Powell Industries, Inc (NASDAQ: POWL)’s stock price has plunge by -14.72relation to previous closing price of 312.40. Nevertheless, the company has seen a -16.02% plunge in its stock price over the last five trading sessions. seekingalpha.com reported 2024-11-20 that Powell Industries has experienced significant growth due to Industry 4.0 trends, but recent earnings suggest a slowdown, prompting a downgrade to Hold. Despite strong FY 2024 results, including a 45% revenue increase and 150% net income growth, valuation metrics indicate POWL stock is overvalued. High short interest and post-earnings sell-off reflect market concerns about slower growth and potential volatility, especially with a cautious FY 2025 outlook.
Is It Worth Investing in Powell Industries, Inc (NASDAQ: POWL) Right Now?
The price-to-earnings ratio for Powell Industries, Inc (NASDAQ: POWL) is above average at 21.69x, Company’s 36-month beta value is 0.88.Analysts have differing opinions on the stock, with 1 analysts rating it as a “buy,” 0 as “overweight,” 3 as “hold,” and 0 as “sell.”
The public float for POWL is 9.35M, and currently, short sellers hold a 18.20% ratio of that floaft. The average trading volume of POWL on November 20, 2024 was 424.37K shares.
POWL’s Market Performance
POWL stock saw a decrease of -16.02% in the past week, with a monthly decline of -0.25% and a quarterly a decrease of 49.66%. The volatility ratio for the week is 8.35%, and the volatility levels for the last 30 days are 6.40% for Powell Industries, Inc (POWL). The simple moving average for the past 20 days is -9.21% for POWL’s stock, with a 47.45% simple moving average for the past 200 days.
Analysts’ Opinion of POWL
Sidoti, on the other hand, stated in their research note that they expect to see POWL reach a price target of $26. The rating they have provided for POWL stocks is “Buy” according to the report published on March 29th, 2022.
Sidoti gave a rating of “Neutral” to POWL, setting the target price at $31 in the report published on August 11th of the previous year.
POWL Trading at 4.14% from the 50-Day Moving Average
After a stumble in the market that brought POWL to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -27.00% of loss for the given period.
Volatility was left at 6.40%, however, over the last 30 days, the volatility rate increased by 8.35%, as shares surge +5.65% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +65.87% upper at present.
During the last 5 trading sessions, POWL fell by -15.02%, which changed the moving average for the period of 200-days by +113.90% in comparison to the 20-day moving average, which settled at $293.60. In addition, Powell Industries, Inc saw 201.39% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at POWL starting from POWELL THOMAS W, who sale 5,000 shares at the price of $347.74 back on Nov 08 ’24. After this action, POWELL THOMAS W now owns 677,265 shares of Powell Industries, Inc, valued at $1,738,701 using the latest closing price.
POWELL THOMAS W, the 10% Owner of Powell Industries, Inc, sale 5,000 shares at $344.68 during a trade that took place back on Nov 08 ’24, which means that POWELL THOMAS W is holding 1,623,328 shares at $1,723,380 based on the most recent closing price.
Stock Fundamentals for POWL
Current profitability levels for the company are sitting at:
- 0.16 for the present operating margin
- 0.26 for the gross margin
The net margin for Powell Industries, Inc stands at 0.14. The total capital return value is set at 0.34. Equity return is now at value 36.19, with 17.83 for asset returns.
Based on Powell Industries, Inc (POWL), the company’s capital structure generated 0.0 points at debt to capital in total, while cash flow to debt ratio is standing at 398.11. The debt to equity ratio resting at 0.0. The interest coverage ratio of the stock is 405.48.
Currently, EBITDA for the company is 71.13 million with net debt to EBITDA at -2.07. When we switch over and look at the enterprise to sales, we see a ratio of 3.04. The receivables turnover for the company is 3.58for trailing twelve months and the total asset turnover is 1.09. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.81.
Conclusion
In a nutshell, Powell Industries, Inc (POWL) has experienced a mixed performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
