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Powell Industries

Nasdaq:POWL
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
POWL
Nasdaq
$460M
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Powell Industries, Inc., together with its subsidiaries, designs, develops, manufactures, sells, and services custom-engineered equipment and systems for the distribution, control, and monitoring of electrical energy. The last earnings update was 100 days ago. More info.


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POWL Share Price and Events
7 Day Returns
-1.1%
NasdaqGS:POWL
0.9%
US Electrical
0.2%
US Market
1 Year Returns
22.2%
NasdaqGS:POWL
12.8%
US Electrical
12.2%
US Market
POWL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Powell Industries (POWL) -1.1% 4.7% 5.1% 22.2% -3.1% -8.9%
US Electrical 0.9% 9.2% 18.8% 12.8% 29.7% 30.1%
US Market 0.2% 3.5% 6.3% 12.2% 38.3% 44.1%
1 Year Return vs Industry and Market
  • POWL outperformed the Electrical industry which returned 12.8% over the past year.
  • POWL outperformed the Market in United States of America which returned 12.2% over the past year.
Price Volatility
POWL
Industry
5yr Volatility vs Market

Value

 Is Powell Industries undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Powell Industries to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Powell Industries.

NasdaqGS:POWL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:POWL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electrical Unlevered Beta Simply Wall St/ S&P Global 1.2
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.198 (1 + (1- 21%) (0.26%))
1.134
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.134 * 5.96%)
9.49%

Discounted Cash Flow Calculation for NasdaqGS:POWL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Powell Industries is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:POWL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.49%)
2020 20.90 Analyst x1 19.08
2021 27.50 Analyst x1 22.94
2022 27.79 Est @ 1.09% 21.18
2023 28.23 Est @ 1.58% 19.65
2024 28.78 Est @ 1.93% 18.29
2025 29.40 Est @ 2.17% 17.06
2026 30.09 Est @ 2.34% 15.95
2027 30.83 Est @ 2.45% 14.92
2028 31.61 Est @ 2.54% 13.98
2029 32.43 Est @ 2.59% 13.10
Present value of next 10 years cash flows $176.00
NasdaqGS:POWL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $32.43 × (1 + 2.73%) ÷ (9.49% – 2.73%)
$492.78
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $492.78 ÷ (1 + 9.49%)10
$199.02
NasdaqGS:POWL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $176.00 + $199.02
$375.02
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $375.02 / 11.57
$32.42
NasdaqGS:POWL Discount to Share Price
Calculation Result
Value per share (USD) From above. $32.42
Current discount Discount to share price of $39.81
= -1 x ($39.81 - $32.42) / $32.42
-22.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Powell Industries is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Powell Industries's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Powell Industries's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:POWL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $0.42
NasdaqGS:POWL Share Price ** NasdaqGS (2019-11-15) in USD $39.81
United States of America Electrical Industry PE Ratio Median Figure of 31 Publicly-Listed Electrical Companies 17.55x
United States of America Market PE Ratio Median Figure of 2,921 Publicly-Listed Companies 18.1x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Powell Industries.

NasdaqGS:POWL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:POWL Share Price ÷ EPS (both in USD)

= 39.81 ÷ 0.42

94.05x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Powell Industries is overvalued based on earnings compared to the US Electrical industry average.
  • Powell Industries is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Powell Industries's expected growth come at a high price?
Raw Data
NasdaqGS:POWL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 94.05x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
86.2%per year
United States of America Electrical Industry PEG Ratio Median Figure of 21 Publicly-Listed Electrical Companies 1.33x
United States of America Market PEG Ratio Median Figure of 2,037 Publicly-Listed Companies 1.45x

*Line of best fit is calculated by linear regression .

NasdaqGS:POWL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 94.05x ÷ 86.2%

1.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Powell Industries is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Powell Industries's assets?
Raw Data
NasdaqGS:POWL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $25.59
NasdaqGS:POWL Share Price * NasdaqGS (2019-11-15) in USD $39.81
United States of America Electrical Industry PB Ratio Median Figure of 59 Publicly-Listed Electrical Companies 1.54x
United States of America Market PB Ratio Median Figure of 5,081 Publicly-Listed Companies 1.74x
NasdaqGS:POWL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:POWL Share Price ÷ Book Value per Share (both in USD)

= 39.81 ÷ 25.59

1.56x

* Primary Listing of Powell Industries.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Powell Industries is overvalued based on assets compared to the US Electrical industry average.
X
Value checks
We assess Powell Industries's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electrical industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electrical industry average (and greater than 0)? (1 check)
  5. Powell Industries has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Powell Industries expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
86.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Powell Industries expected to grow at an attractive rate?
  • Powell Industries's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Powell Industries's earnings growth is expected to exceed the United States of America market average.
  • Powell Industries's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:POWL Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:POWL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 86.2%
NasdaqGS:POWL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 7.6%
United States of America Electrical Industry Earnings Growth Rate Market Cap Weighted Average 10.3%
United States of America Electrical Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:POWL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:POWL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-09-30 570 35 46 1
2020-09-30 576 29 18 3
2019-11-15
2019-09-30 508 46 8 3
NasdaqGS:POWL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 504 31 5
2019-03-31 490 8 0
2018-12-31 468 -5 -4
2018-09-30 449 -29 -7
2018-06-30 409 -16 -14
2018-03-31 373 7 -17
2017-12-31 376 19 -15
2017-09-30 396 37 -9
2017-06-30 431 40 1
2017-03-31 478 69 9
2016-12-31 526 54 16
2016-09-30 565 75 16

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Powell Industries's earnings are expected to grow significantly at over 20% yearly.
  • Powell Industries's revenue is expected to grow by 7.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:POWL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Powell Industries Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:POWL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-09-30 1.59 1.59 1.59 1.00
2020-09-30 1.53 1.82 1.38 3.00
2019-11-15
2019-09-30 0.67 0.69 0.65 3.00
NasdaqGS:POWL Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 0.42
2019-03-31 0.01
2018-12-31 -0.36
2018-09-30 -0.62
2018-06-30 -1.20
2018-03-31 -1.51
2017-12-31 -1.29
2017-09-30 -0.83
2017-06-30 0.10
2017-03-31 0.81
2016-12-31 1.37
2016-09-30 1.36

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Powell Industries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Powell Industries's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Powell Industries has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Powell Industries performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Powell Industries's growth in the last year to its industry (Electrical).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Powell Industries's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Powell Industries has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Powell Industries has become profitable in the last year making it difficult to compare the US Electrical industry average.
Earnings and Revenue History
Powell Industries's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Powell Industries Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:POWL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 503.57 4.89 68.55 6.78
2019-03-31 490.12 0.10 67.60 6.78
2018-12-31 467.88 -4.19 66.48 6.75
2018-09-30 448.72 -7.15 66.77 6.72
2018-06-30 408.78 -13.83 63.53 7.01
2018-03-31 372.58 -17.35 62.12 7.11
2017-12-31 375.75 -14.85 62.04 7.10
2017-09-30 395.91 -9.49 61.52 6.91
2017-06-30 430.74 1.17 63.59 6.10
2017-03-31 478.02 9.27 68.19 6.01
2016-12-31 525.61 15.67 71.22 6.35
2016-09-30 565.24 15.51 74.92 6.73
2016-06-30 597.78 16.31 76.30 7.33
2016-03-31 641.30 18.47 74.95 7.33
2015-12-31 659.23 9.22 75.39 6.99
2015-09-30 661.86 9.44 76.80 6.98
2015-06-30 662.38 5.56 79.30 6.93
2015-03-31 636.45 1.46 84.31 7.08
2014-12-31 628.54 12.11 86.94 7.61
2014-09-30 647.81 19.62 87.76 7.61
2014-06-30 661.20 34.12 85.98 7.73
2014-03-31 682.14 40.66 82.75 8.05
2013-12-31 665.88 39.89 81.65 7.74
2013-09-30 640.87 39.74 79.71 7.62
2013-06-30 648.79 34.66 75.66 13.32
2013-03-31 671.15 37.31 80.68 11.22
2012-12-31 706.60 38.52 81.22 9.37

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Powell Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Powell Industries used its assets less efficiently than the US Electrical industry average last year based on Return on Assets.
  • Powell Industries's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Powell Industries's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electrical industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Powell Industries has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Powell Industries's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Powell Industries's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Powell Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Powell Industries's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Powell Industries's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 239.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Powell Industries Company Filings, last reported 4 months ago.

NasdaqGS:POWL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 295.66 1.20 78.03
2019-03-31 292.29 1.20 72.37
2018-12-31 292.36 1.20 62.34
2018-09-30 301.64 1.60 49.75
2018-06-30 301.45 1.60 55.29
2018-03-31 306.39 1.60 69.16
2017-12-31 312.97 1.60 72.69
2017-09-30 321.30 2.00 95.19
2017-06-30 325.10 2.00 87.85
2017-03-31 327.95 2.00 108.34
2016-12-31 330.05 2.00 95.46
2016-09-30 335.32 2.40 97.72
2016-06-30 334.60 2.40 89.35
2016-03-31 333.03 2.40 57.36
2015-12-31 325.08 2.40 58.92
2015-09-30 333.26 2.80 43.57
2015-06-30 345.65 2.80 63.36
2015-03-31 345.03 2.80 55.67
2014-12-31 364.16 2.80 56.46
2014-09-30 371.10 3.20 103.12
2014-06-30 375.12 3.20 87.76
2014-03-31 371.55 3.20 101.39
2013-12-31 359.56 3.20 103.72
2013-09-30 355.23 3.60 107.41
2013-06-30 333.13 3.64 124.87
2013-03-31 324.66 3.66 114.06
2012-12-31 318.13 3.69 97.37
  • Powell Industries's level of debt (0.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (0.9% vs 0.4% today).
  • Debt is well covered by operating cash flow (2620.8%, greater than 20% of total debt).
  • Powell Industries earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Powell Industries's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Powell Industries has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Powell Industries's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.61%
Current annual income from Powell Industries dividends.
If you bought $2,000 of Powell Industries shares you are expected to receive $52 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Powell Industries's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Powell Industries's dividend is below the markets top 25% of dividend payers in United States of America (3.65%).
Upcoming dividend payment

Purchase Powell Industries before the 'Ex-dividend' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:POWL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Electrical Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1950 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:POWL Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-09-30
2020-09-30
2019-11-15
2019-09-30
NasdaqGS:POWL Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-11-04 1.040 2.606
2019-08-06 1.040 2.748
2019-05-07 1.040 2.867
2019-02-05 1.040 3.470
2018-11-05 1.040 3.699
2018-05-08 1.040 2.954
2017-11-07 1.040 3.578
2017-08-08 1.040 3.578
2017-05-02 1.040 3.162
2017-02-07 1.040 3.095
2016-11-01 1.040 2.602
2016-08-02 1.040 2.718
2016-05-03 1.040 2.886
2016-02-02 1.040 3.681
2015-11-02 1.040 3.727
2015-08-04 1.040 3.488
2015-05-05 1.040 3.007
2014-11-05 1.040 2.713
2014-08-04 1.000 2.094
2014-05-06 1.000 1.591
2014-02-03 1.000 1.542
2013-11-05 1.000 1.555

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Powell Industries has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Powell Industries only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of Powell Industries's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.4x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Powell Industries's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Powell Industries afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Powell Industries has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brett Cope
COMPENSATION $1,862,653
AGE 51
TENURE AS CEO 3.1 years
CEO Bio

Mr. Brett A. Cope has been the Chief Executive Officer and President of Powell Industries, Inc. since October 1, 2016. Mr. Cope serves as Chairman of the Board of Powell Industries, Inc. since September 16, 2019. Mr. Cope served as Chief Operating Officer and Senior Vice President of Powell Industries, Inc. from December 30, 2015 to September 30, 2016. Mr. Cope served as Powell's Vice President of Sales and Marketing from December 27, 2010 to December 29, 2015. He has Business management experience in the electrical equipment industry and Extensive sales and marketing experience in industrial markets including the oil and gas market. Mr. Cope held roles of increasing responsibility at ABB, an international provider of power and automation products enabling the utility, industrial, transportation and infrastructure industries. His most recent role was that of Group Vice President and Global Account Executive serving ExxonMobil. He has been a Director of Powell Industries, Inc. since October 1, 2016. Mr. Cope holds a bachelor's degree in applied science from Miami University of Ohio.

CEO Compensation
  • Brett's compensation has increased in line with Powell Industries recently becoming profitable.
  • Brett's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Powell Industries management team in years:

8.2
Average Tenure
56.5
Average Age
  • The average tenure for the Powell Industries management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Brett Cope

TITLE
President
COMPENSATION
$2M
AGE
51
TENURE
3.1 yrs

Milburn Honeycutt

TITLE
VP, Corporate Controller & Chief Accounting Officer
COMPENSATION
$634K
AGE
56
TENURE
8.2 yrs

Don Madison

TITLE
Consultant
COMPENSATION
$1M
AGE
62
TENURE
12.8 yrs

Michael Metcalf

TITLE
CFO, Executive VP
AGE
57
TENURE
0.9 yrs

Gary King

TITLE
Director of Corporate Communications
TENURE
12.8 yrs
Board of Directors Tenure

Average tenure and age of the Powell Industries board of directors in years:

1.9
Average Tenure
59
Average Age
  • The average tenure for the Powell Industries board of directors is less than 3 years, this suggests a new board.
Board of Directors

Brett Cope

TITLE
President
COMPENSATION
$2M
AGE
51
TENURE
0.2 yrs

Tom Powell

TITLE
Chairman Emeritus
COMPENSATION
$217K
AGE
78
TENURE
0.2 yrs

Chris Cragg

TITLE
Independent Director
COMPENSATION
$111K
AGE
58
TENURE
11.5 yrs

John White

TITLE
Independent Director
COMPENSATION
$102K
AGE
70
TENURE
6.9 yrs

Dick Williams

TITLE
Presiding Independent Director
COMPENSATION
$99K
AGE
60

Perry Elders

TITLE
Independent Director
COMPENSATION
$96K
AGE
57
TENURE
1.9 yrs

Bonnie Hancock

TITLE
Independent Director
COMPENSATION
$97K
AGE
57
TENURE
9.2 yrs

Jim McGill

TITLE
Independent Director
COMPENSATION
$75K
AGE
63
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
13. Aug 19 Sell Bonnie Hancock Individual 12. Aug 19 13. Aug 19 -2,000 $38.03 $-75,780
X
Management checks
We assess Powell Industries's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Powell Industries has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

These Factors Make Powell Industries, Inc. (NASDAQ:POWL) An Interesting Investment

For those interested in digging a bit deeper into my commentary, take a look at the report on Powell Industries here. … This indicates that POWL has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. … NasdaqGS:POWL Past and Future Earnings, August 26th 2019 Next Steps: For Powell Industries, there are three key aspects you should further research: Historical Performance: What has POWL's returns been like over the past?

Simply Wall St -

Here's Why We're Wary Of Buying Powell Industries, Inc.'s (NASDAQ:POWL) For Its Upcoming Dividend

Powell Industries's next dividend payment will be US$0.26 per share, on the back of last year when the company paid a total of US$1.04 to shareholders. … Powell Industries has delivered 0.7% dividend growth per year on average over the past 6 years. … To Sum It Up Is Powell Industries worth buying for its dividend?

Simply Wall St -

If You Had Bought Powell Industries (NASDAQ:POWL) Stock Five Years Ago, You'd Be Sitting On A 35% Loss, Today

View our latest analysis for Powell Industries While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. … As it happens, Powell Industries's TSR for the last 5 years was -24%, which exceeds the share price return mentioned earlier. … We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize.

Simply Wall St -

Does Powell Industries, Inc.'s (NASDAQ:POWL) CEO Pay Reflect Performance?

Brett Cope has been the CEO of Powell Industries, Inc. … View our latest analysis for Powell Industries How Does Brett Cope's Compensation Compare With Similar Sized Companies? … The graphic below shows how CEO compensation at Powell Industries has changed from year to year.

Simply Wall St -

Is Powell Industries (NASDAQ:POWL) A Risky Investment?

NasdaqGS:POWL Historical Debt, July 12th 2019 How Healthy Is Powell Industries's Balance Sheet? … While Powell Industries has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. … Summing up While it is always sensible to investigate a company's debt, in this case Powell Industries has US$71m in net cash and a decent-looking balance sheet.

Simply Wall St -

Powell Industries, Inc. (NASDAQ:POWL): What Does Its Beta Value Mean For Your Portfolio?

(NASDAQ:POWL), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Given that it has a beta of 1.21, we can surmise that the Powell Industries share price has been fairly sensitive to market volatility (over the last 5 years). … What this means for you: Beta only tells us that the Powell Industries share price is sensitive to broader market movements.

Simply Wall St -

Should You Be Worried About Powell Industries, Inc.'s (NASDAQ:POWL) 0.03% Return On Equity?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Powell Industries: 0.03% = US$103k ÷ US$292m (Based on the trailing twelve months to March 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Powell Industries Have A Good Return On Equity? … Powell Industries's Debt And Its 0.03% ROE While Powell Industries does have a tiny amount of debt, with debt to equity of just 0.0041, we think the use of debt is very modest.

Simply Wall St -

Do Institutions Own Powell Industries, Inc. (NASDAQ:POWL) Shares?

Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. … Check out our latest analysis for Powell Industries NasdaqGS:POWL Ownership Summary, May 28th 2019 What Does The Institutional Ownership Tell Us About Powell Industries? … We can see that Powell Industries does have institutional investors; and they hold 65% of the stock.

Simply Wall St -

A Holistic Look At Powell Industries, Inc. (NASDAQ:POWL)

In the case of POWL, it is a company with strong financial health as well as a buoyant growth outlook. … Flawless balance sheet with reasonable growth potential POWL is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. … Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

Simply Wall St -

Did Changing Sentiment Drive Powell Industries's (NASDAQ:POWL) Share Price Down A Worrying 54%?

Powell Industries isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). … Shareholders of unprofitable companies usually expect strong revenue growth. … Over half a decade Powell Industries reduced its trailing twelve month revenue by 12% for each year.

Simply Wall St -

Company Info

Description

Powell Industries, Inc., together with its subsidiaries, designs, develops, manufactures, sells, and services custom-engineered equipment and systems for the distribution, control, and monitoring of electrical energy. The company’s principal products include integrated power control room substations, custom-engineered modules, electrical houses, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers, and bus duct systems, as well as traditional and arc-resistant distribution switchgears and control gears. Its products have application in voltages ranging from 480 volts to 38,000 volts; and are used in oil and gas refining, offshore oil and gas production, petrochemical, pipeline, terminal, mining and metals, light rail traction power, electric utility, pulp and paper, and other heavy industrial markets. The company has operations in the United States, Canada, the Middle East, Africa, Europe, the Far East, Mexico, and Central and South America. Powell Industries, Inc. was founded in 1947 and is headquartered in Houston, Texas.

Details
Name: Powell Industries, Inc.
POWL
Exchange: NasdaqGS
Founded: 1947
$460,472,237
11,566,748
Website: http://www.powellind.com
Address: Powell Industries, Inc.
8550 Mosley Road,
Houston,
Texas, 77075,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS POWL Common Stock Nasdaq Global Select US USD 05. Jan 1973
DB PW2 Common Stock Deutsche Boerse AG DE EUR 05. Jan 1973
Number of employees
Current staff
Staff numbers
1,985
Powell Industries employees.
Industry
Electrical Components and Equipment
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/15 23:42
End of day share price update: 2019/11/15 00:00
Last estimates confirmation: 2019/08/14
Last earnings filing: 2019/08/07
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.