📊 POWI Key Takeaways
Is Power Integrations Inc. (POWI) a Good Investment?
Power Integrations maintains a fortress balance sheet with zero debt and exceptional liquidity, providing financial stability. However, severe operational challenges are evident: operating margin collapsed to 1.3%, net profitability declined 30.4% YoY, and returns on equity/assets are negligible at 0.5% and 0.4% respectively. While positive free cash flow ($18M) offers a buffer, the company must demonstrate operational improvement before becoming attractive.
Power Integrations Inc. Key Strengths (POWI)
- Pristine balance sheet: $671.8M equity, zero long-term debt, 6.88x current ratio
- Healthy gross margin of 52.6% indicates competitive product-market positioning
- Positive free cash flow generation of $18M with 16.7% FCF margin demonstrates underlying cash generation despite profitability challenges
POWI Stock Risks: Power Integrations Inc. Investment Risks
- Operating margin of 1.3% with sharp EPS decline (-30.4% YoY) signals severe operational deterioration
- Minimal returns on equity (0.5%) and assets (0.4%) suggest extremely inefficient capital deployment
- Modest revenue growth of 5.9% in semiconductor sector combined with operating expense pressures indicates competitive or market headwinds
Key Metrics to Watch
- Operating margin recovery - must improve significantly from 1.3% baseline
- EPS trend reversal - stabilization and return to growth would validate operational turnaround
- Operating expense ratio as % of revenue - gap between 52.6% gross margin and 1.3% operating margin indicates bloated SG&A or R&D
Power Integrations Inc. (POWI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 6.88x 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 |
|---|---|---|---|
| Q1 2026 | $105.5M | $3.3M | $0.06 |
| 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 |
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 grade of B with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are POWI's key strengths?
Claude: Pristine balance sheet: $671.8M equity, zero long-term debt, 6.88x current ratio. Healthy gross margin of 52.6% indicates competitive product-market positioning.
What are the risks of investing in POWI?
Claude: Operating margin of 1.3% with sharp EPS decline (-30.4% YoY) signals severe operational deterioration. Minimal returns on equity (0.5%) and assets (0.4%) suggest extremely inefficient capital deployment.
What is POWI's revenue and growth?
Power Integrations Inc. reported revenue of $108.3M.
Does POWI pay dividends?
Power Integrations Inc. pays dividends, with $12.0M 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 $0.06.
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 grade reflects both perspectives for balanced insights.
What is POWI's fundamental grade?
Based on our AI fundamental analysis in May 2026, Power Integrations Inc. has a B grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is POWI stock overvalued or undervalued?
Valuation metrics for POWI: ROE of 0.5% (sector avg: 22%), net margin of 3.0% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is POWI's AI grade for 2026?
Our dual AI analysis gives Power Integrations Inc. a combined B grade 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 $20.0M, with capital expenditures of $2.0M. FCF margin is 16.7%.
How does POWI compare to other Technology stocks?
Vs Technology sector averages: Net margin 3.0% (avg: 18%), ROE 0.5% (avg: 22%), current ratio 6.88 (avg: 2.5).