Latest Ratios: P/E Ratio 9.1x · EV/EBITDA 9.9x · ROE 93.5%. (2004–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.0B | $1.3B | $685M | $47M | $69M | $69M | $75M | $170M | $172M | $103M | $82M |
| Enterprise Value | $1.1B | $1.4B | $776M | $199M | $269M | $258M | $200M | $287M | $281M | $195M | $204M |
| P/E Ratio → | 9.08 | 11.57 | 9.88 | 1.78 | 6.12 | — | — | 20.79 | — | — | — |
| P/S Ratio | 1.43 | 1.82 | 1.44 | 0.10 | 0.14 | 0.15 | 0.18 | 0.31 | 0.35 | 0.25 | 0.24 |
| P/B Ratio | 5.79 | 7.38 | 10.49 | — | — | — | 12.38 | 5.97 | — | 3.21 | 2.02 |
| P/FCF | 73.11 | 93.21 | 11.84 | 0.72 | — | — | — | 11.75 | — | — | 2.89 |
| P/OCF | 42.87 | 54.66 | 10.98 | 0.67 | — | — | — | 9.37 | — | — | 2.54 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.97 | 1.63 | 0.43 | 0.56 | 0.56 | 0.48 | 0.53 | 0.57 | 0.47 | 0.60 |
| EV / EBITDA | 9.92 | 12.39 | 8.93 | 3.98 | 8.61 | — | — | 11.03 | — | — | — |
| EV / EBIT | 10.41 | 12.96 | 9.50 | 4.48 | 10.95 | — | — | 17.36 | — | — | — |
| EV / FCF | — | 100.86 | 13.41 | 3.03 | — | — | — | 19.82 | — | — | 7.17 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 25.4% | 25.4% | 29.5% | 23.1% | 18.4% | 9.0% | 14.0% | 18.3% | 11.8% | 12.2% | 8.6% |
| Operating Margin | 15.2% | 15.2% | 17.2% | 9.6% | 5.1% | -9.1% | -5.2% | 3.2% | -7.4% | -4.3% | -7.5% |
| Net Profit Margin | 15.8% | 15.8% | 14.6% | 5.7% | 2.3% | -10.6% | -5.5% | 1.5% | -11.0% | -11.4% | -14.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 93.5% | 93.5% | 225.9% | — | — | — | -132.9% | 166.3% | -805.1% | -130.7% | -64.6% |
| ROA | 29.5% | 29.5% | 22.6% | 8.7% | 3.6% | -16.6% | -7.7% | 2.7% | -20.4% | -18.6% | -15.2% |
| ROIC | 37.2% | 37.2% | 40.3% | 20.9% | 11.6% | -22.4% | -11.8% | 10.9% | -25.7% | -9.5% | -9.2% |
| ROCE | 48.5% | 48.5% | 119.5% | 241.6% | 275.3% | -134.7% | -24.6% | 17.1% | -38.7% | -12.6% | -11.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.86 | 0.86 | 2.24 | — | — | — | 24.44 | 4.10 | — | 2.84 | 3.05 |
| Debt / EBITDA | 1.33 | 1.33 | 1.68 | 3.49 | 7.19 | — | — | 4.49 | — | — | — |
| Net Debt / Equity | — | 0.61 | 1.39 | — | — | — | 20.46 | 4.10 | — | 2.84 | 2.99 |
| Net Debt / EBITDA | 0.94 | 0.94 | 1.05 | 3.04 | 6.41 | — | — | 4.49 | — | — | — |
| Debt / FCF | — | 7.65 | 1.57 | 2.31 | — | — | — | 8.07 | — | — | 4.28 |
| Interest Coverage | 16.42 | 16.42 | 7.13 | 2.59 | 1.89 | -5.69 | -3.67 | 2.10 | -6.15 | -3.35 | -2.20 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.15 | 3.15 | 1.12 | 0.83 | 0.80 | 0.81 | 0.85 | 1.23 | 0.98 | 1.35 | 1.85 |
| Quick Ratio | 1.77 | 1.77 | 0.71 | 0.49 | 0.42 | 0.31 | 0.39 | 0.63 | 0.50 | 0.66 | 0.84 |
| Cash Ratio | 0.49 | 0.49 | 0.24 | 0.09 | 0.08 | 0.02 | 0.10 | 0.00 | 0.00 | — | 0.02 |
| Asset Turnover | — | 1.63 | 1.45 | 1.61 | 1.50 | 1.52 | 1.47 | 1.74 | 1.71 | 1.69 | 1.28 |
| Inventory Turnover | 4.23 | 4.23 | 3.57 | 4.16 | 3.26 | 2.92 | 3.32 | 4.10 | 4.14 | 4.22 | 3.09 |
| Days Sales Outstanding | — | 57.02 | 70.10 | 66.07 | 71.33 | 55.51 | 56.29 | 73.43 | 64.34 | 70.30 | 72.54 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 11.0% | 8.6% | 10.1% | 56.1% | 16.3% | — | — | 4.8% | — | — | — |
| FCF Yield | 1.4% | 1.1% | 8.4% | 139.0% | — | — | — | 8.5% | — | — | 34.7% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $23M | $23M | $23M | $23M | $23M | $23M | $22M | $19M | $14M | $11M |
Includes 30+ ratios · 22 years · Updated daily
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Quick answers to the most common questions about buying PSIX stock.
Power Solutions International, Inc.'s current P/E ratio is 9.1x. The historical average is 15.6x. This places it at the 29th percentile of its historical range.
Power Solutions International, Inc.'s current EV/EBITDA is 9.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.8x.
Power Solutions International, Inc.'s return on equity (ROE) is 93.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 11.7%.
Based on historical data, Power Solutions International, Inc. is trading at a P/E of 9.1x. This is at the 29th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Power Solutions International, Inc. has 25.4% gross margin and 15.2% operating margin. Operating margin between 10-20% is typical for established companies.
Power Solutions International, Inc.'s Debt/EBITDA ratio is 1.3x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Weichai supply chain dependence
Metrics are mathematically derived from official filings.
Margin Recovery Masks Underlying Mix Shift
Gross margin improved 420 bps sequentially to 27.1% in 2026Q2, yet remains below the 31.5% peak in 2024Q2, indicating a mix shift toward lower-margin Industrial volume, per reported financials.
The sequential gross margin expansion suggests operational leverage and favorable product mix are taking hold, but the trailing twelve-month average of 25.4% underscores the high-variable-cost integrator model. Operating margin of 15.7% in 2026Q2 is still below the 22.9% peak in 2024Q2, implying uneven cost control. Net margin of 11.1% in 2026Q2 is closer to operating margin than in 2025Q2 when non-operating items inflated net income, suggesting recent earnings quality is cleaner but still warrants monitoring.
ROIC Volatility Reflects Lumpiness and Deleveraging
ROIC swung from 12.8% in 2024Q2 to 6.3% in 2026Q2, while ROE collapsed from 153.9% to 8.7% as equity rebuilt, indicating returns are normalizing from distorted levels, based on reported figures.
The dramatic ROE decline is largely a function of the equity base expanding from $3.2M to $203.1M, not necessarily deteriorating profitability. ROIC has stabilized in the 6-8% range over the last four quarters, which is below the 10%+ levels seen in 2024, suggesting the company is not compounding returns as rapidly. The improvement in asset turnover from 0.33 to 0.35 in 2026Q2 is modest, indicating that margin expansion, not efficiency, is driving the recent ROIC recovery.
Working Capital Drag Persists Despite Recent Improvement
Cash conversion cycle improved to 123 days in 2026Q2 from 146 days in 2026Q1, but remains elevated versus 49 days in 2024Q3, indicating ongoing inventory and receivable buildup, per SEC filings.
DSO rose to 56 days in 2026Q2 from 48 days in 2025Q2, while DIO jumped to 105 days from 88 days, reflecting the custom-engine inventory model and potential backlog clearing. DPO fell to 38 days from 51 days, suggesting reduced supplier leverage, possibly due to related-party dynamics with Weichai. The persistent CCC above 120 days indicates that working capital is a significant cash flow drag, which may explain the volatility in operating cash flow.
Deleveraging Accelerates, But Coverage Remains Adequate
Debt-to-equity collapsed from 52.23 in 2024Q1 to 0.66 in 2026Q2, while interest coverage improved to 15.31 from 3.19, indicating a rapidly de-risking balance sheet, per reported financials.
Total debt fell from $168.4M to $134.7M, and the equity rebuild has made the leverage ratio appear conservative. However, D/EBITDA of 4.94 in 2026Q2 is still elevated relative to the 4.33 in 2025Q2, suggesting that EBITDA growth has not kept pace with debt reduction. The interest coverage of 15.31 is comfortable, but the recent EPS miss and margin pressure suggest that coverage could weaken if operating income normalizes lower.
Liquidity Buffer Strengthens, But Inventory Risk Looms
Current ratio improved to 2.57 in 2026Q2 from 1.26 in 2025Q2, while quick ratio rose to 1.49, indicating a robust liquidity position, though inventory dependence remains high, per balance sheet data.
Cash increased to $70.1M, and the current ratio now comfortably exceeds 2.0, providing a cushion against demand shocks. However, the quick ratio of 1.49 suggests that inventory still represents a significant portion of current assets, and given the custom-engine nature, obsolescence risk is real if emissions standards shift. The liquidity position appears strong, but the reliance on inventory and related-party receivables warrants monitoring.
P/E Misleads on Turnaround and Related-Party Dynamics
The trailing P/E of 8.21 appears cheap, but forward P/E of 17.03 implies the market expects earnings to normalize lower, and related-party transactions with Weichai may distort reported earnings, per financial statements.
The low trailing P/E is a result of the 2025Q2 non-operating gain that inflated net income, making the multiple artificially depressed. The forward P/E of 17.03 is more reflective of the market's view of sustainable earnings, which is closer to the 2026Q2 annualized net income. Investors should use EV/EBITDA (9.06) or P/FCF (66.09) as alternative metrics, as P/E is distorted by non-recurring items and the related-party cost structure may not reflect true market economics.