# Powell Industries (POWL.US)

Canonical: https://gigainvestors.com/s/POWL

Analysis as of: 2026-10-16T07:31:16.961Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $170.82 per share; close as of 2026-10-15.

Estimated value: low $48.19 per share, central $57.96 per share, high $64.96 per share. Buy at or below the central value $57.96 per share. Valuation as of 2026-10-16T07:31:16.961Z; scenarios are not confidence intervals.

Expected annual return: 4.9% at the stated quote. About 4.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 2

- Operating margin variation: 1.54×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.05×

- FY2018: -0.02×

- FY2019: 0.02×

- FY2020: 0.04×

- FY2021: 0.00×

- FY2022: 0.01×

- FY2023: 0.09×

- FY2024: 0.18×

- FY2025: 0.20×

- LTM to Jun 2026: 0.20×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 5.5%

- ROIC, second-lowest year: -2.9%

- Typical minus recent gross margin: -9.5 pp

- Typical gross margin (annual median): 17.5%

- Recent gross margin (lower of latest and 3-year median): 27.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.0%

- ROIC including acquisitions, ten-year median: 10.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -6.7%

- FY2018: -2.9%

- FY2019: 5.3%

- FY2020: 13.0%

- FY2021: 0.4%

- FY2022: 4.0%

- FY2023: 74.4%

- FY2024: >100%

- FY2025: >100%

- LTM to Jun 2026: >100%

### economics: pass

- Owner earnings / net income, 5-yr: 1.04×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $415M

- Net income, five-year total: $399M

- Return on incremental invested capital: 116.2%

- Working capital / revenue, annual change: 0.8 pp

- Working capital / revenue, change between three-year averages: 5.3 pp

- Working capital / revenue, final three-year average: 35.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 12.80×

- FY2022: 1.50×

- FY2023: 1.01×

- FY2024: 1.00×

- FY2025: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: -2.9% vs 104.9%

- Per-share earnings: 0.79 to 12.29 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.2%

- Ordinary dilution, 5-year annual growth: 0.8%

- Market cap gain: $11B

- Cumulative retained earnings: $319M

- Diluted shares, 10-year annual growth: 0.2%

- Diluted shares, 5-year annual growth: 0.8%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 40.9%

- Per-share value change: $11.50

- Per-share value, starting three-year median: $0.79

- Per-share value, ending three-year median: $12.29

- Buybacks concentrated in cheaper years (correlation): 0.13

- Average buyback yield: 0.1%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: $12M

- Cumulative net income, 10 years: $425M

- ROIC, first three-year median: -2.9%

- ROIC, last three-year median: >100%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.36

- FY2017: -$0.83

- FY2018: -$0.62

- FY2019: $0.85

- FY2020: $1.42

- FY2021: $0.05

- FY2022: $1.15

- FY2023: $4.50

- FY2024: $12.29

- FY2025: $14.86

### accounting: pass

- Sloan accruals: 1.2%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 2.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.93×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -12.8%

- FY2017: -11.2%

- FY2018: 5.0%

- FY2019: -12.6%

- FY2020: -11.8%

- FY2021: 7.1%

- FY2022: 3.5%

- FY2023: -17.0%

- FY2024: 4.4%

- FY2025: 1.2%

## Holders

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 68% since Mar 2026 · "Powell Industries plunges 13% following Q3 miss; backlog hits record $2.4B" (seekingalpha.com, Aug 2026) · sales +9.1%

Story as of 2026-10-16T09:59:25.564Z; price observation 2026-10-15.

Price needs cash profits to grow 21.3% a year for ten years

- 2025-08-05: Powell (NASDAQ:POWL) Reports Sales Below Analyst Estimates In Q2 Earnings, Stock Drops 12.4% ([finance.yahoo.com](https://finance.yahoo.com/news/powell-nasdaq-powl-reports-sales-222220940.html))

- 2026-02-04: POWL Q4 Deep Dive: Backlog Expansion and Data Center Demand Drive Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/powl-q4-deep-dive-backlog-195101492.html))

- 2026-03-21: Powell Industries Highlights Record $1.6B Backlog, Data Center Wins at Sidoti Conference ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/powell-industries-highlights-record-1-190416034.html))

- 2026-05-05: Powell outlines $70M-$100M capacity option as it lands $400M+ data center mega order ([seekingalpha.com](https://seekingalpha.com/news/4586469-powell-outlines-70m-100m-capacity-option-as-it-lands-400m-data-center-mega-order?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-08-03: Powell (NASDAQ:POWL) Misses Q2 CY2026 Revenue Estimates, Stock Drops 14.2% ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/powell-nasdaq-powl-misses-q2-210645336.html))

### Sales · FY2024–2025

sales +9.1%; source https://www.sec.gov/Archives/edgar/data/80420/000008042025000152/powl-20250930.htm; observed 2025-11-19.

- FY2016: $565M 

- FY2017: $396M 

- FY2018: $449M 

- FY2019: $517M 

- FY2020: $518M 

- FY2021: $471M 

- FY2022: $533M 

- FY2023: $699M 

- FY2024: $1.0B 

- FY2025: $1.1B 

### Gross margin · FY2025

gross margin 29.4%; source https://www.sec.gov/Archives/edgar/data/80420/000008042025000152/powl-20250930.htm; observed 2025-11-19.

- FY2016: 18.8% 

- FY2017: 12.8% 

- FY2018: 14.6% 

- FY2019: 16.8% 

- FY2020: 18.2% 

- FY2021: 16.0% 

- FY2022: 16.0% 

- FY2023: 21.1% 

- FY2024: 27.0% 

- FY2025: 29.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in electrical equipment & parts; annual sales are USD 1.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/80420/000008042025000152/powl-20250930.htm (filed 2025-11-19); FY2025: revenue 1104318000; grossProfit 324381000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); POWL.US: 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.

### Why customers stay

Margins ranged from 21.1% to 29.4% during 2023–25; it earns 5.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-19); FY2023: grossProfit / revenue = 21.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-19); FY2024: grossProfit / revenue = 27%.

- Source: https://www.sec.gov/Archives/edgar/data/80420/000008042025000152/powl-20250930.htm (filed 2025-11-19); FY2025: grossProfit / revenue = 29.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-19); 10-year return on capital observations [[2016,0.0574710532101733],[2017,-0.06726764358807263],[2018,-0.02854124915838251],[2019,0.05261281840799468],[2020,0.1298158308241756],[2021,0.00388543438728222],[2022,0.03968794637951874],[2023,0.7440213325650641],[2024,1.093856336613822],[2025,1.0486517808948648]]; median 0.05504193580908399. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 9.6% of cash earnings; earns over 100% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-19); FY2016: growth capex 0; upkeep 3044000; owner earnings 25797000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-19); FY2018: growth capex 0; upkeep 4502000; owner earnings 1249000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-19); FY2019: growth capex 0; upkeep 4255000; owner earnings 17667000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-19); FY2020: growth capex 0; upkeep 5130000; owner earnings 22068000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-19); FY2021: growth capex 0; upkeep 2891000; owner earnings 8075000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-19); FY2022: growth capex 0; upkeep 2451000; owner earnings 20644000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-19); FY2023: growth capex 0; upkeep 7819000; cash acquisitions 0; owner earnings 55312000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-19); FY2024: growth capex 5112000; upkeep 6871000; cash acquisitions 0; owner earnings 149848000. Growth capex plus acquisitions / owner earnings = 0.034114569430356095.

- Source: https://www.sec.gov/Archives/edgar/data/80420/000008042025000152/powl-20250930.htm (filed 2025-11-19); FY2025: growth capex 5884000; upkeep 7265000; cash acquisitions 11488000; owner earnings 180747000. Growth capex plus acquisitions / owner earnings = 0.09611224529314456.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-19); Incremental return on capital 1.1619243516688615, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-19); Dividend observations: [[2016,11845000],[2017,11875000],[2018,11916000],[2019,11998000],[2020,12066000],[2021,12142000],[2022,12233000],[2023,12407000],[2024,12653000],[2025,12869000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/80420/000008042025000152/powl-20250930.htm (filed 2025-11-19); FY2025: cash repurchases 12248000 USD.

### Are managers owners

Insiders own 20.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); POWL.US SharesStats.PercentInsiders = 20.458000000000002 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 21.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-11-19); Ten-year compound average after fade. Initial solved rate 0.2971695347086538. Price 170.82; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.7683134279388457 → FY2025 14.855510807923071. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $35.39 per share

- 2016-11: $43.04 per share

- 2016-12: $39.00 per share

- 2017-01: $38.48 per share

- 2017-02: $32.64 per share

- 2017-03: $34.44 per share

- 2017-04: $34.49 per share

- 2017-05: $32.93 per share

- 2017-06: $31.99 per share

- 2017-07: $31.85 per share

- 2017-08: $28.47 per share

- 2017-09: $29.99 per share

- 2017-10: $28.98 per share

- 2017-11: $28.07 per share

- 2017-12: $28.65 per share

- 2018-01: $32.59 per share

- 2018-02: $26.63 per share

- 2018-03: $26.84 per share

- 2018-04: $30.05 per share

- 2018-05: $33.81 per share

- 2018-06: $34.83 per share

- 2018-07: $36.65 per share

- 2018-08: $39.15 per share

- 2018-09: $36.26 per share

- 2018-10: $29.16 per share

- 2018-11: $30.57 per share

- 2018-12: $25.01 per share

- 2019-01: $27.91 per share

- 2019-02: $32.09 per share

- 2019-03: $26.55 per share

- 2019-04: $29.25 per share

- 2019-05: $34.42 per share

- 2019-06: $38.00 per share

- 2019-07: $36.99 per share

- 2019-08: $36.32 per share

- 2019-09: $39.15 per share

- 2019-10: $39.16 per share

- 2019-11: $41.59 per share

- 2019-12: $48.99 per share

- 2020-01: $41.27 per share

- 2020-02: $33.43 per share

- 2020-03: $25.67 per share

- 2020-04: $25.37 per share

- 2020-05: $26.60 per share

- 2020-06: $27.39 per share

- 2020-07: $26.55 per share

- 2020-08: $26.99 per share

- 2020-09: $24.13 per share

- 2020-10: $23.63 per share

- 2020-11: $25.83 per share

- 2020-12: $29.49 per share

- 2021-01: $28.67 per share

- 2021-02: $31.13 per share

- 2021-03: $33.87 per share

- 2021-04: $35.24 per share

- 2021-05: $34.36 per share

- 2021-06: $30.95 per share

- 2021-07: $29.09 per share

- 2021-08: $25.30 per share

- 2021-09: $24.57 per share

- 2021-10: $25.86 per share

- 2021-11: $24.42 per share

- 2021-12: $29.49 per share

- 2022-01: $29.86 per share

- 2022-02: $21.14 per share

- 2022-03: $19.42 per share

- 2022-04: $19.30 per share

- 2022-05: $26.88 per share

- 2022-06: $23.37 per share

- 2022-07: $23.96 per share

- 2022-08: $24.66 per share

- 2022-09: $21.08 per share

- 2022-10: $24.67 per share

- 2022-11: $26.32 per share

- 2022-12: $35.18 per share

- 2023-01: $39.70 per share

- 2023-02: $44.35 per share

- 2023-03: $42.59 per share

- 2023-04: $40.06 per share

- 2023-05: $57.50 per share

- 2023-06: $60.59 per share

- 2023-07: $60.78 per share

- 2023-08: $83.97 per share

- 2023-09: $82.90 per share

- 2023-10: $76.65 per share

- 2023-11: $83.16 per share

- 2023-12: $88.40 per share

- 2024-01: $118.53 per share

- 2024-02: $185.24 per share

- 2024-03: $142.30 per share

- 2024-04: $143.00 per share

- 2024-05: $179.86 per share

- 2024-06: $143.40 per share

- 2024-07: $183.63 per share

- 2024-08: $167.44 per share

- 2024-09: $221.99 per share

- 2024-10: $254.98 per share

- 2024-11: $267.38 per share

- 2024-12: $221.65 per share

- 2025-01: $239.78 per share

- 2025-02: $169.71 per share

- 2025-03: $170.33 per share

- 2025-04: $183.11 per share

- 2025-05: $169.59 per share

- 2025-06: $210.45 per share

- 2025-07: $237.10 per share

- 2025-08: $266.16 per share

- 2025-09: $304.81 per share

- 2025-10: $383.39 per share

- 2025-11: $323.22 per share

- 2025-12: $318.78 per share

- 2026-01: $443.59 per share

- 2026-02: $523.60 per share

- 2026-03: $541.08 per share

- 2026-04: $277.27 per share

- 2026-05: $284.42 per share

- 2026-06: $286.36 per share

- 2026-07: $208.68 per share

- 2026-08: $179.73 per share

- 2026-09: $184.47 per share

- 2026-10: $170.82 per share

## Annual estimated value (USD per share)

- FY2016: low $29.26 per share, central $32.25 per share, high $36.23 per share

- FY2018: low $4.73 per share, central $4.89 per share, high $5.11 per share

- FY2019: low $11.18 per share, central $11.37 per share, high $11.62 per share

- FY2020: low $30.97 per share, central $33.25 per share, high $36.29 per share

- FY2021: low $18.05 per share, central $19.09 per share, high $20.46 per share

- FY2022: low $25.51 per share, central $27.81 per share, high $30.87 per share

- FY2023: low $46.83 per share, central $50.91 per share, high $55.64 per share

- FY2024: low $71.37 per share, central $84.13 per share, high $93.67 per share

- FY2025: low $127.07 per share, central $154.97 per share, high $174.97 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:37:01.475Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/80420/000008042025000152/powl-20250930.htm); period 2025-09-30, filed 2025-11-19.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.