POWIPOWI
US • —
$83.76
P/E
280.70
PEG
—
FCF Yield
—
Rev Growth YoY
+3.1% YoY
Gross Margin
53.9%
Health Score
5/10
D/E Ratio
—
Confidence
LOW
Business Snapshot
Power Integrations (POWI) designs and markets high-voltage power-conversion semiconductors, primarily for power supplies, LED lighting, and renewable energy applications. The company operates in the analog semiconductor industry, holding a niche leadership position in high-voltage integrated circuits for power conversion. Market cap data is unavailable, placing the company's size classification in question, though it is a well-known mid-cap player in the semiconductor space. A defining characteristic is its strong gross margin profile, indicating a defensible technology niche and value-added product positioning.
Financial Health
Gross margin stands at a solid 53.9%, supported by a high-competitiveness product mix that likely protects profitability. Net margin has dipped to just 3.7%, reflecting significant earnings pressure and falling to a low single-digit level...
Risk Assessment
- VALUATION — P/E of 280.7x is dramatically above the sector average of 22x, suggesting extreme premium pricing relative to current earnings.
- EARNINGS QUALITY — Earnings growth fell 53.7% year-over-year, reflecting significant profit deterioration.
- REVENUE DECELERATION — Revenue growth is only 3.1% YoY, insufficient to justify the high valuation multiple.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- MARGIN PRESSURE — Net margin of 3.7% is low for a semiconductor company, indicating limited profitability....
Gross margin stands at a solid 53.9%, supported by a high-competitiveness product mix that likely protects profitability. Net margin has dipped to just 3.7%, reflecting significant earnings pressure and falling to a low single-digit level. The balance sheet is extremely conservative with zero debt (0.0x Debt/Equity) and a current ratio of 6.51x, indicating ample liquidity and low financial risk. Free cash flow data is not available, preventing a full analysis of cash generation quality. Overall, the company has a fortress-like balance sheet but faces margin compression that limits operating leverage and reinvestment flexibility.
- VALUATION — P/E of 280.7x is dramatically above the sector average of 22x, suggesting extreme premium pricing relative to current earnings. - EARNINGS QUALITY — Earnings growth fell 53.7% year-over-year, reflecting significant profit deterioration. - REVENUE DECELERATION — Revenue growth is only 3.1% YoY, insufficient to justify the high valuation multiple. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - MARGIN PRESSURE — Net margin of 3.7% is low for a semiconductor company, indicating limited profitability.
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