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Stock In Focus – TAM Stock Screener – Powell Industries, Inc. (NASDAQ: POWL)

Thursday, September 17, 2020 · Johnny Hopkins

As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.

One of the cheapest stocks in our Stock Screeners is Powell Industries, Inc. (NASDAQ: POWL).

Powell Industries Inc is a United States-based company that develops, designs, manufactures, and services custom-engineered equipment and systems for electrical energy distribution, control, and monitoring. The company’s principal products comprise integrated power control room substations, custom-engineered modules, electrical houses, traditional and arc-resistant distribution switchgear and control gear, and so on. These products are applied in oil and gas refining, offshore oil and gas production, petrochemical, pipeline, terminal, mining and metals, light-rail traction power, electric utility, pulp and paper, and other heavy industrial markets. The company generates the majority of its sales from the United States.

A quick look at Powell Industries’ share price history (below) over the past twelve months shows that the price is down 38%. Here’s why the company is undervalued.

Summary

Market Cap: $294 Million

Enterprise Value: $137 Million

Operating Earnings*

Operating Earnings: $24 Million

Acquirer’s Multiple

Acquirer’s Multiple: 5.78

Free Cash Flow (TTM)

Free Cash Flow: $82.9 Million

FCF/EV Yield:

FCF/EV Yield: 60%

Shareholder Yield:

Shareholder Yield: 4%

Other Indicators

Piotroski F-Score: 6

Altman Z-Score: 3.54

Beneish M-Score: -3.49