BN · rank #10 · 2026-10-23
POWL
NASDAQ · $5.49B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.31 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +24.5% |
| 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. | 2.10 |
| 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. | +77.5% |
| Last EPS surprise Most recent reported EPS versus consensus. | -5% |
| Market cap (USD) | $5.49B |
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 engineers and manufactures custom high-voltage electrical switchgear and distribution systems for oil & gas, LNG, utilities, and increasingly data-center behind-the-meter power projects, with a $2.4 billion backlog extending visibility into fiscal 2028.
Rationale
The record $934 million Q3 order quarter, 3.0x book-to-bill, and a single $400M+ data-center award directly confirm POWL as a structural bottleneck solver for engineered-to-order electrical distribution equipment that AI power buildouts cannot easily substitute or self-supply.
Material risks
- 1Backlog concentration risk is acute — a delay, scope reduction, or cancellation of the $400M+ data-center anchor order would materially impair the revenue ramp that justifies current valuation and the bottleneck-solver thesis.
- 2Rapid capacity expansion (Jacintoport, Houston, Ohio) concurrent with a 69% YoY backlog surge creates execution and labor-absorption risk that could compress the ~30.6% gross margin if project timing slips or cost inflation accelerates.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.