BN · rank #17 · 2026-07-22
POWL
NASDAQ · $8.90B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.12 |
|---|---|
| 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. | 2.52 |
| 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. | +29.4% |
| Last EPS surprise Most recent reported EPS versus consensus. | -8% |
| Market cap (USD) | $8.90B |
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 for electric utilities, oil & gas, and increasingly AI data-center campuses requiring behind-the-meter power distribution.
Rationale
POWL is a textbook bottleneck-solver — its $1.8B backlog anchored by a record $400M+ AI campus contract, 1.7x book-to-bill, and multi-year revenue visibility to fiscal 2028 confirm the quant signal that Powell holds a structural chokepoint in delivering complex medium-voltage power infrastructure to hyperscale AI builds that larger OEMs cannot easily replicate at project speed.
Material risks
- 1Mega-project concentration risk is acute — the >$400M behind-the-meter campus order alone represents ~22% of total backlog, and cancellation or interconnection/regulatory delay on this single contract would materially collapse both backlog and the growth narrative underpinning the thesis.
- 2The recent -8.1% EPS miss signals execution pressure as the project mix shifts toward larger, longer-duration engineered orders, raising the risk of margin slippage or revenue timing delays that could compress the 16.9% forward net margin assumption embedded in the fwd PEG of 2.5x.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.