19 23:39
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.