Another strong showing for Powell Industries

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 year ago
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Reviewed by Ellen Johnson

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.
The performance of Powell Industries in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Powell Industries' stock prices. When investing in Powell Industries, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Powell Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Powell Industries carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

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 USD0.7 per share.
Dividend Paid And Capex Coverage Ratio is expected to rise to 3.64 this year, although the value of Dividends Paid will most likely fall to about 10.2 M.
Last ReportedProjected for Next Year
Dividends Paid14.3 M10.2 M
Dividend Yield 0.01  0.01 
Dividend Payout Ratio 0.20  0.19 
Dividend Paid And Capex Coverage Ratio 3.47  3.64 
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. Financial leverage can amplify the potential profits to Powell Industries' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Powell Industries' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Powell Industries's total debt and its cash.

Powell Industries Gross Profit

Powell Industries Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Powell Industries previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Powell Industries Gross Profit growth over the last 10 years. Please check Powell Industries' gross profit and other fundamental indicators for more details.

Another Outlook 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.

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Editorial Staff

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