Powell Story

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POWL -- USA Stock  

USD 30.69  0.30  0.99%

Powell Industries Average Equity is relatively stable at the moment as compared to the past year. The company's current value of Average Equity is estimated at 163.54 Million. Enterprise Value is expected to hike to about 242.5 M this year, although the value of Free Cash Flow will most likely fall to (24.4 M). While many traders are getting carried away by overanalyzing industrials space, it is reasonable to summarize Powell Industries. We will evaluate if Powell Industries shares are reasonably priced going into January. This post is to show some fundamental factors affecting Powell Industries' products and services. I will also reveal how it may impact the investing outlook for Powell Industries in January.
Published over a month ago
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Another strong showing for Powell Industries
Over 68.0% of Powell Industries shares are owned by institutional investors. Institutional ownership of Powell Industries refers to the amount of Powell Industries equity owned by mutual funds, pension funds, insurance companies, investment firms, foundations, or other large entities that manage money on behalf of others. Check out our latest analysis of Powell, including its current ownership diagnostics.

And What about dividends?

A dividend is the distribution of a portion of Powell Industries earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Powell Industries dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Powell one year expected dividend income is about $0.61 per share.
Dividend Yield is expected to hike to 0.0242 this year, although the value of Payment of Dividends and Other Cash Distributions will most likely fall to (11.5 M).
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-10.7 M-11.5 M
Dividend Yield 0.0234  0.0242 
Dividends per Basic Common Share 0.94  0.93 
Investing in dividend-paying stocks, such as Powell Industries is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Powell Industries must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Powell Industries. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Powell Industries's Liquidity

Powell Industries financial leverage refers to using borrowed capital as a funding source to finance Powell Industries ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Powell Industries financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Powell Industries's total debt and its cash.

How Powell utilizes its cash?

To perform a cash flow analysis of Powell Industries, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Powell Industries is receiving and how much cash it distributes out in a given period. The Powell Industries cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Powell Industries Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 70.3 Million

An Additional Perspective On Powell Industries

Powell Industries has a total of 11.61 Million outstanding shares. Over half of Powell Industries outstanding shares are owned by third-party entities. These third-party entities are typically referred to corporate investors that secure positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulation than regular investors in Powell Industries. Please watch out for any change in the institutional holdings of Powell Industries as this could mean something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
 2019 2020 (projected)
Consolidated Income1.65 M1.69 M
Direct Expenses494.73 M530.75 M

Ownership Breakdown

Retail Investors
7.73%
Insiders
24.05%
Institutions
68.22%
Retail Investors7.73
Insiders24.05
Institutions68.22

Our take on today Powell Industries hike

The downside variance is down to 7.54 as of today. Powell Industries currently demonstrates below-verage downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of -0.08. However, we do advice investors to further question Powell Industries expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Takeaway on Powell Industries Investment

While some other firms under the electrical equipment & parts industry are still a bit expensive, Powell Industries may offer a potential longer-term growth to stakeholders. To conclude, as of the 8th of December 2020, our research shows that Powell Industries is a rather very steady investment opportunity with a very small probability of distress in the next two years. From a slightly different view, the entity currently appears to be overvalued. Our final 30 days buy-or-sell advice on the company is Cautious Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Powell Industries. Please refer to our Terms of Use for any information regarding our disclosure principles.

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