Power Integrations Inc (POWI) Stock Analysis
Verdict: WATCH (do not buy)
Power Integrations' high-voltage IC leadership supports cyclical EPS recovery, but a 107x TTM P/E and insider selling cap 90-day upside.
Investment score: 50/100
Analysis as of
Is Power Integrations Inc stock worth reviewing? AI model thesis
The AI model rates POWI as a HOLD (Investment Score 50/100). Outstanding liquidity and high-voltage power technology leadership are offset by rich valuation multiples and insider liquidation.
7-factor investment score
- Valuation: 30/100 (weight 20%)
- Financial Health: 75/100 (weight 15%)
- Technical Momentum: 35/100 (weight 15%)
- Earnings Quality: 80/100 (weight 15%)
- Insider Sentiment: 15/100 (weight 10%)
- Analyst Consensus: 85/100 (weight 10%)
- Risk-Adjusted Return: 40/100 (weight 15%)
Power Integrations Inc opportunities and risks
What speaks for POWI
- Earnings recovery cycle accelerating via next-gen GaN and motor drivers
What speaks against POWI
- Extreme valuation multiple leaves zero margin for execution missteps
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| POWI | 107.3x | 6.1x | 65.7x | 53.6% | 5.6% | 2.9% |
| DIOD | 49.1x | 2.6x | 18.3x | 31.7% | 5.3% | 3.4% |
| OLED | 18.5x | 5.8x | 13.3x | 75.3% | 32.2% | 4.8% |
| SYNA | n/a | 2.9x | n/a | 44.7% | -41.0% | 2.9% |
| AMBA | n/a | 6.8x | n/a | 58.3% | -13.5% | 0.3% |
| NVTS | n/a | 78.0x | n/a | -1.7% | -856.9% | -2.4% |
| Peer median | n/a | 5.8x | n/a | 44.7% | -13.5% | 2.9% |
Frequently asked questions about Power Integrations Inc (POWI)
Is POWI stock a good investment?
The cached TradeMates AI model rates Power Integrations Inc as WATCH (do not buy) with an investment score of 50/100. The AI model rates POWI as a HOLD (Investment Score 50/100). Outstanding liquidity and high-voltage power technology leadership are offset by rich valuation multiples and insider liquidation. This is algorithmic model output, not personal investment advice.
Is POWI stock a buy?
The TradeMates model verdict for POWI is WATCH (do not buy) with an investment score of 50/100. Treat this as a model signal to review, not a personal buy recommendation.