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Power Integrations, Inc. (POWI)

NEUTRAL
TechnologySemiconductorsUnited States

Fundamental

56

Price

$54.13

Market Cap

$2.93B

Part 1 · What the company is worth

Overview

Power Integrations, Inc. designs, develops, manufactures, and markets analog and mixed-signal integrated circuits, and other electronic components and circuitry used in high-voltage power conversion. It provides a range of alternating current to direct current power conversion products that address power supply up to approximately 500 watts of output for consumer appliances, utility meters, LCD monitors, tablets, smartphones, computers, TVs, consumer and industrial applications, and LED lightings; and power conversion in high-power applications comprising industrial motors, solar and wind-power systems, electric locomotives, and high-voltage DC transmission systems. The company also offers InnoSwitch IC for electric vehicles; high-voltage gate-driver products used to operate high-voltage switches, such as insulated-gate bipolar transistors and silicon-carbide MOSFETs under the SCALE and SCALE-2 product-family names; and SCALE-iDriver for use in powertrain and charging applications for electric vehicles. In addition, it provides motor-driver ICs for use in refrigerator compressors, ceiling fans, air purifiers, and circulation pumps, as well as pumps and fans used in appliances, such as dishwashers, laundry machines, and boilers. The company serves communications, computer, consumer, and industrial markets. It sells its products to original equipment manufacturers and merchant power supply manufacturers through direct sales staff, as well as a network of independent sales representatives and distributors in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Power Integrations, Inc. was incorporated in 1988 and is headquartered in San Jose, California.

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Direct competitors

Who this company fights with for the same customers

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No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$449M

Trailing 12 months (through 6/30/2026)

Net Income

$25M

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$87M

Total Equity

$673M

Total Liabilities

$99M

Current Ratio

7.07

Interest Coverage

-

Debt/EBITDA

0.32

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseOvervalued

Fair Value

$38.79

Current Price

$54.13

Margin of Safety

-39.5%

Fair Value Range

$25.22 - $52.37

Estimation Methods

Analyst price target:$77.50
Discounted cash flow (DCF):$33.80
Earnings multiple (P/E):$16.40
Graham growth formula:$3.29
Earnings power value (EPV):$1.62
Justified P/B:$3.45
Dividend discount (Gordon):Not enough data to compute it
P/FFO, funds from operations:Not enough data to compute it
Mid-cycle earnings:$25.69
Revenue multiple:Not enough data to compute it
Analyst Consensus:Strong Buy (8B / 2H / 0S)
Last Earnings Surprise:+13.36%

Valuation Metrics

P/E Ratio

118.18

ROE

3.3%

P/B Ratio

4.37

P/FCF

37.59

Gross Margin

53.6%

ROIC

1.7%

Profitability Radar

Value Creation (Economic Moat)

ROIC

1.7%

WACC

13.0%

ROIC − WACC

-11.3 pp

ROIC is below the cost of capital — the company is destroying value for every dollar invested.

Fundamental Analysis Criteria

Passed (14)

  • EPS shows upward trend
  • EPS CAGR 11.64%
  • Gross Margin 53.6%
  • Debt/Equity ratio
  • Positive Free Cash Flow
  • CapEx intensity
  • Current Ratio
  • Debt/EBITDA
  • Return on Tangible Assets
  • Analyst Consensus 80% Buy
  • Earnings Surprise avg 10.4%
  • Earnings Quality (OCF/NI) 3.91
  • Share Dilution -1.6%
  • Piotroski F-Score 6/9

Failed (11)

  • Price CAGR 4.99%
  • ROIC 1.7%
  • P/FCF 37.59
  • P/B Ratio 4.37
  • Operating Margin 3.4%
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • ROE 3.7%
  • Revenue Growth 5Y -1.9%
  • Net Margin Trend 5.6% vs 7.6%

Unavailable (3)

  • Dividend Payout NaN%
  • Interest Coverage
  • PEG Ratio (need PE > 0 and growth > 0)

Piotroski F-Score

6/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

3.91

High quality: earnings backed by cash

Share Dilution

-1.6%

Buying back shares. Shareholder friendly

Governance

Executive Team

NameTitleAge
Dr. Jennifer A. Lloyd Ph.D.President, CEO & Director57
Mr. Sunil GuptaSenior Vice President of Operations52
Mr. Gagan JainVice President of Worldwide Sales47
Ms. Nancy L. ErbaChief Financial Officer58
Mr. David M. H. MatthewsVP & CTO60
Mr. Joe ShifflerDirector of Investor Relations & Corporate Communications-
Mr. Chris JacobsSenior Vice President for Marketing & Product Strategy-
Mr. Michael BalowSenior Vice President of Worldwide Sales-
Ms. Julie CurrieChief People & Transformation Officer-

Audit Risk

3

Board Risk

1

Compensation Risk

5

Shareholder Rights Risk

2

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Latest News

Recent headlines for POWI, sourced from Markets Gazette.

  • 6/10/2026POSITIVE
    This Power Integrations Analyst Begins Coverage On A Bullish Note; Here Are Top 5 Initiations For Wednesday

    Wall Street analysts have initiated coverage on Power Integrations Inc. with a bullish outlook. While specific price targets and ratings are detailed on Benzinga's analyst rating changes page, the commencement of coverage on a positive note suggests potential upside for the stock. This initiation implies that analysts see favorable future performance drivers, such as innovation, market position, or financial health, which could attract investor interest and potentially lead to price appreciation.

via Markets Gazette