NasdaqGS:POWI

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.

Risks

  • Power Integrations has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Power Integrations's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.4%

NasdaqGS:POWI

2.0%

US Semiconductor

1.3%

US Market


1 Year Return

39.4%

NasdaqGS:POWI

11.1%

US Semiconductor

2.0%

US Market

POWI outperformed the Semiconductor industry which returned 10.9% over the past year.

POWI outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

POWIIndustryMarket
7 Day4.4%2.0%1.3%
30 Day7.0%8.4%3.9%
90 Day34.8%16.8%3.4%
1 Year40.7%39.4%13.2%11.1%4.2%2.0%
3 Year60.7%56.6%84.0%73.2%47.2%37.6%
5 Year76.4%68.4%123.1%100.5%60.5%42.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Power Integrations undervalued based on future cash flows and its price relative to the stock market?

46.44x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Power Integrations's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Power Integrations's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Power Integrations is overvalued based on earnings compared to the US Semiconductor industry average.

Power Integrations is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Power Integrations is poor value based on expected growth next year.


Price Based on Value of Assets

Power Integrations is overvalued based on assets compared to the US Semiconductor industry average.


Next Steps

Future Growth

How is Power Integrations expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

17.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Power Integrations's revenue is expected to grow by 12.2% yearly, however this is not considered high growth (20% yearly).

Power Integrations's earnings are expected to grow by 17.4% yearly, however this is not considered high growth (20% yearly).

Power Integrations's revenue growth is expected to exceed the United States of America market average.

Power Integrations's earnings growth is expected to exceed the United States of America market average.

Power Integrations's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Power Integrations will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Power Integrations performed over the past 5 years?

-2.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Power Integrations's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Power Integrations's 1-year earnings growth exceeds its 5-year average (100.4% vs -2.5%)

Power Integrations's earnings growth has exceeded the US Semiconductor industry average in the past year (100.4% vs -6.2%).


Return on Equity

Power Integrations has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Power Integrations used its assets more efficiently than the US Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

Power Integrations's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Power Integrations's financial position?


Financial Position Analysis

Power Integrations is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Power Integrations's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Power Integrations has no debt.

Power Integrations has not taken on any debt in the past 5 years.

Power Integrations has no debt, it does not need to be covered by operating cash flow.

Power Integrations has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Power Integrations has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

0.77%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Power Integrations's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Power Integrations's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Power Integrations is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

Power Integrations is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Power Integrations's dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

No need to calculate the sustainability of Power Integrations's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

8.7yrs

Average management tenure


CEO

Balu Balakrishnan (64yo)

17.7yrs

Tenure

US$5,038,728

Compensation

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


CEO Compensation Analysis

Balu's remuneration is about average for companies of similar size in United States of America.

Balu's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

8.7yrs

Average Tenure

58.5yo

Average Age

The average tenure for the Power Integrations management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

15.6yrs

Average Tenure

63yo

Average Age

The average tenure for the Power Integrations board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Power Integrations individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$16,64303 Sep 19
Douglas Bailey
EntityIndividual
Role
Head of Marketing
Vice President of Marketing
Shares187
Max PriceUS$89.00
SellUS$101,78330 Aug 19
David M. Matthews
EntityIndividual
Role
Senior Key Executive
Vice President of Product Development
Shares1,141
Max PriceUS$89.21
SellUS$16,67920 Aug 19
Ben Sutherland
EntityIndividual
Role
Head of Sales
Vice President of Worldwide Sales
Shares190
Max PriceUS$87.79
SellUS$8720 Aug 19
Ben Sutherland
EntityIndividual
Role
Head of Sales
Vice President of Worldwide Sales
Shares1
Max PriceUS$87.35
SellUS$30,49116 Aug 19
Ben Sutherland
EntityIndividual
Role
Head of Sales
Vice President of Worldwide Sales
Shares364
Max PriceUS$83.77
SellUS$321,14105 Aug 19
Raja Petrakian
EntityIndividual
Role
Chief Operating Officer
Vice President of Operations
Shares3,503
Max PriceUS$91.85
SellUS$872,51605 Aug 19
Balu Balakrishnan
EntityIndividual
Role
Chief Executive Officer
President
Shares9,367
Max PriceUS$93.35
SellUS$17,57905 Aug 19
Radu Barsan
EntityIndividual
Role
Chief Technology Officer
Vice President of Technology
Shares188
Max PriceUS$93.50
SellUS$1,810,00001 Aug 19
Sandeep Nayyar
EntityIndividual
Role
Chief Financial Officer
CFO & VP of Finance
Shares20,000
Max PriceUS$90.50
SellUS$866,21701 Aug 19
Clifford Walker
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development
Shares10,000
Max PriceUS$86.62
SellUS$399,70006 May 19
Sandeep Nayyar
EntityIndividual
Role
Chief Financial Officer
CFO & VP of Finance
Shares5,000
Max PriceUS$80.00
SellUS$525,08506 May 19
Ben Sutherland
EntityIndividual
Role
Head of Sales
Vice President of Worldwide Sales
Shares6,611
Max PriceUS$79.43
SellUS$787,56402 May 19
Clifford Walker
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development
Shares10,000
Max PriceUS$78.76
SellUS$53,45302 Apr 19
Ben Sutherland
EntityIndividual
Role
Head of Sales
Vice President of Worldwide Sales
Shares754
Max PriceUS$70.89
SellUS$53,61502 Apr 19
Clifford Walker
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development
Shares754
Max PriceUS$71.11
SellUS$42,18102 Apr 19
Raja Petrakian
EntityIndividual
Role
Chief Operating Officer
Vice President of Operations
Shares595
Max PriceUS$70.89
SellUS$66,89002 Apr 19
Sandeep Nayyar
EntityIndividual
Role
Chief Financial Officer
CFO & VP of Finance
Shares943
Max PriceUS$70.93
SellUS$53,58702 Apr 19
David M. Matthews
EntityIndividual
Role
Senior Key Executive
Vice President of Product Development
Shares756
Max PriceUS$70.88
SellUS$57,94702 Apr 19
Radu Barsan
EntityIndividual
Role
Chief Technology Officer
Vice President of Technology
Shares820
Max PriceUS$70.67
SellUS$333,98702 Apr 19
Balu Balakrishnan
EntityIndividual
Role
Chief Executive Officer
President
Shares4,718
Max PriceUS$70.79
SellUS$53,52902 Apr 19
Douglas Bailey
EntityIndividual
Role
Head of Marketing
Vice President of Marketing
Shares754
Max PriceUS$70.99
SellUS$95,44601 Mar 19
David M. Matthews
EntityIndividual
Role
Senior Key Executive
Vice President of Product Development
Shares1,309
Max PriceUS$72.92
SellUS$13,26626 Feb 19
Radu Barsan
EntityIndividual
Role
Chief Technology Officer
Vice President of Technology
Shares176
Max PriceUS$75.38
SellUS$653,37421 Feb 19
Raja Petrakian
EntityIndividual
Role
Chief Operating Officer
Vice President of Operations
Shares9,143
Max PriceUS$71.64
SellUS$572,97815 Feb 19
Clifford Walker
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development
Shares8,280
Max PriceUS$70.08
SellUS$224,85515 Feb 19
Ben Sutherland
EntityIndividual
Role
Head of Sales
Vice President of Worldwide Sales
Shares3,193
Max PriceUS$70.42
SellUS$365,65715 Feb 19
Sandeep Nayyar
EntityIndividual
Role
Chief Financial Officer
CFO & VP of Finance
Shares5,212
Max PriceUS$70.16
SellUS$223,59015 Feb 19
David M. Matthews
EntityIndividual
Role
Senior Key Executive
Vice President of Product Development
Shares3,170
Max PriceUS$70.53
SellUS$216,89715 Feb 19
Raja Petrakian
EntityIndividual
Role
Chief Operating Officer
Vice President of Operations
Shares3,080
Max PriceUS$70.42
SellUS$260,20415 Feb 19
Radu Barsan
EntityIndividual
Role
Chief Technology Officer
Vice President of Technology
Shares3,683
Max PriceUS$70.65
SellUS$230,63215 Feb 19
Douglas Bailey
EntityIndividual
Role
Head of Marketing
Vice President of Marketing
Shares3,253
Max PriceUS$70.90
SellUS$1,695,91615 Feb 19
Balu Balakrishnan
EntityIndividual
Role
Chief Executive Officer
President
Shares24,023
Max PriceUS$70.60
SellUS$43,27706 Feb 19
Raja Petrakian
EntityIndividual
Role
Chief Operating Officer
Vice President of Operations
Shares650
Max PriceUS$66.58
SellUS$43,29606 Feb 19
Clifford Walker
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development
Shares655
Max PriceUS$66.10
SellUS$60,56206 Feb 19
Sandeep Nayyar
EntityIndividual
Role
Chief Financial Officer
CFO & VP of Finance
Shares917
Max PriceUS$66.04
SellUS$48,47406 Feb 19
David M. Matthews
EntityIndividual
Role
Senior Key Executive
Vice President of Product Development
Shares732
Max PriceUS$66.22
SellUS$397,12206 Feb 19
Balu Balakrishnan
EntityIndividual
Role
Chief Executive Officer
President
Shares5,984
Max PriceUS$66.36
SellUS$52,07506 Feb 19
Radu Barsan
EntityIndividual
Role
Chief Technology Officer
Vice President of Technology
Shares788
Max PriceUS$66.09
SellUS$43,45906 Feb 19
Douglas Bailey
EntityIndividual
Role
Head of Marketing
Vice President of Marketing
Shares656
Max PriceUS$66.25
SellUS$48,67006 Feb 19
Ben Sutherland
EntityIndividual
Role
Head of Sales
Vice President of Worldwide Sales
Shares731
Max PriceUS$66.58
BuyUS$12,10405 Feb 19
Ben Sutherland
EntityIndividual
Role
Head of Sales
Vice President of Worldwide Sales
Shares188.49
Max PriceUS$73.94
SellUS$97,21731 Jan 19
Ben Sutherland
EntityIndividual
Role
Head of Sales
Vice President of Worldwide Sales
Shares1,484
Max PriceUS$65.51
SellUS$58,36931 Jan 19
Raja Petrakian
EntityIndividual
Role
Chief Operating Officer
Vice President of Operations
Shares891
Max PriceUS$65.51
SellUS$135,14730 Jan 19
Sandeep Nayyar
EntityIndividual
Role
Chief Financial Officer
CFO & VP of Finance
Shares2,075
Max PriceUS$65.13
SellUS$104,28130 Jan 19
Clifford Walker
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development
Shares1,600
Max PriceUS$65.18
SellUS$97,12830 Jan 19
Douglas Bailey
EntityIndividual
Role
Head of Marketing
Vice President of Marketing
Shares1,481
Max PriceUS$65.58
SellUS$97,44830 Jan 19
David M. Matthews
EntityIndividual
Role
Senior Key Executive
Vice President of Product Development
Shares1,492
Max PriceUS$65.31
SellUS$103,49630 Jan 19
Radu Barsan
EntityIndividual
Role
Chief Technology Officer
Vice President of Technology
Shares1,584
Max PriceUS$65.34
SellUS$607,34930 Jan 19
Balu Balakrishnan
EntityIndividual
Role
Chief Executive Officer
President
Shares9,266
Max PriceUS$65.55
SellUS$10,10330 Nov 18
Ben Sutherland
EntityIndividual
Role
Head of Sales
Vice President of Worldwide Sales
Shares165
Max PriceUS$61.23
SellUS$8,76107 Nov 18
Ben Sutherland
EntityIndividual
Role
Head of Sales
Vice President of Worldwide Sales
Shares151
Max PriceUS$58.02
SellUS$8,80207 Nov 18
Radu Barsan
EntityIndividual
Role
Chief Technology Officer
Vice President of Technology
Shares152
Max PriceUS$57.91
SellUS$8,75807 Nov 18
Clifford Walker
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development
Shares152
Max PriceUS$57.62
SellUS$13,14807 Nov 18
Sandeep Nayyar
EntityIndividual
Role
Chief Financial Officer
CFO & VP of Finance
Shares228
Max PriceUS$57.67
SellUS$8,78707 Nov 18
David M. Matthews
EntityIndividual
Role
Senior Key Executive
Vice President of Product Development
Shares152
Max PriceUS$57.81
SellUS$8,75707 Nov 18
Douglas Bailey
EntityIndividual
Role
Head of Marketing
Vice President of Marketing
Shares151
Max PriceUS$57.99

Ownership Breakdown


Management Team

  • Balu Balakrishnan (64yo)

    President

    • Tenure: 17.7yrs
    • Compensation: US$5.04m
  • Cliff Walker (68yo)

    Vice President of Corporate Development

    • Tenure: 24.3yrs
    • Compensation: US$973.64k
  • Sandeep Nayyar (62yo)

    CFO & VP of Finance

    • Tenure: 9.3yrs
    • Compensation: US$1.42m
  • Radu Barsan (66yo)

    Vice President of Technology

    • Tenure: 6.7yrs
    • Compensation: US$1.24m
  • Doug Bailey (52yo)

    Vice President of Marketing

    • Tenure: 14.8yrs
    • Compensation: US$1.17m
  • Raja Petrakian (55yo)

    Vice President of Operations

    • Tenure: 4.3yrs
    • Compensation: US$938.78k
  • Ben Sutherland (47yo)

    Vice President of Worldwide Sales

    • Tenure: 8.2yrs
    • Compensation: US$1.11m
  • Mike Matthews (54yo)

    Vice President of Product Development

    • Tenure: 7.1yrs
    • Compensation: US$1.12m
  • Joe Shiffler

    Director of Investor Relations & Corporate Communications

    • Tenure: 0yrs

Board Members

  • Steven Sharp (77yo)

    Independent Director

    • Tenure: 31.7yrs
    • Compensation: US$135.11k
  • Balu Balakrishnan (64yo)

    President

    • Tenure: 17.7yrs
    • Compensation: US$5.04m
  • Bala Iyer (62yo)

    Independent Director

    • Tenure: 15.6yrs
    • Compensation: US$158.31k
  • Bill George (76yo)

    Chairman of the Board

    • Tenure: 0.9yrs
    • Compensation: US$149.11k
  • Nicholas Brathwaite (60yo)

    Independent Director

    • Tenure: 19.7yrs
    • Compensation: US$138.31k
  • Necip Sayiner (53yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$157.98k
  • Wendy Arienzo (63yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$146.11k

Company Information

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


Key Information

  • Name: Power Integrations, Inc.
  • Ticker: POWI
  • Exchange: NasdaqGS
  • Founded: 1988
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$2.729b
  • Shares outstanding: 29.33m
  • Website: https://www.power.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
POWINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1997
PWIDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1997

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 23:42
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.