Powell Industries, currently valued at $64.28 per share, appears to be overvalued given its modest future projections. The company holds a performance score of 14 on a scale from zero to one hundred, suggesting room for improvement. Powell Industries has a Beta of -0.5427, which indicates potential diversification benefits within a portfolio. As market returns increase, returns on Powell Industries are expected to decrease at a significantly lower rate. This suggests that Powell Industries is likely to outperform the market during a bear market.
While it's important to monitor the current trending patterns of Powell Industries, it's advisable to exercise caution when interpreting information about the company's equity price patterns. Our approach to forecasting the future performance of any stock involves a comprehensive analysis of the business, including both fundamental and technical indicators.
In assessing whether Powell Industries' expected return of 1.03 will be sustainable in the future, we have identified twenty-one different technical indicators. These can assist you in determining if the projected returns are likely to be maintained. We recommend using Powell Industries' coefficient of variation, as well as the relationship between the Treynor Ratio and semi variance, to analyze future returns on Powell Industries.
Supplemental assessment
Powell Industries, a leading player in the Electrical Equipment & Parts industry, has been outperforming in the market, defying the modest market downturn. The company's EPS estimate for the current quarter stands at
0.21, indicating a positive earnings outlook. Despite a PEG ratio of -5.48, which typically suggests overvaluation, the company's strong book value of 25.78 and a revenue of
$596.5 million underscore its robust
financial health. Furthermore, Powell Industries reported a net income of $13.7 million, a clear sign of its profitability. The company's stock, traded on NASDAQ, has seen a price change of 24.25, further highlighting its strong market performance. With a standard deviation of 5.89, the stock offers a relatively stable investment opportunity in the industrials sector.
The performance of Powell Industries in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Powell Industries'
stock prices. When investing in Powell Industries, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Powell Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Powell Industries carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
And What about dividends?
A dividend is the distribution of a portion of Powell Industries earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Powell Industries dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Powell one year expected dividend income is about USD0.62 per share.
Investing in dividend-paying stocks, such as Powell Industries is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Powell Industries must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Powell Industries. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Powell Industries's Liquidity
Powell Industries
financial leverage refers to using borrowed capital as a funding source to finance Powell Industries ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Powell Industries financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Powell Industries' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Powell Industries' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Powell Industries's total debt and its cash.
Another Outlook On Powell Industries
The
market capitalization of Powell Industries is $726.94 Million. Over half of Powell Industries outstanding shares are owned by
third-party entities. These third-party entities are typically referred to corporate investors that secure positions in a given instrument to benefit from reduced trade commissions. Consequently, these
institutional investors. class="underlinedLink" href="/invest/ratio/POWL/Shares-Owned-by-Institutions">institutions are subject to different rules and regulation than regular investors in Powell Industries. Please watch out for any change in the
institutional holdings of Powell Industries as this could mean something significant has changed or about to change at the company. Please take into account that even companies with profitable outlook can generate negative future returns on their equity. If the true value of the company is less than the current market value, you may not be able generate positive returns on investment in the long run.
| 2020 | 2021 | 2022 | 2023 (projected) |
Revenues USD | 470.56 M | 532.58 M | 479.32 M | 485.38 M | Revenues | 470.56 M | 532.58 M | 479.32 M | 485.38 M |
Ownership Breakdown
| Retail Investors7.19% | Insiders24.08% | Institutions68.73% |
| Retail Investors | 7.19 |
| Insiders | 24.08 |
| Institutions | 68.73 |
Despite today's modest market downturn, Powell Industries (POWL.US) has managed to outperform, showcasing the resilience of this electrical equipment and parts manufacturer.
The company, listed on NASDAQ, has a market capitalization of
$726.94 million and operates in the industrials sector. The company's solid
financial health is evident in its current ratio of 2.25X, which indicates its ability to meet short-term obligations. The operating margin stands at 0.0375%, and despite an operating income loss of $5.1 million, Powell Industries reported a net income from continuing operations of $13.7 million. Investors should note the company's quarterly revenue growth of 0.341 and a healthy book value of 25.782. The company's shares are also widely held, with 68.73% of shares owned by institutions. The price to book value is 1.45X, which is fairly reasonable, and the EPS estimate for the current year stands at 2.14. Despite the market's fluctuations, Powell Industries continues to demonstrate strength, with a beta of 0.92, indicating less volatility than the market. The company's robust performance and solid financial health make it a compelling consideration for investors looking for stability in the industrials sector. .
Our perspective of the latest Powell Industries rise
The recent surge in Powell Industries' stock has piqued the interest of many investors. This rise is underscored by a kurtosis of 29.34, which indicates a significant peak in the distribution of returns. This high kurtosis suggests that the stock's returns have experienced extreme values more frequently than what a normal distribution would predict. While this could signal the potential for high returns, it also implies a higher risk due to the increased likelihood of extreme price fluctuations. Investors should carefully assess their risk tolerance before deciding to invest in Powell Industries. Despite the recent surge, Powell Industries has demonstrated relatively low volatility, with a skewness of 4.95 and a kurtosis of 29.34. However, we recommend all investors to conduct independent research on Powell Industries to ensure all available information aligns with their expectations about its upside potential and future expected returns. Understanding different
market volatility trends often assists investors in timing the market. Proper use of volatility indicators enables traders to measure Powell Industries' stock risk against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly impact
Powell Industries' stock price, causing stress for investors as they witness their shares' value plummet. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices fall. In conclusion, despite the modest market slide, Powell Industries has shown strong advancement today. This is a testament to the company's resilience and potential for growth. The current valuation market value stands at a robust
$85.54, significantly higher than the valuation real value of
$64.28. However, it's important to note that the analyst overall consensus is a 'Hold' with only one analyst recommending a 'Hold'. This suggests a possible downside price of $68.54, but also a possible upside price of $79.55. The naive expected forecast value is $74.05, indicating potential for moderate growth. Investors should carefully consider these factors and their own risk tolerance before making a decision on Powell Industries. .
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Powell Industries. Please refer to our
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