Power Solutions International Inc. Common Stock (PSIX)

FairStock Score: 58/100 — STEADY

Key Financials

Strengths

• High return on equity of 93.5% demonstrating efficient capital deployment
• Altman Z-Score of 5.7 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 32.5% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($29) with negative 169% margin of safety—limited downside protection
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

Power Solutions International Inc. Common Stock is a micro-cap industrials company valued at $1.8 billion. The business generates $722 million in annual revenue with a 2.2% net margin. From a quality standpoint, Power shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and Altman Z-Score of 5.7 confirms fortress-level solvency. On valuation, the stock is reasonably priced at 15.8x earnings, with trades far above its Graham Number ($29) with no margin of safety. Growth dynamics show revenue growing at 32.5% and profit growth of -31.0%. Our composite FairStock Score of 58/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Power's 33% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer