Power Solutions International, Inc. (PSIX) stock analysis
Close on Nov 11, 2026Market cap $915.70MP/E 13.0Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Solid16 of 30 checks passed
Power Solutions International passes 16 of the 30 checks behind our score; 9 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 4/6
- Growth
- 2/6
- Past performance
- 4/6
- Financial health
- 6/6
- Dividend
- 0/6
What stands out
Margin of safety over 20%
The price is 22.5% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $39.70 is below our fair value estimate of $51.23.
Return on capital over 10%
Return on invested capital was 53.9%, above the 10% that usually covers the cost of capital.
Low debt
Debt is 0.4% of shareholders' equity, under the 40% we consider low.
What to watch
P/E above its 5-year median
Power Solutions International's P/E of 13.0 is above its own 5-year median of 9.2.
P/B above the industry
Power Solutions International's price-to-book of 3.93 is above the Industrial and Commercial Machinery and Computer Equipment median of 2.71.
Growing slower than the industry
Revenue grew -0.2% over the last twelve months; the Industrial and Commercial Machinery and Computer Equipment median is 10.1%.
Gross margin slipping
Gross margin was 25.6% over the last twelve months, against 27.6% a year earlier.
Valuation4/6
P/E above its 5-year median
Power Solutions International's P/E of 13.0 is above its own 5-year median of 9.2.
P/E below the industry
Power Solutions International's P/E of 13.0 is below the Industrial and Commercial Machinery and Computer Equipment median of 27.5.
EV/EBITDA below its 5-year median
Power Solutions International's EV/EBITDA of 8.4 is below its 5-year median of 9.8.
P/B above the industry
Power Solutions International's price-to-book of 3.93 is above the Industrial and Commercial Machinery and Computer Equipment median of 2.71.
Trading below fair value
The share price of $39.70 is below our fair value estimate of $51.23.
Margin of safety over 20%
The price is 22.5% below fair value, more than the 20% cushion we look for.
Growth2/6
Revenue growing 10%+ a year
Revenue grew 14.5% a year over the last three fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 116% a year over the last three fiscal years.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew -0.2% over the last twelve months; the Industrial and Commercial Machinery and Computer Equipment median is 10.1%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin slipping
Gross margin was 25.6% over the last twelve months, against 27.6% a year earlier.
Past performance4/6
Return on equity
Needs positive equity and five years of results.
Return on capital over 10%
Return on invested capital was 53.9%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Power Solutions International's return on equity of 35.5% is above the Industrial and Commercial Machinery and Computer Equipment median of 7.0%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 10.4% over the last twelve months, against a 5-year average of 5.6%.
Net margin above the industry
Power Solutions International's net margin of 10.4% is above the Industrial and Commercial Machinery and Computer Equipment median of 4.8%.
Financial health6/6
Low debt
Debt is 0.4% of shareholders' equity, under the 40% we consider low.
Debt falling against equity
Debt to equity fell from 2150% five years ago to 0.4%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 12583% of total debt.
Interest well covered
Operating income covers interest expense 17.0 times.
Short-term assets cover short-term debts
Current assets are 2.43 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 5.36; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Power Solutions International has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$51.23
The share price is 23% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 18.3× | 9.2× | 27.5× | $55.69 | 44% |
| EV/EBITDA | 12.9× | 9.8× | 16.1× | $59.40 | 39% |
| Earnings power | 11.2% cost of equity | – | – | $20.24 | 17% |
| Fair value | $51.23 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 9.2
- Industrial and Commercial Machinery and Computer Equipment median 27.5
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $22.55M
- Value traded per 1% price move
- $4.56M
Downside
High risk
- Typical loss in a bad month
- 50.5%
- Volatility (annualized)
- 105%
- Sharpe ratio, 1 year
- -0.41
- Beta to the S&P 500 (5Y)
- 1.27
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +51.8% | +14.5% | +11.6% | +7.1% | |
| Gross profit | +31.6% | +27.8% | +25.9% | +13.7% | |
| Operating income | +34.4% | +64.6% | – | – | |
| Net income | +64.5% | +116.3% | – | – | |
| EPS, diluted | +64.1% | +116.0% | – | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | -75.6% | -132.9% | 93.5% | |
| Return on assets | -15.4% | -7.7% | 30.3% | |
| Current ratio | 1.85 | 0.85 | 3.15 | |
| Debt to equity | 3.07 | 21.50 | 0.00 | |
| Interest coverage | -2.3× | -3.8× | 16.4× | |
| Inventory turnover | 2.4× | 3.3× | 4.9× | |
| Diluted shares | 11M | 23M | 23M |
Cash use needs five years of cash flow figures
Power Solutions International does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 15.8% | 1.92× | 3.09× | 93.5% |
| FY2024 | 14.6% | 1.55× | 9.99× | 225.9% |
| FY2023 | 5.7% | 1.52× | -17.62× | -153.4% |
| FY2022 | 2.3% | 1.55× | -8.57× | -31.1% |
| FY2021 | -10.6% | 1.56× | -16.27× | 269.8% |
| FY2020 | -5.5% | 1.40× | 17.28× | -132.9% |
| FY2019 | 1.5% | 1.81× | 60.85× | 166.3% |
| FY2018 | -11.0% | 1.85× | 39.50× | -805.1% |
| FY2017 | -11.4% | 1.63× | 7.02× | -130.7% |
| FY2016 | -14.0% | 1.10× | 4.93× | -75.6% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$113.99M
- Cash generatingOperating cash flow above zero$24.11M
- Return on assets improvedROA up on the prior year24.4% → 34.7%
- Earnings backed by cashOperating cash flow above net income$24.11M vs $113.99M
- Less leverageLong-term debt to assets fell0.0% → 0.0%
- Better liquidityCurrent ratio rose1.12 → 3.15
- No dilutionShare count did not rise23M → 23M
- Gross margin improvedGross margin up on the prior year29.53% → 25.59%
- More efficientAsset turnover rose1.67 → 2.20
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