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Power Integrations

Nasdaq:POWI
Snowflake Description

Excellent balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
POWI
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Semiconductors
Company description

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 last earnings update was 21 days ago. More info.


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POWI Share Price and Events
7 Day Returns
-4.5%
NasdaqGS:POWI
-8.9%
US Semiconductor
-3.9%
US Market
1 Year Returns
0.3%
NasdaqGS:POWI
-6.6%
US Semiconductor
1.4%
US Market
POWI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Power Integrations (POWI) -4.5% -6.3% 1.1% 0.3% 56.3% 47.2%
US Semiconductor -8.9% -8.6% 2.9% -6.6% 87.7% 101.8%
US Market -3.9% -3.6% 1.8% 1.4% 35.8% 40.8%
1 Year Return vs Industry and Market
  • POWI outperformed the Semiconductor industry which returned -6.6% over the past year.
  • POWI underperformed the Market in United States of America which returned 1.4% over the past year.
Price Volatility
POWI
Industry
5yr Volatility vs Market
Related Companies

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Power Integrations to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Power Integrations.

NasdaqGS:POWI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:POWI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Semiconductor Unlevered Beta Simply Wall St/ S&P Global 1.15
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.155 (1 + (1- 21%) (0.31%))
1.106
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.106 * 5.96%)
9.32%

Discounted Cash Flow Calculation for NasdaqGS:POWI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Power Integrations is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:POWI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.32%)
2019 64.80 Analyst x1 59.28
2020 86.40 Analyst x1 72.30
2021 91.30 Analyst x1 69.88
2022 95.57 Est @ 4.68% 66.92
2023 99.49 Est @ 4.1% 63.72
2024 103.16 Est @ 3.69% 60.44
2025 106.66 Est @ 3.4% 57.17
2026 110.08 Est @ 3.2% 53.97
2027 113.44 Est @ 3.06% 50.88
2028 116.80 Est @ 2.96% 47.92
Present value of next 10 years cash flows $602.47
NasdaqGS:POWI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $116.80 × (1 + 2.73%) ÷ (9.32% – 2.73%)
$1,821.00
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,821.00 ÷ (1 + 9.32%)10
$747.05
NasdaqGS:POWI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $602.47 + $747.05
$1,349.51
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,349.51 / 29.27
$46.1
NasdaqGS:POWI Discount to Share Price
Calculation Result
Value per share (USD) From above. $46.10
Current discount Discount to share price of $72.24
= -1 x ($72.24 - $46.10) / $46.10
-56.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Power Integrations is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Power Integrations's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Power Integrations's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:POWI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.15
NasdaqGS:POWI Share Price ** NasdaqGS (2019-05-15) in USD $72.24
United States of America Semiconductor Industry PE Ratio Median Figure of 68 Publicly-Listed Semiconductor Companies 21.54x
United States of America Market PE Ratio Median Figure of 3,087 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Power Integrations.

NasdaqGS:POWI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:POWI Share Price ÷ EPS (both in USD)

= 72.24 ÷ 2.15

33.52x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Power Integrations's expected growth come at a high price?
Raw Data
NasdaqGS:POWI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 33.52x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
12.4%per year
United States of America Semiconductor Industry PEG Ratio Median Figure of 61 Publicly-Listed Semiconductor Companies 0.95x
United States of America Market PEG Ratio Median Figure of 2,113 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NasdaqGS:POWI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 33.52x ÷ 12.4%

2.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Power Integrations is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Power Integrations's assets?
Raw Data
NasdaqGS:POWI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $18.25
NasdaqGS:POWI Share Price * NasdaqGS (2019-05-15) in USD $72.24
United States of America Semiconductor Industry PB Ratio Median Figure of 107 Publicly-Listed Semiconductor Companies 2.52x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NasdaqGS:POWI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:POWI Share Price ÷ Book Value per Share (both in USD)

= 72.24 ÷ 18.25

3.96x

* Primary Listing of Power Integrations.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Power Integrations is overvalued based on assets compared to the US Semiconductor industry average.
X
Value checks
We assess Power Integrations's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Semiconductor industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Semiconductor industry average (and greater than 0)? (1 check)
  5. Power Integrations has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Power Integrations expected to grow at an attractive rate?
  • Power Integrations's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Power Integrations's earnings growth is positive but not above the United States of America market average.
  • Power Integrations's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:POWI Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:POWI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 12.4%
NasdaqGS:POWI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 10.7%
United States of America Semiconductor Industry Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Semiconductor Industry Revenue Growth Rate Market Cap Weighted Average 7.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:POWI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:POWI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 512 125 65 1
2020-12-31 480 116 62 5
2019-12-31 418 85 45 5
NasdaqGS:POWI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 402 69 63
2018-12-31 416 84 70
2018-09-30 431 93 30
2018-06-30 432 94 29
2018-03-31 430 92 28
2017-12-31 432 82 28
2017-09-30 426 82 59
2017-06-30 416 84 55
2017-03-31 406 84 53
2016-12-31 390 98 49
2016-09-30 375 95 47
2016-06-30 362 93 46

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Power Integrations's earnings are expected to grow by 12.4% yearly, however this is not considered high growth (20% yearly).
  • Power Integrations's revenue is expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:POWI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Power Integrations Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:POWI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.22 2.22 2.22 1.00
2020-12-31 2.10 2.26 1.87 5.00
2019-12-31 1.54 1.65 1.46 5.00
NasdaqGS:POWI Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.15
2018-12-31 2.38
2018-09-30 1.03
2018-06-30 0.98
2018-03-31 0.93
2017-12-31 0.93
2017-09-30 1.99
2017-06-30 1.88
2017-03-31 1.81
2016-12-31 1.69
2016-09-30 1.65
2016-06-30 1.60

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Power Integrations is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Power Integrations's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Power Integrations has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Power Integrations performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Power Integrations's growth in the last year to its industry (Semiconductor).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (127.4% vs -4.8%)
  • Power Integrations's earnings growth has exceeded the US Semiconductor industry average in the past year (127.4% vs 32.6%).
Earnings and Revenue History
Power Integrations's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Power Integrations Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:POWI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 402.06 63.02 87.87 71.05
2018-12-31 415.96 69.98 88.56 70.58
2018-09-30 430.90 30.35 88.95 69.80
2018-06-30 432.07 29.19 89.52 69.90
2018-03-31 430.15 27.71 88.71 69.34
2017-12-31 431.76 27.61 87.53 68.50
2017-09-30 425.94 58.81 85.93 67.09
2017-06-30 416.31 55.11 84.43 65.65
2017-03-31 406.32 52.62 82.67 64.17
2016-12-31 389.67 48.90 81.01 62.31
2016-09-30 374.52 47.30 78.04 60.40
2016-06-30 361.77 46.00 75.71 58.38
2016-03-31 349.47 43.18 75.51 57.39
2015-12-31 344.61 39.15 76.85 57.55
2015-09-30 343.30 40.80 78.31 57.36
2015-06-30 344.56 45.40 78.54 56.93
2015-03-31 348.28 53.52 78.63 56.43
2014-12-31 348.80 59.54 77.99 54.98
2014-09-30 352.61 61.23 78.90 54.22
2014-06-30 354.19 61.77 79.37 53.75
2014-03-31 353.12 58.73 78.76 52.87
2013-12-31 347.09 57.27 77.52 51.65
2013-09-30 335.85 50.95 75.60 50.32
2013-06-30 322.18 -10.11 74.68 48.76
2013-03-31 310.64 -30.96 71.53 47.34
2012-12-31 305.37 -34.40 68.24 45.71
2012-09-30 292.93 -37.80 63.81 43.87
2012-06-30 289.95 14.12 59.67 42.78

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Power Integrations has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Power Integrations used its assets more efficiently than the US Semiconductor industry average last year based on Return on Assets.
  • Power Integrations's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Power Integrations's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Semiconductor industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Power Integrations has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Power Integrations's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Power Integrations's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Power Integrations's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 51.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Power Integrations Company Filings, last reported 1 month ago.

NasdaqGS:POWI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 531.30 6.57 218.70
2018-12-31 527.07 0.00 228.59
2018-09-30 531.13 0.00 248.32
2018-06-30 521.83 0.00 246.68
2018-03-31 533.83 0.00 257.70
2017-12-31 547.68 0.00 282.89
2017-09-30 562.26 0.00 263.74
2017-06-30 547.00 0.00 254.00
2017-03-31 530.14 0.00 250.09
2016-12-31 503.08 0.00 250.46
2016-09-30 469.06 0.00 226.56
2016-06-30 448.01 0.00 202.23
2016-03-31 435.22 0.00 185.15
2015-12-31 428.62 0.00 173.86
2015-09-30 411.20 0.00 150.96
2015-06-30 427.68 0.00 170.89
2015-03-31 440.48 0.00 173.20
2014-12-31 430.68 0.00 175.28
2014-09-30 451.63 0.00 213.86
2014-06-30 452.66 0.00 212.41
2014-03-31 457.18 0.00 217.65
2013-12-31 436.69 0.00 202.11
2013-09-30 414.90 0.00 180.17
2013-06-30 383.28 0.00 145.06
2013-03-31 361.77 0.00 119.02
2012-12-31 341.05 0.00 95.16
2012-09-30 347.68 0.00 110.35
2012-06-30 386.00 0.00 133.43
  • Power Integrations's level of debt (1.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 1.2% today).
  • Debt is well covered by operating cash flow (1054.3%, greater than 20% of total debt).
  • Power Integrations earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Power Integrations's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Power Integrations has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.94%
Current annual income from Power Integrations dividends. Estimated to be 1% next year.
If you bought $2,000 of Power Integrations shares you are expected to receive $19 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Power Integrations's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Power Integrations's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Upcoming dividend payment

Purchase Power Integrations before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:POWI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Semiconductor Industry Average Dividend Yield Market Cap Weighted Average of 32 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1997 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:POWI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.76 1.00
2020-12-31 0.72 1.00
2019-12-31 0.68 1.00
NasdaqGS:POWI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-25 0.680 0.891
2019-02-13 0.680 0.934
2019-02-07 0.680 0.976
2018-10-25 0.640 1.057
2018-04-26 0.640 0.913
2018-02-01 0.640 0.940
2017-07-27 0.560 0.750
2017-05-05 0.560 0.802
2017-04-27 0.560 0.869
2017-02-08 0.560 0.863
2017-02-01 0.560 0.830
2016-10-27 0.520 0.774
2016-07-29 0.520 0.870
2016-07-28 0.520 0.913
2016-04-29 0.520 1.031
2016-04-28 0.520 1.111
2016-02-11 0.520 1.103
2016-02-04 0.520 1.209
2015-10-30 0.480 0.998
2015-10-28 0.480 0.984
2015-07-31 0.480 1.163
2015-07-29 0.480 1.233
2015-04-30 0.480 1.039
2015-04-29 0.480 0.972
2014-10-30 0.480 0.913
2014-04-29 0.480 0.893
2013-10-30 0.400 0.684
2013-08-01 0.320 0.597
2013-07-30 0.320 0.592
2013-02-04 0.320 0.748
2012-08-06 0.200 0.612
2012-02-02 0.200 0.527
2011-11-04 0.200 0.577
2011-11-03 0.200 0.546
2011-05-02 0.200 0.580
2010-10-27 0.200 0.513
2010-08-02 0.200 0.641
2010-04-28 0.200 0.583
2010-02-04 0.200 0.508
2009-10-23 0.100 0.294
2009-07-30 0.100 0.309

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Power Integrations's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.2x coverage).
X
Income/ dividend checks
We assess Power Integrations's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Power Integrations afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Power Integrations has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Balu Balakrishnan
COMPENSATION $5,038,728
AGE 63
TENURE AS CEO 17.3 years
CEO Bio

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 of Power Integrations Inc. since May 2010. He served as the President and Chief Operating Officer of Power Integrations Inc. from April 2001 to January 2002. From January 2000 to April 2001, he served as a Vice President of engineering and strategic marketing of Power Integrations Inc. and as its Vice President of Engineering & New Business Development from September 1997 to January 2000. From September 1994 to September 1997, Mr. Balakrishnan served as Vice President of Engineering and Marketing at Power Integrations. He has more than 30 years of engineering, marketing and management experience in the semiconductor industry. Before joining Power Integrations in 1989, Mr. Balakrishnan served at National Semiconductor Corporation. He has been a Director of Power Integrations Inc. since January 2002. He serves as Director at LensVector, Inc. He holds an M.S.E.E. from the University of California, Los Angeles and a B.S.E.E. from Bangalore University, India.

CEO Compensation
  • Balu's compensation has been consistent with company performance over the past year.
  • Balu's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Power Integrations management team in years:

8.4
Average Tenure
57.5
Average Age
  • The average tenure for the Power Integrations management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Balu Balakrishnan

TITLE
President
COMPENSATION
$5M
AGE
63
TENURE
17.3 yrs

Sandeep Nayyar

TITLE
CFO & VP of Finance
COMPENSATION
$1M
AGE
61
TENURE
8.9 yrs

Radu Barsan

TITLE
Vice President of Technology
COMPENSATION
$1M
AGE
65
TENURE
6.3 yrs

Ben Sutherland

TITLE
Vice President of Worldwide Sales
COMPENSATION
$1M
AGE
46
TENURE
7.8 yrs

Mike Matthews

TITLE
Vice President of Product Development
COMPENSATION
$1M
AGE
53
TENURE
6.8 yrs

Raja Petrakian

TITLE
Vice President of Operations
COMPENSATION
$939K
AGE
54
TENURE
4 yrs

Joe Shiffler

TITLE
Director of Investor Relations & Corporate Communications

Cliff Walker

TITLE
Vice President of Corporate Development
COMPENSATION
$974K
AGE
67
TENURE
23.9 yrs

Doug Bailey

TITLE
Vice President of Marketing
COMPENSATION
$1M
AGE
51
TENURE
14.5 yrs
Board of Directors Tenure

Average tenure and age of the Power Integrations board of directors in years:

17.3
Average Tenure
63
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.
Board of Directors

Bill George

TITLE
Chairman of the Board
COMPENSATION
$149K
AGE
75
TENURE
0.6 yrs

Balu Balakrishnan

TITLE
President
COMPENSATION
$5M
AGE
63
TENURE
17.3 yrs

E. Kvamme

TITLE
Independent Director
COMPENSATION
$179K
AGE
80
TENURE
29.7 yrs

Alan Bickell

TITLE
Independent Director
COMPENSATION
$158K
AGE
81
TENURE
20.1 yrs

Bala Iyer

TITLE
Independent Director
COMPENSATION
$158K
AGE
61
TENURE
15.3 yrs

Nicholas Brathwaite

TITLE
Independent Director
COMPENSATION
$138K
AGE
59
TENURE
19.3 yrs

Steven Sharp

TITLE
Independent Director
COMPENSATION
$135K
AGE
76
TENURE
31.3 yrs

Wendy Arienzo

TITLE
Independent Director
COMPENSATION
$146K
AGE
62
TENURE
2.1 yrs

Necip Sayiner

TITLE
Independent Director
COMPENSATION
$158K
AGE
52
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • Power Integrations insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. May 19 Sell Ben Sutherland Individual 02. May 19 02. May 19 -6,611 $79.43 $-525,085
06. May 19 Sell Sandeep Nayyar Individual 02. May 19 03. May 19 -5,000 $80.00 $-399,700
02. May 19 Sell Clifford Walker Individual 01. May 19 01. May 19 -10,000 $78.76 $-787,564
02. Apr 19 Sell Ben Sutherland Individual 02. Apr 19 02. Apr 19 -754 $70.89 $-53,453
02. Apr 19 Sell Clifford Walker Individual 02. Apr 19 02. Apr 19 -754 $71.11 $-53,615
02. Apr 19 Sell Raja Petrakian Individual 02. Apr 19 02. Apr 19 -595 $70.89 $-42,181
02. Apr 19 Sell Sandeep Nayyar Individual 02. Apr 19 02. Apr 19 -943 $70.93 $-66,890
02. Apr 19 Sell David M. Matthews Individual 02. Apr 19 02. Apr 19 -756 $70.88 $-53,587
02. Apr 19 Sell Radu Barsan Individual 02. Apr 19 02. Apr 19 -820 $70.67 $-57,947
02. Apr 19 Sell Balu Balakrishnan Individual 02. Apr 19 02. Apr 19 -4,718 $70.79 $-333,987
02. Apr 19 Sell Douglas Bailey Individual 02. Apr 19 02. Apr 19 -754 $70.99 $-53,529
01. Mar 19 Sell David M. Matthews Individual 28. Feb 19 28. Feb 19 -1,309 $72.92 $-95,446
26. Feb 19 Sell Radu Barsan Individual 25. Feb 19 25. Feb 19 -176 $75.38 $-13,266
21. Feb 19 Sell Raja Petrakian Individual 19. Feb 19 19. Feb 19 -9,143 $71.64 $-653,374
15. Feb 19 Sell Ben Sutherland Individual 14. Feb 19 14. Feb 19 -3,193 $70.42 $-224,855
15. Feb 19 Sell Clifford Walker Individual 12. Feb 19 14. Feb 19 -8,280 $70.08 $-572,978
15. Feb 19 Sell Raja Petrakian Individual 13. Feb 19 14. Feb 19 -3,080 $70.42 $-216,897
15. Feb 19 Sell Sandeep Nayyar Individual 14. Feb 19 14. Feb 19 -5,212 $70.16 $-365,657
15. Feb 19 Sell David M. Matthews Individual 14. Feb 19 14. Feb 19 -3,170 $70.53 $-223,590
15. Feb 19 Sell Radu Barsan Individual 14. Feb 19 14. Feb 19 -3,683 $70.65 $-260,204
15. Feb 19 Sell Douglas Bailey Individual 13. Feb 19 14. Feb 19 -3,253 $70.90 $-230,632
15. Feb 19 Sell Balu Balakrishnan Individual 14. Feb 19 14. Feb 19 -24,023 $70.60 $-1,695,916
06. Feb 19 Sell Douglas Bailey Individual 04. Feb 19 04. Feb 19 -656 $66.25 $-43,459
06. Feb 19 Sell Raja Petrakian Individual 04. Feb 19 04. Feb 19 -650 $66.58 $-43,277
06. Feb 19 Sell Clifford Walker Individual 04. Feb 19 04. Feb 19 -655 $66.10 $-43,296
06. Feb 19 Sell Sandeep Nayyar Individual 04. Feb 19 04. Feb 19 -917 $66.04 $-60,562
06. Feb 19 Sell David M. Matthews Individual 04. Feb 19 04. Feb 19 -732 $66.22 $-48,474
06. Feb 19 Sell Radu Barsan Individual 04. Feb 19 04. Feb 19 -788 $66.09 $-52,075
06. Feb 19 Sell Balu Balakrishnan Individual 04. Feb 19 04. Feb 19 -5,984 $66.36 $-397,122
06. Feb 19 Sell Ben Sutherland Individual 04. Feb 19 04. Feb 19 -731 $66.58 $-48,670
05. Feb 19 Buy Ben Sutherland Individual 31. Mar 11 31. Dec 18 188 $73.94 $12,104
31. Jan 19 Sell Ben Sutherland Individual 29. Jan 19 29. Jan 19 -1,484 $65.51 $-97,217
31. Jan 19 Sell Raja Petrakian Individual 29. Jan 19 29. Jan 19 -891 $65.51 $-58,369
30. Jan 19 Sell Douglas Bailey Individual 28. Jan 19 28. Jan 19 -1,481 $65.58 $-97,128
30. Jan 19 Sell Clifford Walker Individual 28. Jan 19 28. Jan 19 -1,600 $65.18 $-104,281
30. Jan 19 Sell Sandeep Nayyar Individual 28. Jan 19 28. Jan 19 -2,075 $65.13 $-135,147
30. Jan 19 Sell David M. Matthews Individual 28. Jan 19 28. Jan 19 -1,492 $65.31 $-97,448
30. Jan 19 Sell Radu Barsan Individual 28. Jan 19 28. Jan 19 -1,584 $65.34 $-103,496
30. Jan 19 Sell Balu Balakrishnan Individual 28. Jan 19 28. Jan 19 -9,266 $65.55 $-607,349
30. Nov 18 Sell Ben Sutherland Individual 28. Nov 18 28. Nov 18 -165 $61.23 $-10,103
07. Nov 18 Sell Ben Sutherland Individual 06. Nov 18 06. Nov 18 -151 $58.02 $-8,761
07. Nov 18 Sell Clifford Walker Individual 05. Nov 18 05. Nov 18 -152 $57.62 $-8,758
07. Nov 18 Sell Sandeep Nayyar Individual 05. Nov 18 05. Nov 18 -228 $57.67 $-13,148
07. Nov 18 Sell David M. Matthews Individual 05. Nov 18 05. Nov 18 -152 $57.81 $-8,787
07. Nov 18 Sell Radu Barsan Individual 05. Nov 18 05. Nov 18 -152 $57.91 $-8,802
07. Nov 18 Sell Douglas Bailey Individual 05. Nov 18 05. Nov 18 -151 $57.99 $-8,757
04. Sep 18 Sell Clifford Walker Individual 31. Aug 18 31. Aug 18 -1,984 $72.45 $-143,742
24. Aug 18 Sell Radu Barsan Individual 22. Aug 18 22. Aug 18 -165 $74.00 $-12,210
07. Aug 18 Sell Douglas Bailey Individual 06. Aug 18 06. Aug 18 -165 $71.79 $-11,846
31. May 18 Sell Raja Petrakian Individual 29. May 18 29. May 18 -5,659 $73.63 $-416,646
X
Management checks
We assess Power Integrations's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Power Integrations has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Are You An Income Investor? Don't Miss Out On Power Integrations, Inc. (NASDAQ:POWI)

(NASDAQ:POWI) tend to be popular with investors, and for good reason - some research shows that a significant amount of all stock market returns come from reinvested dividends. … Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … A 0.9% yield is nothing to get excited about, but investors probably think the long payment history suggests Power Integrations has some staying power.

Simply Wall St -

Is Power Integrations, Inc. (NASDAQ:POWI) Potentially Undervalued?

Power Integrations, Inc. … As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s examine Power Integrations’s valuation and outlook in more detail to determine if there’s still a bargain opportunity

Simply Wall St -

Does Power Integrations, Inc. (NASDAQ:POWI) Have A High Beta?

(NASDAQ:POWI), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Brief Commentary On Power Integrations, Inc.'s (NASDAQ:POWI) Fundamentals

Attractive stocks have exceptional fundamentals. … In the case of Power Integrations, Inc. … (NASDAQ:POWI), there's

Simply Wall St -

Is Power Integrations, Inc. (NASDAQ:POWI) Investing Your Capital Efficiently?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Here's What Power Integrations, Inc.'s (NASDAQ:POWI) P/E Is Telling Us

We'll show how you can use Power Integrations, Inc.'s (NASDAQ:POWI) P/E ratio to inform your assessment of the investment opportunity. … Power Integrations has a P/E ratio of 29.79, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Does Power Integrations, Inc. (NASDAQ:POWI) Create Value For Shareholders?

To keep the lesson grounded in practicality, we'll use ROE to better understand Power Integrations, Inc. … Over the last twelve months Power Integrations has recorded a ROE of 13%. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Here's What We Think About Power Integrations, Inc.'s (NASDAQ:POWI) CEO Pay

In 2002 Balu Balakrishnan was appointed CEO of Power Integrations, Inc. … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Balu Balakrishnan's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Is Power Integrations, Inc. (NASDAQ:POWI) A Financially Sound Company?

(NASDAQ:POWI), which has zero-debt on its balance sheet, can maximize capital returns by increasing debt due to its lower cost of capital. … However, the trade-off is POWI will have to follow strict debt obligations which will reduce its financial flexibility. … Does POWI's growth rate justify its decision for financial flexibility over lower cost of capital

Simply Wall St -

When Should You Buy Power Integrations, Inc. (NASDAQ:POWI)?

(NASDAQ:POWI), which is in the semiconductor business, and is based in United States,. … led the NasdaqGS gainers with a relatively large price hike in the past couple of weeks. … Let’s take a look at Power Integrations’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Company Info

Description

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 offers a range of alternating current to direct current (DC) power conversion products that address power supply ranging from less than 1 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, and other consumer and industrial applications, as well as light-emitting diode lighting. It also provides high-voltage diodes; and high-voltage gate-driver products under the SCALE and SCALE-2 product-family names. In addition, the company offers motor-driver ICs for use in refrigerator compressors, ceiling fans, air purifiers, pumps, fans and blowers, dishwashers, and laundry machines. It serves communications, computer, consumer, and industrial markets. The company sells its products to original equipment manufacturers and merchant power supply manufacturers through direct staff, as well as through a network of independent sales representatives and distributors. Power Integrations, Inc. was founded in 1988 and is headquartered in San Jose, California.

Details
Name: Power Integrations, Inc.
POWI
Exchange: NasdaqGS
Founded: 1988
$2,114,513,128
29,270,669
Website: http://www.power.com
Address: Power Integrations, Inc.
5245 Hellyer Avenue,
San Jose,
California, 95138,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS POWI Common Stock Nasdaq Global Select US USD 12. Dec 1997
DB PWI Common Stock Deutsche Boerse AG DE EUR 12. Dec 1997
Number of employees
Current staff
Staff numbers
662
Power Integrations employees.
Industry
Semiconductors
Semiconductors
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/16 01:29
End of day share price update: 2019/05/15 00:00
Last estimates confirmation: 2019/04/26
Last earnings filing: 2019/04/25
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.