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POWI

Power IntegrationsNasdaqGS:POWI Stock Report

Last Price

US$78.36

Market Cap

US$4.7b

7D

-6.1%

1Y

-15.8%

Updated

20 Jan, 2022

Data

Company Financials +
POWI fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance2/6
Financial Health6/6
Dividends4/6

POWI Stock Overview

Power Integrations, Inc. designs, develops, manufactures, and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion worldwide.

Power Integrations Competitors

Intel

NasdaqGS:INTC

US$218.1b

QUALCOMM

NasdaqGS:QCOM

US$193.2b

Texas Instruments

NasdaqGS:TXN

US$164.7b

Analog Devices

NasdaqGS:ADI

US$85.7b

Price History & Performance

Summary of all time highs, changes and price drops for Power Integrations
Historical stock prices
Current Share PriceUS$78.36
52 Week HighUS$110.66
52 Week LowUS$73.04
Beta0.94
1 Month Change-10.38%
3 Month Change-23.18%
1 Year Change-15.80%
3 Year Change144.61%
5 Year Change118.88%
Change since IPO3,757.72%

Recent News & Updates

Jan 07
Power Integrations, Inc.'s (NASDAQ:POWI) Intrinsic Value Is Potentially 21% Below Its Share Price

Power Integrations, Inc.'s (NASDAQ:POWI) Intrinsic Value Is Potentially 21% Below Its Share Price

Today we will run through one way of estimating the intrinsic value of Power Integrations, Inc. ( NASDAQ:POWI ) by...

Dec 30

Why Power Integrations Has Underperformed In What Has Been A Strong Year For Semis

POWI is certain to end 2021 with record sales and profits, posting gains that in some instances equal those of the preceding decade. Semis have been a winning bet in 2021, but POWI is one of the few exceptions that have lagged behind in terms of YTD gains. POWI has grown by leaps and bounds in 2021, but it appears it’s only a matter of time before there’s a reversal to the mean. POWI has its strengths, but a sustained move higher looks to be more of a challenge than a move lower all things considered.

Dec 06
Is Now The Time To Look At Buying Power Integrations, Inc. (NASDAQ:POWI)?

Is Now The Time To Look At Buying Power Integrations, Inc. (NASDAQ:POWI)?

Power Integrations, Inc. ( NASDAQ:POWI ), might not be a large cap stock, but it received a lot of attention from a...

Shareholder Returns

POWIUS SemiconductorUS Market
7D-6.1%-8.1%-4.6%
1Y-15.8%22.2%7.7%

Return vs Industry: POWI underperformed the US Semiconductor industry which returned 22.2% over the past year.

Return vs Market: POWI underperformed the US Market which returned 7.7% over the past year.

Price Volatility

Is POWI's price volatile compared to industry and market?
POWI volatility
POWI Average Weekly Movement5.9%
Semiconductor Industry Average Movement7.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: POWI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: POWI's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1988725Balu Balakrishnanhttps://www.power.com

Power Integrations, Inc. designs, develops, manufactures, and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion worldwide. The company offers a range of alternating current to direct current power conversion products that address power supply ranging from less than one watt of output to approximately 500 watts of output for mobile-device chargers, consumer appliances, utility meters, LCD monitors, main and standby power supplies for desktop computers and TVs, LED lighting, and other consumer and industrial applications. It also provides high-voltage diodes; and high-voltage gate-driver products under the SCALE and SCALE-2 product-family names.

Power Integrations Fundamentals Summary

How do Power Integrations's earnings and revenue compare to its market cap?
POWI fundamental statistics
Market CapUS$4.73b
Earnings (TTM)US$150.99m
Revenue (TTM)US$681.32m

31.3x

P/E Ratio

6.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
POWI income statement (TTM)
RevenueUS$681.32m
Cost of RevenueUS$339.85m
Gross ProfitUS$341.47m
ExpensesUS$190.48m
EarningsUS$150.99m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 03, 2022

Earnings per share (EPS)2.50
Gross Margin50.12%
Net Profit Margin22.16%
Debt/Equity Ratio0.0%

How did POWI perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

20%

Payout Ratio

Valuation

Is Power Integrations undervalued compared to its fair value and its price relative to the market?

31.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: POWI ($78.36) is trading above our estimate of fair value ($70.77)

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


Price To Earnings Ratio

PE vs Industry: POWI is poor value based on its PE Ratio (31.3x) compared to the US Semiconductor industry average (28.7x).

PE vs Market: POWI is poor value based on its PE Ratio (31.3x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: POWI is poor value based on its PEG Ratio (7.6x)


Price to Book Ratio

PB vs Industry: POWI is overvalued based on its PB Ratio (5.2x) compared to the US Semiconductor industry average (4.2x).


Future Growth

How is Power Integrations forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: POWI's forecast earnings growth (4.1% per year) is above the savings rate (2%).

Earnings vs Market: POWI's earnings (4.1% per year) are forecast to grow slower than the US market (13.1% per year).

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

Revenue vs Market: POWI's revenue (7.3% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: POWI's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: POWI's Return on Equity is forecast to be low in 3 years time (18.9%).


Past Performance

How has Power Integrations performed over the past 5 years?

30.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: POWI has high quality earnings.

Growing Profit Margin: POWI's current net profit margins (22.2%) are lower than last year (44.7%).


Past Earnings Growth Analysis

Earnings Trend: POWI's earnings have grown significantly by 30% per year over the past 5 years.

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

Earnings vs Industry: POWI had negative earnings growth (-25.3%) over the past year, making it difficult to compare to the Semiconductor industry average (80.5%).


Return on Equity

High ROE: POWI's Return on Equity (16.6%) is considered low.


Financial Health

How is Power Integrations's financial position?


Financial Position Analysis

Short Term Liabilities: POWI's short term assets ($703.3M) exceed its short term liabilities ($66.1M).

Long Term Liabilities: POWI's short term assets ($703.3M) exceed its long term liabilities ($30.6M).


Debt to Equity History and Analysis

Debt Level: POWI is debt free.

Reducing Debt: POWI has not had any debt for past 5 years.

Debt Coverage: POWI has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: POWI has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Power Integrations's current dividend yield, its reliability and sustainability?

0.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: POWI's dividend (0.77%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: POWI's dividend (0.77%) is low compared to the top 25% of dividend payers in the US market (3.49%).


Stability and Growth of Payments

Stable Dividend: POWI's dividends per share have been stable in the past 10 years.

Growing Dividend: POWI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.9%), POWI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: POWI's dividends in 3 years are forecast to be well covered by earnings (17.5% payout ratio).


Next Steps

Management

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

10.5yrs

Average management tenure


CEO

Balu Balakrishnan (66 yo)

20.75yrs

Tenure

US$5,733,115

Compensation

Mr. Balu Balakrishnan has been the Chief Executive Officer at Power Integrations Inc., since January 2002 and has been its President since April 2001. Mr. Balakrishnan served as an Interim Chief Financial...


CEO Compensation Analysis

Compensation vs Market: Balu's total compensation ($USD5.73M) is about average for companies of similar size in the US market ($USD5.15M).

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


Leadership Team

Experienced Management: POWI's management team is seasoned and experienced (10.5 years average tenure).


Board Members

Experienced Board: POWI's board of directors are seasoned and experienced ( 12.8 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Power Integrations, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Power Integrations, Inc.
  • Ticker: POWI
  • Exchange: NasdaqGS
  • Founded: 1988
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Implied Market Cap: US$4.728b
  • Shares outstanding: 60.33m
  • Website: https://www.power.com

Number of Employees


Location

  • Power Integrations, Inc.
  • 5245 Hellyer Avenue
  • San Jose
  • California
  • 95138-1002
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/20 23:51
End of Day Share Price2022/01/20 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.