Powell Industries, Inc. (POWL) Fundamental Checkup
Powell Industries, Inc. fundamental checkup using revenue growth, EPS growth, free cash flow, margins, ROIC, debt-to-equity, and TGMCharts chart exhibits as of September 1, 2026.
By TGMCharts Research · Data as of · Updated
Powell Industries, Inc. exhibits exceptional operational execution, with five-year revenue growth of 20.49% converting into a five-year EPS CAGR of 59.98% and a free-cash-flow CAGR of 38.80%. This expansion is backed by a solid net margin of 16.49% and an ROIC of 22.63%, demonstrating high operational quality.
The company's rapid growth has not compromised its financial health. With a current ratio of 1.97x and a debt-to-equity ratio of 0.00x, the balance sheet provides substantial flexibility, though the market valuation of 33.00x trailing earnings leaves a limited margin of safety.
- Powell Industries, Inc. has market cap of $6.27B and closed at $172 on September 1, 2026.
- Five-year revenue CAGR is 20.49% and five-year EPS CAGR is 59.98%.
- Five-year free-cash-flow CAGR is 38.80%.
- Net margin is 16.49% and ROIC is 22.63%.
- Current ratio is 1.97x and debt-to-equity is 0.00x.
Fundamental snapshot
The valuation, growth, profitability, and balance-sheet facts behind the checkup.
An Integrated Assessment of Expansion and Efficiency
To understand the operational health of Powell Industries, Inc., analysts must look beyond isolated metrics and evaluate whether its top-line expansion, cash generation, capital returns, and balance-sheet strength present a unified fundamental narrative. The stock finished at $172 on September 1, 2026, reflecting a valuation that incorporates significant expectations. This analysis dissects the underlying financial architecture to determine if the business fundamentals support this market position.
The core of the thesis rests on a five-year revenue CAGR of 20.49% and a five-year EPS CAGR of 59.98%. These growth rates are evaluated alongside a five-year free-cash-flow CAGR of 38.80% to confirm that reported earnings are backed by hard cash. When these dimensions align, they indicate an enterprise operating with high efficiency, whereas divergences would suggest potential structural friction.
Current compounder snapshot · POWL
Live supporting context; not part of the article's frozen 2026-09-01 evidence snapshot.
- Score
- 23/100
- 10Y CAGR
- 5.3%
- Median YoY
- 9.7%
- YoY volatility
- σ 24.2pp· choppy
- Quarters ≥ 20%
- 15 of 40
- Negative quarters
- 14
- Valuation vs own 10Y history
- P/S 5.4x · 10Y median 0.9x · 94th percentile · as of Sep 1, 2026
How this score is computed
- Quarters at or above 20%: 15 of 40 → 15 of 40 pts
- Steadiness (typical swing 24.2pp) → 7.7 of 25 pts
- Pace (median 9.7% YoY) → 0 of 20 pts
- Latest quarter (8.9% YoY) → 0 of 15 pts
- Score: 23 of 100
Annualized revenue (TTM) · by quarter, last 40
Quarterly YoY revenue growth vs the 20% line
P/S multiple vs its 10Y median
Broad Operational Performance and Market Context
As an industrial equipment manufacturer, Powell Industries, Inc. operates in the cyclical Industrials sector, where capital expenditure cycles directly impact order books. The company currently commands a market capitalization of $6.27B, positioning it as a major player in its specialized niche. This baseline snapshot integrates valuation, growth, and efficiency metrics to establish a comprehensive foundation before examining individual financial statements.
Fundamental evidence table
A compact cross-check of valuation, growth, quality, and financial flexibility.
POWL revenue
Revenue history shows whether the business has been expanding before margins and per-share metrics are considered.
Five-year revenue CAGR: 20.49%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Five-year revenue CAGR of 20.49% is the top-line test. A fundamental checkup becomes more durable when revenue growth is paired with earnings growth instead of depending only on margin expansion.
Translating Top Line Expansion into Shareholder Returns
A key marker of fundamental strength is a company's ability to translate top-line growth into bottom-line profitability. Over the past five years, Powell Industries, Inc. has expanded its revenue at a CAGR of 20.49%. This steady demand has translated into an EPS CAGR of 59.98% over the same period, indicating substantial operating leverage. When earnings grow faster than sales, it typically points to improved capacity utilization and disciplined overhead management.
POWL EPS
EPS history shows how much of the business growth has reached shareholders.
Five-year EPS CAGR: 59.98%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Five-year EPS CAGR of 59.98% is the shareholder conversion check. If EPS grows faster than revenue, the note should ask whether that came from margin quality, buybacks, or a temporary base effect.
Verifying Net Income Quality with Cash Flow
Earnings can sometimes be affected by non-cash accounting items, making free cash flow the ultimate arbiter of corporate performance. For Powell Industries, Inc., the five-year free-cash-flow CAGR stands at 38.80%. While this rate is below the five-year EPS CAGR of 59.98%, it still represents robust cash generation that confirms the validity of the reported earnings. This strong cash conversion provides the company with the self-funding capacity needed to navigate industrial cycles.
POWL free cash flow
Free cash flow checks whether earnings are converting into owner cash.
Five-year free-cash-flow CAGR: 38.80%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Free-cash-flow CAGR of 38.80% is the counterweight to the EPS story. If cash flow lags earnings, the quality of the fundamental setup deserves a more cautious reading.
Evaluating Capital Returns and Profitability Margins
Operating efficiency is highlighted by the company's profitability and return profiles. Powell Industries, Inc. has achieved a net margin of 16.49%, demonstrating strong cost control in a competitive industrial landscape. Furthermore, its return on invested capital (ROIC) stands at 22.63%, indicating that the business generates high returns on the debt and equity capital deployed in its operations. This capital efficiency suggests that future expansion will continue to create shareholder value.
POWL net margin
Net margin is the operating-quality check behind the growth record.
Net margin (TTM): 16.49%. The bars below are annual fiscal years.
Net margin of 16.49% shows how much revenue becomes profit. The checkup is stronger when margin quality supports EPS growth rather than simply flattering one recent period.
POWL ROIC
ROIC tests whether the business earns enough on reinvested capital to deserve attention.
Latest ROIC: 22.63%.
ROIC of 22.63% is the reinvestment-quality check. A business with stronger returns can support a better long-term read even when the valuation is not obviously cheap.
Assessing Liquidity and Debt Obligations
A strong growth profile is of little value if a company is burdened by excessive leverage or poor liquidity. On this front, Powell Industries, Inc. maintains an exceptionally conservative capital structure, with a debt-to-equity ratio of 0.00x, meaning the company carries no long-term debt. This is paired with a current ratio of 1.97x, which indicates a highly liquid balance sheet capable of meeting short-term obligations and funding working capital needs without external financing.
POWL debt-to-equity Chart
Debt-to-equity keeps the checkup honest about balance-sheet flexibility.
Latest debt-to-equity ratio: 0.00x.
Debt-to-equity of 0.00x and current ratio of 1.97x are the balance-sheet checks. They matter because growth and margins are less valuable if financial flexibility is narrowing.
The Premium Placed on Current Earnings
The market has recognized these strong operational achievements, pricing the stock at a trailing price-to-earnings multiple of 33.00x. This multiple corresponds to an earnings yield of 3.03%. A valuation of this magnitude indicates that investors are pricing in continued high-double-digit growth, leaving little room for operational missteps or cyclical downturns in the broader industrial sector.
POWL Price Chart
Latest close: $172 as of September 1, 2026.
The close at $172 is not the conclusion, but it is the market reference point. The fundamental read has to explain whether growth, margins, and balance-sheet support justify the price investors are paying.
Weighing Balance Sheet Security Against Valuation Risks
The optimistic view of the company is supported by its zero-debt balance sheet, high cash generation, and an ROIC of 22.63%, which suggest the business can easily fund its own growth. Conversely, the primary risk stems from the current market price, which sits above the analyst DCF (FMP) reference estimate. With a trailing P/E of 33.00x, any deceleration in the five-year revenue CAGR of 20.49% could lead to significant multiple contraction, even if the underlying business remains highly profitable.
Bull and bear case
Fundamental support
- Five-year revenue CAGR of 20.49% and five-year EPS CAGR of 59.98% support the business case.
- Net margin of 16.49% and ROIC of 22.63% are the quality checks behind the thesis.
Fundamental pressure
- Free-cash-flow CAGR of 38.80% can weaken the read if it falls away from EPS growth.
- Debt-to-equity of 0.00x and current ratio of 1.97x are the balance-sheet checks that can change the view.
Framework for Ongoing Fundamental Monitoring
In conclusion, Powell Industries, Inc. represents a highly efficient, cash-generative business with an exemplary balance sheet, though its current market valuation demands flawless execution. This fundamental assessment remains valid based on the financial data available as of September 1, 2026. A future reassessment would be required if there is a meaningful decline in the net margin of 16.49% or if the company begins to accumulate debt, altering its conservative risk profile.
FAQ
What is the fundamental read on POWL?
Powell Industries, Inc. is judged through revenue growth of 20.49%, EPS growth of 59.98%, free-cash-flow growth of 38.80%, net margin of 16.49%, and ROIC of 22.63%.
Which POWL fundamental metric matters most?
No single metric carries the article. The checkup requires growth, cash conversion, profitability quality, balance-sheet flexibility, and valuation to be read together.
When should this POWL checkup refresh?
Its figures are as of September 1, 2026, the note's dated snapshot; a note whose figures stop verifying against reported data is corrected or unpublished.
What would change our mind
- Revenue growth moving away from the current five-year CAGR of 20.49%.
- Free-cash-flow growth drifting away from five-year EPS CAGR of 59.98%.
- ROIC or balance-sheet flexibility weakening from ROIC of 22.63% and debt-to-equity of 0.00x.
The bottom line
Powell Industries, Inc. fundamental research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Read next: POWL fundamentalsContinue with Powell Industries, Inc.'s full stock page.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-08-04 · period 2026-06-30 · SEC EDGAR source
- “Domestic revenue increased by 12%, or $26.1 million, to $250.6 million in the third quarter of Fiscal 2026.”
- “International revenue decreased slightly by 1%, or $0.6 million, to $61.1 million in the third quarter of Fiscal 2026.”
- “Revenue from the oil and gas market (excluding petrochemical) increased 1%, or $0.8 million, to $106.3 million.”
- “Revenue from all other markets combined increased 23%, or $2.6 million, to $14.1 million in the third quarter of Fiscal 2026.”
Source pages
Exhibit sources
Research trail
Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.