Upside case
Bull case
$589+83.7%
POWL would need investors to value it at roughly 107x earnings — about 49x more generous than today's 58x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 2026
Powell Industries, Inc. (POWL) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
9
analysts
2 bullish · 1 bearish · 9 covering POWL
Strong Buy
0
Buy
2
Hold
6
Sell
1
Strong Sell
0
Consensus Target
$214
-33.3% vs today
Scenario Range
— – $589
Model bear to bull value window
Coverage
9
Published analyst ratings
Valuation Context
58.0x
Forward P/E · Market cap $11.7B
POWL price targets
Three scenarios for where POWL stock could go
Current
~$320
Confidence
56 / 100
Updated
May 1, 2026
Where we are now
Current · $320
Base
$476
Bull
$589
Market caseClosest to today
Base case
$476+48.5%
At 86x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
—
The bear case reflects a scenario where earnings shortfalls or multiple compression combine to materially reduce the stock from its current level.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Powell Industries, Inc.
POWL · NASDAQIndustrialsElectrical Equipment & PartsSeptember year-end
Powell Industries designs and manufactures custom-engineered electrical power distribution and control systems for heavy industrial markets like oil and gas, petrochemical, and utilities. It generates revenue primarily from selling its engineered-to-order equipment—including power control rooms, switchgear, and electrical houses—with additional income from aftermarket services like spare parts and field maintenance. The company's competitive advantage lies in its deep expertise in high-voltage custom solutions and long-standing relationships with industrial clients who rely on its specialized engineering capabilities.
Market Cap
$11.7B
Revenue TTM
$1.1B
Net Income TTM
$187M
Net Margin
16.5%
POWL Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
92%Exceptional
12 quarters tracked
Revenue Beat Rate
58%Exceptional
vs consensus estimates
Avg EPS Surprise
+42.3%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 3 of 4Q3 2025
EPS
$3.96/$3.73
Revenue
$286M/$298M
Q4 2025
EPS
$4.22/$3.78
Revenue
$298M/$292M
Q1 2026
EPS
$1.13/$0.95
Revenue
$251M/$256M
Q2 2026
EPS
$1.25/$1.34
Revenue
$297M/$298M
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $3.96/$3.73 | +6.2% | $286M/$298M | -4.0% |
| Q4 2025 | $4.22/$3.78 | +11.6% | $298M/$292M | +2.2% |
| Q1 2026 | $1.13/$0.95 | +18.9% | $251M/$256M | -2.1% |
| Q2 2026 | $1.25/$1.34 | -6.7% | $297M/$298M | -0.5% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$1.3B
+14.5% YoY
FY2
$1.5B
+15.2% YoY
EPS Outlook
FY1
$6.15
+20.2% YoY
FY2
$7.36
+19.7% YoY
Trailing FCF (TTM)$143M
FCF Margin: 12.6%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
POWL beat EPS estimates in 3 of 4 tracked quarters. A strong delivery record supports forward estimate credibility.
POWL Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $1.1B
Product Mix
Latest annual revenue by segment or product family
Oil and Gas Service
36.8%
-2.5% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
79.7%
+4.0% YoY
Tap, hover, or focus a slice to inspect segment detail.
Oil and Gas Service is the largest disclosed segment at 36.8% of FY 2025 revenue, down 2.5% YoY.
UNITED STATES is the largest reported region at 79.7%, up 4.0% YoY.
POWL Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Overvalued
Fair value est. $188 — implies -31.9% from today's price.
Premium to Fair Value
31.9%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
POWL
64.7x
vs
S&P 500
25.2x
+156% premium
vs Industrials Trailing P/E
POWL
64.7x
vs
Industrials
25.9x
+150% premium
vs POWL 5Y Avg P/E
Today
64.7x
vs
5Y Average
18.8x
+243% premium
Forward PE
58.0x
S&P 500
19.1x
+204%
Industrials
20.8x
+179%
5Y Avg
—
—
Trailing PE
64.7x
S&P 500
25.2x
+156%
Industrials
25.9x
+150%
5Y Avg
18.8x
+243%
PEG Ratio
1.08x
S&P 500
1.75x
-38%
Industrials
1.59x
-32%
5Y Avg
—
—
EV/EBITDA
49.8x
S&P 500
15.3x
+227%
Industrials
13.9x
+259%
5Y Avg
12.6x
+296%
Price/FCF
75.4x
S&P 500
21.3x
+253%
Industrials
20.6x
+265%
5Y Avg
19.2x
+292%
Price/Sales
10.6x
S&P 500
3.1x
+237%
Industrials
1.6x
+565%
5Y Avg
1.7x
+517%
Dividend Yield
0.11%
S&P 500
1.88%
-94%
Industrials
1.24%
-91%
5Y Avg
2.22%
-95%
| Metric | POWL | S&P 500 | Industrials | 5Y Avg POWL |
|---|---|---|---|---|
| Forward PE | 58.0x | 19.1x+204% | 20.8x+179% | — |
| Trailing PE | 64.7x | 25.2x+156% | 25.9x+150% | 18.8x+243% |
| PEG Ratio | 1.08x | 1.75x-38% | 1.59x-32% | — |
| EV/EBITDA | 49.8x | 15.3x+227% | 13.9x+259% | 12.6x+296% |
| Price/FCF | 75.4x | 21.3x+253% | 20.6x+265% | 19.2x+292% |
| Price/Sales | 10.6x | 3.1x+237% | 1.6x+565% | 1.7x+517% |
| Dividend Yield | 0.11% | 1.88% | 1.24% | 2.22% |
POWL trades above S&P 500 benchmarks on 5 of 6 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolPOWL Financial Health
Verdict
Strong
POWL generates $143M in free cash flow at a 12.6% margin — 90.6% ROIC signals a durable competitive advantage.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$1.1B
Revenue Growth
TTM vs prior year
+4.5%
Gross Margin
Gross profit as a share of revenue
30.1%
Operating Margin
Operating income divided by revenue
19.8%
Net Margin
Net income divided by revenue
16.5%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$5.12
Free Cash Flow (TTM)
Cash generation after capex
$143M
FCF Margin
FCF as share of revenue — the primary cash quality signal
12.6%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
90.6%
ROA
Return on assets, trailing twelve months
16.9%
Cash & Equivalents
Liquid assets on the balance sheet
$451M
Net Cash
Cash exceeds total debt — no net leverage
$449M
Debt Serviceability
Net debt as a multiple of annual free cash flow
Net cash ✓
ROE
Return on equity, trailing twelve months
28.6%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.2%
Dividend
0.1%
Buyback
0.1%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$12M
Dividend / Share
Annualized trailing dividend per share
$0.35
Payout Ratio
Share of earnings distributed as dividends
7.1%
Shares Outstanding
Declining as buybacks retire shares
36M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pagePOWL Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Cyclical End Markets
Powell Industries operates in cyclical industries, particularly oil and gas, leading to fluctuations in demand and revenue. A significant downturn in the broader economy or specific sectors could reduce spending on electrical infrastructure, impacting the company's financials.
High Risk
Macroeconomic Conditions
Deterioration in macroeconomic conditions could lead to reduced spending on electrical infrastructure, directly affecting Powell's revenue. Broader macroeconomic shifts can significantly impact overall spending on infrastructure projects.
High Risk
Competition
The company faces robust competition from larger firms with greater global resources. This competitive landscape poses a risk to Powell's market share and pricing power.
High Risk
Order Cancellations
With a large backlog, Powell Industries faces the risk of order cancellations during economic downturns or periods of market demand softness. This could adversely affect revenue stability.
Medium
Interest Rate Fluctuations
Rising interest rates can impact borrowing costs and potentially reduce demand for the company's products. This financial pressure could affect profitability and growth.
Medium
Supply Chain Disruptions
Energy-related disruptions and power reliability are emerging as significant supply chain concerns. These disruptions could drive the next major crisis, impacting product delivery and costs.
Medium
Regulatory Environment
Evolving regulatory landscapes, particularly in sectors like LNG, present risks for Powell Industries. Compliance with these regulations can lead to increased operational costs and potential delays.
Lower
Departure of Key Personnel
The departure of key personnel could adversely affect the business. This risk is particularly concerning if it impacts management or critical operational roles.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why POWL Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Record Financial Performance
Powell Industries has consistently reported record revenues, expanding gross margins, and robust net income growth. In fiscal year 2025, the company achieved 9% revenue growth and strong cash flow, driven by demand in the electric utility and data center sectors.
Robust Backlog and Order Growth
As of early 2026, Powell Industries has a substantial backlog of approximately $1.6 billion, with a significant portion expected to be recognized in the upcoming fiscal year. The company reported a book-to-bill ratio of 1.7x in Q1 2026, indicating strong demand exceeding current revenue.
Strategic Market Expansion
Powell Industries is experiencing significant growth in key markets, particularly data centers and Liquefied Natural Gas (LNG). The company is actively expanding its capacity, including new leased facilities, to meet this growing demand.
Strong Balance Sheet and Capital Allocation
The company maintains a strong cash position and operates with a debt-free balance sheet, allowing for investments in organic growth and facility expansions. Powell Industries also has a history of consistent dividend issuance.
Positive Analyst Sentiment
Analysts generally hold a positive view of Powell Industries, with a consensus rating of 'Buy.' This positive sentiment is supported by the company's strong fundamentals and consistent earnings performance.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
POWL Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$320.30
52W Range Position
70%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$54.75
+485.0% from the low
52-Week High
$434.00
-26.2% from the high
1 Month
+71.54%
3 Month
+64.48%
YTD
+172.6%
1 Year
+405.3%
3Y CAGR
+165.3%
5Y CAGR
+92.6%
10Y CAGR
+40.1%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
POWL vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
58.0x
vs 31.7x median
+83% above peer median
Revenue Growth
+14.5%
vs +8.0% median
+81% above peer median
Net Margin
16.5%
vs 14.0% median
+18% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
POW POWL Powell Industries, Inc. | $11.7B | 58.0x | +14.5% | 16.5% | Hold | -33.3% |
HUB HUBB Hubbell Incorporated | $26.7B | 25.5x | +5.6% | 15.1% | Hold | +6.5% |
REZ REZI Resideo Technologies, Inc. | $6.2B | 13.3x | +8.0% | -7.1% | Buy | -2.7% |
NVT NVT nVent Electric plc | $27.9B | 41.1x | +18.8% | 11.4% | Buy | -22.3% |
ETN ETN Eaton Corporation plc | $163.5B | 31.7x | +9.1% | 14.0% | Buy | -9.9% |
GE GE GE Aerospace | $319.5B | 40.4x | +7.4% | 17.9% | Buy | +26.3% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
POWL Dividend and Capital Return
POWL returns 0.2% total yield, led by a 0.11% dividend.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
0.2%
Dividend + buyback return per year
Buyback Yield
0.1%
Dividend Yield
0.11%
Payout Ratio
7.1%
How POWL Splits Its Return
Div 0.11%
Buyback 0.1%
Dividend 0.11%Buybacks 0.1%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.35
Growth Streak
Consecutive years of dividend increases
3Y
3Y Div CAGR
1.0%
5Y Div CAGR
0.6%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$12M
Estimated Shares Retired
38.2K
Approx. Share Reduction
0.1%
Shares Outstanding
Current diluted share count from the screening snapshot
36M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.09 | — | — | — |
| 2025 | $0.36 | +0.9% | 0.3% | 0.7% |
| 2024 | $0.35 | +1.0% | 0.2% | 0.7% |
| 2023 | $0.35 | +1.0% | 0.1% | 1.3% |
| 2022 | $0.35 | 0.0% | 0.3% | 5.1% |
FAQ
7 questionsPOWL Investor Questions
Common questions answered from live analyst data and company financials.
01Is Powell Industries, Inc. (POWL) stock a buy or sell in 2026?
Powell Industries, Inc. (POWL) is rated Hold by Wall Street analysts as of 2026. Of 9 analysts covering the stock, 2 rate it Buy or Strong Buy, 6 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $214, implying -33.3% from the current price of $320.
02What is the POWL stock price target for 2026?
The Wall Street consensus price target for POWL is $214 based on 9 analyst estimates. The high-end target is $285 (-11.0% from today), and the low-end target is $142 (-55.6%). The base case model target is $476.
03Is Powell Industries, Inc. (POWL) stock overvalued in 2026?
POWL trades at 58.0x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals significantly overvalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Powell Industries, Inc. (POWL) stock in 2026?
The primary risks for POWL in 2026 are: (1) Cyclical End Markets — Powell Industries operates in cyclical industries, particularly oil and gas, leading to fluctuations in demand and revenue. (2) Macroeconomic Conditions — Deterioration in macroeconomic conditions could lead to reduced spending on electrical infrastructure, directly affecting Powell's revenue. (3) Competition — The company faces robust competition from larger firms with greater global resources. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Powell Industries, Inc.'s revenue and earnings forecast?
Analyst consensus estimates POWL will report consensus revenue of $1.3B (+14.5% year-over-year) and EPS of $6.15 (+20.2% year-over-year) for the upcoming fiscal year. The following year, analysts project $1.5B in revenue.
06When does Powell Industries, Inc. (POWL) report its next earnings?
A confirmed upcoming earnings date for POWL is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Powell Industries, Inc. generate?
Powell Industries, Inc. (POWL) generated $143M in free cash flow over the trailing twelve months — a free cash flow margin of 12.6%. POWL returns capital to shareholders through dividends (0.1% yield) and share repurchases ($12M TTM).