Recent News
On November 4, 2025 the Board declared a quarterly cash dividend of $0.2675 per share, payable December 17, 2025 to holders of record as of November 19, 2025.
Investor’s Business Daily reported a recent boost to Powell’s Relative Strength rating (moved into the 90s), noting the stock’s extended pattern after clearing a multi-stage buy point and flagging that the issue now sits extended from the ideal buy range.
Technical Analysis
ADX: 18.23 — no trend. The ADX reading below 20 indicates a lack of a strong directional trend, so momentum-driven moves require confirmation from volume or price structure rather than assuming a sustained trend.
DI+ increasing (20.96) and DI- decreasing (26.05) — bullish. The directional indicators together favor buyers even though overall trend strength remains low, implying any advance could be momentum-driven rather than trend-sustained.
MACD increasing (MACD -3.22, signal -4.31) — bullish momentum. MACD has moved above its signal line while rising, signaling a momentum pickup despite negative absolute MACD levels.
MRO -20.41 (dip & reversal) — price sits below the MRO target, indicating upside potential as MRO’s negative reading typically aligns with possible price appreciation toward the model target.
RSI 54.77 (dip & reversal) — bullish. The RSI’s dip-and-reverse action indicates renewed buying interest without being overbought, which supports a measured near-term advance.
Price vs averages and bands — price closed at $342.13, above the 20-day average ($314.53), 50-day average ($334.62) and 200-day average ($239.77). Price sits above the 12- and 26-day EMAs (12-day EMA rising), and trades above the 1x Bollinger upper band, which signals strength but also the need for pullback risk management; the SuperTrend upper sits at $342.66, very close to the current close.
Volume and volatility — latest volume (147,356) trails the 10-day average (211,946) and 50/200-day averages, so the current price advance lacks confirming volume; short-term beta at 2.17 signals elevated short-term volatility and the potential for sharper retracements if buyers do not return in force.
Fundamental Analysis
Profitability: EBIT $63,245,000 and EBITDA $65,295,000 with an operating/EBIT margin of 21.224% (gross margin 31.386%). The EBIT margin sits above the industry peer mean of 12.374% and near the industry peer high of 21.612%, reflecting stronger-than-average margin conversion on revenue.
Revenue and earnings trends: QoQ revenue growth 49.14% and YoY revenue change of -1.90%. EPS actual $4.22 vs estimate $3.76 produced an EPS surprise of 12.23%, indicating recent beat-driven earnings momentum that supports valuation upside near term.
Cash flow and liquidity: Free cash flow $59,306,000 with free cash flow yield 1.539% (above the industry peer mean of 0.813%). Cash and short-term investments total $475,527,000 and the cash ratio equals 1.07; current ratio 2.09 and quick ratio 1.90. Low leverage (total debt $1,664,000; debt-to-assets 0.15%) leaves the company well positioned to fund capacity investments or M&A without material liquidity strain.
Returns: Return on equity 8.03% and return on assets 4.78%, both positive and supported by a solid operating margin profile. Interest coverage at 168.20x removes financial stress from near-term operating plans.
Valuation metrics: P/E ~75.67 and P/B ~6.02; enterprise multiple ~51.78. The P/E sits below the industry peer mean P/E of 106.03 while the price-to-book ratio remains below the industry peer mean of 8.09. Free cash flow yield exceeds the industry peer mean. The current valuation, as determined by WMDST, rates the stock as under-valued based on margin strength, cash reserves and low leverage counterbalancing elevated absolute multiples.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-18 |
| NEXT REPORT DATE: | 2026-02-17 |
| CASH FLOW | Begin Period Cash Flow | $ 398.5 M |
| Operating Cash Flow | $ 61.1 M | |
| Capital Expenditures | $ -1.77 M | |
| Change In Working Capital | $ 8.3 M | |
| Dividends Paid | $ -3.23 M | |
| Cash Flow Delta | $ 52.3 M | |
| End Period Cash Flow | $ 450.7 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 298.0 M | |
| Forward Revenue | $ 54.4 M | |
| COSTS | ||
| Cost Of Revenue | $ 204.5 M | |
| Depreciation | $ 2.0 M | |
| Depreciation and Amortization | $ 2.0 M | |
| Research and Development | $ 3.1 M | |
| Total Operating Expenses | $ 234.7 M | |
| PROFITABILITY | ||
| Gross Profit | $ 93.5 M | |
| EBITDA | $ 65.3 M | |
| EBIT | $ 63.2 M | |
| Operating Income | $ 63.2 M | |
| Interest Income | $ 4.3 M | |
| Interest Expense | — | |
| Net Interest Income | $ 4.3 M | |
| Income Before Tax | $ 67.5 M | |
| Tax Provision | $ 16.1 M | |
| Tax Rate | 23.865 % | |
| Net Income | $ 51.4 M | |
| Net Income From Continuing Operations | $ 51.4 M | |
| EARNINGS | ||
| EPS Estimate | $ 3.76 | |
| EPS Actual | $ 4.22 | |
| EPS Difference | $ 0.46 | |
| EPS Surprise | 12.234 % | |
| Forward EPS | $ 3.11 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 1.1 B | |
| Intangible Assets | $ 12.3 M | |
| Net Tangible Assets | $ 628.5 M | |
| Total Current Assets | $ 931.7 M | |
| Cash and Short-Term Investments | $ 475.5 M | |
| Cash | $ 450.7 M | |
| Net Receivables | $ 217.1 M | |
| Inventory | $ 84.7 M | |
| Long-Term Investments | $ 18.9 M | |
| LIABILITIES | ||
| Accounts Payable | $ 67.1 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 446.4 M | |
| Net Debt | — | |
| Total Debt | $ 1.7 M | |
| Total Liabilities | $ 468.2 M | |
| EQUITY | ||
| Total Equity | $ 640.8 M | |
| Retained Earnings | $ 629.8 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 53.09 | |
| Shares Outstanding | 12.070 M | |
| Revenue Per-Share | $ 24.69 | |
| VALUATION | Market Capitalization | $ 3.9 B |
| Enterprise Value | $ 3.4 B | |
| Enterprise Multiple | 51.775 | |
| Enterprise Multiple QoQ | 35.834 % | |
| Enterprise Multiple YoY | 15.437 % | |
| Enterprise Multiple IPRWA | high: 238.157 median: 95.909 mean: 82.873 POWL: 51.775 low: -194.359 |
|
| EV/R | 11.345 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.731 | |
| Asset To Liability | 2.369 | |
| Debt To Capital | 0.003 | |
| Debt To Assets | 0.002 | |
| Debt To Assets QoQ | 28.205 % | |
| Debt To Assets YoY | 134.375 % | |
| Debt To Assets IPRWA | high: 0.576 mean: 0.281 median: 0.276 low: 0.008 POWL: 0.002 |
|
| Debt To Equity | 0.003 | |
| Debt To Equity QoQ | 26.214 % | |
| Debt To Equity YoY | 111.382 % | |
| Debt To Equity IPRWA | high: 2.281 mean: 0.625 median: 0.596 POWL: 0.003 low: -0.111 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 6.015 | |
| Price To Book QoQ | 28.269 % | |
| Price To Book YoY | -1.671 % | |
| Price To Book IPRWA | high: 15.938 mean: 8.093 median: 7.578 POWL: 6.015 low: -2.447 |
|
| Price To Earnings (P/E) | 75.674 | |
| Price To Earnings QoQ | 44.255 % | |
| Price To Earnings YoY | 15.739 % | |
| Price To Earnings IPRWA | high: 276.29 median: 119.759 mean: 106.025 POWL: 75.674 low: -111.167 |
|
| PE/G Ratio | 11.525 | |
| Price To Sales (P/S) | 12.935 | |
| Price To Sales QoQ | 32.729 % | |
| Price To Sales YoY | 20.396 % | |
| Price To Sales IPRWA | high: 136.276 median: 20.435 mean: 19.799 POWL: 12.935 low: 1.381 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 82.721 | |
| Forward PE/G | 12.598 | |
| Forward P/S | 70.819 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.269 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.277 | |
| Asset Turnover Ratio QoQ | -2.858 % | |
| Asset Turnover Ratio YoY | -9.497 % | |
| Asset Turnover Ratio IPRWA | high: 0.47 POWL: 0.277 mean: 0.184 median: 0.172 low: 0.002 |
|
| Receivables Turnover | 1.39 | |
| Receivables Turnover Ratio QoQ | 0.573 % | |
| Receivables Turnover Ratio YoY | -2.038 % | |
| Receivables Turnover Ratio IPRWA | high: 2.016 POWL: 1.39 mean: 1.278 median: 1.266 low: 0.589 |
|
| Inventory Turnover | 2.36 | |
| Inventory Turnover Ratio QoQ | 5.623 % | |
| Inventory Turnover Ratio YoY | 3.691 % | |
| Inventory Turnover Ratio IPRWA | high: 2.805 POWL: 2.36 mean: 0.944 median: 0.938 low: 0.265 |
|
| Days Sales Outstanding (DSO) | 65.638 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 74.831 | |
| Cash Conversion Cycle Days QoQ | 0.278 % | |
| Cash Conversion Cycle Days YoY | 9.708 % | |
| Cash Conversion Cycle Days IPRWA | high: 432.662 mean: 111.206 median: 88.63 POWL: 74.831 low: -11.304 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.614 | |
| CapEx To Revenue | -0.006 | |
| CapEx To Depreciation | -0.863 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 640.8 M | |
| Net Invested Capital | $ 640.8 M | |
| Invested Capital | $ 640.8 M | |
| Net Tangible Assets | $ 628.5 M | |
| Net Working Capital | $ 485.3 M | |
| LIQUIDITY | ||
| Cash Ratio | 1.065 | |
| Current Ratio | 2.087 | |
| Current Ratio QoQ | 1.342 % | |
| Current Ratio YoY | 15.054 % | |
| Current Ratio IPRWA | high: 6.647 POWL: 2.087 mean: 1.823 median: 1.358 low: 0.101 |
|
| Quick Ratio | 1.897 | |
| Quick Ratio QoQ | 2.43 % | |
| Quick Ratio YoY | 17.598 % | |
| Quick Ratio IPRWA | high: 6.355 POWL: 1.897 mean: 1.191 median: 0.845 low: 0.098 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.025 | |
| Cost Of Debt | 21.404 % | |
| Interest Coverage Ratio | 168.205 | |
| Interest Coverage Ratio QoQ | 5.191 % | |
| Interest Coverage Ratio YoY | 12.704 % | |
| Interest Coverage Ratio IPRWA | POWL: 168.205 high: 44.025 median: 20.03 mean: 16.717 low: -62.913 |
|
| Operating Cash Flow Ratio | 0.118 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 30.654 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 15.924 | |
| Dividend Payout Ratio | 0.063 | |
| Dividend Rate | $ 0.27 | |
| Dividend Yield | 0.001 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 6.406 % | |
| Revenue Growth | 4.091 % | |
| Revenue Growth QoQ | 49.143 % | |
| Revenue Growth YoY | -189.952 % | |
| Revenue Growth IPRWA | high: 73.291 % POWL: 4.091 % mean: 3.511 % median: 1.219 % low: -90.925 % |
|
| Earnings Growth | 6.566 % | |
| Earnings Growth QoQ | 66.777 % | |
| Earnings Growth YoY | -1343.561 % | |
| Earnings Growth IPRWA | high: 116.667 % mean: 11.216 % POWL: 6.566 % median: 4.068 % low: -65.517 % |
|
| MARGINS | ||
| Gross Margin | 31.386 % | |
| Gross Margin QoQ | 2.218 % | |
| Gross Margin YoY | 7.332 % | |
| Gross Margin IPRWA | high: 44.059 % median: 38.28 % mean: 36.05 % POWL: 31.386 % low: -67.869 % |
|
| EBIT Margin | 21.224 % | |
| EBIT Margin QoQ | 1.057 % | |
| EBIT Margin YoY | 4.034 % | |
| EBIT Margin IPRWA | high: 21.612 % POWL: 21.224 % median: 19.204 % mean: 12.374 % low: -667.042 % |
|
| Return On Sales (ROS) | 21.224 % | |
| Return On Sales QoQ | 1.057 % | |
| Return On Sales YoY | 4.034 % | |
| Return On Sales IPRWA | high: 22.513 % POWL: 21.224 % median: 19.562 % mean: 13.777 % low: -654.394 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 59.3 M | |
| Free Cash Flow Yield | 1.539 % | |
| Free Cash Flow Yield QoQ | 1.584 % | |
| Free Cash Flow Yield YoY | -414.724 % | |
| Free Cash Flow Yield IPRWA | high: 13.007 % POWL: 1.539 % median: 0.821 % mean: 0.813 % low: -10.764 % |
|
| Free Cash Growth | 40.319 % | |
| Free Cash Growth QoQ | -69.111 % | |
| Free Cash Growth YoY | -118.6 % | |
| Free Cash Growth IPRWA | high: 286.648 % median: 63.827 % mean: 40.609 % POWL: 40.319 % low: -374.035 % |
|
| Free Cash To Net Income | 1.153 | |
| Cash Flow Margin | 17.692 % | |
| Cash Flow To Earnings | 1.025 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 4.781 % | |
| Return On Assets QoQ | -0.499 % | |
| Return On Assets YoY | -6.712 % | |
| Return On Assets IPRWA | high: 8.858 % POWL: 4.781 % median: 2.489 % mean: 1.233 % low: -36.697 % |
|
| Return On Capital Employed (ROCE) | 9.545 % | |
| Return On Equity (ROE) | 0.08 | |
| Return On Equity QoQ | -1.024 % | |
| Return On Equity YoY | -15.819 % | |
| Return On Equity IPRWA | high: 0.513 POWL: 0.08 median: 0.054 mean: 0.042 low: -0.583 |
|
| DuPont ROE | 8.323 % | |
| Return On Invested Capital (ROIC) | 7.515 % | |
| Return On Invested Capital QoQ | -1.183 % | |
| Return On Invested Capital YoY | -162.945 % | |
| Return On Invested Capital IPRWA | POWL: 7.515 % high: 6.49 % mean: 3.65 % median: 3.608 % low: -10.193 % |
|