NasdaqGS:POWI

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Executive Summary

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. More Details


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: POWI's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.2%

POWI

1.2%

US Semiconductor

2.1%

US Market


1 Year Return

49.4%

POWI

45.3%

US Semiconductor

19.8%

US Market

Return vs Industry: POWI exceeded the US Semiconductor industry which returned 45.2% over the past year.

Return vs Market: POWI exceeded the US Market which returned 19.7% over the past year.


Shareholder returns

POWIIndustryMarket
7 Day1.2%1.2%2.1%
30 Day17.3%10.4%8.1%
90 Day23.2%11.7%6.0%
1 Year50.3%49.4%48.0%45.3%22.5%19.8%
3 Year81.7%77.4%89.8%79.8%46.5%36.8%
5 Year186.0%174.4%254.4%220.6%96.9%75.3%

Long-Term 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?

20.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: POWI ($69.64) is trading above our estimate of fair value ($40.74)

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


Price To Earnings Ratio

PE vs Industry: POWI is good value based on its PE Ratio (20.5x) compared to the US Semiconductor industry average (36.7x).

PE vs Market: POWI is poor value based on its PE Ratio (20.5x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: POWI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: POWI is overvalued based on its PB Ratio (5.3x) compared to the US Semiconductor industry average (3.4x).


Next Steps

Future Growth

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

-9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: POWI's earnings are forecast to decline over the next 3 years (-9.8% per year).

Earnings vs Market: POWI's earnings are forecast to decline over the next 3 years (-9.8% per year).

High Growth Earnings: POWI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: POWI's revenue (10.3% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: POWI's revenue (10.3% 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 (13.6%).


Next Steps

Past Performance

How has Power Integrations performed over the past 5 years?

37.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: POWI has a large one-off gain of $169.0M impacting its September 30 2020 financial results.

Growing Profit Margin: POWI's current net profit margins (44.7%) are higher than last year (14.9%).


Past Earnings Growth Analysis

Earnings Trend: POWI's earnings have grown significantly by 37.9% per year over the past 5 years.

Accelerating Growth: POWI's earnings growth over the past year (240.5%) exceeds its 5-year average (37.9% per year).

Earnings vs Industry: POWI earnings growth over the past year (240.5%) exceeded the Semiconductor industry 22.8%.


Return on Equity

High ROE: POWI's Return on Equity (25.9%) is considered high.


Next Steps

Financial Health

How is Power Integrations's financial position?


Financial Position Analysis

Short Term Liabilities: POWI's short term assets ($592.9M) exceed its short term liabilities ($66.3M).

Long Term Liabilities: POWI's short term assets ($592.9M) exceed its long term liabilities ($30.0M).


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


Next Steps

Dividend

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

0.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: POWI's dividend (0.63%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: POWI's dividend (0.63%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

Stable Dividend: POWI is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: POWI is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: POWI is not paying a notable dividend for the US market.


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

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

9.9yrs

Average management tenure


CEO

Balu Balakrishnan (65 yo)

18.83yrs

Tenure

US$5,689,790

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 ($USD5.69M) is about average for companies of similar size in the US market ($USD5.15M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Balu Balakrishnan
President18.83yrsUS$5.69m0.83%
$ 34.8m
Sandeep Nayyar
CFO & VP of Finance10.42yrsUS$1.61m0.18%
$ 7.7m
Radu Barsan
Vice President of Technology7.83yrsUS$1.48m0%
$ 0
Ben Sutherland
Vice President of Worldwide Sales9.33yrsUS$1.20m0.048%
$ 2.0m
David M. Matthews
Vice President of Product Development8.25yrsUS$1.28m0.13%
$ 5.5m
Raja Petrakian
Vice President of Operations5.5yrsUS$938.78k0.078%
$ 3.3m
Joe Shiffler
Director of Investor Relations & Corporate Communicationsno datano datano data
Clifford Walker
Vice President of Corporate Development25.42yrsUS$973.64k0.21%
$ 8.6m
Douglas Bailey
Vice President of Marketing16yrsUS$1.17m0.20%
$ 8.3m

9.9yrs

Average Tenure

58yo

Average Age

Experienced Management: POWI's management team is seasoned and experienced (9.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Balu Balakrishnan
President18.83yrsUS$5.69m0.83%
$ 34.8m
Steven Sharp
Independent Director32.83yrsUS$159.49k0.11%
$ 4.7m
Balakrishnan Iyer
Independent Director16.75yrsUS$183.59k0.024%
$ 1.0m
William George
Independent Chairman of the Board2.08yrsUS$211.24k0.11%
$ 4.5m
Nicholas Brathwaite
Independent Director20.83yrsUS$167.29k0.086%
$ 3.6m
Necip Sayiner
Independent Director2.58yrsUS$170.59k0.0085%
$ 353.1k
Wendy Arienzo
Independent Director3.58yrsUS$175.49k0.0095%
$ 396.9k
Anita Ganti
Independent Director0.58yrno data0.0047%
$ 195.1k

10.2yrs

Average Tenure

63.5yo

Average Age

Experienced Board: POWI's board of directors are seasoned and experienced ( 10.2 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 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$4.169b
  • Shares outstanding: 59.86m
  • Website: https://www.power.com

Number of Employees


Location

  • Power Integrations, Inc.
  • 5245 Hellyer Avenue
  • San Jose
  • California
  • 95138-1002
  • 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, manufactures, and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 23:05
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.