📊 POWI Key Takeaways
Is Power Integrations Inc. (POWI) a Good Investment?
Power Integrations maintains a fortress balance sheet with zero debt, excellent liquidity (6.51x current ratio), and strong free cash flow generation ($87.1M, 19.6% margin), but faces significant profitability headwinds with net income down 31.5% YoY despite modest 5.9% revenue growth. The dramatic operating margin compression (2.3%) and weak returns on equity (3.3%) and assets (2.9%) indicate operational challenges or high fixed costs that must be addressed; the company requires demonstrated earnings stabilization and margin expansion to justify confidence.
Why Buy Power Integrations Inc. Stock? POWI Key Strengths
- Fortress balance sheet with $672.8M equity, zero long-term debt, and no interest burden
- Exceptional liquidity with 6.51x current ratio and 4.14x quick ratio providing financial flexibility
- Strong free cash flow generation of $87.1M (19.6% FCF margin) demonstrating cash conversion efficiency
- Healthy gross margins at 54.5% indicating product competitiveness and pricing power
POWI Stock Risks: Power Integrations Inc. Investment Risks
- Severe earnings decline of -31.5% YoY coupled with slowing revenue growth of only 5.9%, suggesting cyclical or structural headwinds
- Operating margin collapse to 2.3% and net margin of 5% indicate significant operational inefficiencies or high fixed cost burden
- Weak capital returns with ROE of 3.3% and ROA of 2.9% reflect poor capital deployment despite strong cash generation
- Operating income of only $10.2M on $443.5M revenue represents concerning profitability squeeze between gross and net margins
Key Metrics to Watch
- Operating margin trend - need reversal from current 2.3% level to indicate cost discipline
- Year-over-year earnings growth - must stabilize and return to positive territory
- Revenue growth acceleration - current 5.9% growth is insufficient for semiconductor sector
- SG&A and R&D expense ratios - determine source of operating margin compression and whether investments will generate returns
Power Integrations Inc. (POWI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 6.51x current ratio provides a solid financial cushion.
POWI Profit Margin, ROE & Profitability Analysis
POWI vs Technology Sector: How Power Integrations Inc. Compares
How Power Integrations Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Power Integrations Inc. Stock Overvalued? POWI Valuation Analysis 2026
Based on fundamental analysis, Power Integrations Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Power Integrations Inc. Balance Sheet: POWI Debt, Cash & Liquidity
POWI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Power Integrations Inc.'s revenue has declined by 37% over the 5-year period, indicating business contraction. The most recent EPS of $0.97 reflects profitable operations.
POWI Revenue Growth, EPS Growth & YoY Performance
POWI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $115.8M | -$1.4M | $-0.02 |
| Q2 2025 | $106.2M | $1.4M | $0.02 |
| Q1 2025 | $91.7M | $4.0M | $0.07 |
| Q3 2024 | $115.8M | $14.3M | $0.25 |
| Q2 2024 | $106.2M | $4.8M | $0.09 |
| Q1 2024 | $91.7M | $4.0M | $0.07 |
| Q3 2023 | $125.5M | $19.8M | $0.34 |
| Q2 2023 | $123.2M | $14.8M | $0.26 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Power Integrations Inc. Dividends, Buybacks & Capital Allocation
POWI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Power Integrations Inc. (CIK: 0000833640)
📋 Recent SEC Filings
❓ Frequently Asked Questions about POWI
What is the AI rating for POWI?
Power Integrations Inc. (POWI) has an AI rating of HOLD with 65% confidence, based on fundamental analysis of SEC EDGAR filings.
What are POWI's key strengths?
Claude: Fortress balance sheet with $672.8M equity, zero long-term debt, and no interest burden. Exceptional liquidity with 6.51x current ratio and 4.14x quick ratio providing financial flexibility.
What are the risks of investing in POWI?
Claude: Severe earnings decline of -31.5% YoY coupled with slowing revenue growth of only 5.9%, suggesting cyclical or structural headwinds. Operating margin collapse to 2.3% and net margin of 5% indicate significant operational inefficiencies or high fixed cost burden.
What is POWI's revenue and growth?
Power Integrations Inc. reported revenue of $443.5M.
Does POWI pay dividends?
Power Integrations Inc. pays dividends, with $47.2M distributed to shareholders in the trailing twelve months.
Where can I find POWI SEC filings?
Official SEC filings for Power Integrations Inc. (CIK: 0000833640) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is POWI's EPS?
Power Integrations Inc. has a diluted EPS of $0.39.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is POWI a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Power Integrations Inc. has a HOLD rating with 65% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is POWI stock overvalued or undervalued?
Valuation metrics for POWI: ROE of 3.3% (sector avg: 22%), net margin of 5.0% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy POWI stock in 2026?
Our dual AI analysis gives Power Integrations Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is POWI's free cash flow?
Power Integrations Inc.'s operating cash flow is $111.5M, with capital expenditures of $24.4M. FCF margin is 19.6%.
How does POWI compare to other Technology stocks?
Vs Technology sector averages: Net margin 5.0% (avg: 18%), ROE 3.3% (avg: 22%), current ratio 6.51 (avg: 2.5).