BN · rank #14 · 2026-09-09
POWL
NASDAQ · $6.65B (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. | 1.98 |
| 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. | +53.4% |
| Last EPS surprise Most recent reported EPS versus consensus. | -5% |
| Market cap (USD) | $6.65B |
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, increasingly including hyperscale data center customers requiring behind-the-meter generation-linked infrastructure.
Rationale
The bottleneck-solver thesis is strongly reinforced: a $2.4B record backlog (one-third data center), a $400M+ single hyperscale order, and ~55% backlog conversion expected within 12 months confirm Powell holds a structural chokepoint in AI datacenter power infrastructure with multi-year revenue visibility through FY2028.
Material risks
- 1Execution risk on a rapidly scaling, concentrated backlog—the largest single order in company history represents a meaningful share of total backlog, and any delivery slippage or cost overrun on that hyperscale contract could compress margins and damage the customer relationship that anchors the thesis.
- 2The recent EPS miss (-4.97% vs. consensus) signals that margin expansion is not yet flowing through at the pace the model assumes, and the forward PEG of 1.98 leaves limited valuation cushion if revenue conversion from backlog is slower or lumpier than the 55% guidance implies.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.