BN · rank #18 · 2026-07-21
POWL
NASDAQ · $8.32B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.15 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +19.2% |
| Forward net margin Consensus forward net margin. | +16.9% |
| Net margin TTM Trailing twelve month net margin. | +16.5% |
| Margin expansion Forward minus trailing net margin (percentage points). | +0.4% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 2.57 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 0.01× |
| Analyst upside Spread between the consensus 12m target and the current price. | +38.5% |
| Last EPS surprise Most recent reported EPS versus consensus. | -8% |
| Market cap (USD) | $8.32B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Powell Industries designs and manufactures engineered-to-order medium-voltage switchgear and integrated power control rooms, increasingly anchored by large AI data-center campus and electric-utility projects with backlog extending visibility to fiscal 2028.
Rationale
The bottleneck-solver thesis is directly reinforced by POWL's $1.8B backlog, a record >$400M behind-the-meter AI campus contract, and 1.7x book-to-bill, confirming Powell occupies a genuine structural chokepoint in delivering medium-voltage power infrastructure to hyperscale AI campuses where larger OEMs lack equivalent engineered-to-order agility.
Material risks
- 1Mega-project concentration risk is acute — the >$400M single campus contract represents ~5% of market cap and a disproportionate share of backlog; cancellation or delay by one hyperscaler customer would materially collapse both backlog and the forward revenue growth underpinning the 19% fwd growth assumption.
- 2The recent -8.1% EPS miss signals execution pressure as the business scales into unfamiliar behind-the-meter campus complexity, and insider sales post-announcement introduce near-term sentiment overhang that could compress the 38.5% analyst upside before it is realized.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.