These Factors Make Powell Industries, Inc. (NASDAQ:POWL) An Interesting Investment

Powell Industries, Inc. (NASDAQ:POWL) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of POWL, it is a company with robust financial health as well as an optimistic future outlook. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on Powell Industries here.

Flawless balance sheet with reasonable growth potential

POWL’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This indicates that POWL has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. POWL appears to have made good use of debt, producing operating cash levels of 26.21x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NasdaqGS:POWL Past and Future Earnings, August 26th 2019
NasdaqGS:POWL Past and Future Earnings, August 26th 2019

Next Steps:

For Powell Industries, there are three key aspects you should further research:

  1. Historical Performance: What has POWL’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  2. Valuation: What is POWL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether POWL is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of POWL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.