Arnold Van Den Berg (Trades, Portfolio), founder of Century Management, sold his remaining 181,540 shares of Powell Industries Inc. (POWL, Financial) during the fourth quarter of 2016. The trade had a -1.17% impact on the portfolio.
Powell Industries develops, designs, manufactures and services custom engineered-to-order equipment and systems for the management and control of electrical energy and other critical processes. It serves the transportation, environmental, energy, industrial and utility industries.
Powell has a market cap of $457.38 million, a price-earnings (P/E) ratio of 29.48, an enterprise value of 362.04 million, a price-book (P/B) ratio of 1.37 and a price-sales (P/S) ratio of 0.83.
According to GuruFocus, Powell has a 9 of 10 financial strength rating with a cash-debt ratio of 40.72, an equity-asset ratio of 0.73 and a Piotroski F-Score of 8, which indicates the company is in healthy business condition.
Powell has a 7 of 10 profitability and growth rating with an operating margin of 2.79%, a net margin of 2.74%, a return on equity (ROE) of 4.67%, three-year revenue growth of -2.50%, three-year EBITDA growth of -17.10% and a return on capital (ROC) of 6.97%.
GuruFocus detected one severe warning sign that investors must pay attention to.
- The company’s per-share revenue has been in long-term decline over the past three years. It has declined at an average rate of -2.50% per year.
The Peter Lynch chart below shows Powell Industries is trading above its intrinsic value.
Disclosure: Author does not own any shares of this company.
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