Powell IndustriesFRA:PW2 +1.68%74 ROE % is 26.81% as of Mar. 2026, which is 480% above its 10-year median of 4.62. GuruFocus rates FRA:PW2 with a GF Score™ of 74/100 and a GF Value™ of €61.79 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 3,003 Industrial Products companies, Powell Industries ranks better than 95.8% on this metric.
The historical rank and industry rank for Powell Industries's ROE % or its related term are showing as below:
FRA:PW2'
s ROE % Range Over the Past 10 Years
Min: -2.89 Med: 4.62 Max: 36.19
Current: 29.62
During the past 13 years, Powell Industries's highest ROE % was 36.19%. The lowest was -2.89%. And the median was 4.62%.
FRA:PW2's ROE % is ranked better than 95.8% of 3003
companies
in the Industrial Products industry
Industry Median: 5.85
vs FRA:PW2: 29.62
Powell Industries (FRA:PW2) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Powell Industries ROE % Related Terms
Powell Industries ROE % Historical Data
* Premium members only.
The historical data trend for Powell Industries's ROE % can be seen below:
* 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.
For the Electrical Equipment & Parts subindustry, Powell Industries's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Powell Industries's ROE % distribution charts can be found below:
* The bar in red indicates where Powell Industries's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Powell Industries (FRA:PW2) has a ROE % of 26.81% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Powell Industries and its competitors. This is 480% above median its historical median of 4.62. According to the industry distribution chart, Powell Industries ranks #126 out of 3003 companies in the Industrial Products industry, placing it in the top 4.2%.
Is Powell Industries' ROE % too high?
Powell Industries' current ROE % of 26.81% is 480% above median its 10-year median of 4.62. The Industrial Products industry median ROE % is 5.85. Powell Industries' value of 26.81% is 358.3% above this industry median. Based on the distribution chart, Powell Industries ranks #126 out of 3003 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Powell Industries has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Powell Industries' ROE % compare to AYI and ENS?
According to the Industrial Products industry distribution chart, Powell Industries ranks #126 out of 3003 companies for ROE %. This places Powell Industries in the top 4% of its industry — outperforming the majority of peers. The industry median ROE % is 5.85. Powell Industries' value of 26.81% is 358.3% above this benchmark. While the company's 10-year median is 4.62 vs. the industry median of 5.85, Powell Industries has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Industrial Products company?
The median ROE % among Industrial Products companies is 5.85, based on 3,003 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Powell Industries's current ROE % of 26.81% is 358.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Powell Industries and its competitors. For the Industrial Products industry, the median ROE % is 5.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Powell Industries's current ROE % is 26.81%, which is 480% above median its own 10-year median of 4.62. 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 (FRA:PW2) is currently considered Significantly Overvalued. The stock's GF Value™ is €61.79, compared to a current price of €218.20 — trading 253.1% above its estimated fair value. The current ROE % is 26.81%, which is 480% above median its 10-year median of 4.62 and 358.3% above the Industrial Products industry median of 5.85. Powell Industries' overall GF Score™ is 74/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Powell Industries (FRA:PW2), the current ROE % is 26.81% as of Mar. 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 (FRA:PW2) Overvalued in 2026?
Based on GuruFocus' analysis, Powell Industries stock appears to be overvalued.
The current stock price of €218.20 is trading 253.1% above its estimated GF Value™ of €61.79.
GuruFocus considers Powell Industries to be Significantly Overvalued.
Key valuation signals for FRA:PW2:
ROE %: 26.81% (480% above median its 10-year median of 4.62)
GF Value™: €61.79 vs. price of €218.20 (253.1% above fair value)
Industry Position: 358.3% above the Industrial Products median (#126 of 3003)
No single metric tells the full story. See the FRA:PW2 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.
74GF Score
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