Powell Industries is a company based in Houston, Texas that specializes in the manufacturing of electrical equipment and integrated solutions. They offer products such as switchgear, control panels, motor controls and power management systems. These products are used in various industries including oil and gas refineries, petrochemical, renewable energy, mining and utilities.
I was persuaded to buy the company by its good growth prospects and good profitability figures:
ROE 37.22
ROCE 42.06
ROTC 43.46
With a P/E ratio of 13.4 and PEG 0.13, the valuation is relatively favorable.
The negative cash flow can be justified by high capital expenditure, which should benefit growth in the long term.
Powell Industries recorded a 24% year-on-year increase in sales in the first quarter of 2025 and shows a solid financial performance with a 44% increase in profits in the first quarter of 2025. Dividends have recently been increased, underlining confidence in the long-term stability of the company