Power Integrations, Inc. (POWI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Power Integrations, Inc.

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Wolfspeed, Inc.

Why is Power Integrations, Inc. ?

High Management Efficiency with a high ROE of 12.28%

Company has a low Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -1.91% and Operating profit at -13.07% over the last 5 years

Flat results in Dec 25

ROCE(HY) Lowest at 3.11%
CASH AND EQV(HY) Lowest at USD 491.37 MM
DEBT-EQUITY RATIO (HY) Highest at -34.28 %

With ROE of 6.97%, it has a very expensive valuation with a 3.86 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -9.26%, its profits have risen by 45.5% ; the PEG ratio of the company is 1.1

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.26% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Power Integrations, Inc. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Power Integrations, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Power Integrations, Inc.

-9.26%

-0.61

54.65%

S&P 500

11.87%

0.62

19.30%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.91%

EBIT Growth (5y)

-13.07%

EBIT to Interest (avg)

94.11

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.39

Sales to Capital Employed (avg)

0.60

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

214.18%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

24.28%

ROE (avg)

12.28%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.86

EV to EBIT

67.13

EV to EBITDA

37.28

EV to Capital Employed

5.51

EV to Sales

5.30

PEG Ratio

1.12

Dividend Yield

1.85%

ROCE (Latest)

8.21%

ROE (Latest)

6.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 111.52 MM

OPERATING PROFIT MARGIN(Q)

Highest at 16.24 %

NET PROFIT(Q)

Highest at USD 14.67 MM

EPS(Q)

Highest at USD 0.24

-5What is not working for the Company

ROCE(HY)

Lowest at 3.11%

CASH AND EQV(HY)

Lowest at USD 491.37 MM

DEBT-EQUITY RATIO (HY)

Highest at -34.28 %

NET SALES(Q)

Lowest at USD 103.2 MM

Here's what is working for Power Integrations, Inc.

Operating Cash Flow

Highest at USD 111.52 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Operating Profit Margin

Highest at 16.24 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at USD 14.67 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Net Profit

At USD 14.67 MM has Grown at 41.79%

over average net sales of the previous four periods of USD 10.34 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.24

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Here's what is not working for Power Integrations, Inc.

Net Sales

Lowest at USD 103.2 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Cash and Eqv

Lowest at USD 491.37 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -34.28 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio