Powell Industries: How The Company Became My Largest Position

Gytis Zizys
3.17K Followers

Summary

  • Powell Industries is upgraded to a strong buy due to market overreaction, solid Q1 performance, and a robust financial position with zero debt.
  • Q1 revenues increased by 24.4% y/y, driven by strong demand in Oil & Gas and Electric Utility sectors, despite slight margin contractions.
  • The company's diversification across sectors, strong cash position, and positive outlook for 2025 support long-term growth potential.
  • Conservative valuation estimates show significant upside, with intrinsic values ranging from $201 to $242 per share, even with margin deterioration.

Power Substation

shaunl

Introduction

I wanted to revisit Powell Industries (NASDAQ:POWL) because, since the last time I covered it, it took a massive hit because of the overall market volatility and uncertainty of Trump’s economy. Now that the company retreated so much, on

This article was written by

3.17K Followers
MSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of POWL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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