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.

Rewards

Earnings are forecast to grow 21.21% per year

Earnings grew by 90.8% over the past year

Risk Analysis

No risks detected for POWI from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record.


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

Stable Share Price: POWI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.3%

POWI

3.3%

US Semiconductor

0.8%

US Market


1 Year Return

47.6%

POWI

38.4%

US Semiconductor

17.8%

US Market

Return vs Industry: POWI exceeded the US Semiconductor industry which returned 38.4% over the past year.

Return vs Market: POWI exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

POWIIndustryMarket
7 Day4.3%3.3%0.8%
30 Day-1.6%1.1%1.8%
90 Day0.5%8.0%4.1%
1 Year48.9%47.6%41.2%38.4%20.4%17.8%
3 Year38.9%35.3%84.0%73.8%45.9%36.4%
5 Year87.3%78.9%136.0%112.9%68.1%49.6%

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 compared to its fair value and its price relative to the market?

47.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: POWI ($93.52) is trading above our estimate of fair value ($53.61)

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 (47.1x) compared to the Semiconductor industry average (31.3x).

PE vs Market: POWI is poor value based on its PE Ratio (47.1x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: POWI is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: POWI is overvalued based on its PB Ratio (4.9x) compared to the US Semiconductor industry average (3x).


Next Steps

Future Growth

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

21.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: POWI's forecast earnings growth (21.2% per year) is above the savings rate (1.7%).

Earnings vs Market: POWI's earnings (21.2% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: POWI's revenue (12.1% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: POWI's revenue (12.1% 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 (9.8%).


Next Steps

Past Performance

How has Power Integrations performed over the past 5 years?

0.05%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: POWI has high quality earnings.

Growing Profit Margin: POWI's current net profit margins (14.5%) are higher than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: POWI's earnings have grown by 0.05% per year over the past 5 years.

Accelerating Growth: POWI's earnings growth over the past year (90.8%) exceeds its 5-year average (0.05% per year).

Earnings vs Industry: POWI earnings growth over the past year (90.8%) exceeded the Semiconductor industry -15.8%.


Return on Equity

High ROE: POWI's Return on Equity (10.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Power Integrations's financial position?


Financial Position Analysis

Short Term Liabilities: POWI's short term assets ($374.7M) exceed its short term liabilities ($49.7M).

Long Term Liabilities: POWI's short term assets ($374.7M) exceed its long term liabilities ($21.4M).


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

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

Debt Coverage by Assets: Insufficient data to determine if POWI's debt is covered by short term assets.


Next Steps

Dividend

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

0.81%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years0.8%

Current dividend yield vs market & industry

Notable Dividend: POWI's dividend (0.81%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: POWI's dividend (0.81%) is low compared to the top 25% of dividend payers in the US market (3.72%).


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 reasonably low payout ratio (33.8%), POWI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of POWI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

9.0yrs

Average management tenure


CEO

Balu Balakrishnan (64yo)

17.9yrs

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

Compensation vs Market: Balu's total compensation ($USD5.04M) is about average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

9.0yrs

Average Tenure

58.5yo

Average Age

Experienced Management: POWI's management team is seasoned and experienced (9 years average tenure).


Board Age and Tenure

15.8yrs

Average Tenure

63yo

Average Age

Experienced Board: POWI's board of directors are seasoned and experienced ( 15.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$468,83927 Nov 19
Clifford Walker
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development
Shares5,000
Max PriceUS$93.77
SellUS$196,20901 Nov 19
Nicholas Brathwaite
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,130
Max PriceUS$92.12
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$8720 Aug 19
Ben Sutherland
EntityIndividual
Role
Head of Sales
Vice President of Worldwide Sales
Shares1
Max PriceUS$87.35
SellUS$16,67920 Aug 19
Ben Sutherland
EntityIndividual
Role
Head of Sales
Vice President of Worldwide Sales
Shares190
Max PriceUS$87.79
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$866,21701 Aug 19
Clifford Walker
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development
Shares10,000
Max PriceUS$86.62
SellUS$1,810,00001 Aug 19
Sandeep Nayyar
EntityIndividual
Role
Chief Financial Officer
CFO & VP of Finance
Shares20,000
Max PriceUS$90.50
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$216,89715 Feb 19
Raja Petrakian
EntityIndividual
Role
Chief Operating Officer
Vice President of Operations
Shares3,080
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$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$43,29606 Feb 19
Clifford Walker
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development
Shares655
Max PriceUS$66.10
SellUS$43,27706 Feb 19
Raja Petrakian
EntityIndividual
Role
Chief Operating Officer
Vice President of Operations
Shares650
Max PriceUS$66.58
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$52,07506 Feb 19
Radu Barsan
EntityIndividual
Role
Chief Technology Officer
Vice President of Technology
Shares788
Max PriceUS$66.09
SellUS$397,12206 Feb 19
Balu Balakrishnan
EntityIndividual
Role
Chief Executive Officer
President
Shares5,984
Max PriceUS$66.36
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$104,28130 Jan 19
Clifford Walker
EntityIndividual
Role
Head of Corporate Development
Vice President of Corporate Development
Shares1,600
Max PriceUS$65.18
SellUS$135,14730 Jan 19
Sandeep Nayyar
EntityIndividual
Role
Chief Financial Officer
CFO & VP of Finance
Shares2,075
Max PriceUS$65.13
SellUS$607,34930 Jan 19
Balu Balakrishnan
EntityIndividual
Role
Chief Executive Officer
President
Shares9,266
Max PriceUS$65.55
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$97,12830 Jan 19
Douglas Bailey
EntityIndividual
Role
Head of Marketing
Vice President of Marketing
Shares1,481
Max PriceUS$65.58

Ownership Breakdown

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


Management Team

  • Balu Balakrishnan (64yo)

    President

    • Tenure: 17.9yrs
    • Compensation: US$5.04m
  • Cliff Walker (68yo)

    Vice President of Corporate Development

    • Tenure: 24.5yrs
    • Compensation: US$973.64k
  • Sandeep Nayyar (62yo)

    CFO & VP of Finance

    • Tenure: 9.5yrs
    • Compensation: US$1.42m
  • Radu Barsan (66yo)

    Vice President of Technology

    • Tenure: 6.9yrs
    • Compensation: US$1.24m
  • Doug Bailey (52yo)

    Vice President of Marketing

    • Tenure: 15.1yrs
    • Compensation: US$1.17m
  • Raja Petrakian (55yo)

    Vice President of Operations

    • Tenure: 4.6yrs
    • Compensation: US$938.78k
  • Ben Sutherland (47yo)

    Vice President of Worldwide Sales

    • Tenure: 8.4yrs
    • Compensation: US$1.11m
  • Mike Matthews (54yo)

    Vice President of Product Development

    • Tenure: 7.3yrs
    • Compensation: US$1.12m
  • Joe Shiffler

    Director of Investor Relations & Corporate Communications

    • Tenure: 0yrs

Board Members

  • Steven Sharp (77yo)

    Independent Director

    • Tenure: 31.9yrs
    • Compensation: US$135.11k
  • Balu Balakrishnan (64yo)

    President

    • Tenure: 17.9yrs
    • Compensation: US$5.04m
  • Bala Iyer (62yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$158.31k
  • Bill George (76yo)

    Independent Chairman of the Board

    • Tenure: 1.2yrs
    • Compensation: US$149.11k
  • Nicholas Brathwaite (60yo)

    Independent Director

    • Tenure: 19.9yrs
    • Compensation: US$138.31k
  • Necip Sayiner (53yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$157.98k
  • Wendy Arienzo (63yo)

    Independent Director

    • Tenure: 2.7yrs
    • 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$2.752b
  • Shares outstanding: 29.42m
  • 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 Analysis2019/12/12 23:44
End of Day Share Price2019/12/12 00:00
Earnings2019/09/30
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.