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Powell Industries Inc (POWL) Fair Value & Analysis

Industrials · US · Market cap $9.0B · ISIN US7391281067

What is Powell Industries Inc really worth?

PI Powell Industries Inc logo Powell Industries Inc POWL · US
Price$175.16
Fair Value$88.39
Upside−49.5%
Quality69/100

A solid business, but trading 98% above our fair value of $88.39.

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Strengths

Healthy Growth (revenue 5y +16.3 %/yr)
Solidly profitable · 16.5% net margin
Low debt · generates free cash flow
Wide moat 75/100

Risks

!Mixed vs. peers (6/15)
!Weak on dividend: 4 out of 100

For context

·0.20% dividend yield
Evidence: High Range $60.34 – $112.74

Fair value as of: Aug 23, 2026

From 24 valuation models · updated 13 days ago

Share price −17.1% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case ($112.74). The favourable scenario is already priced in.
  • Solid but not exceptional quality (69/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range ($60.34 to $112.74) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

$321.94 $5.95 Fair Value $88.39 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 23, 2026.

How to read this chart

60‑month range $5.95 – $321.94 · fair‑value band $60.34 – $112.74 · the $175.16 price screens above the $88.39 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 23, 2026.

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Analysis

Powell Industries Inc (POWL) currently trades at $175.16, while our model-based Fair Value estimate is $88.39, implying the stock looks roughly 98.2% overvalued today. The Quality Score stands at 69/100 (solid quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of $91.51 per share, and 0 of the 24 models we run sit above the $175.16 price. Bear case: the Asset-Based group reads lowest at $11.78, and 24 of the 24 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Powell Industries Inc generated revenue of $1.1B at a net margin of 16.5%. Revenue grew 6.5% year over year. It earns a return on equity of 29.9%. The balance sheet holds a net cash position of $449M. Fundamentals as of Aug 23, 2026

Our scenario range runs from $60.34 (bear case) to $112.74 (bull case); at $175.16, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 47% below its 52-week high and 210% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −44% fair-value upside, at −50%, POWL screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 11 months have passed since. In that time the company retained roughly $4.43 per share, which is 5.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence $59.91 $88.03 $130.86 80
Growth DCF $60.25 $87.49 $128.35 78
Owner Earnings $66.08 $97.84 $146.23 76
All 24 models by family
DCF Models
FCF DCF best evidence $59.91 $88.03 $130.86 80
Owner Earnings $66.08 $97.84 $146.23 76
5Y Revenue Exit $52.90 $77.18 $108.44 73
5Y EBITDA Exit $64.12 $98.76 $139.94 75
5Y P/E Exit $74.49 $118.74 $166.47 70
10Y Revenue Exit $53.85 $76.63 $108.00 67
10Y EBITDA Exit $62.07 $91.51 $132.14 68
10Y P/E Exit $68.62 $105.28 $152.47 63
Earnings-Based
Graham-Dodd $33.74 $120.01 $161.60 64
Lynch FV $28.20 $40.29 $52.37 61
PEG = 1.0 $28.20 $40.29 $52.37 57
EPV $53.55 $60.05 $65.66 74
Multiples
P/E Multiple $78.14 $104.19 $130.23 63
P/S Multiple $45.47 $60.62 $75.78 58
P/B Multiple $59.36 $79.15 $98.93 55
EV/EBIT $88.61 $114.02 $139.44 66
EV/EBITDA $72.61 $92.69 $112.78 67
EV/Revenue $50.55 $66.92 $83.29 54
Asset-Based
NCAV (Graham) $8.79 $11.78 $17.59 54
Growth DCF
Growth DCF $60.25 $87.49 $128.35 78
Rev-Margin DCF $52.90 $77.20 $106.23 73
Economic Profit
Residual Income $32.46 $44.54 $279.70 64
ROIC Compounder $55.17 $63.83 $72.62 72
Growth Earnings
Growth-Adj P/E $54.21 $77.45 $100.68 67

Widest divergence: DCF Models ($91.51) versus Asset-Based ($11.78). Highest evidence: FCF DCF (80).

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Key figures & financial health

P/E ratio 32.4
P/S ratio 5.30 P/E × margin
EPS (TTM) $5.41 price ÷ EPS = P/E 32.4
Dividend yield 0.2% payout 6.6%
Net margin 16.4% FY2025
Return on equity 29.9% TTM
More key figures
Profitability
Return on assets (EBIT) 9.8% avg 5y
Operating margin 19.4% TTM
Growth
Revenue (TTM) $1.1B TTM
Revenue growth (YoY) +6.5% 3y avg +27.5%
EPS growth (YoY) −1.6%
Balance sheet & cash flow
Free cash flow $155M FY2025
Net cash $449M FY2025

Figures from reported company fundamentals · as of Aug 23, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 69/100

Of which business quality 70 · Market factors (momentum, volatility) 47

Profitability 77
Margins and returns on capital today
Quality Growth 52
Are margins and returns improving?
Cashflow 61
Earnings quality: real cash, not paper profit
Fin. Strength 97
Balance sheet, leverage, solvency risk
Investment 33
Disciplined investing over empire-building
Low Volatility 26
Calm price path (market factor)
Momentum 48
Price trend over the last 3–12 months (market factor)
52W Momentum 71
Distance to the 52-week high (market factor)
Net Issuance 79
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Powell Industries, Inc., together with its subsidiaries, designs, develops, manufactures, sells, and services custom-engineered equipment and systems.

Full company description

Powell Industries, Inc., together with its subsidiaries, designs, develops, manufactures, sells, and services custom-engineered equipment and systems. The company's products portfolio includes integrated power control room substations, custom-engineered modules, and electrical houses; and traditional and arc-resistant distribution switchgears and control gears, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers, switches, and bus duct systems. It also provides field service inspection, installation, commissioning, modification, and repair services; spare parts; retrofit and retrofill components for existing systems; and replacement circuit breakers for switchgears. The company serves onshore and offshore production, liquefied natural gas facilities and terminals, pipelines and refineries, petrochemical, electric utility, light rail traction power, mining and metals, pulp and paper, data centers, commercial construction, and other industrial markets, as well as universities and government entities. It operates in the United States, Canada, the Middle East, Africa, Europe, Mexico, the Asia/Pacific, and Central and South America. Powell Industries, Inc. was founded in 1947 and is headquartered in Houston, Texas.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Powell Industries Inc reported revenue of $1.1B in FY2025 versus $471M in FY2021, a compound +23.8%/yr. Reported net income was $181M in FY2025, compounding +311.4%/yr from FY2021. FY2021 was a trough year, so the rate overstates the trend.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
$1.1B
Latest YoY
+9.1%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+27.5%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+16.3%
Avg. revenue growth/yr (40Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.3%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+42.5% (42.3 + 0.2)
Revenue +23.8%/yr
FY21 $471M
FY22 $533M
FY23 $699M
FY24 $1.0B
FY25 $1.1B
Net income +311.4%/yr
FY21 $631K
FY22 $13.7M
FY23 $54.5M
FY24 $150M
FY25 $181M
Character of growth · EPS growth decomposed (2014-2025) +20.6 % p.a.
Revenue per share +1.5 %

of which total revenue +4.6 % · buybacks/dilution −3.0 %

EBIT margin +18.6 %
Tax rate +1.6 %
Residual (interest, one-offs) −1.4 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

POWL screens 98% overvalued. Compare with Contemporary Amperex Technology Co →

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Cite: Fair Value Calculator (2026). "Powell Industries Inc Fair Value". https://www.fairvalue-calculator.com/stock/POWL

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Electrical Equipment & Parts · 542 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 69 · Top 25%
Fair Value upside −50% · Below median
Return on equity (TTM) 30% · Top 25%
Return on assets 13% · Top 25%
Net margin (TTM) 17% · Top 25%
Operating margin (TTM) 19% · Top 25%
Revenue growth 7% · Below median
Dividend yield (TTM) 0.2% · Bottom 25%
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

P/E (TTM) 32.4× · Pricier than median
P/B 14.04× · Pricier than 75% of peers
P/S (TTM) 7.95× · Pricier than 75% of peers
P/FCF 58.1× · Pricier than 75% of peers
EV/EBITDA 36.9× · Pricier than 75% of peers
PEG 2.49× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE33 · sector 56
PAST100 · sector 26
HEALTH100 · sector 97
DIVIDEND4 · sector 23

VALUE 0: the price sits above our fair-value range.

Insider activity: 42/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Aug 23, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$652.50 HK$394.19 −40%
ABB Ltd ABBN CHF 80.10 CHF 28.70 −64%
Delta Electronics (Thailand) Public Company TDED 10.40 SGD 1.47 SGD −86%
Vertiv Holdings VRT $257.08 $63.13 −75%
LG Energy Solution, Ltd 373220 365,500 KRW 201,455 KRW −45%
Prysmian S.p.A PRY €117.10 €84.15 −28%
Legrand SA LR €139.65 €78.82 −44%
Sungrow Power Supply Co 300274 ¥86.40 ¥123.83 +43%
Hubbell Incorporated HUBB $443.31 $285.77 −36%
Shenzhen Inovance Technology Co 300124 ¥61.07 ¥33.04 −46%

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Frequently asked questions

Is Powell Industries Inc (POWL) overvalued or undervalued?
As of Aug 23, 2026, our model estimates a fair value of $88.39 versus a price of $175.16, about −50% upside (overvalued).
What is the fair value of POWL?
Our model-based fair value for Powell Industries Inc is $88.39 (as of Aug 23, 2026), built from audited fundamentals. The current price: $175.16.
What is the quality score of POWL?
Powell Industries Inc has a Quality Score of 69/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Powell Industries Inc (POWL)?
Powell Industries Inc reported trailing-twelve-month revenue of about $1.1B (latest available figure, as of Aug 23, 2026).
What is the net profit margin of POWL?
The net profit margin of Powell Industries Inc is about 16.5%, meaning it keeps roughly 16.5% of revenue as net income. Based on the latest reported figures.
Does Powell Industries Inc pay a dividend?
Powell Industries Inc currently shows a dividend yield of about 0.20% relative to its recent price (as of Aug 23, 2026).
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