📊 POWL Key Takeaways
Is Powell Industries Inc. (POWL) a Good Investment?
Powell Industries exhibits exceptional financial fortress characteristics with zero debt, $537.7M cash position, and strong profitability (15.9% net margin, 18.3% operating margin). Robust free cash flow generation ($91M, 16.6% FCF margin) combined with +20.9% EPS growth demonstrates operational leverage despite flat revenue, providing downside protection in the industrial switchgear sector.
Powell Industries Inc. Key Strengths (POWL)
- Fortress balance sheet: zero long-term debt with $537.7M cash (45% of total assets)
- Strong profitability: 15.9% net margin, 18.3% operating margin, 29.1% gross margin indicate pricing power and operational efficiency
- Excellent liquidity: 2.25x current ratio, 2.06x quick ratio, and 2135.1x interest coverage provide substantial financial flexibility
- Robust cash generation: $91M free cash flow with 16.6% FCF margin; operating cash flow of $94.8M supports capital allocation
- Operational leverage: +20.9% EPS growth despite flat revenue indicates margin expansion and effective cost management
- Capital-efficient model: only $3.9M capex requirement demonstrates low capital intensity
POWL Stock Risks: Powell Industries Inc. Investment Risks
- Revenue stagnation: 0.0% YoY growth in industrial/electrical equipment sector that should be expanding raises growth concerns
- Earnings dependency on cost management: EPS gains driven by efficiency rather than topline expansion limits sustainable growth
- Moderate capital returns: 12.3% ROE may underutilize the $537.7M cash position relative to operational needs
- Excess capital position: significant cash balance could indicate strategic uncertainty or capital allocation challenges
- Sector cyclicality: industrial equipment exposure vulnerable to economic slowdowns and infrastructure spending cycles
Key Metrics to Watch
- Revenue growth rate and order bookings - critical validation of growth resumption trajectory
- Operating margin sustainability - monitor if 18.3% margins compress as competitive pressures or growth investments increase
- Free cash flow conversion ratio and capital deployment strategy - how management deploys excess cash reserves
- Return on Equity and Return on Invested Capital trends - should accelerate if revenue growth resumes with existing margins
- Working capital metrics (receivables days, inventory turnover) - detect operational efficiency changes relative to revenue levels
Powell Industries Inc. (POWL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.25x current ratio provides a solid financial cushion.
POWL Profit Margin, ROE & Profitability Analysis
POWL vs Market Sector: How Powell Industries Inc. Compares
How Powell Industries Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Powell Industries Inc. Stock Overvalued? POWL Valuation Analysis 2026
Based on fundamental analysis, Powell Industries Inc. has mixed fundamental signals relative to the Market 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.
Powell Industries Inc. Balance Sheet: POWL Debt, Cash & Liquidity
POWL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Powell Industries Inc.'s revenue has grown significantly by 113% over the 5-year period, indicating strong business expansion. The most recent EPS of $4.50 reflects profitable operations.
POWL Revenue Growth, EPS Growth & YoY Performance
POWL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $278.6M | $34.8M | $1.25 |
| Q1 2026 | $241.4M | $34.8M | $2.86 |
| Q3 2025 | $286.3M | $24.1M | $3.79 |
| Q2 2025 | $255.1M | $24.1M | $2.75 |
| Q1 2025 | $194.0M | $24.1M | $1.98 |
| Q3 2024 | $192.4M | $1.2M | $1.52 |
| Q2 2024 | $171.4M | $1.2M | $0.70 |
| Q1 2024 | $126.9M | $1.2M | $0.10 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Powell Industries Inc. Dividends, Buybacks & Capital Allocation
POWL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Powell Industries Inc. (CIK: 0000080420)
📋 Recent SEC Filings
❓ Frequently Asked Questions about POWL
What is the AI rating for POWL?
Powell Industries Inc. (POWL) has an AI grade of A with 70% confidence, based on fundamental analysis of SEC EDGAR filings.
What are POWL's key strengths?
Claude: Fortress balance sheet: zero long-term debt with $537.7M cash (45% of total assets). Strong profitability: 15.9% net margin, 18.3% operating margin, 29.1% gross margin indicate pricing power and operational efficiency.
What are the risks of investing in POWL?
Claude: Revenue stagnation: 0.0% YoY growth in industrial/electrical equipment sector that should be expanding raises growth concerns. Earnings dependency on cost management: EPS gains driven by efficiency rather than topline expansion limits sustainable growth.
What is POWL's revenue and growth?
Powell Industries Inc. reported revenue of $547.8M.
Does POWL pay dividends?
Powell Industries Inc. pays dividends, with $6.5M distributed to shareholders in the trailing twelve months.
Where can I find POWL SEC filings?
Official SEC filings for Powell Industries Inc. (CIK: 0000080420) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is POWL's EPS?
Powell Industries Inc. has a diluted EPS of $2.39.
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 grade reflects both perspectives for balanced insights.
What is POWL's fundamental grade?
Based on our AI fundamental analysis in May 2026, Powell Industries Inc. has a A grade with 70% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is POWL stock overvalued or undervalued?
Valuation metrics for POWL: ROE of 12.3% (sector avg: 15%), net margin of 15.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is POWL's AI grade for 2026?
Our dual AI analysis gives Powell Industries Inc. a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is POWL's free cash flow?
Powell Industries Inc.'s operating cash flow is $94.8M, with capital expenditures of $3.9M. FCF margin is 16.6%.
How does POWL compare to other Market stocks?
Vs Default sector averages: Net margin 15.9% (avg: 12%), ROE 12.3% (avg: 15%), current ratio 2.25 (avg: 1.8).