Buffett Brain · Research note
Score updated 27 Oct 2026 · analysis from 27 Jul 2026
POWL· Industrials
Powell Industries
Powell Industries' high valuation and weak margins overshadow its strong ROIC and durability.
Buffett fit
Partial fit
Owner
45
Durability
100
Management
77
Price
0
Score updated 27 Oct 2026 · analysis from 27 Jul 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Industrials stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned Powell Industries outright, I would be concerned about the valuation, as the current of 59.9 suggests investors are paying a premium for future growth.
The full reasoning comes with a free account.
The durability of Powell Industries is strong, as indicated by its 100% profitability over the last five years.
The full reasoning comes with a free account.
Management has maintained a stable share count with a 0.75% CAGR over five years, but the yield of 0.04% and a declining dividend CAGR of -19.12% indicate a lack of commitment to returning capital to shareholders.
The full reasoning comes with a free account.
The current yield of 1.38% and an earnings yield of 1.67% are far below the 8-10% threshold that would provide a .
The full reasoning comes with a free account.
Free account
Read the full Powell Industries analysis free
- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
3 full analyses a week · no card needed
For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 23.7% comfortably exceeds the sector top-quintile cutoff of 13.6%.
- 25-year average of 15.9% is also above the sector's top-quintile cutoff of 13.9%.
- 3 of 19.8% ranks in the top-quintile for its sector, where the cutoff is 17.8%.
- 4Consistent profitability with a 100% track record over the last five years.
Concerns
5- 1 of 59.9 is excessively high, suggesting a lack of .
- 2 of 30.1% falls significantly below the sector's top-quintile cutoff of 43.4%.
- 3 conversion of 0.86 indicates some risk in earnings quality.
- 4Dividend CAGR of -19.12% raises concerns about management's commitment to returning capital.
Price history
$157+1,722.2%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Powell Industries focuses on custom-engineered equipment for electrical energy distribution, generating $1.1B in revenue with a net income of $180.75M. Their products serve various heavy industrial markets, ensuring steady demand. The company also offers value-added services, enhancing customer relationships and revenue stability.
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Industrials
Free weekly email
Liked the read on POWL? Get the next ones on Monday.
Every Monday: the stocks most of the seven investors newly agree on. One email, unsubscribe any time.
Research, not investment advice.
See the Buffett analysis of Powell Industries
The score, the checklist and the full reasoning open with a free account. You get 3 full analyses a week, and this stock is the first one. No card needed.
Create a free account3 full analyses a week · no card needed
Already have an account? Sign in