Stock fact sheet · data as of
Powell Industries, Inc. (POWL): fair value, margin of safety and Wheel Score
Industrials · Electrical Equipment & Parts · United States · High Growth
Is POWL undervalued?
Powell Industries, Inc. (POWL) closed at 169.53 on 16 Oct 2026, 30% above the GLS average fair value of 130.40. 6 of the 9 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
The 9 models disagree widely: DDM gives 5.28 while GLS Growth gives 321.03. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files POWL under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for POWL
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 34.18 | -80% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 49.51 | -71% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 195.95 | +16% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 77.92 | -54% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 321.03 | +89% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 166.08 | -2% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 265.42 | +57% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 5.28 | -97% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 58.27 | -66% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 12.72 | -92% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 284.00 | +68% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is weak: POWL passes 4 of the nine Piotroski tests. Our screens drop the stock at the health rule; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is 6.6 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are high - ROIC 28.1%, ROE 28.2%, ROA 16.3% - with debt at 0.00 times equity and a free-cash-flow yield of 3.9%.
The dividend yield is 0.21% with a payout ratio of 7% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Oil and Gas Service 34%, Electricity 28%, Commercial and Other Industrial 25% (quarter Q3 FY2026).
Institutional ownership scores 9/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | 28.1% |
|---|---|---|---|
| GLS Moat | 6.6 / 10 | ROE | 28.2% |
| Debt / equity | 0.00 | ROA | 16.3% |
| Free-cash-flow yield | 3.9% | Payout ratio | 7% |
| Institutions | 9 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 52: Fair
POWL scores 52 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 0/25, Health 9/20, Moat 10/15, Premium 16/20, Stability 18/20. Value (0/25) is where the points are missing.
Implied volatility is 77% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (16 of 20) because volatility this high usually comes with a reason. Chain open interest is 33,002 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 1.1M shares a day on a market cap of $6.2B, with a beta of 1.17; the Stability part of the Wheel Score gives that 18 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -30% margin of safety | |
| Health | 9 / 20 | Piotroski 4/9 | |
| Moat | 10 / 15 | moat 6.6/10 | |
| Premium | 16 / 20 | implied volatility 77% | |
| Stability | 18 / 20 | 1.1M shares/day, $6.2B cap, beta 1.17 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 17 Nov 2026 (after the close), 32 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Electrical Equipment & Parts
The 12 companies below are the closest to Powell Industries, Inc. by market cap within the Electrical Equipment & Parts industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| ENS EnerSys | 172.82 | 215.72 | +20% | 86Prime | $6.2B |
| FPS Forgent Power Solutions, Inc. | 32.37 | 7.35 | -341% | 47Weak | $8.4B |
| AYI Acuity Brands, Inc. | 301.87 | 311.90 | +3% | 74Good | $9.0B |
| ATKR Atkore Inc. | 94.92 | 51.96 | -83% | 45Weak | $3.2B |
| VGNT Versigent PLC | 42.56 | 81.32 | +48% | 88Prime | $3.0B |
| EROC ERock, Inc. | 9.95 | 23.98 | +59% | 45Weak | $2.7B |
| HAYW Hayward Holdings, Inc. | 11.74 | 15.11 | +22% | 87Prime | $2.5B |
| PLUG Plug Power Inc. | 1.45 | - | - | 45Weak | $2.0B |
| PLPC Preformed Line Products Company | 375.36 | 101.19 | -271% | 35No options | $1.8B |
| SMR NuScale Power Corporation | 5.83 | 0.3260 | -1688% | 32Weak | $1.7B |
| ALNT Allient Inc. | 96.99 | 40.20 | -141% | 54Fair | $1.6B |
| NVT nVent Electric plc | 145.78 | 80.74 | -81% | 64Fair | $23.6B |
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Start free See the Sunday ScanQuestions about POWL
Is POWL undervalued right now?
No: at 169.53 the stock trades 30% above the GLS average fair value of 130.40 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of POWL and what does it mean?
POWL scores 52 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for POWL?
130.40 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Powell Industries, Inc. report earnings next?
The next earnings report is due on 17 Nov 2026 (after the close), 32 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does POWL have listed options, and how liquid are they?
Yes. The nightly snapshot found 836 listed contracts with 33,002 open interest across all expiries and implied volatility of 77% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.