BN · rank #18 · 2026-09-07
POWL
NASDAQ · $6.60B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.27 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +24.6% |
| Forward net margin Consensus forward net margin. | +16.8% |
| Net margin TTM Trailing twelve month net margin. | +16.5% |
| Margin expansion Forward minus trailing net margin (percentage points). | +0.3% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 1.92 |
| 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. | +54.6% |
| Last EPS surprise Most recent reported EPS versus consensus. | -5% |
| Market cap (USD) | $6.60B |
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 (POWL) designs and manufactures switchgear, motor control centers, and power distribution equipment critical to industrial and data center electrical infrastructure.
Rationale
Accelerating AI datacenter buildout is driving unprecedented demand for medium-voltage switchgear where Powell holds a specialized manufacturing position with a multi-quarter backlog, directly validating the bottleneck-solver thesis.
Material risks
- 1The recent Q2 FY2026 EPS miss of -4.70% alongside sequentially rising revenues suggests margin execution risk as Powell scales capacity, which could compress the 16.8% forward net margin assumption underpinning the valuation.
- 2At a $6.6B market cap and fwd PEG of 1.92, POWL already prices in significant growth, leaving limited cushion if datacenter capex cycles pause or hyperscalers shift procurement timelines.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.