I’ve been keeping an eye on Power Integrations Inc (NASDAQ:POWI) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe POWI has a lot to offer. Basically, it is a financially-sound company with a a strong track record of dividend payments and a excellent future outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Power Integrations here.
Flawless balance sheet with reasonable growth potential and pays a dividend
POWI is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that POWI manages its cash and cost levels well, which is a crucial insight into the health of the company. Looking at POWI’s capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
POWI is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Power Integrations, I’ve compiled three relevant aspects you should further examine:
- Historical Performance: What has POWI’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- 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!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.