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Powell Industries Altman Z-Score

: 3.64 (As of Today)
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Good Sign:

Altman Z-score of 3.69 is strong.

Powell Industries has a Altman Z-Score of 3.64, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Powell Industries's Altman Z-Score or its related term are showing as below:

POWL' s Altman Z-Score Range Over the Past 10 Years
Min: 2.54   Med: 4.6   Max: 6.55
Current: 3.69

During the past 13 years, Powell Industries's highest Altman Z-Score was 6.55. The lowest was 2.54. And the median was 4.60.


Powell Industries Altman Z-Score Historical Data

The historical data trend for Powell Industries's Altman Z-Score 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.

* Premium members only.

Powell Industries Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.54 4.32 4.12 3.59 3.77

Powell Industries Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.37 3.77 4.13 3.37 3.53

Competitive Comparison

For the Electrical Equipment & Parts subindustry, Powell Industries's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

For the Industrial Products industry and Industrials sector, Powell Industries's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Powell Industries's Altman Z-Score falls into.



Powell Industries Altman Z-Score Calculation

Altman 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.

Powell Industries's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.3993+1.4*0.6153+3.3*0.007+0.6*1.9562+1.0*1.1053
=3.64

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2022:
Total Assets was $451.8 Mil.
Total Current Assets was $324.8 Mil.
Total Current Liabilities was $144.4 Mil.
Retained Earnings was $278.0 Mil.
Pre-Tax Income was 2.918 + 0.595 + -4.287 + 3.859 = $3.1 Mil.
Interest Expense was 0 + 0 + -0.047 + -0.052 = $-0.1 Mil.
Revenue was 135.483 + 127.854 + 106.569 + 129.454 = $499.4 Mil.
Market Cap (Today) was $304.9 Mil.
Total Liabilities was $155.9 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(324.772 - 144.35)/451.804
=0.3993

X2=Retained Earnings/Total Assets
=278.017/451.804
=0.6153

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(3.085 - -0.099)/451.804
=0.007

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=304.878/155.856
=1.9562

X5=Revenue/Total Assets
=499.36/451.804
=1.1053

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Powell Industries has a Altman Z-Score of 3.64 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Powell Industries  (NAS:POWL) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Powell Industries Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Powell Industries's Altman Z-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Powell Industries Business Description

Powell Industries logo
Traded in Other Exchanges
Address
8550 Mosley Road, Houston, TX, USA, 77075-1180
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.
Executives
Stacey John director C/O HARMAN INTERNATIONAL 1101 PENNSYLVANIA AVE, NW #1010 WASHINGTON DC 20004
Curtis Katheryn Baucom director 8550 MOSLEY ROAD HOUSTON TX 77075
Metcalf Michael William officer: Exec Vice President 8550 MOSLEY ROAD HOUSTON TX 77075
Mcgill James W director 8550 MOSLEY ROAD HOUSTON TX 77075
Elders Perry L director 8550 MOSLEY ROAD HOUSTON TX 77075
Clelland William N. director, other: ADVISORY DIRECTOR 8550 MOSLEY ROAD HOUSTON TX 77075
Williams Richard E director 8550 MOSLEY ROAD HOUSTON X1 77075
Cope Brett Alan officer: Sr VP, COO 8550 MOSLEY ROAD HOUSTON TX 77075
Dial Neil officer: COO 8550 MOSLEY ROAD HOUSTON TX 77075
Power One Inc officer: COO 740 CALLE PLANO CAMARILLO CA 93012
White John David director 8550 MOSLEY ROAD HOUSTON TX 77075
Lucas Michael Allan officer: President & CEO 13131 DAIRY ASHFORD, SUITE 600 SUGAR LAND TX 77478
Rozzell Scott E director
Hancock Bonnie V director P O BOX 12818 HOUSTON TX 77075
Cragg Christopher E director

Powell Industries Headlines

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