Powell Industries engineers packaged solutions and systems for the management, control and distribution of electrical energy. Powell markets include large industrial customers such as utilities, oil and gas producers, refineries, petrochemical plants, pulp and paper producers, mining operations and commuter railways. The company was founded in 1947 and is based in Houston, Texas.
POWL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Powell Industries Inc. To summarize, we found that Powell Industries Inc ranked in the 95th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for POWL, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 100.7; that's higher than 96.89% of US stocks in the Industrials sector that have positive free cash flow.
The business' balance sheet suggests that 2% of the company's capital is sourced from debt; this is greater than just 9.41% of the free cash flow producing stocks we're observing.
POWL's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 49.03% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Powell Industries Inc? See SNDR, FLY, ASTE, HRI, and PWR.
Powell Industries, Inc. (NASDAQ: POWL), a leading supplier of custom engineered solutions for the management, control and distribution of electrical energy, today announced that it will release fiscal 2020 third quarter results on Tuesday, August 4, 2020 after the market closes. In conjunction with the release, Powell Industries has scheduled a conference call, which will be broadcast live over the Internet, on Wednesday, August 5, 2020 at 11:00 a.m. eastern time.
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