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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Power Integrations's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 5.74%.
As of today (2026-08-03), Power Integrations's WACC % is 16.16%. Power Integrations's ROIC % is 2.43% (calculated using TTM income statement data).
Power Integrations earns returns that do not match up to its cost of capital. It will destroy value as it grows.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Power Integrations's WACC % is 16.16%. Power Integrations's ROIC % is 2.43% (calculated using TTM income statement data).
Power Integrations earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Power Integrations ROIC % Related Terms
Power Integrations ROIC % Historical Data
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The historical data trend for Power Integrations's ROIC % 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 Semiconductors subindustry, Power Integrations's ROIC %, along with its competitors' market caps and ROIC % 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.
Power Integrations ROIC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Power Integrations's ROIC % distribution charts can be found below:
* The bar in red indicates where Power Integrations's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
Power Integrations (POWI) has a ROIC % of 5.74% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Power Integrations and its competitors.
Is Power Integrations' ROIC % too high?
Power Integrations' current ROIC % is 5.74%. The Semiconductors industry median ROIC % is 3.79. Power Integrations' value of 5.74% is 51.5% above this industry median. Overall, Power Integrations has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Power Integrations' ROIC % compare to PI and LASR?
Power Integrations' ROIC % of 5.74% can be compared against companies in the Semiconductors industry. The industry median ROIC % is 3.79. Power Integrations' value of 5.74% is 51.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Semiconductors company?
The median ROIC % among Semiconductors companies is 3.79, based on 1,012 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Power Integrations's current ROIC % of 5.74% is 51.5% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Power Integrations and its competitors. For the Semiconductors industry, the median ROIC % is 3.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Power Integrations's current ROIC % is 5.74%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Power Integrations stock overvalued right now?
Based on GuruFocus' analysis, Power Integrations (POWI) is currently considered Modestly Undervalued. The stock's GF Value™ is $70.67, compared to a current price of $60.71 — trading 14.1% below its estimated fair value. The current ROIC % is 5.74% and 51.5% above the Semiconductors industry median of 3.79. Power Integrations' overall GF Score™ is 84/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Power Integrations (POWI), the current ROIC % is 5.74% 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 Power Integrations (POWI) Overvalued in 2026?
Based on GuruFocus' analysis, Power Integrations stock appears to be undervalued.
The current stock price of $60.71 is trading 14.1% below its estimated GF Value™ of $70.67.
GuruFocus considers Power Integrations to be Modestly Undervalued.
Key valuation signals for POWI:
ROIC %: 5.74%
GF Value™: $70.67 vs. price of $60.71 (14.1% below fair value)
Industry Position: 51.5% above the Semiconductors median
No single metric tells the full story. See the POWI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Power Integrations Inc designs, develops, and markets analog and mixed-signal integrated circuits (ICs) and other electronic components and circuitry used in high-voltage power conversion. Products are used in power converters that convert electricity from a high-voltage source to the type of power required for a specified downstream use. Products are used in electronic products including mobile phones, computing and networking equipment, appliances, electronic utility meters, battery-powered tools, industrial controls, home automation, or Internet of Things applications such as networked thermostats, power strips, and security devices. Geographically, the company generates maximum revenue from China and Hong Kong.
84GF Score
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