Power Integrations, Inc. (NASDAQ:POWI) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of POWI, it is a financially-sound , dividend-paying company with a a great track record of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the full report on Power Integrations here.
Flawless balance sheet with proven track record and pays a dividend
Over the past few years, POWI has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did POWI outperformed its past performance, its growth also exceeded the Semiconductor industry expansion, which generated a 37% earnings growth. This is what investors like to see! POWI's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that POWI manages its cash and cost levels well, which is a crucial insight into the health of the company. POWI currently has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is rather impressive for a US$2.2b market cap company. POWI has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
Income investors would also be happy to know that POWI is a great dividend company, with a current yield standing at 0.9%. POWI has also been regularly increasing its dividend payments to shareholders over the past decade.
For Power Integrations, I've put together three essential aspects you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for POWI’s future growth? Take a look at our free research report of analyst consensus for POWI’s outlook.
- Valuation: What is POWI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether POWI is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of POWI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.