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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
GuruFocus does not calculate Powell Industries's interest coverage with the available data.
Powell Industries's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.00.
As of today, Powell Industries's Altman Z-Score is 9.78.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Powell Industries has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Powell Industries Financial Strength Related Terms
POWL vs FPS, AYI, ENS: Financial Strength Comparison
For the Electrical Equipment & Parts subindustry, Powell Industries's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Powell Industries Financial Strength vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Powell Industries's Financial Strength distribution charts can be found below:
* The bar in red indicates where Powell Industries's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
GuruFocus does not calculate Powell Industries's interest coverage with the available data.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Powell Industries Inc has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
Powell Industries's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Powell Industries has a Z-score of 9.78, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 9.78 is strong.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Powell Industries (POWL) has a Financial Strength of 8 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Powell Industries and its competitors. This is near median its historical median of 8.00. Over the past decade, Powell Industries' Financial Strength has ranged from 7.00 to 10.00.
Is Powell Industries' Financial Strength too high?
Powell Industries' current Financial Strength of 8 is near median its 10-year median of 8.00. Over the past 10 years, this metric has ranged from a low of 7.00 to a high of 10.00. Overall, Powell Industries has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Powell Industries' Financial Strength compare to FPS and AYI?
Powell Industries' Financial Strength of 8 can be compared against companies in the Industrial Products industry. Historically, Powell Industries' own Financial Strength has ranged from 7.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Industrial Products company?
A good Financial Strength depends on the Industrial Products industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Powell Industries and its competitors. Powell Industries's current Financial Strength is 8, which is near median its own 10-year median of 8.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Powell Industries stock overvalued right now?
Based on GuruFocus' analysis, Powell Industries (POWL) is currently considered Significantly Overvalued. The stock's GF Value™ is $82.34, compared to a current price of $211.56 — trading 156.9% above its estimated fair value. The current Financial Strength is 8, which is near median its 10-year median of 8.00. Powell Industries' overall GF Score™ is 79/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Powell Industries (POWL), the current Financial Strength is 8 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Powell Industries (POWL) Overvalued in 2026?
Based on GuruFocus' analysis, Powell Industries stock appears to be overvalued.
The current stock price of $211.56 is trading 156.9% above its estimated GF Value™ of $82.34.
GuruFocus considers Powell Industries to be Significantly Overvalued.
Key valuation signals for POWL:
Financial Strength: 8 (near median its 10-year median of 8.00)
GF Value™: $82.34 vs. price of $211.56 (156.9% above fair value)
No single metric tells the full story. See the POWL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Powell Industries Inc is a United States-based company that develops, designs, manufactures, and services custom-engineered equipment and systems for electrical energy distribution, control, and monitoring. The company's principal products comprise integrated power control room substations, custom-engineered modules, electrical houses, traditional and arc-resistant distribution switchgear and control gear, and so on. These products are applied in oil and gas refining, offshore oil and gas production, petrochemical, pipeline, terminal, mining and metals, light-rail traction power, electric utility, pulp and paper, and other heavy industrial markets. The company generates the majority of its sales from the United States, and the rest from Canada, Europe, Asia Pacific, and other regions.
79GF Score
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