Powell(POWL) ZACKS·2024-12-26 17:15Company Performance - POWL's shares have surged 163.3% in the past year, significantly outperforming the industry's 14.5% growth, the broader Zacks Industrial Products sector's 9.6% growth, and the S&P 500's 27.4% growth [7] - The company has also outperformed peers like Eaton Corporation plc (ETN) and Franklin Electric Co, Inc (FELE), which gained 41.7% and 1.5%, respectively, over the same period [7] - Despite a recent 19.8% decline in share price over the past month, POWL's strong top-line growth and impressive EPS growth have maintained its competitive advantage [16][17] Financial Metrics - The Zacks Consensus Estimate for POWL's fiscal 2025 revenues is 244.2 million, reflecting 25.9% year-over-year growth [4] - Earnings estimates for fiscal 2024 have increased 10.1% to 14.81, indicating year-over-year growth of 11.5% and 8.1%, respectively [14] - POWL's trailing 12-month ROE is 35.68%, significantly higher than the industry's 10.24%, and its return on assets is 17.35%, compared to the industry's 5.74% [11][23] Market Diversification and Growth Drivers - POWL has diversified beyond its core oil, gas, and petrochemical markets, enhancing its market share in utility, data center, commercial, and other industrial markets [3] - The company's oil and gas markets grew 23% year-over-year, while petrochemical markets surged 112% in the fiscal fourth quarter [9] - Increasing demand for electrical power from data centers and growth in energy transition projects, such as biofuels, carbon capture, and hydrogen, are key growth drivers [3][9] Expansion and Backlog - POWL is undertaking a 1.3 billion, with new orders totaling 171 million in the year-ago quarter [18] Valuation - POWL's forward 12-month price-to-earnings ratio is 16.67X, well below the industry average of 25.05X, presenting an attractive valuation for investors [20] - The stock is trading higher than its peer, EnerSys (ENS), but remains favorably valued compared to the broader industry [20]