BN · rank #17 · 2026-09-08
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 manufactures custom-engineered medium- and low-voltage switchgear, power control rooms, and electrical distribution equipment for large power users, with data centers now representing roughly one-third of its $2.4 billion record backlog.
Rationale
The bottleneck-solver thesis is strongly reinforced — Powell holds a specialized, custom-engineered position in behind-the-meter electrical infrastructure that hyperscale customers are pre-committing to years in advance, evidenced by a $400M+ single order and ~55% of backlog converting within 12 months, providing the revenue visibility the strategy requires.
Material risks
- 1Execution risk on a rapidly scaling, highly concentrated backlog — the Q3 FY2026 EPS miss (-4.97% vs. consensus) suggests margin or throughput pressure as Powell stretches its manufacturing capacity to fulfill unprecedented order volumes, which could compress the 16.8% forward net margin.
- 2Customer concentration risk around a single hyperscale anchor order exceeding $400M; any cancellation, scope reduction, or hyperscaler capex pullback would materially impair the $2.4B backlog and the data center thesis simultaneously.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.