Power Solutions International Inc
The company maintains a conservative capital structure with a debt-to-equity ratio of 0.56 and a current ratio of 3.15, indicating strong short-term liquidity. Free cash flow of $109.4 million supports operational flexibility, though net cash is negative after subtracting total debt. The price-to-book ratio of 5.0 and price-to-tangible-book ratio of 5.0 suggest a premium valuation relative to book value, while the price-to-earnings ratio of 7.84 is well below the industry median for industrial machinery firms. Profitability metrics show a return on equity of 63.8% and return on assets of 26.8%, both exceeding the industry median for industrial machinery firms. Gross profit of $184.9 million and operating income of $109.7 million reflect strong cost control and pricing power. These returns are supported by a 15.9% gross margin and 15.2% operating margin, both above the industry median. Geographic and segment exposure is not disclosed in the available data, but the company's focus on commercial, industrial, and residential power systems suggests broad market access. Revenue concentration by product or region is not specified in the financial snapshot. The company reported $722.4 million in revenue, with a free cash flow conversion rate of 15.1%. Analysts project a mean price target of $70.37, implying a 81.4% upside from the current market price of $38.75. The mean recommendation of 2.00 (Buy) reflects strong institutional confidence. Risk factors include moderate liquidity risk due to the negative net cash position and a medium debt-to-equity ratio. No dilution risk is flagged in the risk assessment, and no recent equity issuance is reported in the financial snapshot. The company has not disclosed any material regulatory or geopolitical exposures in the available data. Recent events include a strong earnings report with net income of $113.99 million and operating cash flow of $24.11 million. No recent filings or transcripts are available in the input data to provide additional context on strategic initiatives or operational changes.
Business. Power Solutions International Inc designs, engineers, and distributes power generation and energy storage systems for commercial, industrial, and residential applications.
Classification. The company is classified in the Industrial Machinery & Equipment industry under the Industrial Goods business sector with 92% confidence.
- The company's strong free cash flow and high return on equity suggest robust operational performance.
- A conservative capital structure with a current ratio of 3.15 supports liquidity resilience.
- Analysts project a mean price target of $70.37, implying significant upside potential.
- The company's industrial machinery classification aligns with high-margin, capital-efficient operations.
- No dilution risk is currently flagged, and the debt-to-equity ratio remains moderate.
- --
- # RATIONALES
- ```json
- Net cash is negative after subtracting total debt.